Document:

gden-ex101_7.htm

EXHIBIT 10.1

 Execution

STOCKHOLDERS AGREEMENT

 

This Stockholders Agreement (this “Agreement”), dated as of January 14, 2019 is entered into between Golden Entertainment, Inc., a Minnesota corporation (the “Company”), and the Stockholders (including the Designated Stockholders), set forth on Exhibit A hereto (each, a “Stockholder” and collectively, the “Stockholders”).  The Stockholders and the Company are each a “Party” and collectively the “Parties”.

 

WHEREAS, Marnell Gaming, LLC, a Nevada limited liability company (“Marnell Gaming”), owned all of the issued and outstanding membership interests of Colorado Belle Gaming, LLC, a Nevada limited liability company (“Colorado Belle”), and Edgewater Gaming, LLC, a Nevada limited liability company (“Edgewater” and together with Colorado Belle, the “Subsidiaries”); 

WHEREAS, Marnell Gaming and the Company entered into a Membership Interest Purchase Agreement, dated as of July 14, 2018 (the “MIPA”), pursuant to which (and subject to the terms and conditions thereof), amongst other things, Golden Casinos Nevada, LLC, a Delaware limited liability company and indirect wholly owned subsidiary of the Company purchased all of the issued and outstanding membership interests of the Subsidiaries and Marnell Gaming received the right to receive a certain number of shares of common stock, par value $0.01 per share, of the Company (“Company Common Stock”); 

WHEREAS, Marnell Gaming assigned its right to receive the Company Common Stock directly and indirectly to the Stockholders pursuant to an Assignment and Agreement To Be Bound, dated as of January 14, 2019 (the “Assignment Agreement”); and

WHEREAS this Agreement was an integral part of Marnell Gaming’s and the Company’s willingness to enter into the MIPA.

NOW, THEREFORE, in consideration of the premises, representations, warranties, covenants and agreements contained herein, and subject to the conditions set forth herein, the Parties agree as follows:

1.Board Observer.  Subject to the Stockholder Designee’s (as defined below) execution and delivery of a confidentiality agreement in form and substance reasonably acceptable to the Company and the Stockholder Designee, effective as of the day following the Closing and ending on the date following the Company’s 2019 annual meeting (the “2019 Annual Meeting”), the Board of Directors of the Company (the “Board”) shall permit Anthony A. Marnell III (the “Stockholder Designee”) to attend all meetings of the Board (including telephonic meetings) and any committee thereof in a nonvoting observer capacity.  In connection therewith, the Board or the Company shall give the Stockholder Designee copies of all notices, minutes, consents, and other materials that it provides to members of the Board or any committee thereof substantially concurrently therewith.  Notwithstanding the foregoing, the Company may withhold any information and exclude the Stockholder Designee from any such meeting or portion thereof, including closed and/or executive sessions, if the Board determines in good faith that such exclusion is reasonably necessary to preserve the attorney-client privilege or under circumstances that present an actual or potential conflict of interest.  Upon reasonable notice and at a scheduled 

-1-

 

 

meeting of the Board or such other time, if any, as the Board may determine in its sole discretion, the Stockholder Designee may address the Board with respect to the Stockholder Designee’s concerns regarding significant business issues facing the Company.  For the avoidance of doubt, the designation of the Stockholder Designee is a right, and not an obligation, of the Stockholders.

2.Nomination Rights.

(a)So long as the Stockholder Designee meets the Designee Qualifications (as defined below), the Company shall, to the fullest extent permitted by Law, include the Stockholder Designee in the slate of nominees recommended by the Board at the 2019 Annual Meeting.

(b)The Stockholder Designee shall, at the time of his nomination as a director of the Company (a “Director”) and at all times thereafter until he ceases to serve as a Director:

(i)meet and comply with any and all policies, procedures, processes, codes, rules, standards and guidelines of the Company applicable to all non-employee Directors, including the Company’s code of business conduct and ethics, securities trading policies and corporate governance guidelines;

(ii)not be involved in any of the events enumerated in Item 2(d) or Item 2(e) of Schedule 13D under the Exchange Act or Item 401(f) of Regulation S-K, in each case, during the applicable time period set forth therein;

(iii)not be subject to any order, decree or judgment of any Governmental Authority prohibiting service as a director of any public company;

(iv)not be an employee, officer, or director or, or consultant to, or be receiving any compensation or benefits from, any competitor of the Company except (A) as otherwise agreed to by the Corporate Governance Committee of the Board (the “Corporate Governance Committee”) and (B) for any such role with or compensation from Marnell Gaming or its Affiliates; and

(v)have demonstrated good judgment, character and integrity in his personal and professional dealings and have relevant financial, investment, management and/or business experience, qualification and background for purposes of serving as a Director, each as determined by the Corporate Governance Committee acting in good faith (the requirements being set forth in this Section 2(b) being referred to, collectively, as the “Designee Qualifications”, which the Company represents are and will continue to be equally applicable (other than clause (B) of subsection (iv)) to all Directors and candidates therefor when and as applicable to the Stockholder Designee).

(c)The Stockholder Designee, as a condition to his initial election to the Board and any re-nomination for election to the Board, must be willing to be interviewed by the Corporate Governance Committee on the same basis as any other candidate for appointment or election or re-election to the Board and must be reasonably satisfactory to the Corporate Governance Committee acting in good faith.  The Stockholders, in their capacity as stockholders of the Company, and the Stockholder Designee shall deliver such questionnaires and otherwise provide such information as are reasonably requested by the Company in connection with assessing the 

-2-

 

 

qualification, independence and other criteria applicable to Directors, or required to be or customarily provided by directors, candidates for director, and their Affiliates and representatives for inclusion in a proxy statement or other filings required by applicable Law and the rules of the NASDAQ Stock Market, in each case, to substantially the same extent requested or required of other candidates for appointment, election or re-election to the Board after the date hereof.

3.Transfer Restrictions.

(a)From the date hereof until the earlier of (i) the date of the 2019 Annual Meeting, or (ii) the date eight (8) months following the date hereof (the “Restricted Period”), the Designated Stockholders (as identified on Exhibit A hereto) shall not, directly or indirectly, by operation of Law, contract or otherwise, (i) sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights in the Restricted Shares, (ii) engage in any hedging, swap, forward contract or other similar transaction that is designed to or which reasonably could be expected to lead to or result in a sale or disposition of beneficial ownership of, or a pecuniary interest in, the Restricted Shares, including any short sale or any purchase, sale or grant of any right (including without limitation any put or call option) with respect to such Restricted Shares, or (iii) enter into a short sale of, or trade in, derivative securities representing the right to vote or economic benefits of, the Restricted Shares (clauses (i)-(iii), a “Transfer”), other than, in each case, pursuant to a Permitted Transfer (as defined below).

(b)“Permitted Transfer” means:

(i)a Transfer that has been approved in advance by a majority of the disinterested members of the Board or a duly-authorized committee thereof;

(ii)a Transfer in connection with any acquisition (whether direct or indirect, including by way of merger, share exchange, consolidation, business combination, tender offer, exchange offer or other similar transaction) that would result in any Person beneficially owning more than fifty percent (50%) of the total outstanding shares of Company Common Stock approved by the Board or a duly-authorized committee thereof (including if the Board or such committee (A) recommends that the Company’s stockholders tender in response to a tender or exchange offer or (B) does not recommend that the Company’s stockholders reject any such tender or exchange offer within the ten (10) business day period specified in Rule 14e-2(a) under the Exchange Act); or

(iii)a Transfer to a direct or indirect equityholder of a Designated Stockholder; provided that, prior to such Transfer, such transferee shall have agreed in writing with the Company, in a form reasonably acceptable to the Company, to be bound by this Section 3 (a “Permitted Transferee” and, together with the Designated Stockholders, the “Holders”).

(c)“Restricted Shares” means the Issued Shares held by the Designated Stockholders, as set forth on Exhibit A hereto.

(d)Following the Restricted Period, the Holders shall be free to Transfer any Restricted Shares.

-3-

 

 

(e)Any Transfer or attempted Transfer of Restricted Shares in violation of this Section 3 shall, to the fullest extent permitted by applicable Law, be null and void ab initio, and the Company shall not, and shall instruct its transfer agent and other third parties not to, record or recognize any such purported transaction on the books of the Company.

(f)The certificates or book-entry position representing the Issued Shares will bear or reflect, as applicable, legends substantially similar to the following:

“THESE SECURITIES AND THE SECURITIES ISSUABLE UPON THE EXCHANGE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT RELATING TO SUCH SECURITIES UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS.”

Additionally, for so long as a Holder of the Issued Shares is subject to any transfer restrictions set forth in this Agreement or the other Transaction Documents, the certificates or book-entry position representing such Holder’s Issued Shares will bear or reflect a legend substantially similar to the following:

 

“THESE SECURITIES ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS SET FORTH IN THE STOCKHOLDERS AGREEMENT, DATED AS OF JANUARY 14, 2019, BETWEEN GOLDEN ENTERTAINMENT, INC., A MINNESOTA CORPORATION, AND THE SIGNATORIES THERETO, AS AMENDED FROM TIME TO TIME, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY.”

 

Notwithstanding the foregoing, upon the request of a Holder, (i) in connection with any Transfer of Restricted Shares after the Restricted Period (including in a public offering), the Company shall promptly cause the first and second paragraphs of the legend (or notation) to be removed upon such Transfer if such restrictions would not be applicable following such Transfer, (ii) following receipt by the Company of an opinion of counsel to the Company to the effect that such legend (or notation) may be lifted in connection with the Transfer of Issued Shares, the Company shall promptly cause the first paragraph of the legend (or notation) to be removed from any Issued Shares to be Transferred in accordance with the terms of this Agreement, and (iii) to the extent the first and second paragraphs of the legend (or notation) would be removed pursuant to this paragraph in connection with any Transfer of Issued Shares, the Company shall use its reasonable best efforts to cause such Issued Shares to be registered in the name of The Depository Trust Company’s nominee.

	
(g)
	
Any Transfers of Issued Shares by the Holders (including Permitted Transfers) shall be subject to all mandatory Gaming-related Laws and permits (relating to the Transfer of Issued 

-4-

 

 

		
Shares) applicable to the Holders, the transferee, or the Company in those jurisdictions in which the Company or its subsidiaries then conduct Gaming Activities.

 

4.Registration Rights.

(a)From and after the date hereof (or, with respect to Restricted Shares, from and after the expiration of the Restricted Period), if the Company (i) proposes to file a registration statement under the Securities Act with respect to a primary offering of any Company Common Stock (except pursuant to registrations on Form S-4 or any successor form, or on Form S-8 or any successor form) on a form that would permit registration of Registrable Shares (as defined below) for sale to the public under the Securities Act or (ii) proposes to file an initial prospectus supplement to a registration statement with respect to a primary offering of Company Common Stock on a form that would permit registration of Registrable Shares for sale to the public under the Securities Act in connection with filing such prospectus supplement, then the Company shall give written notice of such proposed filing to the Stockholder Designee not less than twenty one (21) days before the anticipated filing date, describing in reasonable detail the proposed offering (including the number and class of securities proposed to be offered, the proposed date of filing of such registration statement or prospectus supplement, any proposed means of distribution of such securities, any proposed managing underwriter of such securities and a good faith estimate by the Company of the proposed maximum offering price of such securities as such price is proposed to appear on the facing page of such registration statement or prospectus supplement), and offering the Holders the opportunity to register and offer such number of Registrable Shares of the same class as those being offered by the Company as the Holders may request.  Upon the written request of a Holder, received by the Company no later than ten (10) days after receipt by the Stockholder Designee of the notice sent by the Company, to register and offer, on the same terms and conditions as the securities otherwise being sold pursuant to such registration statement or prospectus supplement, any of the Holder’s Registrable Shares of the same class as those being offered (which request shall state the intended method of disposition thereof if the securities otherwise being sold are being sold by more than one method of disposition), the Company will cause such Registrable Shares as to which registration shall have been so requested to be included in the registration statement or prospectus supplement proposed to be filed by the Company on the same terms and conditions as the securities otherwise being sold pursuant to such registration statement or prospectus supplement (a “Piggyback Registration”); provided, however, that, notwithstanding the foregoing, the Company may at any time, in its sole discretion, without the consent of the Holders, delay or abandon the proposed offering in which the Holders had requested to participate pursuant to this Section 4(a) or cease the filing (or obtaining or maintaining the effectiveness) of or withdraw the related registration statement or prospectus supplement or other governmental approvals, registrations or qualifications.  In such event, the Company shall so notify the Stockholder Designee and the Company shall incur no liability to the Stockholders for its failure to complete any such offering.

(b)If a Piggyback Registration is initiated, and the managing underwriter advises the Company that in its reasonable opinion the number of equity securities requested to be included in such registration exceeds the number that can be sold in such offering without having a material adverse effect on the price or success of the offering, then the Company shall include in such registration statement or prospectus supplement the maximum number of shares that such underwriter advises can be so sold without having such adverse effect, allocated (i) first, to the 

-5-

 

 

equity securities the Company proposes to sell, (ii) second, to the Holders and any other shareholder of the Company with piggyback registration rights entitling it to include shares of Company Common Stock, and (iii) third, among management of the Company and other security holders of the Company not entitled to piggyback registration rights, pro rata among each of the foregoing on the basis of the percentage of the then outstanding shares requested to be registered by them.

(c)The Company may, by notice in writing to the Holders (a “Suspension Notice”), postpone the filing or effectiveness of any registration requested pursuant to this Section 4 (including any post-effective amendments thereto), or otherwise suspend the registration rights of the Holders and/or require the Holders to suspend use of any resale prospectus for any period of time determined by the Company if there shall occur a Material Disclosure Event (as defined below) (such period, a “Suspension Period”). The Holders agree that, upon receipt of a Suspension Notice, the Holders will forthwith discontinue any public sale or distribution of Registrable Shares until the earlier of (i) the expiration of the Suspension Period and (ii) the Holders receipt of a notice from the Company to the effect that such suspension has terminated.  The Company covenants and agrees that it will not deliver a Suspension Notice with respect to a Suspension Period unless the Company’s employees, officers and directors are also prohibited by the Company for the duration of such Suspension Period from effecting any public sales of shares of Company Common Stock beneficially owned by them.  In the event of a Suspension Notice, the Company shall, promptly after such time as the related Material Disclosure Event no longer exists, provide notice to the Holders that the Suspension Period has ended, and take any and all actions necessary or desirable to give effect to the Holder’s rights under this Section 4 that may have been affected by such notice.  Notwithstanding the foregoing, each Suspension Period shall not exceed a period of forty-five (45) days, and there shall be no more than two (2) such Suspension Periods in any 12-month period.

(d)All expenses, other than Selling Expenses (as defined below), incurred in connection with registrations, filings or qualifications pursuant to this Section 4 with the SEC and Financial Industry Regulatory Authority, printers’ and accounting fees, and fees and disbursements of counsel for the Company, shall be borne and paid by the Company.  All Selling Expenses shall be borne by the participating Holders; or if there are other selling shareholders with shares being registered pursuant to such registration statement, then pro rata by the selling shareholders based on the number of shares sold by such selling shareholder in the offering.

(e)For purposes of this Section 4,

(i)“Material Disclosure Event” means, as of any date of determination, any public disclosure of material non-public information that, in the good faith judgment of the Board (A) would be required to be made in any registration statement or report filed with the SEC by the Company so that such registration statement or report would not be materially misleading; (B) would not be required to be made at such time but for the filing, effectiveness or continued use of such registration statement or report; and (C) the Company has a bona fide business purpose for not disclosing publicly.

(ii)“Registrable Shares” means the Issued Shares, including, without limitation, any shares of Company Common Stock paid, issued or distributed in respect of any such shares by way of stock dividend, stock split or distribution, or in connection with a 

-6-

 

 

combination of shares, recapitalization, reorganization, merger or consolidation, or otherwise, but excluding shares of Company Common Stock otherwise acquired after the date hereof, including in the open market before or after the date hereof, provided, however, that the Issued Shares will cease to be “Registrable Shares” (A) after such shares have been sold pursuant to an effective registration statement or in compliance with Rule 144, (B) when the remaining Issued Shares held by a Holder could, in the opinion of counsel reasonably satisfactory to Company, be sold by such Holder in a single transaction under Rule 144 (or a successor provision) or (C) upon such time as the registration statement registering the resale of the Registrable Shares has been effective for twenty four (24) months following the Restricted Period (regardless of whether such months are consecutive).

(iii)“Selling Expenses” means the fees and disbursements of counsel for the Holders (and, for the avoidance of doubt, underwriting discounts or commissions with respect to the Registrable Shares sold pursuant to such registration).

(f)With a view to making available to the Holders the benefits of Rule 144, during the term of this Agreement, the Company covenants that it will use commercially reasonable efforts to (i) file in a timely manner all reports and other documents required, if any, to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted thereunder and (ii) make available information necessary to comply with Rule 144 with respect to resales of the Issued Shares under the Securities Act, at all times, to the extent required from time to time to enable the Holders to resell such shares without registration under the Securities Act within the limitation of the exemptions provided by (A) Rule 144 (if available with respect to resales of such shares), as such rule may be amended from time to time, or (B) any other rules or regulations now existing or hereafter adopted by the SEC.

(g)To the extent permitted by applicable Law, the Company will indemnify and hold harmless the Holders against any Losses arising out of or based upon any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular, any amendments or supplements thereto, “issuer free writing prospectus” (as such term is defined in Rule 433 under the Securities Act) or other document (including any related registration statement, notification, or the like) incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act, any state securities law, or any rule or regulation thereunder applicable to the Company, in each case, in connection with this Section 4, and the Company will pay to the Holders any legal or other reasonable and documented expenses incurred thereby in connection with investigating or defending any claim or proceeding from which such Losses may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 4 shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld or delayed, nor shall the Company be liable to the Holders for any Losses to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of the Holders expressly for use in connection with such registration.

(h)Promptly after receipt by a Holder of notice of the commencement of any action 

-7-

 

 

(including any governmental action) for which such Holder may be entitled to indemnification hereunder, such Holder will, if a claim in respect thereof is to be made against the Company under this Section 4, give the Company notice of the commencement thereof.  The Company shall have the right to participate in such action and, to the extent the Company so desires, to assume the defense thereof with counsel reasonably satisfactory to the Holder; provided, however, that such Holder shall have the right to retain one separate counsel, with the reasonable and documented fees and expenses to be paid by the Company, if (i) such Holder reasonably objects to such assumption on the grounds that there may be defenses available to it which are different from or in addition to those available to the Company, (ii) such Holder and the Company shall have mutually agreed to the retention of such counsel or (iii) in the reasonable opinion of such Holder, representation of such Holder by the counsel retained by the Company would be inappropriate due to an actual or potential conflict of interest between such Holder and the Company in such proceeding.  The failure to give notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Holders under this Section 4, unless and only to the extent that such failure materially prejudices the Company’s ability to defend such action.  Notwithstanding the foregoing, the failure to give notice to the Company will not relieve it of any liability that it may have to the Holder otherwise than under this Section 4.  The Company shall not, without the prior written consent of the applicable Holder(s), effect any settlement of any claim or pending or threatened proceeding in respect of which such Holder(s) is or could have been a party and indemnity could have been sought hereunder by such Holder(s), unless such settlement includes an unconditional release of such Holder(s) from all liability arising out of such claim or proceeding.

(i)To provide for just and equitable contribution to joint liability under the Securities Act in any case in which contribution under the Securities Act may be required on the part of a Holder, then such Holder will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which it may be subject in such proportion as is appropriate to reflect the relative fault of the Company and such Holder in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.  The relative fault of the Company and such Holder shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the Company or by such Holder and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case (x) such Holder will not be required to contribute any amount in excess of the public offering price of all such Registrable Shares offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

5.Representations and Warranties.

(a)The Company represents and warrants to the Stockholders that (i) the Company has the corporate power and authority to execute this Agreement and to bind it thereto, (ii) this Agreement has been duly and validly authorized, executed and delivered by the Company, and, assuming this Agreement is duly and validly executed and delivered by the Stockholders, constitutes a valid and binding obligation and agreement of the Company, enforceable against the 

-8-

 

 

Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles and (iii) the execution, delivery and performance of this Agreement by the Company does not and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company, or (B) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.

(b)Each Stockholder represents and warrants to the Company that (i) the Stockholder has the power and authority to execute this Agreement and to bind it thereto, (ii) this Agreement has been duly and validly authorized, executed and delivered by the Stockholder, and, assuming this Agreement is duly and validly executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Stockholder, enforceable against the Stockholder in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles and (iii) the execution, delivery and performance of this Agreement by the Stockholder does not and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Stockholder or (B) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Stockholder is a party or by which it is bound.

6.Termination.  This Agreement shall terminate on the later of (a) the expiration of the Restricted Period and (b) the date on which no Holder holds any Registrable Shares; provided, that paragraphs (g), (h) and (i) of Section 4, this Section 6 and Sections 8 – 16 shall survive for any sales of Registrable Shares prior to such date.

7.Further Assurance.  Each Party shall sign such further documents, cause such meetings to be held, resolutions passed, exercise its votes and do and perform and cause to be done such further acts and things as may be necessary in order to give full effect to this Agreement.

8.Specific Performance.  The Parties agree that irreparable damage for which monetary damages, even if available, may not be an adequate remedy, would occur in the event that the Parties do not perform the provisions of this Agreement in accordance with its specified terms or otherwise breach such provisions. The Parties acknowledge and agree that the Parties shall be entitled to an injunction, specific performance and other equitable relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which they are entitled at law or in equity. Any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction. Each Party acknowledges and agrees that the 

-9-

 

 

rights to an injunction, specific performance or other equitable remedy contemplated herein are an integral part of the transactions contemplated by this Agreement and without such right, neither of the Parties would have entered into this Agreement.

9.Expenses; Liability.  Except as expressly set forth herein, each Party shall be responsible for its own fees and expenses incurred in connection with the negotiation, execution and performance of this Agreement and the transactions contemplated hereby, including, but not limited to, any matters related to any regular or special meeting of the Company.

10.Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

11.Notices.  All notices, requests, instructions or other documents to be given hereunder by either Party to the other shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, by email or overnight courier:

If to the Company:

Golden Entertainment, Inc.
6595 S. Jones Boulevard
Las Vegas, Nevada 89118
Attention:  Sean Higgins
Email: shiggins@goldenent.com

with a copy to: 

Latham & Watkins LLP
10250 Constellation Blvd. Suite 1100

Los Angeles, CA 90067

Attention: Steven Stokdyk and Jason Morelli

E-mail: steven.stokdyk@lw.com and jason.morelli@lw.com

 

If to the Stockholders: As set forth on Exhibit A hereto.

with a copy to:

-10-

 

 

Holland & Hart LLP
5441 Kietzke Lane, Suite 200

Reno, NV  89511

Attention: David Garcia and James Newman
Email: dgarcia@hollandhart.com and jnewman@hollandhart.com

or to such other persons or addresses as may be designated in writing by the Party to receive such notice as provided above.  Any notice, request, instruction or other document given as provided above shall be deemed given to the receiving Party upon actual receipt, if delivered personally; three business days after deposit in the mail, if sent by registered or certified mail; upon confirmation of successful transmission, if sent by email (provided, that, if given by email such notice, request, instruction or other document shall be followed up within one business day by dispatch pursuant to one of the other methods described herein); or on the next business day after deposit with an overnight courier, if sent by an overnight courier.

12.Governing Law and Venue.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE THEREOF (OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402). Each Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of, or related to, this Agreement exclusively in the United States District Court for the Southern District of New York sitting in the Borough of Manhattan, of the City of New York, solely in respect of the interpretation and enforcement of the provisions of (and any claim or cause of action arising under or relating to) this Agreement, and in respect of the transactions contemplated hereby, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or of any such document, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the Parties irrevocably agree that all claims relating to such action, proceeding or transactions shall be heard and determined in such courts. Each Party expressly acknowledges that the foregoing waiver is intended to be irrevocable under the Laws of the State of New York and of the United States of America; provided, that, each such Party’s consent to jurisdiction and service contained in this Section 12 is solely for the purpose referred to in this Section 12 and shall not be deemed to be a general submission to said courts or in the State of New York other than for such purpose. The Parties hereby consent to and grant any such court jurisdiction over the person of such Parties and, to the extent permitted by Law, over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 11 or in such other manner as may be permitted by Law shall be valid and sufficient service thereof.

13.WAIVER OF JURY TRIAL.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE 

-11-

 

 

TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY HEREBY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 13.

14.Counterparts; Headings.  This Agreement may be executed in two (2) or more counterparts, each of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile). The section headings contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement.

15.Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries; Defined Terms.

(a)This Agreement, the MIPA (including any exhibits and schedules thereto and the Disclosure Schedules) and the documents, instruments and other agreements among the Parties contemplated hereby or thereby or referred to herein or therein, including each Transaction Agreement, constitute the entire agreement of the Parties with respect to the subject matter of this Agreement, and supersede all prior agreements, understandings, representations and warranties, both written and oral, among the Parties, with respect to the subject matter hereof.

(b)No modifications of this Agreement can be made except in writing signed by an authorized representative of each of the Stockholders and the Company. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Time is of the essence in the performance of this Agreement. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.

(c)The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to the Stockholders, the prior written consent of the Company, and with respect to the Company, the prior written consent of the Stockholders. This Agreement is solely for the benefit of the Parties hereto and is not enforceable by any other Persons, except that the Holders (other than the Stockholders) shall be third party beneficiaries of the provisions of Section 4.

(d)Capitalized terms used herein but not defined herein will have the meanings given 

-12-

 

 

to them in the MIPA.

16.Interpretation.  Each of the Parties acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of such counsel. Each Party and its counsel cooperated and participated in the drafting and preparation of this Agreement, and any and all drafts relating thereto exchanged among the Parties shall be deemed the work product of all of the Parties and may not be construed against any Party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each of the Parties, and any controversy over interpretations of this Agreement shall be decided without regard to events of drafting or preparation.

[Remainder of page intentionally left blank]

-13-

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.

 

 

THE COMPANY:

 

 

GOLDEN ENTERTAINMENT, INC.

By:_/s/ Charles H. Protell__________________

Name: Charles H. Protell

Title: CFO

 

 

 

 

-14-

 

 

THE STOCKHOLDERS:

 

 

THE WELLS FAMILY 2001 TRUST

dated June 21, 2001 

 

 

By:_/s/ Gregory K. Wells____________

Name:Gregory K. Wells

Title:Co-Trustee

 

 

By:_/s/ Michelle K. Wells___________

Name:Michelle K. Wells

Title:Co-Trustee

 

 

THE WOODHEAD FAMILY 1999 TRUST

dated December 10, 1999 

 

 

By: _/s/ Matthew E. Woodhead_______

Name:Matthew E. Woodhead

Title:Co-Trustee

 

 

By: _/s/ Kari R. Woodhead____________

Name:Kari R. Woodhead

Title:Co-Trustee

 

 

THE LYNDY MARNELL 2003 TRUST

DTD 08/11/2003 

 

 

By:_/s/ Lyndy Marnell________________

Name:Lyndy Marnell

Title: Trustee

 

 

 

_/s/ Jeffrey C. Pfeiffer_______________

Jeffrey C. Pfeiffer

 

REHM FAMILY LIVING TRUST

U/A/D 9/18/1996

 

 

By: _/s/ Cary A. Rehm_____________

Name:Cary A. Rehm

Title: Co-Trustee

 

 

By: _/s/ Donna M. Rehm____________ 

Name:Donna M. Rehm

Title: Co-Trustee

 

 

THE AM3 2012 TRUST

dated December 28, 2012 

 

 

By: _/s/ Anthony A. Marnell III______

Name:Anthony A. Marnell III

Title: Co-Trustee

 

 

By: __/s/ Matthew E. Woodhead_____

Name:Matthew E. Woodhead

Title: Co-Trustee

 

 

THE ALISA ANN MARNELL 1994 TRUST

dated December 29, 1994 

 

 

By: _/s/ Anthony A. Marnell III_______

Name:Anthony A. Marnell III

Title: Trustee

 

 

 

-15-

 

 

EXHIBIT A

Stockholder Contact Information 

 

	
	
Stockholder Name & Address

	
The Woodhead Family 1999 Trust

dated December 10, 1999

(Matthew E. Woodhead and Kari R. Woodhead, Co-Trustees)

#### ########## ####,

####, ## #####

	
The Wells Family 2001 Trust

dated June 21, 2001

(Gregory K. Wells and Michelle K. Wells, Co-Trustees)

#### ######### ###,

#########, ## #####

	
Jeffrey C. Pfeiffer 

##### ### ######### ###,

### ####, ## #####

	
Rehm Family Living Trust

U/A/D 9/18/1996

(Cary Alan Rehm and Donna Marie Rehm, Co-Trustees)

##### ##### ##### ###,

### ####, ## #####

	
Designated Stockholder Name & Address

	
The AM3 2012 Trust

dated December 28, 2012

(Anthony A. Marnell III and Matthew E. Woodhead, Co-Trustees)

###  ### ####### ###,

### #####, ## #####

	
The Alisa Ann Marnell 1994 Trust

dated December 29, 1994

(Anthony A. Marnell III, Trustee)

###  ### ####### ###,

### #####, ## #####

	
The Lyndy Marnell 2003 Trust

DTD 08/11/2003

(Lyndy Marnell, Trustee)

## ####### ##### ######

### #####, ## #####

 

-17-EX-10.1

 Exhibit 10.1 

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF TEXAS 

HOUSTON DIVISION 
  

					
	 	 	§	  	
	In re:	 	§	  	 Chapter 11

		 	§	  	
	PETROQUEST ENERGY, INC., et al.,	 	§	  	 Case No. 18-36322 (DRJ)

		 	§	  	
	 Debtors.1
	 	§	  	 (Jointly Administered)

	 	 	§	  	

 DEBTORS’ FIRST AMENDED CHAPTER 11 PLAN OF 

REORGANIZATION, AS IMMATERIALLY MODIFIED AS OF JANUARY 14, 2019 

 
 PORTER HEDGES LLP 

John F. Higgins (TX 09597500) 

Joshua W. Wolfshohl (TX 24038592) 

M. Shane Johnson (TX 24083263) 

1000 Main Street, 36th Floor 

Houston, Texas 77002 

ATTORNEYS FOR THE DEBTORS 

Dated: January 14, 2019 
  

 

	1 	 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax
identification number, are as follows: PetroQuest Energy, Inc. (0714), PetroQuest Energy, L.L.C. (2439), TDC Energy LLC (8877), PetroQuest Oil & Gas, L.L.C. (1170), PQ Holdings LLC (7576), Pittrans Inc. (1747), and Sea Harvester Energy
Development, L.L.C. (5903). The address of the Debtors’ headquarters is: 400 E. Kaliste Saloom Road, Suite 6000, Lafayette, Louisiana 70508. 

 TABLE OF CONTENTS 

 

							
	ARTICLE I. DEFINED TERMS, RULES OF INTERPRETATION, COMPUTATION OF TIME, AND GOVERNING LAW 	  	 	1	 
	 A.
	 	Defined Terms	  	 	1	 
	 B.
	 	Rules of Interpretation	  	 	18	 
	 C.
	 	Computation of Time	  	 	19	 
	 D.
	 	Governing Law	  	 	19	 
	 E.
	 	Reference to Monetary Figures	  	 	19	 
	 F.
	 	Reference to the Debtors or the Reorganized Debtors	  	 	20	 
	 G.
	 	Controlling Document	  	 	20	 
		
	ARTICLE II. ADMINISTRATIVE CLAIMS, PROFESSIONAL FEE CLAIMS, AND PRIORITY CLAIMS	  	 	20	 
			
	 A.
	 	Administrative Claims	  	 	20	 
	 B.
	 	Professional Compensation	  	 	21	 
	 C.
	 	Priority Tax Claims	  	 	22	 
	 D.
	 	Statutory Fees	  	 	22	 
		
	ARTICLE III. CLASSIFICATION AND TREATMENT OF CLAIMS AND INTERESTS	  	 	22	 
			
	 A.
	 	Summary of Classification	  	 	22	 
	 B.
	 	Treatment of Claims and Interests	  	 	23	 
	 C.
	 	Special Provision Governing Unimpaired Claims	  	 	29	 
	 D.
	 	Confirmation Pursuant to Sections 1129(a)(10) and 1129(b) of the Bankruptcy Code	  	 	29	 
	 E.
	 	Elimination of Vacant Classes	  	 	29	 
	 F.
	 	Voting Classes; Deemed Acceptance by Non-Voting Classes	  	 	29	 
	 G.
	 	Subordinated Claims	  	 	29	 
		
	ARTICLE IV. MEANS FOR IMPLEMENTATION OF THE PLAN	  	 	29	 
			
	 A.
	 	Restructuring Transactions	  	 	29	 
	 B.
	 	Sources of Consideration for Plan Distributions	  	 	30	 
	 C.
	 	Distributions to Holders of General Unsecured Claims	  	 	32	 
	 D.
	 	Corporate Existence	  	 	32	 
	 E.
	 	Vesting of Assets in the Reorganized Debtors	  	 	32	 
	 F.
	 	Cancellation of Existing Securities	  	 	33	 
	 G.
	 	Corporate Action	  	 	34	 
	 H.
	 	New Organizational Documents	  	 	35	 
	 I.
	 	Directors and Officers of the Reorganized Debtors	  	 	35	 
	 J.
	 	Effectuating Documents; Further Transactions	  	 	36	 
	 K.
	 	Exemption from Certain Taxes and Fees	  	 	36	 
	 L.
	 	Preservation of Causes of Action	  	 	36	 
	 M.
	 	Director and Officer Liability Insurance	  	 	37	 
	 N.
	 	Management Incentive Plan	  	 	37	 

							
	 O.
	 	Employee and Retiree Benefits	  	 	37	 
	 P.
	 	Fees and Expenses of the Consenting Creditors	  	 	38	 
	 Q.
	 	Preservation of the Charging Lien of the Indenture Trustee	  	 	39	 
	 R.
	 	Preservation of Royalty and Working Interests	  	 	39	 
	 S.
	 	GUC Administrator	  	 	39	 
		
	ARTICLE V. TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES	  	 	40	 
			
	 A.
	 	Assumption and Rejection of Executory Contracts and Unexpired Leases	  	 	40	 
	 B.
	 	Claims Based on Rejection of Executory Contracts or Unexpired Leases	  	 	41	 
	 C.
	 	Cure of Defaults for Assumed Executory Contracts and Unexpired Leases	  	 	41	 
	 D.
	 	Insurance Policies	  	 	42	 
	 E.
	 	Modifications, Amendments, Supplements, Restatements, or Other Agreements	  	 	42	 
	 F.
	 	Reservation of Rights	  	 	42	 
	 G.
	 	Nonoccurrence of Effective Date	  	 	43	 
	 H.
	 	Contracts and Leases Entered into After the Petition Date	  	 	43	 
		
	ARTICLE VI. PROVISIONS GOVERNING DISTRIBUTIONS	  	 	43	 
			
	 A.
	 	Timing and Calculation of Amounts to Be Distributed	  	 	43	 
	 B.
	 	Delivery of Distributions and Undeliverable or Unclaimed Distributions	  	 	43	 
	 C.
	 	Securities Registration Exemption	  	 	46	 
	 D.
	 	Compliance with Tax Requirements	  	 	47	 
	 E.
	 	Allocations	  	 	47	 
	 F.
	 	No Postpetition Interest on Claims	  	 	47	 
	 G.
	 	Setoffs and Recoupment	  	 	47	 
	 H.
	 	Claims Paid or Payable by Third Parties	  	 	47	 
		
	ARTICLE VII. PROCEDURES FOR RESOLVING CONTINGENT, UNLIQUIDATED, AND DISPUTED CLAIMS 	  	 	48	 
			
	 A.
	 	Allowance of Claims	  	 	48	 
	 B.
	 	Claims and Interests Administration Responsibilities	  	 	49	 
	 C.
	 	Estimation of Claims	  	 	49	 
	 D.
	 	Adjustment to Claims Without Objection	  	 	50	 
	 E.
	 	Disputed Claims Reserve	  	 	50	 
	 F.
	 	Time to File Objections to Claims	  	 	50	 
	 G.
	 	Disallowance of Claims	  	 	50	 
	 H.
	 	Amendments to Claims	  	 	51	 
	 I.
	 	No Distributions Pending Allowance	  	 	51	 
	 J.
	 	Distributions After Allowance	  	 	51	 
	 K.
	 	Single Satisfaction of Claims	  	 	51	 
		
	ARTICLE VIII. SETTLEMENT, RELEASE, INJUNCTION, AND RELATED PROVISIONS	  	 	52	 
			
	 A.
	 	Compromise and Settlement of Claims, Interests, and Controversies	  	 	52	 
	 B.
	 	Discharge of Claims and Termination of Interests	  	 	53	 

  
 ii 

							
	 C.
	 	Term of Injunctions or Stays	  	 	53	 
	 D.
	 	Release of Liens	  	 	53	 
	 E.
	 	Releases by the Debtors	  	 	54	 
	 F.
	 	Releases by Holders of Claims and Interests	  	 	55	 
	 G.
	 	Exculpation	  	 	56	 
	 H.
	 	Injunction	  	 	57	 
	 I.
	 	Protection Against Discriminatory Treatment	  	 	57	 
	 J.
	 	Recoupment	  	 	58	 
	 K.
	 	Subordination Rights	  	 	58	 
	 L.
	 	Reimbursement or Contribution	  	 	58	 
		
	ARTICLE IX. CONDITIONS PRECEDENT TO CONFIRMATION AND CONSUMMATION OF THE PLAN	  	 	58	 
			
	 A.
	 	Conditions Precedent to the Confirmation Date	  	 	58	 
	 B.
	 	Conditions Precedent to the Effective Date	  	 	59	 
	 C.
	 	Waiver of Conditions	  	 	60	 
	 D.
	 	Substantial Consummation	  	 	60	 
	 E.
	 	Effect of Non-Occurrence of Conditions to the Confirmation Date or the Effective Date	  	 	60	 
		
	ARTICLE X. MODIFICATION, REVOCATION, OR WITHDRAWAL OF THE PLAN	  	 	61	 
			
	 A.
	 	Modification and Amendments	  	 	61	 
	 B.
	 	Effect of Confirmation on Modifications	  	 	61	 
	 C.
	 	Revocation or Withdrawal of the Plan	  	 	61	 
		
	ARTICLE XI. RETENTION OF JURISDICTION	  	 	62	 
		
	ARTICLE XII. MISCELLANEOUS PROVISIONS	  	 	64	 
			
	 A.
	 	Immediate Binding Effect	  	 	64	 
	 B.
	 	Additional Documents	  	 	64	 
	 C.
	 	Dissolution of the Creditors’ Committee	  	 	64	 
	 D.
	 	Reservation of Rights	  	 	65	 
	 E.
	 	Successors and Assigns	  	 	65	 
	 F.
	 	Service of Documents	  	 	65	 
	 G.
	 	Term of Injunctions or Stays	  	 	66	 
	 H.
	 	Entire Agreement	  	 	66	 
	 I.
	 	Exhibits	  	 	66	 
	 J.
	 	Nonseverability of Plan Provisions	  	 	67	 
	 K.
	 	Votes Solicited in Good Faith	  	 	67	 
	 L.
	 	Closing of Chapter 11 Cases	  	 	67	 
	 M.
	 	Waiver or Estoppel	  	 	67	 

  
 iii 

 INTRODUCTION 

PetroQuest Energy, Inc. and its Debtor affiliates, as Debtors and debtors in possession, propose this plan of reorganization for the
resolution of outstanding Claims against, and Interests in, the Debtors. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in Article I.A hereof. Holders of Claims and Interests should refer to
the Disclosure Statement for a discussion of the Debtors’ history, businesses, assets, results of operations, historical financial information, and projections of future operations, as well as a summary and description of the Plan. The Debtors
are the proponents of the Plan within the meaning of section 1129 of the Bankruptcy Code. 

 

ALL HOLDERS OF CLAIMS AND INTERESTS, TO THE EXTENT APPLICABLE, ARE ENCOURAGED TO READ THE PLAN AND THE DISCLOSURE STATEMENT
IN THEIR ENTIRETY BEFORE VOTING TO ACCEPT OR REJECT THE PLAN. 

 ARTICLE I. 

DEFINED TERMS, RULES OF INTERPRETATION, COMPUTATION OF TIME, AND GOVERNING LAW 

 

	A.	 Defined Terms 

As used in the Plan, capitalized terms have the meanings set forth below. 

1.    “Administrative Claim” means a Claim for costs and expenses of administration of the
Debtors’ Estates pursuant to sections 503(b), 507 (a) (2), or 507(b) of the Bankruptcy Code, including: (a) the actual and necessary costs and expenses incurred after the
Petition Date and through the Effective Date of preserving the Estates and operating the businesses of the Debtors; (b) Professional Fee Claims; and (c) all Allowed requests for compensation or expense reimbursement for making a
substantial contribution in the Chapter 11 Cases pursuant to sections 503(b)(3), (4), and (5) of the Bankruptcy Code. 

2.    “Administrative Claims Bar Date” means the deadline for Filing requests for payment of
Administrative Claims, which: (a) with respect to Administrative Claims other than Professional Fee Claims, shall be 30 days after the Effective Date; and (b) with respect to Professional Fee Claims, shall be 45 days after the Effective
Date. 
 3.    “Affiliate” shall have the meaning set forth in section 101(2) of the Bankruptcy
Code. 
 4.    “Allowed” means with respect to any Claim against a Debtor, except as otherwise
provided herein: (a) a Claim that is evidenced by a Proof of Claim or request for payment of an Administrative Claim Filed by the Claims Bar Date, Administrative Claims Bar Date, Governmental Bar Date, or deadline for Filing Proofs of Claim
based on the Debtors’ rejection of the Executory Contracts or Unexpired Leases, as applicable (or for which Claim under the Plan, under the Bankruptcy Code, or pursuant to a Final Order a Proof of Claim is not or shall not be required to be
Filed); (b) a Claim that is listed in the Schedules as not contingent, not unliquidated, and not disputed, and for which no Proof of Claim, as applicable, has been timely Filed; or (c) a 

 
Claim Allowed pursuant to the Plan or a Final Order of the Court; provided that with respect to a Claim described in clauses (a) and (b) above, such Claim shall be considered Allowed
only if and to the extent that with respect to such Claim no objection to the allowance thereof has been interposed and the applicable period of time fixed by the Plan to File an objection has passed, or such an objection is so interposed and the
Claim, as applicable, shall have been Allowed by a Final Order. Any Claim that has been or is hereafter listed in the Schedules as contingent, unliquidated, or disputed, and for which no Proof of Claim is or has been timely Filed, is not considered
Allowed and shall be expunged without further action by the Debtors and without further notice to any party or action, approval, or order of the Court. Notwithstanding anything to the contrary herein, no Claim of any Entity subject to section 502(d)
of the Bankruptcy Code shall be deemed Allowed unless and until such Entity pays in full the amount that it owes such Debtor or Reorganized Debtor, as applicable. For the avoidance of doubt, a Proof of Claim or request for payment of an
Administrative Claim Filed after the Claims Bar Date, Administrative Claims Bar Date, Governmental Bar Date, or deadline for Filing Proofs of Claim based on the Debtors’ rejection of the Executory Contracts or Unexpired Leases, as applicable,
shall not be Allowed for any purposes whatsoever absent entry of a Final Order allowing such late-filed Claim. “Allow” and “Allowing” shall have correlative meanings. 

5.    “Avoidance Actions” means any and all actual or potential Claims and Causes of Action to
avoid a transfer of property or an obligation incurred by the Debtors arising under chapter 5 of the Bankruptcy Code, including sections 544, 545, 547 through 553, and 724(a) of the Bankruptcy Code or under similar or related state or federal
statutes and common law, including fraudulent transfer laws. 
 6.    “Bankruptcy Code” means
title 11 of the United States Code, as amended and in effect during the pendency of the Chapter 11 Cases. 

7.    “Bankruptcy Rules” means the Federal Rules of Bankruptcy Procedure, as applicable to the
Chapter 11 Cases, promulgated under section 2075 of the Judicial Code and the general, local, and chambers rules of the Court other than the Local Rules. 

8.    “Bar Date Order” means the order entered by the Court setting the Claims Bar Date and the
Governmental Bar Date [Docket No. 272]. 
 9.    “Business Day” means any day, other than a
Saturday, Sunday, or “legal holiday” (as defined in Bankruptcy Rule 9006(a)). 

10.    “Cash” means the legal tender of the United States of America or the equivalent thereof.

 11.    “Cash Collateral” shall have the meaning set forth in section 363(a) of the Bankruptcy
Code. 
 12.    “Cash Collateral Order” means the Final Order entered by the Court authorizing
the Debtors to, on a final basis, use Cash Collateral. 
 13.    “Causes of Action” means any
action, claim, cause of action, controversy, demand, right, action, Lien, indemnity, guaranty, suit, obligation, liability, damage, judgment, account, 

  
 2 

 
defense, offset, power, privilege, license, and franchise of any kind or character whatsoever, whether known, unknown, contingent or non-contingent,
matured or unmatured, suspected or unsuspected, liquidated or unliquidated, disputed or undisputed, secured or unsecured, assertable directly or derivatively, whether arising before, on, or after the Petition Date, in contract or in tort, in law, or
in equity or pursuant to any other theory of law. For the avoidance of doubt, a “Cause of Action” includes: (a) any right of setoff, counterclaim, or recoupment and any claim for breach of contract or for breach of duties imposed by
law or in equity; (b) the right to object to Claims or Interests; (c) any Claim pursuant to section 362 or chapter 5 of the Bankruptcy Code; (d) any claim or defense including fraud, mistake, duress, and usury; and any other defenses
set forth in section 558 of the Bankruptcy Code; and (e) any state or foreign law fraudulent transfer or similar claim. 

14.    “Chapter 11 Cases” means (a) when used with reference to a particular Debtor, the case
pending for that Debtor under chapter 11 of the Bankruptcy Code in the Court and (b) when used with reference to all of the Debtors, the procedurally consolidated and jointly administered chapter 11 cases pending for the Debtors in the Court.

 15.    “Charging Lien” means any Lien or other right to payment arising prior to the
Effective Date pursuant to which the Indenture Trustee is entitled, under the terms of its Indenture or any related or ancillary document, instrument, agreement or principle of law, to receive payment of its fees, costs and expenses prior to payment
of any distributions under the Plan owing to the Holders of the Notes issued under such Indenture, which Lien or other priority in payment shall be deemed a separate right and Claim of the Indenture Trustee arising under the Plan. 

16.    “Claim” shall have the meaning set forth in section 101(5) of the Bankruptcy Code. 

17.    “Claims Bar Date” means January 15, 2019, established pursuant to the Bar Date Order,
that Claims other than Administrative Claims and Claims held by Governmental Units, must be Filed. 

18.    “Claims Objection Deadline” means the deadline for objecting to a Claim against a Debtor,
which shall be on the date that is the later of (a) 180 days after the Effective Date and (b) such other period of limitation as may be fixed by the Debtors or the Reorganized Debtors, as applicable, or by an order of the Court for objecting to
such Claims. 
 19.    “Claims Register” means the official register of Claims against and
Interests in the Debtors maintained by the Notice and Claims Agent. 
 20.    “Class” means a
category of Claims against or Interests in the Debtors as set forth in Article III hereof pursuant to section 1122(a) of the Bankruptcy Code. 

21.    “Collateral Trust Agreement” means the Collateral Trust Agreement, dated as of
February 17, 2016, by and among PetroQuest, PQE, TDC, and the Indenture Trustee, as amended, modified, or supplemented from time to time. 

22.    “Combined Consenting Second Lien Noteholders” means the Consenting Second Lien Noteholders
and the Consenting Second Lien PIK Noteholders. 

  
 3 

 23.    “Combined Prepetition Second Lien
Noteholders” means the Prepetition Second Lien Noteholders and the Prepetition Second Lien PIK Noteholders. 

24.    “Commitment Parties” means the MacKay Funds and the Corre Funds. 

25.    “Confirmation” means the entry of the Confirmation Order on the docket of the Chapter 11
Cases. 
 26.    “Confirmation Date” means the date upon which the Court enters the Confirmation
Order on the docket of the Chapter 11 Cases, within the meaning of Bankruptcy Rules 5003 and 9021. 

27.    “Confirmation Hearing” means the hearing or hearings held by the Court to consider
Confirmation of the Plan pursuant to section 1129 of the Bankruptcy Code. 
 28.    “Confirmation
Order” means the order of the Court confirming the Plan pursuant to section 1129 of the Bankruptcy Code. 

29.    “Consenting Creditors” means the Consenting Term Loan Lenders and the Combined Consenting
Second Lien Noteholders. 
 30.     “Consenting Creditors Fee Escrow Account” means an
interest-bearing account in an amount equal to the Consenting Creditors Fee Reserve Amount and funded by the Debtors on the Effective Date, pursuant to Article IV.P. 

31.    “Consenting Creditors Fee Reserve Amount” means the total amount of Consenting Creditors
Fees reasonably estimated in accordance with Article IV.P. 
 32.    “Consenting Creditors Fees”
means, to the extent not already authorized pursuant to the Cash Collateral Order or other order of the Court, and except with respect to the Debtors and the Creditors’ Committee, the reasonable and documented fees and expenses incurred on or
after the Petition Date of the Consenting Creditors Professionals. 
 33.    “Consenting Creditors
Professionals” means (i) Akin Gump Strauss Hauer & Feld LLP, as counsel to the Consenting Creditors, (ii) Houlihan Lokey, Inc., as financial advisor to the Consenting Creditors, and (iii) Reed Smith LLP, as
counsel to the Indenture Trustee. 
 34.    “Consenting Second Lien Noteholders” means the
Prepetition Second Lien Noteholders that are party to the Restructuring Support Agreement. 

35.    “Consenting Second Lien PIK Noteholders” means the Prepetition Second Lien PIK Noteholders
that are party to the Restructuring Support Agreement. 
 36.    “Consenting Term Loan Lenders”
means the Prepetition Term Loan Lenders that are party to the Restructuring Support Agreement. 

37.    “Consummation” means the occurrence of the Effective Date. 

  
 4 

 38.    “Convenience Claim” means an Allowed
General Unsecured Claim with a face amount equal to or less than $7,500. 
 39.    “Convenience
Class Distribution” means, with respect to each Convenience Claim, an amount equal to 50.0% of such Convenience Claim. 

40.    “Corre Funds” means Corre Opportunities Qualified Master Fund, LP, Corre Opportunities II
Master Fund, LP, Corre Horizon Interim Fund LLC, any funds related to the foregoing that are signatories to the Restructuring Support Agreement, and any of such funds’ successors or assigns. 

41.    “Court” means the United States Bankruptcy Court for the Southern District of Texas having
jurisdiction over the Chapter 11 Cases, and, to the extent of the withdrawal of any reference under 28 U.S.C. § 157 and/or the General Order of the District Court pursuant to 28 U.S.C. § 151, the United States District Court for the
Southern District of Texas. 
 42.    “Creditors’ Committee” means the official committee
of unsecured creditors appointed in the Chapter 11 Cases pursuant to section 1102(a) of the Bankruptcy Code on November 20, 2018 [Docket No. 141]. 

43.    “Cure Claim” means a monetary Claim based upon a Debtor’s defaults under an Executory
Contract or Unexpired Lease at the time such contract or lease is assumed by the Debtor pursuant to section 365 of the Bankruptcy Code. 

44.    “Cure Notice” means a notice of a proposed amount to be paid on account of a Cure Claim in
connection with an Executory Contract or Unexpired Lease to be assumed or assumed and assigned under the Plan pursuant to section 365 of the Bankruptcy Code, which notice shall include (a) procedures for objecting to proposed assumptions or
assumptions and assignments of Executory Contracts and Unexpired Leases, (b) Cure Claims to be paid in connection therewith, and (c) procedures for resolution by the Court of any related disputes. 

45.    “D&O Liability Insurance Policies” means all unexpired directors’, managers’,
and officers’ liability insurance policies (including any “tail policy”) of any of the Debtors with respect to directors, managers, officers, and employees of the Debtors. 

46.    “Debt Documents” means, as the context may require, the “Loan
Documents” as defined in the Prepetition Term Loan Agreement, and the “Note Documents” as defined in each of the Prepetition Second Lien Indenture and the Prepetition Second Lien PIK Indenture. 

47.    “Debtors” means, collectively, the following: PetroQuest, PQE, TDC, POG, PQ Holdings,
Pittrans, and Sea Harvester. 
 48.    “Definitive Documentation” means the definitive documents
and agreements governing the Restructuring Transactions and shall include, without limitation: (a) the Restructuring Support Agreement and all exhibits thereto; (b) the Plan (including the Plan Supplement and all exhibits thereto,
including, without limitation, the New Organizational Documents and the Registration Rights Agreement) and the Confirmation Order; (c) the Disclosure Statement; (d) the motion to approve the Disclosure Statement, the order approving the

  
 5 

 
Disclosure Statement, and the solicitation materials with respect to the Plan; (e) the motion seeking assumption of the Debtors’ obligation under the Restructuring Support Agreement to
pay the fees, costs, and documented out of pocket expenses of the Consenting Creditors Professionals; (f) the New Second Lien PIK Notes Documents; (g) the Exit Facility and the Exit Facility Documents; (h) the motion seeking authority
for the Debtors to use the cash collateral of the Prepetition Term Loan Lenders and the Combined Prepetition Second Lien Noteholders and any interim and final orders related thereto; (i) the first day motions, second day motions, and orders of
the Court approving any first day motions or second day motions; (j) a 3-year business plan for the Debtors; and (k) any other documents, instruments, schedules or exhibits described in, related to,
contemplated in, or necessary to implement, each of the foregoing. Any document that is included within this definition of “Definitive Documentation,” including any amendment, supplement, or modification thereof, shall be in form and
substance acceptable to the Debtors and the Requisite Creditors. 
 49.    “Disallowed” means,
with respect to any Claim, or any portion thereof, that such Claim, or any portion thereof, is not Allowed. 

50.    “Disbursing Agent” means, on the Effective Date, the Reorganized Debtors, their agent, or
any Entity or Entities designated by the Reorganized Debtors, including the Indenture Trustee in accordance with Art. VI.B.1.d, to make or facilitate distributions that are to be made pursuant to the Plan, except for distributions to Holders of
General Unsecured Claims. 
 51.    “Disclosure Statement” means the Third Amended Disclosure
Statement for the Debtors’ First Amended Chapter 11 Plan of Reorganization, dated as of January 3, 2019, as may be amended, supplemented, or modified from time to time, including all exhibits and schedules thereto and references therein
that relate to the Plan, that is prepared and distributed in accordance with the Bankruptcy Code, the Bankruptcy Rules, and any other applicable law. 

52.    “Disputed Claim” means a Claim that is not yet Allowed. 

53.    “Disputed Claims Reserve” means a reserve of Cash that may be funded on or after the
Effective Date pursuant to Article VII.E hereof. 
 54.    “Distribution Record Date” means,
other than with respect to the Second Lien Notes Claims, the date for determining which Holders of Allowed Claims are eligible to receive distributions pursuant to the Plan, which shall be the date that the Confirmation Order is entered by the
Court, or such other date specified in the Confirmation Order. For the avoidance of doubt, distributions to the Second Lien Notes Claims shall be made pursuant to the surrender of the underlying notes, on or as soon as practicable after the
Effective Date; provided, however, that no Distribution Record Date shall apply to publicly held securities if distribution of such securities will be effectuated through DTC and shall be made through the facilities of the DTC in accordance
with the customary practices of DTC for a mandatory distribution. 
 55.    “DTC” means The
Depository Trust Company. 
 56.    “Effective Date” means the date that is a Business Day
selected by the Debtors and the Requisite Creditors, on which: (a) no stay of the Confirmation Order is in effect; (b) all conditions precedent specified in Article IX.B have been satisfied or waived (in accordance with Article IX.C); and
(c) the Plan is declared effective. 

  
 6 

 57.    “Entity” shall have the meaning set forth
in section 101(15) of the Bankruptcy Code. 
 58.    “Estate” means, as to each Debtor, the
estate created for the Debtor in its Chapter 11 Case pursuant to section 541 of the Bankruptcy Code. 

59.    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

60.    “Exculpated Party” means (a) the Debtors, (b) the Reorganized Debtors,
(c) the Creditors’ Committee, and (d) with respect to the foregoing (a) through (c), as applicable, each of their respective members, current and former Affiliates, and their current and former Affiliates’ current and former
directors, managers, officers, managed accounts and funds, predecessors, successors, and assigns, subsidiaries, and each of their respective current and former officers, directors, managers, principals, members, employees, subcontractors, agents,
advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, management companies, fund advisors, and other professionals, each solely in their capacity as such. 

61.    “Executory Contract” means a contract to which one or more of the Debtors is a party that
is subject to assumption or rejection under section 365 or 1123 of the Bankruptcy Code. 
 62.    “Exit
Facility” means a new credit facility or credit facilities among PetroQuest, PQE, the lenders party thereto, and the Exit Facility Agent, on the terms and conditions set forth in the Exit Facility Documents, which terms and conditions
shall be consistent with Exhibit B of the Restructuring Support Agreement and otherwise acceptable to the Debtors and the Requisite Creditors. 

63.    “Exit Facility Agent” means the administrative agent and collateral agent under the Exit
Facility, or any successor thereto, solely in its capacity as such. 
 64.    “Exit Facility Commitment
Letter” means the commitment letter entered into by the Commitment Parties in connection with the Exit Facility pursuant to which the Commitment Parties agree to backstop the Exit Facility as described in Article IV.B.3 herein, which
terms and conditions shall be acceptable to the Debtors and the Requisite Creditors. 
 65.    “Exit Facility
Documents” means the Exit Facility, the Exit Facility Commitment Letter, and any other guarantee, security, and relevant documentation with respect to the Exit Facility, each in form and substance acceptable to the Debtors and the
Requisite Creditors. 
 66.    “Federal Judgment Rate” means the federal judgment rate in effect
as of the Petition Date, compounded annually. 
 67.    “File,” “Filed,”
or “Filing” means file, filed, or filing in the Chapter 11 Cases with the Court or, with respect to the filing of a Proof of Claim or proof of Interest, the Notice and Claims Agent or the Court through the PACER or CM/ECF
website. 

  
 7 

 68.    “Final Order” means (i) an order or
judgment of the Court, as entered on the docket in any Chapter 11 Case (or any related adversary proceeding or contested matter) or the docket of any other court of competent jurisdiction, or (ii) an order or judgment of any other court having
jurisdiction over any appeal from (or petition seeking certiorari or other review of) any order or judgment entered by the Court (or any other court of competent jurisdiction, including in an appeal taken) in the Chapter 11 Cases (or in any related
adversary proceeding or contested matter), in each case that has not been reversed, stayed, modified, or amended, and as to which the time to appeal, or seek certiorari or move for a new trial, reargument, or rehearing has expired according to
applicable law and no appeal or petition for certiorari or other proceedings for a new trial, reargument, or rehearing has been timely taken, or as to which any appeal that has been taken or any petition for certiorari that has been or may be timely
Filed has been withdrawn or resolved by the highest court to which the order or judgment was appealed or from which certiorari was sought or the new trial, reargument, or rehearing shall have been denied, resulted in no modification of such order,
or has otherwise been dismissed with prejudice; provided, however, that the possibility a motion under Rule 60 of the Federal Rules of Civil Procedure, or any analogous rule under the Bankruptcy Rules or the Local Rules, may be Filed relating
to such order shall not prevent such order from being a Final Order. 
 69.    “First Lien
Claims” means, collectively, Claims against the Debtors arising under the Prepetition Term Loan Agreement. 

70.    “General Unsecured Claim” means any Unsecured Claim against any Debtor (including, for the
avoidance of doubt, any Claim arising from the rejection of an Executory Contract or Unexpired Lease and the Second Lien Deficiency Claims) that is not otherwise paid in full or otherwise satisfied during the Chapter 11 Cases pursuant to an order of
the Court, other than a Priority Tax Claim, an Other Priority Claim, a Section 510(b) Claim, or an Intercompany Claim. 

71.    “General Unsecured Claims Distribution” means $1,200,000 in Cash, less (a) the
Convenience Class Distribution and (b) the reasonable out of pocket expenses of the GUC Administrator, including, without limitation, the fees and expenses of the GUC Administrator’s counsel. 

72.    “Governmental Unit” shall have the meaning set forth in section 101(27) of the Bankruptcy
Code. 
 73.    “Governmental Bar Date” means May 5, 2019, the date established pursuant to
the Bar Date Order by which Proofs of Claim of Governmental Units must be Filed. 
 74.    “GUC
Administrator” means the Entity designated by the Creditors’ Committee, in consultation with the Debtors and the Requisite Creditors, and identified at or prior to the Confirmation Hearing, to, among other things, (a) object
to General Unsecured Claims, (b) administer the General Unsecured Claims allowance process, and (c) authorize distributions to Holders of General Unsecured Claims from the General Unsecured Claims Distribution, in each case, as set forth
in the Plan and the GUC Administrator Agreement. 

  
 8 

 75.    “GUC Administrator Agreement” means the
agreement governing the GUC Administrator’s duties and responsibilities Filed as part of the Plan Supplement. 

76.    “Holder” means any Person or Entity holding a Claim or an Interest. 

77.    “Hoog/Lee Litigation Claims” means the litigation claims arising from Kevin Hoog v.
PetroQuest Energy, LLC et al., Case No. 16-cv-00463, pending in the United States District Court for the Eastern District of Oklahoma and Philip Lee v. PetroQuest
Energy, LLC et al., Case No. 16-cv-00516, pending in the United States District Court for the Eastern District of Oklahoma. 

78.    “Impaired” means, with respect to a Class of Claims or Interests, a Class of
Claims or Interests that is not Unimpaired. 
 79.    “Indenture Trustee” means Wilmington
Trust, National Association as the Prepetition Second Lien Trustee and the Prepetition Second Lien PIK Trustee. 

80.    “Indentures” means the Prepetition Second Lien Indenture and the Prepetition Second Lien
PIK Indenture. 
 81.     “Insider” has the meaning set forth in section 101(31) of the
Bankruptcy Code. 
 82.    “Intercompany Claim” means any Claim held by one Debtor against
another Debtor. 
 83.    “Intercompany Interest” means an Interest in one Debtor held by
another Debtor. 
 84.    “Interests” means the common stock, preferred stock, limited liability
company interests, and any other equity, ownership, or profits interests of any Debtor, including, without limitation, the PetroQuest Preferred Stock and the PetroQuest Common Stock, and options, warrants, rights, or other securities or agreements
to acquire the common stock, preferred stock, limited liability company interests, or other equity, ownership, or profits interests of any Debtor (whether or not arising under or in connection with any employment agreement), including any Claim
against the Debtors that is subject to subordination pursuant to section 510(b) of the Bankruptcy Code arising from or related to any of the foregoing. 

85.    “Interim Compensation Order” means the order entered by the Court establishing procedures
for compensation of Professionals. 
 86.    “Judicial Code” means title 28 of the United States
Code, 28 U.S.C. §§ 1–4001. 
 87.    “Lien” shall have the meaning set forth in
section 101(37) of the Bankruptcy Code. 
 88.    “Local Rules” means the Local Rules of
Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the Southern District of Texas. 

89.    “MacKay Funds” means any funds or accounts to which MacKay Shields LLC has sole investment
or voting discretion that are or become signatories to the Restructuring Support Agreement and any of the foregoing funds’ or accounts’ successors or assigns. 

  
 9 

 90.    “Management Equity Pool” means the New
Equity (on a fully diluted basis as of the Effective Date) reserved under the Management Incentive Plan after the New Equity is issued pursuant to the Put Option Premium and to Holders of Second Lien Notes Claims, 9% of which will be allocated by
the New Parent Board to the management of the Reorganized Debtors no later than the Effective Date on the terms and conditions set forth in the MIP Term Sheet, and 200,000 shares of which will be granted following the Effective Date to such persons,
at such times and subject to such terms and conditions as are determined by the New Parent Board. For the avoidance of doubt, the total New Equity reserved under the Management Incentive Plan will be calculated after the New Equity is issued
pursuant to the Put Option Premium and will dilute both the New Equity issued pursuant to the Put Option Premium and the New Equity issued to Holders of Second Lien Notes Claims. 

91.    “Management Incentive Plan” means that certain post-Effective Date management incentive
plan, pursuant to which the Management Equity Pool shall be reserved and allocated as part of the compensation provided to the Reorganized Debtors’ management on the terms and conditions set forth in the MIP Term Sheet. 

92.    “MIP Term Sheet” means the term sheet attached as Exhibit D to the Restructuring Support
Agreement detailing the terms of the Management Incentive Plan. 
 93.    “New Boards” means the
initial board of directors, members, or managers, as applicable, of each Reorganized Debtor, including the New Parent Board, as designated in accordance with Article IV.I. 

94.    “New Equity” means the common stock, par value $0.01 per share, of New Parent to be issued
pursuant to the Plan on the Effective Date. 
 95.    “New Organizational Documents” means the
form of the certificates or articles of incorporation, bylaws, limited liability company agreement, or such other applicable formation, constitutional, or organizational documents of each of the Reorganized Debtors, which forms are included in the
Plan Supplement and shall be consistent in all respects with the Registration Rights Agreement and the Governance Term Sheet attached as Exhibit F to the Restructuring Support Agreement. 

96.    “New Parent” means PetroQuest or any successor thereto, by merger, consolidation, or
otherwise, on or after the Effective Date. 
 97.    “New Parent Board” means the initial board
of directors of New Parent, as determined pursuant to Article IV.I. 
 98.    “New Second Lien PIK
Indenture” means that certain Indenture dated as of the Effective Date (as amended or supplemented from time to time) among PetroQuest, as borrower, PQE and TDC as guarantors, and the New Second Lien PIK Trustee. 

99.    “New Second Lien PIK Notes” means the 10% Second Lien Senior Secured PIK Notes due 2024
issued pursuant to the New Second Lien PIK Indenture, which New Second Lien PIK Notes shall be consistent with Exhibit C of the Restructuring Support Agreement and otherwise acceptable to the Debtors and the Requisite Creditors. 

  
 10 

 100.    “New Second Lien PIK Notes Documents”
means the New Second Lien PIK Indenture and any other guarantee, security, and relevant documentation with respect to the New Second Lien PIK Notes, each in form and substance acceptable to the Requisite Creditors. 

101.    “New Second Lien PIK Trustee” means Wilmington Trust, National Association as the Trustee
and Collateral Trustee under the New Second Lien PIK Indenture. 
 102.    “Notes” means the
Prepetition Second Lien Notes and the Prepetition Second Lien PIK Notes. 
 103.    “Notice and Claims
Agent” means Epiq Corporate Restructuring, LLC, the notice, claims, and solicitation agent retained by the Debtors in the Chapter 11 Cases. 

104.    “Other Priority Claim” means any Claim against a Debtor other than an Administrative Claim
or a Secured Tax Claim entitled to priority in right of payment under section 507(a) of the Bankruptcy Code, to the extent such claim has not already been paid during the Chapter 11 Cases. 

105.    “Other Secured Claim” means any Secured Claim other than the following: (a) First
Lien Claims; (b) Second Lien Notes Claims; or (c) Secured Tax Claims. For the avoidance of doubt, “Other Secured Claims” includes any Claim against a Debtor, arising under, derived from, or based upon any letter of credit issued
for the account of one or more Debtors, the reimbursement obligation for which is either secured by a Lien or is subject to a valid right of setoff pursuant to section 553 of the Bankruptcy Code. 

106.    “Person” shall have the meaning set forth in section 101(41) of the Bankruptcy Code. 

107.    “Petition Date” means November 6, 2018, the date on which each Debtor Filed its
voluntary petition for relief commencing the Chapter 11 Cases. 
 108.    “PetroQuest” means
PetroQuest Energy, Inc., a Delaware corporation. 
 109.    “PetroQuest Common Stock” means
PetroQuest’s authorized and issued common stock, par value $.001 per share, outstanding as of the Petition Date. 

110.    “PetroQuest Interests” means, collectively, any Interests in PetroQuest, including the
PetroQuest Common Stock and PetroQuest Preferred Stock. 
 111.    “POG” means PetroQuest
Oil & Gas, L.L.C., a Louisiana limited liability company. 
 112.    “PetroQuest Preferred
Stock” means PetroQuest’s authorized and issued shares of 6.875% Series B Cumulative Convertible Perpetual Preferred Stock outstanding as of the Petition Date. 

113.    “Pittrans” means Pittrans Inc., an Oklahoma corporation. 

  
 11 

 114.    “Plan” means this chapter 11 plan, as it
may be altered, amended, modified, or supplemented from time to time in accordance with the Restructuring Support Agreement and the terms hereof, including the Plan Supplement and all exhibits, supplements, appendices, and schedules to the Plan.

 115.    “Plan Supplement” means the compilation of documents and forms of documents,
schedules, and exhibits to the Plan, each of which shall be in form and substance acceptable to the Requisite Creditors (as amended, supplemented, or modified from time to time in accordance with the terms hereof, the Bankruptcy Code, the Bankruptcy
Rules, and the Restructuring Support Agreement), Filed by the Debtors on January 11, 2019, and additional documents or amendments to previously Filed documents, Filed before the Confirmation Date as amendments to the Plan Supplement (which, for
the avoidance of doubt, shall also be in form and substance acceptable to the Requisite Creditors), including the following, as applicable: (a) the New Organizational Documents; (b) the New Second Lien PIK Notes Documents; (c) the
terms of the Exit Facility and the Exit Facility Documents; (d) the Schedule of Rejected Executory Contracts and Unexpired Leases; (e) the Schedule of Assumed Executory Contracts and Unexpired Leases; (f) a list of retained Causes of
Action; (g) the Management Incentive Plan; (h) the identity of the members of the New Boards and the senior management team to be retained by the Reorganized Debtors as of the Effective Date (to the extent known); (i) the Registration
Rights Agreement; and (j) any and all other documentation necessary to effectuate the Restructuring Transactions or that is contemplated by the Plan. The Debtors shall have the right to amend the documents contained in, and exhibits to, the
Plan Supplement through the Effective Date subject in all respects to the consent rights set forth herein and in the Restructuring Support Agreement. 

116.    “PQE” means PetroQuest Energy, L.L.C., a Louisiana limited liability company. 

117.    “PQ Holdings” means PQ Holdings LLC, a Louisiana limited liability company. 

118.    “Prepetition Agreements” means (i) the Prepetition Term Loan Agreement, (ii) the
Prepetition Second Lien Indenture, and (iii) the Prepetition Second Lien PIK Indenture. 

119.    “Prepetition Intercreditor Agreement” means the Intercreditor Agreement, dated as of
February 17, 2016, by and among the PetroQuest, PQE, TDC, JPMorgan Chase Bank, N.A., and the Indenture Trustee, as amended, modified, or supplemented from time to time. 

120.    “Prepetition Second Lien Indenture” means that certain Indenture dated as of
February 17, 2016 (as amended or supplemented from time to time, including by the First Supplemental Indenture dated as of September 13, 2016), among PetroQuest, as borrower, PQE and TDC as guarantors, and the Prepetition Second Lien
Trustee. 
 121.    “Prepetition Second Lien Noteholders” means the Holders of the Prepetition
Second Lien Notes. 
 122.    “Prepetition Second Lien Notes” means the 10% Second Lien Secured
Senior Notes due 2021 issued pursuant to the Prepetition Second Lien Indenture. 
 123.    “Prepetition
Second Lien Notes Claims” means Claims against the Debtors arising under the Prepetition Second Lien Indenture and the Prepetition Second Lien Notes, which for the avoidance of doubt shall include both the Prepetition Second Lien Notes
Secured Claims and the Second Lien Notes Deficiency Claims. 

  
 12 

 124.    “Prepetition Second Lien Notes Secured
Claims” means the Prepetition Second Lien Notes Claims, to the extent such claims are Secured. 

125.    “Prepetition Second Lien PIK Indenture” means that certain Indenture dated as of
September 27, 2016 (as amended or supplemented from time to time), among PetroQuest, as borrower, PQE and TDC as guarantors, and the Prepetition Second Lien PIK Trustee. 

126.    “Prepetition Second Lien PIK Noteholders” means the Holders of the Prepetition Second Lien
PIK Notes. 
 127.    “Prepetition Second Lien PIK Notes” means the 10% Second Lien Senior
Secured PIK Notes due 2021 issued pursuant to the Prepetition Second Lien PIK Indenture. 

128.    “Prepetition Second Lien PIK Notes Claims” means Claims against the Debtors arising under
the Prepetition Second Lien PIK Indenture and the Prepetition Second Lien PIK Notes, which for the avoidance of doubt shall include both the Prepetition Second Lien PIK Notes Secured Claims and the Second Lien PIK Notes Deficiency Claims. 

129.    “Prepetition Second Lien PIK Notes Secured Claims” means the Prepetition Second Lien PIK
Notes Claims, to the extent such claims are Secured. 
 130.    “Prepetition Second Lien PIK
Trustee” means Wilmington Trust, National Association, as the Trustee and Collateral Trustee under the Prepetition Second Lien PIK Indenture. 

131.    “Prepetition Second Lien Trustee” means Wilmington Trust, National Association, as the
Trustee and Collateral Trustee under the Prepetition Second Lien Indenture. 
 132.    “Prepetition Term Loan
Agent” means Wells Fargo Bank, N.A., as administrative agent under the Prepetition Term Loan Agreement. 

133.    “Prepetition Term Loan Agreement” means that certain Multidraw Term Loan Agreement, dated
as of August 31, 2018 (as amended from time to time), among PetroQuest, PQE, TDC, the Prepetition Term Loan Agent, and the Prepetition Term Loan Lenders. 

134.    “Prepetition Term Loan Lenders” means the lenders under the Prepetition Term Loan
Agreement. 
 135.    “Priority Tax Claim” means any Claim of a Governmental Unit against a
Debtor of the kind specified in section 507(a)(8) of the Bankruptcy Code. 
 136.    “Pro Rata”
means, unless indicated otherwise, the proportion that an Allowed Claim in a particular Class bears to the aggregate amount of Allowed Claims in that respective Class, or the proportion that Allowed Claims in a particular Class bear to the
aggregate amount of Allowed Claims in a particular Class and other Classes entitled to share in the same recovery as such Allowed Claim under the Plan. 

  
 13 

 137.    “Professional” means an Entity employed
pursuant to a Court order in accordance with sections 327 or 1103 of the Bankruptcy Code and to be compensated for services rendered before or on the Effective Date pursuant to sections 327, 328, 329, 330, or 331 of the Bankruptcy Code. 

138.    “Professional Fee Claims” means all Administrative Claims for the compensation of
Professionals and the reimbursement of expenses incurred by such Professionals through and including the Effective Date to the extent such fees and expenses have not been paid pursuant to the Interim Compensation Order or any other order of the
Court. To the extent the Court denies or reduces by a Final Order any amount of a Professional’s requested fees and expenses, then the amount by which such fees or expenses are reduced or denied shall reduce the applicable Allowed Professional
Fee Claim. 
 139.    “Professional Fee Escrow Account” means an interest-bearing account in an
amount equal to the Professional Fee Reserve Amount and funded by the Debtors on the Effective Date, pursuant to Article II.B.2. 

140.    “Professional Fee Reserve Amount” means the total amount of Professional Fee Claims
estimated in accordance with Article II.B.3. 
 141.    “Proof of Claim” means a proof of Claim
Filed against any of the Debtors in the Chapter 11 Cases. 
 142.    “Put Option Premium” means
the premium payable to the Commitment Parties in consideration of their commitments under the Exit Facility Commitment Letter in the form of New Equity equal to 3% of the principal amount of the Exit Facility, which New Equity shall be valued in
accordance with the Plan. For the avoidance of doubt, the Put Option Premium will not dilute the Management Equity Pool granted pursuant to the Management Incentive Plan. 

143.    “Registration Rights Agreement” means the registration rights agreement by and among New
Parent and the Consenting Creditors signatory thereto, dated as of the Effective Date, which shall be in form and substance acceptable to the Debtors and the Requisite Creditors. 

144.    “Reinstated” or “Reinstatement” means, with respect to Claims and
Interests, the treatment provided for in section 1124 of the Bankruptcy Code. 
 145.    “Released
Party” means each of the following solely in its capacity as such: (a) the Debtors; (b) the Reorganized Debtors; (c) the Consenting Creditors; (d) the Indenture Trustee; (e) the Creditors’ Committee and its
past and current members in their capacities as such; and (f) with respect to each of the foregoing parties under (a) through (e), such Entity and its current and former direct and indirect Affiliates, and such Entity’s current and
former direct and indirect Affiliates’ current and former directors, managers, officers, managed accounts and funds, predecessors, successors, and assigns, subsidiaries, and each of their respective current and former equityholders, officers,
directors, managers, principals, members, employees, subcontractors, advisors, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, management companies, fund
advisors, and other professionals, each solely in their capacity as such. 

  
 14 

 146.    “Releasing Party” means each of the
following solely in its capacity as such: (a) the Debtors; (b) the Reorganized Debtors; (c) the Consenting Creditors; (d) the Indenture Trustee; (e) the Creditors’ Committee and its past and current members in their
capacities as such; (f) all Holders of Claims and Interests that are deemed to accept the Plan; (g) all Holders of Claims who vote to accept the Plan; (h) all Holders of Claims who abstain from voting on the Plan and who do not opt
out of the releases provided by the Plan; (i) all Holders of Claims who vote to reject the Plan and who do not opt out of the releases provided by the Plan; and (j) with respect to each of the foregoing parties under (a) through (i),
such Entity and its current and former direct and indirect Affiliates, and such Entities’ and their current and former Affiliates’ current and former directors, managers, officers, managed accounts and funds, predecessors, successors, and
assigns, subsidiaries, and each of their respective current and former officers, directors, managers, principals, members, employees, subcontractors, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment
bankers, consultants, representatives, management companies, fund advisors, and other professionals, each solely in their capacity as such. For the avoidance of doubt, the term “Releasing Party” does not include Holders of Claims or
Interests who are not entitled to vote on the Plan. 
 147.    “Reorganized Debtors” means
PetroQuest, PQE, POG, and PQ Holdings, or any successors thereto, by merger, consolidation, or otherwise (including New Parent), in each case in accordance with the Plan and the Restructuring Transactions, on or after the Effective Date. 

148.    “Requisite Creditors” means each of (i) the Requisite Term Loan Lenders,
(ii) the Requisite Second Lien Noteholders, and (iii) the Requisite Second Lien PIK Noteholders. 

149.    “Requisite Second Lien Noteholders” means, as of the date of determination, the MacKay
Funds and the Corre Funds; provided, however, that to the extent either the MacKay Funds or the Corre Funds Transfer some or all of their Prepetition Second Lien Notes after the Support Effective Date and such Transfer results in the
MacKay Funds and the Corre Funds holding or Beneficially Owning Prepetition Second Lien Notes that together equal less than 50% of the Prepetition Second Lien Notes held by the Consenting Second Lien Noteholders, “Requisite Second Lien
Noteholders” shall mean Consenting Second Lien Noteholders holding or Beneficially Owning at least a majority of the outstanding Prepetition Second Lien Notes held by the Consenting Second Lien Noteholders as of such date;
provided, further, that in all cases, “Requisite Second Lien Noteholders” shall include the MacKay Funds or the Corre Funds (not including any successors or assigns that have purchased Prepetition Second Lien
Notes after the Support Effective Date), as applicable, to the extent that such party has not Transferred its Prepetition Second Lien Notes after the Support Effective Date as described in the foregoing provision. 

150.    “Requisite Second Lien PIK Noteholders” means, as of the date of determination, the MacKay
Funds and the Corre Funds; provided, however, that to the extent either the MacKay Funds or the Corre Funds Transfer some or all of their Prepetition Second Lien PIK Notes after the Support Effective Date and such Transfer results
in the MacKay Funds and the Corre Funds holding or Beneficially Owning Prepetition Second Lien PIK Notes that together equal less than 

  
 15 

 
50% of the Prepetition Second Lien PIK Notes held by the Consenting Second Lien PIK Noteholders, “Requisite Second Lien PIK Noteholders” shall mean Consenting Second Lien
PIK Noteholders holding or Beneficially Owning at least a majority of the outstanding Prepetition Second Lien PIK Notes held by the Consenting Second Lien PIK Noteholders as of such date; provided, further, that in all cases,
“Requisite Second Lien PIK Noteholders” shall include the MacKay Funds or the Corre Funds (not including any successors or assigns that have purchased Prepetition Second Lien PIK Notes after the Support Effective Date), as
applicable, to the extent that such party has not Transferred its Prepetition Second Lien PIK Notes after the Support Effective Date as described in the foregoing provision. 

151.    “Requisite Term Loan Lenders” means, as of the date of determination, the MacKay Funds and
the Corre Funds; provided, however, that to the extent either the MacKay Funds or the Corre Funds Transfer some or all of their Prepetition Term Loans after the Support Effective Date and such Transfer results in the MacKay Funds and
the Corre Funds holding Prepetition Term Loans in amounts that together equal less than 50% of the Prepetition Term Loans held by the Consenting Term Loan Lenders, “Requisite Term Loan Lenders” shall mean Consenting Term Loan
Lenders holding at least a majority of the outstanding Prepetition Term Loans held by the Consenting Term Loan Lenders as of such date; provided, further, that in all cases, “Requisite Term Loan Lenders” shall
include the MacKay Funds or the Corre Funds (not including any successors or assigns that have purchased Prepetition Term Loans after the Support Effective Date), as applicable, to the extent that such party has not Transferred its Prepetition Term
Loans after the Support Effective Date as described in the foregoing provision. 
 152.    “Restructuring
Support Agreement” means that certain Restructuring Support Agreement, dated November 6, 2018 and as amended on December 18, 2018, by and among the Debtors and the Consenting Creditors, as amended, modified, or supplemented
from time to time. 
 153.     “Restructuring Transactions” means all actions that may be
necessary or appropriate to effectuate the transactions described in, approved by, contemplated by, or necessary to effectuate, the Restructuring Support Agreement and the Plan. 

154.    “Royalty and Working Interests” means the working interests granting the right to exploit
oil and gas, and certain other royalty or mineral interests including but not limited to, landowner’s royalty interests, overriding royalty interests, net profit interests, non-participating royalty
interests, production payments, and all rights to payment or production arising from such interests. 

155.    “Schedule of Assumed Executory Contracts and Unexpired Leases” means the schedule of
Executory Contracts and Unexpired Leases to be assumed by the Debtors and assigned to the Reorganized Debtors pursuant to the Plan with the consent of the Requisite Creditors, as set forth in the Plan Supplement, as may be amended from time to time
prior to the Effective Date. 
 156.    “Schedule of Rejected Executory Contracts and Unexpired
Leases” means the schedule of Executory Contracts and Unexpired Leases to be rejected by the Debtors pursuant to the Plan with the consent of the Requisite Creditors, as set forth in the Plan Supplement, as may be amended from time to
time prior to the Effective Date. 

  
 16 

 157.    “Schedules” means, collectively, the
schedules of assets and liabilities, schedules of Executory Contracts and Unexpired Leases, and statements of financial affairs Filed by the Debtors pursuant to section 521 of the Bankruptcy Code and in substantial accordance with the Official
Bankruptcy Forms B 206A-H, as the same may have been amended, modified, or supplemented from time to time. 

158.    “Sea Harvester” means Sea Harvester Energy Development, L.L.C., a Louisiana limited
liability company. 
 159.    “Second Lien Deficiency Claims” means the Second Lien Notes
Deficiency Claims and the Second Lien PIK Notes Deficiency Claims. 
 160.    “Second Lien Notes
Claims” means collectively, the Prepetition Second Lien Notes Claims and the Prepetition Second Lien PIK Notes Claims. 

161.    “Second Lien Notes Deficiency Claims” means any deficiency Claims held by the Prepetition
Second Lien Noteholders. 
 162.    “Second Lien PIK Notes Deficiency Claims” means any
deficiency Claims held by the Prepetition Second Lien PIK Noteholders. 

163.    “Section 510(b) Claim” means any Claim against a Debtor
arising from (a) rescission of a purchase or sale of a security of any Debtor or an Affiliate of any Debtor, (b) purchase or sale of such a security, or (c) reimbursement or contribution allowed under section 502 of the
Bankruptcy Code on account of such a Claim. 
 164.    “Secured” means when referring to a
Claim, a Claim: (a) secured by a Lien on property in which the applicable Estate has an interest, which Lien is valid, perfected, and enforceable pursuant to applicable law or by reason of a Court order, or that is subject to setoff pursuant to
section 553 of the Bankruptcy Code, to the extent of the value of the creditor’s interest in such Estate’s interest in such property or to the extent of the amount subject to setoff, as applicable, as determined pursuant to
section 506(a) of the Bankruptcy Code; or (b) otherwise Allowed pursuant to the Plan as a Secured Claim. 

165.    “Secured Tax Claim” means any Secured Claim against any Debtor that, absent its secured
status, would be entitled to priority in right of payment under section 507(a)(8) of the Bankruptcy Code (determined irrespective of time limitations), including any related Secured Claim for penalties. 

166.    “Securities Act” means the Securities Act of 1933, 15 U.S.C. §§ 77a–77aa,
as amended. 
 167.    “Security” shall have the meaning set forth in section 101(49) of the
Bankruptcy Code. 
 168.    “Settled Issues” shall have the meaning set forth in Article VIII.A.

  
 17 

 169.    “Support Effective Date” means the
earliest date on which counterpart signature pages to the Restructuring Support Agreement shall have been executed and delivered by (i) the Debtors, (ii) Consenting Term Loan Lenders holding at least
662⁄3%, in aggregate principal amount outstanding as of such date, of the Prepetition Term Loans, (iii) Consenting Second Lien Noteholders holding at least 662⁄3%, in aggregate principal amount outstanding as of such date, of the Prepetition Second Lien Notes, and (iv) Consenting Second Lien PIK Noteholders holding at
least 662⁄3%, in aggregate principal amount outstanding as of such date, of the Prepetition Second Lien PIK Notes. 

170.    “TDC” means TDC Energy, LLC, a Louisiana limited liability company. 

171.    “Transfer” has the meaning given to such term in the Restructuring Support Agreement. 

172.    “U.S. Trustee” means the Office of the United States Trustee for the Southern District of
Texas. 
 173.    “U.S. Trustee Fees” means fees arising under 28 U.S.C. § 1930(a)(6) and,
to the extent applicable, accrued interest thereon arising under 31 U.S.C. § 3717. 
 174.    “Unclaimed
Distribution” means any distribution under the Plan on account of an Allowed Claim whose Holder has not: (a) accepted such distribution or, in the case of distributions made by check, negotiated such check; (b) given notice to
the Reorganized Debtors of an intent to accept such distribution; (c) responded to the Debtors’ or Reorganized Debtors’ requests for information necessary to facilitate such distribution; or (d) taken any other action necessary
to facilitate such distribution. 
 175.    “Unexpired Lease” means a lease of nonresidential
real property to which one or more of the Debtors is a party that is subject to assumption or rejection under section 365 or 1123 of the Bankruptcy Code. 

176.    “Unimpaired” means, with respect to a Class of Claims or Interests, a
Class consisting of Claims or Interests that are “unimpaired” within the meaning of section 1124 of the Bankruptcy Code, including through payment in full in Cash or Reinstatement. 

177.    “Unsecured” means not Secured. 

178.    “Voting Deadline” means January 23, 2019, the deadline for submitting votes to accept
or reject the Plan as set by the Court. 
  

	B.	 Rules of Interpretation 

For purposes herein: (1) in the appropriate context, each term, whether stated in the singular or the plural, shall include both the
singular and the plural, and pronouns stated in the masculine, feminine, or neuter gender shall include the masculine, feminine, and the neuter gender; (2) except as otherwise provided, any reference herein to a contract, lease, instrument,
release, indenture, or other agreement or document being in a particular form or on particular terms and conditions means that the referenced document shall be substantially in that form or substantially on those

  
 18 

 
terms and conditions; (3) except as otherwise provided, any reference herein to an existing document or exhibit having been Filed or to be Filed shall mean that document or exhibit, as it
may thereafter be amended, restated, supplemented, or otherwise modified in accordance with the terms of the Plan and the Restructuring Support Agreement; (4) unless otherwise specified, all references herein to “Articles” are
references to Articles of the Plan or hereto; (5) unless otherwise stated, the words “herein,” “hereof,” and “hereto” refer to the Plan in its entirety rather than to a particular portion of the Plan;
(6) captions and headings to Articles are inserted for convenience of reference only and are not intended to be a part of or to affect the interpretation hereof; (7) the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, and shall be deemed to be followed by the words “without limitation;” (8) the rules of construction set forth in section 102 of the Bankruptcy Code shall apply; (9) any term used
in capitalized form herein that is not otherwise defined but that is used in the Bankruptcy Code or the Bankruptcy Rules shall have the meaning assigned to that term in the Bankruptcy Code or the Bankruptcy Rules, as the case may be; (10) any
docket number references in the Plan shall refer to the docket number of any document Filed with the Court in the Chapter 11 Cases; (11) references to “shareholders,” “directors,” and/or “officers” shall also
include “members” and/or “managers,” as applicable, as such terms are defined under the applicable state limited liability company laws; and (12) except as otherwise provided, any reference to the Effective Date shall mean
the Effective Date or as soon as reasonably practicable thereafter. 
  

	C.	 Computation of Time 

Unless otherwise specifically stated herein, the provisions of Bankruptcy Rule 9006(a) shall apply in computing any period of time prescribed
or allowed herein. If the date on which a transaction may occur pursuant to the Plan shall occur on a day that is not a Business Day, then such transaction shall instead occur on the next succeeding Business Day. 

 

	D.	 Governing Law 

Unless a rule of law or procedure is supplied by federal law (including the Bankruptcy Code and Bankruptcy Rules) or unless otherwise
specifically stated herein, the laws of the State of Texas without giving effect to the principles of conflict of laws, shall govern the rights, obligations, construction, and implementation of the Plan, any agreements, documents, instruments, or
contracts executed or entered into in connection with the Plan (except as otherwise set forth in those agreements, in which case the governing law of such agreement shall control); provided that corporate or limited liability company
governance matters relating to the Debtors or the Reorganized Debtors, as applicable, shall be governed by the laws of the state of incorporation or formation (as applicable) of the applicable Debtor or Reorganized Debtor. 

 

	E.	 Reference to Monetary Figures 

All references in the Plan to monetary figures shall refer to currency of the United States of America, unless otherwise expressly provided
herein. 

  
 19 

	F.	 Reference to the Debtors or the Reorganized Debtors 

Except as otherwise specifically provided in the Plan to the contrary, references in the Plan to the Debtors or the Reorganized Debtors shall
mean the Debtors and the Reorganized Debtors, as applicable, to the extent the context requires. 
  

	G.	 Controlling Document 

In the event of an inconsistency between the Plan and the Disclosure Statement or any other order (other than the Confirmation Order)
referenced in the Plan (or any exhibits, schedules, appendices, supplements or amendments to any of the foregoing, other than the Plan Supplement), the terms of the Plan shall control in all respects. In the event of an inconsistency between the
Plan and the Plan Supplement, the terms of the relevant document in the Plan Supplement shall control (unless stated otherwise in such Plan Supplement document or in the Confirmation Order). In the event of an inconsistency between the Confirmation
Order and the Plan, the Confirmation Order shall control. 
 ARTICLE II. 

ADMINISTRATIVE CLAIMS, PROFESSIONAL FEE CLAIMS, AND PRIORITY CLAIMS 

In accordance with section 1123(a)(1) of the Bankruptcy Code, Administrative Claims and Priority Tax Claims have not been classified and,
thus, are excluded from the Classes of Claims and Interests set forth in Article III hereof. 
  

	A.	 Administrative Claims 

Except with respect to Administrative Claims that are Professional Fee Claims, and except to the extent that an Administrative Claim has
already been paid during the Chapter 11 Cases or a Holder of an Allowed Administrative Claim and the applicable Debtor(s) agree to less favorable treatment, each Holder of an Allowed Administrative Claim shall be paid in full in Cash on the latest
of: (a) on or as soon as reasonably practicable after the Effective Date if such Administrative Claim is Allowed as of the Effective Date; (b) on or as soon as reasonably practicable after the date such Administrative Claim is Allowed, if
not Allowed as of the Effective Date; and (c) the date such Allowed Administrative Claim becomes due and payable, or as soon thereafter as is reasonably practicable; provided that Allowed Administrative Claims that arise in the ordinary
course of the Debtors’ businesses shall be paid in the ordinary course of business in accordance with the terms and subject to the conditions of any agreements governing, instruments evidencing, or other documents relating to such transactions.

 Except as otherwise provided in this Article II.A and except with respect to Administrative Claims that are Professional Fee Claims,
requests for payment of Administrative Claims arising between the Petition Date and the Effective Date must be Filed and served on the Reorganized Debtors pursuant to the procedures specified in the Confirmation Order and the notice of entry of the
Confirmation Order no later than the Administrative Claims Bar Date. Holders of Administrative Claims that are required to, but do not, File and serve a request for payment of such Administrative Claims by such dates shall be forever barred,
estopped, and enjoined from asserting such Administrative Claims against the Debtors or their property and such Administrative Claims 

  
 20 

 
shall be deemed discharged as of the Effective Date. Objections to such requests, if any, must be Filed and served on the Reorganized Debtors and the requesting party no later than 60 days after
the Effective Date or such other date fixed by the Court. Notwithstanding the foregoing, no request for payment of an Administrative Claim need be Filed with respect to an Administrative Claim previously Allowed. 

For the avoidance of doubt, Claims for fees and expenses of advisors to the Debtors and the Creditors’ Committee shall constitute
Professional Fee Claims. 
  

	B.	 Professional Compensation 

1.    Final Fee Applications 

All final requests for payment of Professional Fee Claims, including the Professional Fee Claims incurred during the period from the Petition
Date through the Effective Date, must be Filed and served on the Reorganized Debtors no later than 45 days after the Effective Date. All such final requests will be subject to approval by the Court after notice and a hearing in accordance with the
procedures established by the Bankruptcy Code and prior orders of the Court in the Chapter 11 Cases, including the Interim Compensation Order, and once approved by the Court, will be promptly paid from the Professional Fee Escrow Account in the full
Allowed amount of each such Professional Fee Claim. If the Professional Fee Escrow Account is insufficient to fund the full Allowed amounts of Professional Fee Claims, remaining unpaid Allowed Professional Fee Claims will be promptly paid by the
Reorganized Debtors without any further action or order of the Court. 
 2.    Professional Fee Escrow Account

 On the Effective Date, the Reorganized Debtors shall establish and fund the Professional Fee Escrow Account with Cash equal to the
Professional Fee Reserve Amount. The Professional Fee Escrow Account shall not be subject to any Lien and shall be maintained in trust solely for the benefit of the Professionals. The funds in the Professional Fee Escrow Account shall not be
considered property of the Estates or of the Reorganized Debtors. When all Allowed amounts owing to Professionals have been paid in full, any remaining amount in the Professional Fee Escrow Account shall promptly be turned over to the Reorganized
Debtors without any further action or order of the Court. 
 3.    Professional Fee Reserve Amount 

Professionals shall reasonably estimate their unpaid Professional Fee Claims before and as of the Effective Date, and shall deliver such
estimate to the Debtors no later than five (5) Business Days before the Effective Date, provided, however, that such estimate shall not be deemed to limit the amount of the fees and expenses that are the subject of the
Professional’s final request for payment of Professional Fee Claims. If a Professional does not provide an estimate, the Debtors or Reorganized Debtors may estimate the unpaid and unbilled fees and expenses of such Professional. 

  
 21 

 4.    Post-Effective Date Fees and Expenses 

Except as otherwise specifically provided in the Plan, from and after the Effective Date, the Debtors or Reorganized Debtors shall, in the
ordinary course of business and without any further notice or application to or action, order, or approval of the Court, pay in Cash the reasonable, actual, and documented legal, professional, or other fees and expenses related to implementation of
the Plan and Consummation incurred on or after the Effective Date by the Professionals. Upon the Effective Date, any requirement that Professionals comply with sections 327 through 331, 363, and 1103 of the Bankruptcy Code in seeking retention or
compensation for services rendered after such date shall terminate, and the Debtors or Reorganized Debtors may employ and pay any Professional for fees and expenses incurred after the Effective Date in the ordinary course of business without any
further notice to or action, order, or approval of the Court. 
  

	C.	 Priority Tax Claims 

Except to the extent that a Holder of an Allowed Priority Tax Claim agrees to a less favorable treatment, in full and final satisfaction,
settlement, release, and discharge of and in exchange for each Allowed Priority Tax Claim, each Holder of such Allowed Priority Tax Claim shall be treated in accordance with the terms set forth in section 1129(a)(9)(C) of the Bankruptcy Code. In the
event an Allowed Priority Tax Claim is also a Secured Tax Claim, such Claim shall, to the extent it is Allowed, be treated as an Other Secured Claim if such Claim is not otherwise paid in full. 

 

	D.	 Statutory Fees 

All fees payable pursuant to 28 U.S.C. § 1930(a) shall be paid by the Debtors or Reorganized Debtors, as applicable, for each
quarter (including any fraction thereof) until the Chapter 11 Cases are converted, dismissed or closed, whichever occurs first. The Reorganized Debtors shall continue to File quarterly-post confirmation operating reports in accordance with the U.S.
Trustee’s Region 7 Guidelines for Debtors-in-Possession. 

ARTICLE III. 

CLASSIFICATION AND TREATMENT OF CLAIMS AND INTERESTS 
  

	A.	 Summary of Classification 

Claims and Interests, except for Administrative Claims, Professional Fee Claims, Cure Claims, and Priority Tax Claims, are classified in the
Classes set forth in this Article III. A Claim or Interest is classified in a particular Class only to the extent that the Claim or Interest qualifies within the description of that Class and is classified in other Classes to the extent
that any portion of the Claim or Interest qualifies within the description of such other Classes. A Claim or Interest also is classified in a particular Class for the purpose of receiving distributions pursuant to the Plan only to the extent
that such Claim is an Allowed Claim in that Class and has not been paid, released, or otherwise satisfied prior to the Effective Date. The Plan constitutes a separate chapter 11 plan of reorganization for each Debtor and the classifications set
forth in Classes 1 through 11 shall be deemed to apply to each Debtor. For all purposes under the Plan, each Class will contain sub-Classes for each of the Debtors (i.e., there will be 11 Classes
for each Debtor); provided that any Class that is vacant as to a particular Debtor will be treated in accordance with Article III.E below. 

  
 22 

 1.    Class Identification 

The classification of Claims and Interests against each Debtor (as applicable) pursuant to the Plan is as follows: 

 

							
	 Class
	  	 Claim or Interest
	  	 Status
	  	 Entitled to Vote

	1	  	Other Priority Claims	  	Unimpaired	  	No (Deemed to Accept)
				
	2	  	Other Secured Claims	  	Unimpaired	  	No (Deemed to Accept)
				
	3	  	Secured Tax Claims	  	Unimpaired	  	No (Deemed to Accept)
				
	4	  	First Lien Claims	  	Unimpaired	  	No (Deemed to Accept)
				
	5	  	Prepetition Second Lien Notes Secured Claims	  	Impaired	  	Yes
				
	6	  	Prepetition Second Lien PIK Notes Secured Claims	  	Impaired	  	Yes
				
	7a	  	General Unsecured Claims Other than Convenience Claims	  	Impaired	  	Yes
				
	7b	  	Convenience Claims	  	Impaired	  	Yes
				
	8	  	Section 510(b) Claims	  	Impaired	  	No (Deemed to Reject)
				
	9	  	Intercompany Claims	  	Unimpaired/Impaired	  	No (Deemed to Either Accept or Reject)
				
	10	  	Intercompany Interests	  	Unimpaired/Impaired	  	No (Deemed to Either Accept or Reject)
				
	11	  	PetroQuest Interests	  	Impaired	  	No (Deemed to Reject)

  

	B.	 Treatment of Claims and Interests 

1.    Class 1 – Other Priority Claims 

 

	 	a.	 Classification: Class 1 consists of Other Priority Claims. 

 

	 	b.	 Treatment: In full and final satisfaction, compromise, settlement, release, and discharge of and in
exchange for each Allowed Other Priority Claim, each Holder thereof shall receive (i) payment in full, in Cash, of the unpaid portion of its Allowed Other Priority Claim or (ii) such other treatment as may otherwise be agreed to by such
Holder, the Debtors, and the Requisite Creditors. 

  

	 	c.	 Voting: Class 1 is Unimpaired under the Plan. Each Holder of an Other Priority Claim will be
conclusively deemed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, the Holders of Other Priority Claims will not be entitled to vote to accept or reject the Plan. 

  
 23 

 2.    Class 2 – Other Secured Claims 

 

	 	a.	 Classification: Class 2 consists of Other Secured Claims. 

 

	 	b.	 Treatment: Except to the extent that a Holder of an Allowed Other Secured Claim agrees to a less
favorable treatment, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for its Allowed Other Secured Claim, each such Holder shall receive, at the Debtors’ election, either (i) Cash equal to
the full Allowed amount of its Claim, (ii) Reinstatement of such Holder’s Allowed Other Secured Claim, (iii) the return or abandonment of the collateral securing such Allowed Other Secured Claim to such Holder, or (iv) such other
treatment as may otherwise be agreed to by such Holder, the Debtors, and the Requisite Creditors. 

  

	 	c.	 Voting: Class 2 is Unimpaired under the Plan. Each Holder of an Other Secured Claim will be
conclusively deemed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, the Holders of Other Secured Claims will not be entitled to vote to accept or reject the Plan. 

3.    Class 3 – Secured Tax Claims 
  

	 	a.	 Classification: Class 3 consists of Secured Tax Claims. 

 

	 	b.	 Treatment: Except to the extent that a Holder of an Allowed Secured Tax Claim agrees to a less favorable
treatment, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for its Allowed Secured Tax Claim, each such Holder shall receive, at the Debtors’ election, either (i) Cash equal to the full
Allowed amount of its Claim, (ii) Reinstatement of such Holder’s Allowed Secured Tax Claim, (iii) the return or abandonment of the collateral securing such Allowed Secured Tax Claim to such Holder, or (iv) such other treatment as
may otherwise be agreed to by such Holder, the Debtors, and the Requisite Creditors. 

  

	 	c.	 Voting: Class 3 is Unimpaired under the Plan. Each Holder of a Secured Claim Tax will be
conclusively deemed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, Holders of Secured Tax Claims will not be entitled to vote to accept or reject the Plan. 

4.    Class 4 – First Lien Claims 
  

	 	a.	 Classification: Class 4 consists of the First Lien Claims. 

 

	 	b.	 Allowance: The First Lien Claims shall be Allowed in the aggregate principal amount of $50,000,000, plus
any accrued and unpaid interest and expenses. 

  
 24 

	 	c.	 Treatment: On or before the Effective Date, each Holder of a First Lien Claim will receive Cash equal to
the amount of its Allowed Claim from funds available pursuant to the Exit Facility. 

  

	 	d.	 Voting: Class 4 is Unimpaired under the Plan. Each Holder of a First Lien Claim will be
conclusively deemed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, Holders of First Lien Claims will not be entitled to vote to accept or reject the Plan. 

5.    Class 5 – Prepetition Second Lien Notes Secured Claims 

 

	 	a.	 Classification: Class 5 consists of all Prepetition Second Lien Notes Secured Claims.

  

	 	b.	 Allowance: The Prepetition Second Lien Notes Claims shall be Allowed in the aggregate amount of
$9,427,000 plus any accrued and unpaid interest thereon payable through the Petition Date. 

  

	 	c.	 Treatment: Except to the extent that a Holder of an Allowed Prepetition Second Lien Notes Claim agrees
to a less favorable treatment, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for its Allowed Prepetition Second Lien Notes Secured Claim, each such Holder shall receive (i) its Pro Rata share
of 100% of the New Equity under the Plan, subject to (x) dilution by the awards related to New Equity issued under the Management Incentive Plan and (y) the Put Option Premium, and (ii) its Pro Rata share of $80 million in New
Second Lien PIK Notes; such Pro Rata share of the New Equity and New Second Lien PIK Notes calculated by including the $275,045,768 (plus any accrued and unpaid interest thereon payable through the Petition Date) of Prepetition Second Lien PIK Notes
Claims as Claims that will share Pro Rata in 100% of New Equity, subject to (x) dilution by the awards related to New Equity issued under the Management Incentive Plan and (y) the Put Option Premium, and $80 million in New Second Lien
PIK Notes. 

  

	 	d.	 Voting: Class 5 is Impaired under the Plan. Each Holder of an Allowed Prepetition Second Lien Notes
Secured Claim will be entitled to vote to accept or reject the Plan. 

 6.    Class 6 –
Prepetition Second Lien PIK Notes Secured Claims 
  

	 	a.	 Classification: Class 6 consists of all Prepetition Second Lien PIK Notes Secured Claims.

  

	 	b.	 Allowance: The Prepetition Second Lien PIK Notes Claims shall be Allowed in the aggregate amount of
$275,045,768 plus any accrued and unpaid interest thereon payable through the Petition Date. 

  
 25 

	 	c.	 Treatment: Except to the extent that a Holder of an Allowed Prepetition Second Lien PIK Notes Claim
agrees to a less favorable treatment, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for its Allowed Prepetition Second Lien PIK Notes Secured Claim, each such Holder shall receive (i) its Pro
Rata share of 100% of the New Equity under the Plan, subject to (x) dilution by the awards related to New Equity issued under the Management Incentive Plan and (y) the Put Option Premium, and (ii) its Pro Rata share of
$80 million in New Second Lien PIK Notes; such Pro Rata share of the New Equity and New Second Lien PIK Notes calculated by including the $9,427,000 (plus any accrued and unpaid interest thereon payable through the Petition Date) of Prepetition
Second Lien Notes Claims as Claims that will share Pro Rata in 100% of New Equity, subject to (x) dilution by the awards related to New Equity issued under the Management Incentive Plan and (y) the Put Option Premium, and $80 million
in New Second Lien PIK Notes. 

  

	 	d.	 Voting: Class 6 is Impaired under the Plan. Each Holder of an Allowed Prepetition Second Lien PIK
Notes Secured Claim will be entitled to vote to accept or reject the Plan. 

 7.    Class 7a –
General Unsecured Claims Other than Convenience Claims 
  

	 	a.	 Classification: Class 7a consists of all General Unsecured Claims other than Convenience Claims.

  

	 	b.	 Treatment: Except to the extent that a Holder of an Allowed General Unsecured Claim agrees to a less
favorable treatment, in full and final satisfaction, compromise, settlement, release, and discharge of each Allowed General Unsecured Claim and of and in exchange for each Allowed General Unsecured Claim, each such Holder shall receive its Pro Rata
share of the General Unsecured Claims Distribution on the Effective Date; provided, however, that the Holders of Second Lien Notes Claims shall not receive any distribution on account of their Allowed Second Lien Deficiency Claims;
provided, further, that, subject to the entry of an order authorizing the Holders of the Hoog/Lee Litigation Claims to file a class Proof of Claim on account of such Claims, the aggregate portion of the General Unsecured Claims
Distribution distributed to the Holders of the Hoog/Lee Litigation Claims shall not exceed $400,000. 

  

	 	c.	 Voting: Class 7a is Impaired under the Plan. Each Holder of a General Unsecured Claim will be
entitled to vote to accept or reject the Plan. 

 8.    Class 7b – Convenience Claims 

 

	 	a.	 Classification: Class 7b consists of all Convenience Claims. 

 

	 	b.	 Treatment: In full and final satisfaction, compromise, settlement, release, and discharge of each
Convenience Claim and of and in exchange for each 

  
 26 

	 	
Convenience Claim, each such Holder shall receive the Convenience Class Distribution. For the avoidance of doubt, Holders of Allowed General Unsecured Claims with a face amount greater than
$7,500 may elect to reduce the face amount of their Allowed General Unsecured Claim to $7,500 by notifying the GUC Administrator of such election and receive the treatment specified in this section for Class 7b Convenience Claims.

  

	 	c.	 Voting: Class 7b is Impaired under the Plan. Each Holder of a Convenience Claim will be entitled to
vote to accept or reject the Plan. 

  

	 	d.	 Election into Class 7b: Not less than thirty (30) days after the Effective Date,
the GUC Administrator shall provide a notice to all Holders of General Unsecured Claims asserting a face amount greater than $7,500. Such Holders shall have fourteen (14) days following receipt of such notice to notify the GUC Administrator in
writing that in the event their Claim becomes an Allowed General Unsecured Claim, such Holder elects to have its General Unsecured Claim treated as a Convenience Claim and to receive the treatment specified in this section for Class 7b
Convenience Claims. 

 9.    Class 8 – Section 510(b) Claims 

 

	 	a.	 Classification: Class 8 consists of all Section 510(b) Claims. 

 

	 	b.	 Treatment: Section 510(b) Claims, if any, shall be discharged, canceled, released, and extinguished
as of the Effective Date, and shall be of no further force or effect, and Holders of Section 510(b) Claims shall not receive any distribution on account of such Section 510(b) Claims. 

 

	 	c.	 Voting: Class 8 is Impaired under the Plan. Each Holder of a Section 510(b) Claim will be
conclusively deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Therefore, the Holders of Section 510(b) Claims will not be entitled to vote to accept or reject the Plan. 

10.    Class 9 – Intercompany Claims 

 

	 	a.	 Classification: Class 9 consists of all Intercompany Claims. 

 

	 	b.	 Treatment: Intercompany Claims shall be Reinstated as of the Effective Date or, at the Reorganized
Debtors’ option, shall be cancelled. No distribution shall be made on account of any Intercompany Claims other than in the ordinary course of business of the Reorganized Debtors, as applicable. For the avoidance of doubt, Intercompany Claims
that are Reinstated as of the Effective Date, if any, shall be subordinate in all respects to the Exit Facility and the New Second Lien PIK Notes. 

  

	 	c.	 Voting: Intercompany Claims are either Unimpaired, in which case the Holders of such Intercompany Claims
will be conclusively deemed to have 

  
 27 

	 	
accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code, or Impaired and not receiving any distribution under the Plan, in which case the Holders of such Intercompany Claims will be
conclusively deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Therefore, the Holders of Intercompany Claims will not be entitled to vote to accept or reject the Plan. 

11.    Class 10 – Intercompany Interests 

 

	 	a.	 Classification: Class 10 consists of all Intercompany Interests. 

 

	 	b.	 Treatment: Intercompany Interests shall be Reinstated as of the Effective Date or, at the Reorganized
Debtors’ option, shall be cancelled. No distribution shall be made on account of any Intercompany Interests. 

 No
distributions on account of Intercompany Interests are being made to the Holders of such Intercompany Interests. Instead, to the extent Intercompany Interests are Reinstated under the Plan, such Reinstatement is solely for the purposes of
administrative convenience, for the ultimate benefit of the Holders of the New Equity, and in exchange for the Debtors’ and Reorganized Debtors’ agreement under the Plan to make certain distributions to the Holders of Allowed Claims. For
the avoidance of doubt, to the extent Reinstated pursuant to the Plan, on and after the Effective Date, all Intercompany Interests shall continue to be owned by the Reorganized Debtor that corresponds to the Debtor that owned such Intercompany
Interests prior to the Effective Date. 
  

	 	c.	 Voting: Intercompany Interests are either Unimpaired, in which case the Holders of such Intercompany
Interests will be conclusively deemed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code, or Impaired, in which case the Holders of such Intercompany Interests will be conclusively deemed to have rejected the Plan pursuant
to section 1126(g) of the Bankruptcy Code. Therefore, the Holders of Intercompany Interests will not be entitled to vote to accept or reject the Plan. 

12.    Class 11 – PetroQuest Interests 

 

	 	a.	 Classification: Class 11 consists of all PetroQuest Interests. 

 

	 	b.	 Treatment: On the Effective Date, or as soon thereafter as reasonably practicable, all PetroQuest
Interests will be extinguished and the Holders of PetroQuest Interests shall not receive or retain any distribution, property, or other value on account of their PetroQuest Interests. 

 

	 	c.	 Voting: Class 11 is Impaired under the Plan. Each Holder of a PetroQuest Interest will be
conclusively deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Therefore, the Holders of PetroQuest Interests will not be entitled to vote to accept or reject the Plan. 

  
 28 

	C.	 Special Provision Governing Unimpaired Claims 

Nothing under the Plan shall affect the Debtors’ or the Reorganized Debtors’ rights in respect of any Unimpaired Claims, including
all rights in respect of legal and equitable defenses to or setoffs or recoupment against any such Unimpaired Claims. 
  

	D.	 Confirmation Pursuant to Sections 1129(a)(10) and 1129(b) of the Bankruptcy Code 

The Debtors reserve the right to seek Confirmation of the Plan pursuant to section 1129(b) of the Bankruptcy Code with respect to any
rejecting Class of Claims or Interests, and the Filing of the Plan shall constitute a motion for such relief. 
  

	E.	 Elimination of Vacant Classes 

Any Class of Claims that does not contain an Allowed Claim or a Claim temporarily Allowed by the Court as of the date of the Confirmation
Hearing shall be deemed eliminated from the Plan for purposes of voting to accept or reject the Plan and for purposes of determining acceptance or rejection of the Plan by such Class pursuant to section 1129(a)(8) of the Bankruptcy Code. 

 

	F.	 Voting Classes; Deemed Acceptance by Non-Voting Classes

 If a Class contains Claims eligible to vote and no Holder of Claims eligible to vote in such Class votes to
accept or reject the Plan, the Plan shall be deemed accepted by such Class. 
  

	G.	 Subordinated Claims 

Except as may be the result of the settlement described in Article VIII.A of the Plan, the allowance, classification, and treatment of all
Claims and Interests and the respective distributions and treatments under the Plan take into account and conform to the relative priority and rights of the Claims and Interests in each Class in connection with any contractual, legal, and
equitable subordination rights relating thereto, whether arising under general principles of equitable subordination, section 510(b) of the Bankruptcy Code, or otherwise. Pursuant to section 510 of the Bankruptcy Code, the Debtors or Reorganized
Debtors reserve the right to re-classify any Claim or Interest in accordance with any contractual, legal, or equitable subordination relating thereto. 

ARTICLE IV. 

MEANS FOR IMPLEMENTATION OF THE PLAN 
  

	A.	 Restructuring Transactions 

On the Effective Date, or as soon as reasonably practicable thereafter, the Reorganized Debtors, with the consent of the Requisite Creditors,
shall undertake the Restructuring Transactions, including: (1) the execution and delivery of any appropriate agreements or other documents of merger, consolidation, restructuring, conversion, disposition, transfer, dissolution, or liquidation
containing terms that are consistent with the terms of the Plan, and that satisfy the requirements of applicable law and any other terms to which the applicable Entities may agree; (2) the execution and delivery of appropriate instruments of
transfer, assignment, assumption, or 

  
 29 

 
delegation of any asset, property, right, liability, debt, or obligation on terms consistent with the terms of the Plan and having other terms for which the applicable Entities agree;
(3) the filing of appropriate certificates or articles of incorporation, reincorporation, merger, consolidation, conversion, or dissolution pursuant to applicable state law; (4) all transactions necessary to provide for the purchase of
some or substantially all of the assets of or Interests in any of the Debtors, which transactions shall be structured in the most tax efficient manner, including in whole or in part as a taxable transaction for United States federal income tax
purposes, as determined by the Debtors and the Requisite Creditors; (5) the execution and delivery of the Exit Facility Documents; (6) the execution and delivery of Definitive Documentation not otherwise included in the foregoing, if any;
and (7) all other actions that the Debtors, the Reorganized Debtors, or the Requisite Creditors determine to be necessary or appropriate, including making filings or recordings that may be required by applicable law. 

 

	B.	 Sources of Consideration for Plan Distributions 

The Reorganized Debtors shall fund distributions under the Plan as follows: 

1.    Issuance and Distribution of New Equity  

The New Equity, including options, or other equity awards, if any, reserved under the Management Incentive Plan, shall be authorized on the
Effective Date without the need for any further corporate action and without any further action by the Debtors, the Reorganized Debtors, or Holders of Claims or Interests. 

All of the shares of New Equity issued pursuant to the Plan shall be duly authorized, validly issued, fully paid, and non-assessable. Each distribution and issuance of the New Equity under the Plan shall be governed by the terms and conditions set forth in the Plan applicable to such distribution or issuance and by the terms and
conditions of the instruments evidencing or relating to such distribution or issuance, which terms and conditions shall bind each Entity receiving such distribution or issuance. 

2.    New Second Lien PIK Notes 

On the Effective Date, New Parent will issue the New Second Lien PIK Notes in accordance with the terms of the New Second Lien PIK Notes
Documents. The Confirmation Order shall constitute approval of the New Second Lien PIK Notes (including the transactions contemplated thereby, and all actions to be taken, undertakings to be made, and obligations to be incurred and fees paid by the
Reorganized Debtors in connection therewith, including the payment of all fees and expenses provided for therein), and authorization for the Reorganized Debtors to enter into and perform under the New Second Lien PIK Notes Documents and such other
documents as may be required or appropriate. 
 The New Second Lien PIK Notes Documents shall constitute legal, valid, binding, and
authorized obligations of the Reorganized Debtors, enforceable in accordance with their terms. The financial accommodations pursuant to the New Second Lien PIK Notes are being issued, and shall be deemed to have been issued, in good faith, for
legitimate business purposes, are reasonable, shall not be subject to avoidance, recharacterization, or subordination (including equitable subordination) for any purposes whatsoever, and shall not constitute preferential

  
 30 

 
transfers, fraudulent transfers, obligations, or conveyances, or other voidable transfers or obligations under the Bankruptcy Code or any other applicable
non-bankruptcy law. On the Effective Date, all of the Liens and security interests to be granted in accordance with the New Second Lien PIK Notes Documents (a) shall be legal, binding, and enforceable
Liens on, and security interests in, the collateral granted thereunder in accordance with the terms of the New Second Lien PIK Notes Documents, (b) shall be deemed automatically perfected on the Effective Date, subject only to such Liens and
security interests as may be permitted under the New Second Lien PIK Notes Documents, and (c) shall not be subject to avoidance, recharacterization, or subordination (including equitable subordination) for any purposes whatsoever and shall not
constitute preferential transfers, fraudulent transfers, obligations, or conveyances, or other voidable transfers or obligations under the Bankruptcy Code or any applicable non-bankruptcy law. The Reorganized
Debtors and the Persons and Entities granted such Liens and security interests are authorized to make all filings and recordings and to obtain all governmental approvals and consents necessary to establish and perfect such Liens and security
interests under the provisions of the applicable state, provincial, federal, or other law (whether domestic or foreign) that would be applicable in the absence of the Plan and the Confirmation Order (it being understood that perfection shall occur
automatically by virtue of the entry of the Confirmation Order, and any such filings, recordings, approvals, and consents shall not be required), and will thereafter cooperate to make all other filings and recordings that otherwise would be
necessary under applicable law to give notice of such Liens and security interests to third parties. 
 3.    Exit
Facility 
 On the Effective Date, the Combined Consenting Second Lien Noteholders shall provide the Exit Facility in accordance with
the terms of the Exit Facility Documents, which terms and conditions shall be acceptable to the Debtors and the Requisite Creditors. The Reorganized Debtors shall use the proceeds of the Exit Facility to pay the outstanding amount of the First Lien
Claims and for any other purpose permitted by the Exit Facility Documents. The Exit Facility shall include the following material terms: 
  

	 	a.	 The Combined Prepetition Second Lien Noteholders will be offered the opportunity to become a lender under the
Exit Facility on a Pro Rata basis, based on each Holder’s respective holdings of Second Lien Notes Claims, through a syndication process. 

  

	 	b.	 The Commitment Parties will enter into the Exit Facility Commitment Letter pursuant to which the Commitment
Parties shall agree to backstop any portion of the principal amount of the Exit Facility for which the other Combined Prepetition Second Lien Noteholders have not exercised their ability to become a lender under the Exit Facility in accordance with
the terms of the Plan and the applicable syndication procedures. 

  

	 	c.	 In consideration for their commitments under the Exit Facility Commitment Letter, the Commitment Parties shall
receive the Put Option Premium. 

  
 31 

	 	d.	 Terms of the Exit Facility to include: 

 

	 	i.	 Borrower: New Parent 

 

	 	ii.	 Guarantors: Each subsidiary of New Parent (other than POG and PQ Holdings) 

 

	 	iii.	 Principal Amount: $50 million 

 

	 	iv.	 Term: 5 years 

 

	 	v.	 Interest Rate: LIBOR + 750 bps (subject to a 1.00% floor) 

 

	 	vi.	 Security: Secured by a first lien security interest in the equity of each subsidiary of New Parent
(other than POG and PQ Holdings) on the same collateral that secures the Prepetition Term Loan Agreement 

  

	C.	 Distributions to Holders of General Unsecured Claims 

The GUC Administrator shall make distributions to Holders of Allowed General Unsecured Claims to be funded from Cash from the General
Unsecured Claims Distribution in accordance with the GUC Administrator Agreement. 
  

	D.	 Corporate Existence 

Except for TDC, Pittrans, and Sea Harvester, and as otherwise provided in the Plan, the Plan Supplement, or any agreement, instrument,
or other document incorporated in the Plan or the Plan Supplement, each Debtor shall continue to exist on and after the Effective Date as a separate corporation, limited liability company, partnership, or other form of entity, as the case may be,
with all the powers of a corporation, limited liability company, partnership, or other form of entity, as the case may be, pursuant to the New Organizational Documents and the applicable law in the jurisdiction in which each applicable Debtor is
incorporated or formed and pursuant to the respective certificate of incorporation and bylaws (or other analogous formation, constituent, or governance documents) in effect before the Effective Date, except to the extent such certificate of
incorporation or bylaws (or other analogous formation, constituent, or governance documents) is amended by the Plan or otherwise, and to the extent any such document is amended, such document is deemed to be amended pursuant to the Plan and requires
no further action or approval (other than any requisite filings required under applicable state or federal law). 
 Upon the Effective Date,
TDC, Pittrans, and Sea Harvester shall be dissolved automatically, effective on the Effective Date, without the need for any corporate action or approval and without the need for any corporate filings. 

 

	E.	 Vesting of Assets in the Reorganized Debtors 

Except as otherwise provided in the Plan, the Plan Supplement, or any agreement, instrument, or other document incorporated in the Plan or the
Plan Supplement, on the Effective Date, all property in each Estate, including all Causes of Action, and any property acquired by any of the Debtors shall vest in each applicable Reorganized Debtor, free and clear of all Liens, Claims,

  
 32 

 
charges, or other encumbrances. On and after the Effective Date, except as otherwise provided in the Plan, each Reorganized Debtor may operate its business and may use, acquire, or dispose of
property, and compromise or settle any Claims, Interests, or Causes of Action without supervision or approval by the Court and free of any restrictions of the Bankruptcy Code or Bankruptcy Rules. 

To the extent that any Holder of a Secured Claim that has been satisfied or discharged in full pursuant to the Plan, or any agent for such
Holder, has filed or recorded publicly any Liens and/or security interests to secure such Holder’s Secured Claim, as soon as practicable on or after the Effective Date, such Holder (or the agent for such Holder) shall take any and all steps
requested by the Debtors, the Reorganized Debtors or any administrative agent or indenture trustee under the Exit Facility Documents or the New Second Lien PIK Notes Documents that are necessary to cancel and/or extinguish such Liens and/or security
interests. 
 After the Effective Date, the Reorganized Debtors may present Court order(s) or assignment(s) suitable for filing in the
records of every county or governmental agency where the property vested in accordance with the foregoing paragraph is or was located, which provide that such property is conveyed to and vested in the Reorganized Debtors. The Court order(s) or
assignment(s) may designate all Liens, Claims, encumbrances, or other interests which appear of record and/or from which the property is being transferred, assigned and/or vested free and clear of. The Plan shall be conclusively deemed to be
adequate notice that such Lien, Claim, encumbrance, or other interest is being extinguished and no notice, other than by this Plan, shall be given prior to the presentation of such Court order(s) or assignment(s). Any Person having a Lien, Claim,
encumbrance, or other interest against any of the property vested in accordance with the foregoing paragraph shall be conclusively deemed to have consented to the transfer, assignment, and vesting of such property to or in the Reorganized Debtors
free and clear of all Liens, Claims, charges, or other encumbrances by failing to object to confirmation of this Plan, except as otherwise provided in this Plan. 
  

	F.	 Cancellation of Existing Securities 

Except for the purpose of evidencing a right to distribution under the Plan and except as otherwise provided in the Plan, on the Effective
Date: (i) the obligations of the Debtors under the Prepetition Agreements, and each certificate, share, note, bond, indenture, purchase right, option, warrant, or other instrument or document, directly or indirectly, evidencing or creating any
indebtedness or obligation of, or ownership interest in, the Debtors or giving rise to any Claim or Interest shall be cancelled or extinguished and the Debtors and the Reorganized Debtors shall not have any continuing obligations thereunder; and
(ii) the obligations of the Debtors pursuant, relating, or pertaining to any agreements, indentures, certificates of designation, bylaws, or certificate or articles of incorporation or similar documents governing the shares, certificates,
notes, bonds, purchase rights, options, warrants, or other instruments or documents evidencing or creating any indebtedness or obligation of the Debtors shall be released and discharged. 

On and after the Effective Date, all duties, responsibilities, or obligations of the Prepetition Term Loan Agent under the Prepetition Term
Loan Agreement and the Indenture Trustee under the Prepetition Second Lien Indenture, the Prepetition Second Lien PIK Indenture, the Prepetition Intercreditor Agreement, and the Collateral Trust Agreement shall be fully discharged. Notwithstanding
the foregoing, each of the Indentures and the Collateral Trust 

  
 33 

 
Agreement shall continue in effect solely for the purposes of, as applicable, (a) allowing Holders of Allowed Prepetition Second Lien Notes Claims and Allowed Prepetition Second Lien PIK
Notes Claims to receive distributions under the Plan and (b) allowing and preserving the rights of the Indenture Trustees to (i) make distributions in satisfaction of Allowed Prepetition Second Lien Notes Claims and Allowed Prepetition
Second Lien PIK Notes Claims, (ii) maintain and exercise their respective Charging Liens under the terms of the Indentures or any related or ancillary document, instrument, agreement, or principle of law against Holders of Allowed Prepetition
Second Lien Notes Claims and Allowed Prepetition Second Lien PIK Notes Claims, as applicable, and distributions thereto, (iii) seek compensation and reimbursement for any reasonable and documented fees and expenses incurred in making such
distributions, (iv) maintain and enforce any right to indemnification, expense reimbursement, contribution, or subrogation or any other claim or entitlement that the Indenture Trustees may have under the applicable Indentures and the Collateral
Trust Agreement, and (v) appear and raise issues in these Chapter 11 Cases. For the avoidance of doubt, all indemnification obligations and expense reimbursement obligations of the Debtors arising under the Indentures in favor of the Indenture
Trustees, and each of their respective directors, officers, employees, agents, affiliates, controlling persons, and legal and financial advisors shall survive, remain in full force and effect, and be enforceable against the Debtors or their Estates
on and after the Effective Date and shall be enforceable through the exercise of the applicable Charging Lien against the Holders of Allowed Prepetition Second Lien Notes Claims and Allowed Prepetition Second Lien PIK Notes Claims, as applicable,
and distributions thereto. 
 If the record Holder of any Prepetition Second Lien Notes, Prepetition Second Lien PIK Notes, or PetroQuest
Interests is DTC or its nominee or another securities depository or custodian thereof, and such Note or Interest is represented by a global security held by or on behalf of DTC or such other securities depository or custodian, then each beneficial
owner of such Note or Interest shall be deemed to have surrendered its Note or Interest upon surrender of such global security by DTC or such other securities depository or custodian thereof. 

 

	G.	 Corporate Action 

Upon the Effective Date, all actions (whether to occur before, on, or after the Effective Date) contemplated by the Plan shall be deemed
authorized and approved by the Court in all respects without any further corporate or equityholder action, including, as applicable: (1) issuance of the New Second Lien PIK Notes; (2) execution and delivery of the New Second Lien PIK Notes
Documents; (3) the adoption and/or filing of the New Organizational Documents and the Registration Rights Agreement; (4) the authorization, issuance, and distribution of the New Equity; (5) appointment of the directors and officers
for New Parent and the other Reorganized Debtors; (6) the Management Incentive Plan on the terms and conditions set forth in the MIP Term Sheet; (7) implementation of the Restructuring Transactions; (8) the dissolution of TDC,
Pittrans, and Sea Harvester; and (9) all other actions contemplated by the Plan. Upon the Effective Date, all matters provided for in the Plan involving the corporate structure of New Parent and the other Reorganized Debtors, and any corporate
action required by the Debtors, New Parent, or the other Reorganized Debtors in connection with the Plan (including any items listed in the first sentence of this paragraph) shall be deemed to have occurred and shall be in effect, without any
requirement of further action by the security holders, directors, or officers of the Debtors, New Parent or the other Reorganized Debtors, as applicable. On or (as applicable) before the Effective Date, the

  
 34 

 
appropriate officers of the Debtors, New Parent, or the other Reorganized Debtors shall be authorized and directed to issue, execute, and deliver the agreements, documents, securities, and
instruments contemplated by the Plan (or necessary or desirable to effectuate the transactions contemplated by the Plan) in the name of and on behalf of New Parent and the other Reorganized Debtors, including the Exit Facility Documents, the New
Second Lien PIK Notes Documents, the New Organizational Documents, and any and all other agreements, documents, securities, and instruments relating to the foregoing, to the extent not previously authorized by the Court. The authorizations and
approvals contemplated by this Article IV.G shall be effective notwithstanding any requirements under non-bankruptcy law or contract, including for any vote of shareholders or equityholders. 

 

	H.	 New Organizational Documents 

To the extent required under the Plan or applicable non-bankruptcy law, New Parent and the other
Reorganized Debtors will, on or as soon as practicable after the Effective Date, file their respective New Organizational Documents with the applicable Secretaries of State and/or other applicable authorities in their respective states, provinces,
or countries of incorporation in accordance with the corporate laws of the respective states, provinces, or countries of incorporation. Pursuant to and only to the extent required by section 1123(a)(6) of the Bankruptcy Code, the New Organizational
Documents of the Reorganized Debtors will prohibit the issuance of non-voting equity securities and will comply with all other applicable provisions of section 1123(a)(6) of the Bankruptcy Code regarding the
distribution of power among, and dividends to be paid to, different classes of voting securities. From and after the Effective Date, New Parent and the other Reorganized Debtors, as applicable, may amend and restate their respective New
Organizational Documents and other constituent documents, as permitted by the laws of their respective states, provinces, or countries of incorporation and their respective New Organizational Documents. 

On the Effective Date, the New Organizational Documents, substantially in the forms set forth in the Plan Supplement, shall be deemed to be
valid, binding, and enforceable in accordance with their terms and provisions. 
  

	I.	 Directors and Officers of the Reorganized Debtors 

As of the Effective Date, the term of the current members of the board of directors, members or managers of each of the Debtors shall expire
automatically, and the New Boards and the officers of each of the Reorganized Debtors shall be appointed in accordance with this Plan, the New Organizational Documents, and other constituent documents of each Reorganized Debtor. The initial New
Parent Board shall consist of five (5) members, consisting of Charles T. Goodson as the President and Chief Executive Officer of New Parent and four (4) additional Persons selected by the Requisite Creditors. 

Pursuant to section 1129(a)(5) of the Bankruptcy Code, the Debtors will, to the extent known, disclose in advance of the Confirmation Hearing
the identity and affiliations of any Person proposed to serve on the initial New Boards, as well as those Persons that will serve as an officer of New Parent or any of the Reorganized Debtors. To the extent any such director, member, manager or
officer is an Insider, the nature of any compensation to be paid to such director, member, manager or officer will also be disclosed. Each such director, member, manager and officer shall serve from and after the Effective Date pursuant to the terms
of the New Organizational Documents and other constituent documents of New Parent and each of the other Reorganized Debtors. 

  
 35 

	J.	 Effectuating Documents; Further Transactions 

On and after the Effective Date, New Parent and each of the other Reorganized Debtors, the Reorganized Debtors’ officers, and the members
of the New Boards are authorized to and may issue, execute, deliver, file, or record such contracts, Securities, instruments, releases, and other agreements or documents and take such actions as may be necessary or appropriate to effectuate,
implement, and further evidence the terms and conditions of the Plan and the Securities issued pursuant to the Plan, including the New Equity and the New Second Lien PIK Notes, in the name of and on behalf of New Parent or the other Reorganized
Debtors, without the need for any approvals, authorization, or consents except those expressly required pursuant to the Plan. 
  

	K.	 Exemption from Certain Taxes and Fees 

Pursuant to, and to the fullest extent permitted by, section 1146(a) of the Bankruptcy Code, any issuance, transfer, or exchange of a Security
(including, without limitation, of the New Equity and the New Second Lien PIK Notes) or transfer of property, in each case, pursuant to, in contemplation of, or in connection with, the Plan shall not be subject to any document recording tax, stamp
tax, conveyance fee, intangibles or similar tax, mortgage tax, stamp act, real estate transfer tax, sale or use tax, mortgage recording tax, or other similar tax or governmental assessment, and upon entry of the Confirmation Order, the appropriate
state or local governmental officials or agents shall forgo the collection of any such tax or governmental assessment and accept for filing and recordation any instruments of transfer or other relevant documents without the payment of any such tax,
recordation fee, or governmental assessment. 
  

	L.	 Preservation of Causes of Action 

In accordance with section 1123(b) of the Bankruptcy Code, but subject in all respects to Article VIII hereof, the Reorganized Debtors shall
retain and may enforce all rights to commence and pursue, as appropriate, any and all Causes of Action, whether arising before or after the Petition Date, including any actions specifically enumerated in the Plan Supplement, and such rights to
commence, prosecute, or settle such Causes of Action shall be preserved notwithstanding the occurrence of the Effective Date; provided, however, that the Reorganized Debtors have determined not to (and shall not) commence or prosecute
Avoidance Actions against the Holders of General Unsecured Claims, subject in all respects to the Reorganized Debtors’ rights to use such Causes of Action and the underlying facts to defend against any Claims or Causes of Action asserted
against the Debtors or Reorganized Debtors. The Reorganized Debtors may pursue such Causes of Action, as appropriate, in accordance with the best interests of the Reorganized Debtors. A schedule of the Causes of Action known by the Debtors to be
retained by the Reorganized Debtors is included as part of the Plan Supplement. No Entity may rely on the absence of a specific reference in the Plan, the Plan Supplement, or the Disclosure Statement to any Causes of Action against it as any
indication that the Debtors or the Reorganized Debtors will not pursue any and all available Causes of Action against it. The Debtors or the  

  
 36 

 
Reorganized Debtors, as applicable, expressly reserve all rights to prosecute any and all Causes of Action against any Entity, except as otherwise expressly provided in the Plan. Unless
any Causes of Action against an Entity are expressly waived, relinquished, exculpated, released, compromised, or settled in the Plan or a Court order, including, without limitation, pursuant to Article VIII hereof, the Debtors or Reorganized
Debtors, as applicable, expressly reserve all Causes of Action for later adjudication, and, therefore, no preclusion doctrine, including the doctrines of res judicata, collateral estoppel, issue preclusion, claim preclusion, estoppel (judicial,
equitable, or otherwise), or laches, shall apply to such Causes of Action upon, after, or as a consequence of the Confirmation or Consummation. For the avoidance of doubt, in no instance will any Cause of Action preserved pursuant to this Article
IV.L include any claim or Cause of Action with respect to, or against, a Released Party. 
 In accordance with section 1123(b)(3) of the
Bankruptcy Code, except as otherwise provided herein, any Causes of Action that a Debtor may hold against any Entity shall vest in the applicable Reorganized Debtor. The applicable Reorganized Debtors, through their authorized agents or
representatives, shall retain and may exclusively enforce any and all such Causes of Action. The Reorganized Debtors shall have the exclusive right, authority, and discretion to determine and to initiate, file, prosecute, enforce, abandon, settle,
compromise, release, withdraw, or litigate to judgment any such Causes of Action, and to decline to do any of the foregoing without the consent or approval of any third party or further notice to or action, order, or approval of the Court. 

 

	M.	 Director and Officer Liability Insurance 

Notwithstanding anything in the Plan to the contrary, effective as of the Effective Date, the Reorganized Debtors shall be deemed to have
assumed all D&O Liability Insurance Policies pursuant to section 365(a) of the Bankruptcy Code. Entry of the Confirmation Order will constitute the Court’s approval of the Reorganized Debtors’ assumption of such D&O Liability
Insurance Policies to the extent they are Executory Contracts. Notwithstanding anything to the contrary contained in the Plan, Confirmation of the Plan shall not discharge, impair, or otherwise modify any indemnity obligations assumed by the
foregoing assumption of the D&O Liability Insurance Policies, and each such indemnity obligation will be deemed and treated as an Executory Contract that has been assumed by the Reorganized Debtors under the Plan as to which no Proof of Claim
need be Filed, and shall survive the Effective Date. 
  

	N.	 Management Incentive Plan 

The Management Incentive Plan will be a comprehensive equity-based award plan as part of the
go-forward compensation for the Reorganized Debtors’ management in accordance with the MIP Term Sheet. The Confirmation Order shall authorize and require the New Parent Board to adopt and enter into the
Management Incentive Plan, on the terms and conditions set forth in the MIP Term Sheet. 
  

	O.	 Employee and Retiree Benefits 

Except as otherwise provided in the Plan or the Plan Supplement, all written employment, severance, retirement, and other similar
employee-related agreements or arrangements in place as 

  
 37 

 
of the Effective Date with the Debtors, including any key employee incentive plans and/or key employee retention plans that may be approved by the Court in the Chapter 11 Cases and any items
approved as part of the Confirmation Order, retirement income plans and welfare benefit plans, or discretionary bonus plans or variable incentive plans regarding payment of a percentage of annual salary based on performance goals and financial
targets for certain employees, shall be assumed by the Reorganized Debtors and shall remain in place after the Effective Date, as may be amended by agreement between the beneficiaries of such agreements, plans, or arrangements, on the one hand, and
the Debtors, with the consent of the Requisite Creditors, on the other hand, or, after the Effective Date, by agreement with the Reorganized Debtors, and the Reorganized Debtors will continue to honor such agreements, arrangements, programs, and
plans; provided that the foregoing shall not apply to any equity-based compensation, agreement, or arrangement existing as of the Petition Date. Nothing in the Plan shall limit, diminish, or otherwise alter the Reorganized Debtors’
defenses, claims, Causes of Action, or other rights with respect to any such contracts, agreements, policies, programs, and plans. 
  

	P.	 Fees and Expenses of the Consenting Creditors 

1.    Payment of Fees and Expenses of the Consenting Creditors 

On the Effective Date, to the extent not otherwise paid pursuant to an order of this Court, the Reorganized Debtors shall establish and fund
the Consenting Creditors Fee Escrow Account with Cash equal to the Consenting Creditors Fee Reserve Amount. The Consenting Creditors Fee Escrow Account shall be maintained in trust solely for the benefit of the applicable Consenting Creditors
Professionals. The funds in the Consenting Creditors Fee Escrow Account shall not be considered property of the Estates or of the Reorganized Debtors and shall not be subject to any Liens. 

After the Effective Date, the Consenting Creditors Fees will be subject to a review by the Reorganized Debtors for a period of seven
(7) Business Days following submission of each invoice (including reasonable documentation of such fees and expenses), which may be redacted to preserve privilege and/or confidentiality. To the extent the Reorganized Debtors deliver to the
applicable Consenting Creditor a written notice of objection within the seven (7) Business Day review period, and the applicable Consenting Creditor and the Reorganized Debtors are unable to resolve such objection on a consensual basis within
seven (7) Business Days after such objection has been submitted, the Reorganized Debtors may File with the Court a motion or other pleading setting forth the specific objections to the disputed invoice, and the Court shall adjudicate the
matter. The Reorganized Debtors will promptly pay any undisputed Consenting Creditors Fees on the later of the Effective Date or one (1) Business Day following the expiration of the seven (7) Business Day review period. When all such
amounts owing to Consenting Creditors have been paid in full, any remaining amount in the Consenting Creditors Fee Escrow Account shall promptly be turned over to the Reorganized Debtors without any further action or order of the Court. 

2.    Consenting Creditors Fee Reserve Amount 

Consenting Creditors Professionals shall reasonably estimate their unpaid Consenting Creditors Fees before and as of the Effective Date, and
shall deliver such estimate to the Debtors no later than five (5) Business Days before the Effective Date. If any of the Consenting Creditors Professionals does not provide an estimate, the Debtors or Reorganized Debtors may estimate the unpaid
and unbilled fees and expenses of such Consenting Creditors Professional. 

  
 38 

	Q.	 Preservation of the Charging Lien of the Indenture Trustee 

Each Indenture Trustee shall be entitled to assert its Charging Lien arising under and in accordance with the applicable Indenture and any
ancillary document, instrument, or agreement to obtain payment of its respective fees and expenses and the fees and expenses of its professionals. Reasonable fees and expenses incurred by the Indenture Trustee after the Effective Date in its
capacity as Disbursing Agent and for matters related to distributions to the Combined Prepetition Second Lien Noteholders shall be paid by the Reorganized Debtors and any dispute between the Reorganized Debtors and the Indenture Trustee regarding
the reasonableness of such fees and expenses may be submitted to the Court for resolution. 
  

	R.	 Preservation of Royalty and Working Interests 

Notwithstanding any other provision in the Plan, on and after the Effective Date all Royalty and Working Interests shall be fully preserved
and remain in full force and effect in accordance with the terms of the relevant granting instruments or other governing documents applicable to such Royalty and Working Interests, which granting instruments and governing documents shall remain in
full force and effect, and no Royalty and Working Interests or any liabilities and obligations arising therefrom, including payment obligations, whether arising before or after the Petition Date, shall be compromised or discharged by the Plan. 

 

	S.	 GUC Administrator 

The GUC Administrator shall have the power to administer the General Unsecured Claims Distribution and make or authorize distributions to
Holders of General Unsecured Claims. Without limiting the generality of the foregoing, the GUC Administrator shall: (a) hold and administer the Cash that comprises the General Unsecured Claims Distribution; (b) have authority to pay from
the General Unsecured Claims Distribution all out of pocket expenses incurred in connection with the discharge of its duties under the Plan; (c) have the power and authority to retain such attorneys, advisors, other professionals and employees
as may be appropriate to perform the duties required of the GUC Administrator in the Plan and in the GUC Administrator Agreement; (d) make distributions to Holders of General Unsecured Claims as provided in the Plan and in the GUC Administrator
Agreement; and (e) provide periodic reports and updates to the Reorganized Debtors regarding the status of the administration of the General Unsecured Claims as may be reasonably required. The GUC Administrator shall have reasonable access to
the Reorganized Debtors’ books and records solely for the purpose of claims resolution, administration, and distribution purposes, and the Reorganized Debtors shall agree to provide their reasonable cooperation and commercially reasonable best
efforts, as necessary, to assist the GUC Administrator with this process. For the avoidance of doubt, both the Reorganized Debtors and the GUC Administrator reserve the right to participate in the claims reconciliation process with respect to
General Unsecured Claims. 
 Prior to the Effective Date, an amount of Cash from the General Unsecured Claims Distribution estimated by the
Creditors’ Committee in consultation with the Debtors and the Requisite Creditors as sufficient to perform the functions of the GUC Administrator in connection 

  
 39 

 
with its responsibilities, including fees for its counsel, shall be placed into a segregated account held by the GUC Administrator, and which segregated amount shall not limit the fees and
expenses, including fees for its counsel, of the GUC Administrator in the performance of its duties. Any excess amount remaining in the account in connection with the closing of the Chapter 11 Cases will be treated as distributable Cash to Holders
of General Unsecured Claims. 
 Notwithstanding anything contained herein, the Reorganized Debtors shall be responsible for the claims
resolution process with respect to those General Unsecured Claims with insurance coverage and the claims asserted by Mack Oil Co. in connection with that certain proceeding pending before the American Arbitration Association, Case No. 01-16-0000-8394. 

ARTICLE V. 

TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES 
  

	A.	 Assumption and Rejection of Executory Contracts and Unexpired Leases 

On the Effective Date, except as otherwise provided herein, all Executory Contracts or Unexpired Leases will be deemed assumed and assigned to
the Reorganized Debtors or their designated assignee in accordance with the provisions and requirements of sections 365 and 1123 of the Bankruptcy Code, regardless of whether such Executory Contract or Unexpired Lease is set forth on the Schedule of
Assumed Executory Contracts and Unexpired Leases, other than: (1) those that are identified on the Schedule of Rejected Executory Contracts and Unexpired Leases; (2) those that have been previously rejected by a Final Order; (3) those
that are the subject of a motion to reject Executory Contracts or Unexpired Leases that is pending on the Effective Date; or (4) those that are subject to a motion to reject an Executory Contract or Unexpired Lease pursuant to which the
requested effective date of such rejection is after the Effective Date. 
 Entry of the Confirmation Order shall constitute the Court’s
order approving the assumptions, assumptions and assignments, or rejections, as applicable, of Executory Contracts or Unexpired Leases as set forth in the Plan or in the Schedule of Rejected Executory Contracts and Unexpired Leases and the Schedule
of Assumed Executory Contracts and Unexpired Leases, pursuant to sections 365(a) and 1123 of the Bankruptcy Code. Unless otherwise indicated, assumptions, assumptions and assignments, or rejections of Executory Contracts and Unexpired Leases
pursuant to the Plan are effective as of the Effective Date. Each Executory Contract or Unexpired Lease assumed pursuant to the Plan but not assigned to a third party before the Effective Date shall re-vest in
and be fully enforceable by the applicable Reorganized Debtor in accordance with its terms, except as such terms may have been modified by the provisions of the Plan or any order of the Court. Any motions to assume Executory Contracts or Unexpired
Leases pending on the Effective Date shall be subject to approval by the Court on or after the Effective Date. Notwithstanding anything to the contrary in the Plan, the Debtors, with the consent of the Requisite Creditors, reserve the right to
alter, amend, modify, or supplement the Schedule of Rejected Executory Contracts and Unexpired Leases at any time prior to the Effective Date on no less than three (3) days’ notice to the applicable
non-Debtor counterparties. 

  
 40 

	B.	 Claims Based on Rejection of Executory Contracts or Unexpired Leases 

Counterparties to Executory Contracts or Unexpired Leases listed on the Schedule of Rejected Executory Contracts and Unexpired Leases shall be
promptly served with a notice of rejection of Executory Contracts and Unexpired Leases. Proofs of Claim with respect to Claims arising from the rejection of Executory Contracts or Unexpired Leases, if any, must be Filed with the Court within the
earliest to occur of (1) thirty (30) days after the date of entry of an order of the Court (including the Confirmation Order) approving such rejection or (2) thirty (30) days after notice of any rejection that occurs after the Effective
Date. Any Claims arising from the rejection of an Executory Contract or Unexpired Lease that are not Filed within such time will be automatically Disallowed, forever barred from assertion, and shall not be enforceable against, as applicable, the
Debtors, the Reorganized Debtors, the Estates, or property of the foregoing parties, without the need for any objection by the Debtors or the Reorganized Debtors or further notice to, or action, order, or approval of the Court or any other Entity,
and any Claim arising out of the rejection of the Executory Contract or Unexpired Lease shall be deemed fully satisfied, released, and discharged, notwithstanding anything in the Schedules or any Proof of Claim to the contrary. Claims arising
from the rejection of the Executory Contracts or Unexpired Leases shall be classified as General Unsecured Claims and shall be treated in accordance with Article III.B.7 of the Plan. 

 

	C.	 Cure of Defaults for Assumed Executory Contracts and Unexpired Leases 

At least fourteen (14) days before the Confirmation Hearing, the Debtors shall distribute, or cause to be distributed, Cure Notices of
proposed assumption or assumption and assignment and proposed amounts of Cure Claims to the applicable counterparties and the Requisite Creditors. Any objection by a counterparty to an Executory Contract or Unexpired Lease to the proposed
assumption or assumption and assignment or related Cure Claim must be Filed, served and actually received by the Debtors and the Requisite Creditors at least seven (7) days before the
Confirmation Hearing. In the event that any Executory Contract or Unexpired Lease is removed from the Schedule of Rejected Executory Contracts and Unexpired Leases after such time as the Cure Notices referred to above have been distributed, a
separate Cure Notice of proposed assumption or assumption and assignment and the proposed amount of the Cure Claim with respect to such Executory Contract or Unexpired Lease will be sent promptly to the counterparty thereof and a hearing will be set
to consider whether such Executory Contract or Unexpired Lease can be assumed or assumed and assigned. 
 Any counterparty to an Executory
Contract or Unexpired Lease that fails to object timely to the proposed assumption or assumption and assignment or the proposed Cure Claim will be deemed to have assented to such assumption or assumption and assignment and the Cure Claim. Payment in
Cash, on the Effective Date or as soon as reasonably practicable thereafter, to such counterparty of the amount set forth on the applicable Cure Notice shall, as a matter of law, satisfy any and all monetary defaults under the applicable Executory
Contract or Unexpired Lease. In the event of a dispute regarding (1) the amount of any payments to cure such a default, (2) the ability of the Reorganized Debtors or any assignee, to provide “adequate assurance of future
performance” (within the meaning of section 365 of the Bankruptcy Code) under the Executory Contract or Unexpired Lease to be assumed, or (3) any other matter pertaining to assumption or assumption and assignment, such dispute shall be
resolved by a Final Order of the Court. 

  
 41 

 In any case, if the Court determines that the Allowed Cure Claim with respect to any
Executory Contract or Unexpired Lease is greater than the amount set forth in the applicable Cure Notice, the Debtors or the Reorganized Debtors, as applicable, with the consent of the Requisite Creditors, will have the right to add such Executory
Contract or Unexpired Lease to the Schedule of Rejected Executory Contracts and Unexpired Leases, in which case such Executory Contract or Unexpired Lease will be deemed rejected as of the Effective Date. After such Executory Contract or Unexpired
Lease is added to the Schedule of Rejected Executory Contracts and Unexpired Leases, the applicable counterparty shall be served with a notice of rejection of its Executory Contract or Unexpired Lease. 

Assumption of any Executory Contract or Unexpired Lease pursuant to the Plan or otherwise shall result in the full release and satisfaction of
any Claims or defaults, whether monetary or nonmonetary, including defaults of provisions restricting the change in control or ownership interest composition or other bankruptcy-related defaults, arising under any assumed Executory Contract or
Unexpired Lease at any time before the date that the Debtors assume such Executory Contract or Unexpired Lease. Any Proofs of Claim Filed with respect to an Executory Contract or Unexpired Lease that has been assumed shall be deemed Disallowed and
expunged, without further notice to or action, order, or approval of the Court. 
  

	D.	 Insurance Policies 

Without limiting Article IV.M, all of the Debtors’ insurance policies and any agreements, documents, or instruments relating thereto, are
treated as and deemed to be Executory Contracts under the Plan. On the Effective Date, the Debtors shall be deemed to have assumed all insurance policies and any agreements, documents, and instruments related thereto. 

 

	E.	 Modifications, Amendments, Supplements, Restatements, or Other Agreements 

Unless otherwise provided in the Plan, each Executory Contract or Unexpired Lease that is assumed or assumed and assigned shall include all
modifications, amendments, supplements, restatements, or other agreements that in any manner affect such Executory Contract or Unexpired Lease, and Executory Contracts and Unexpired Leases related thereto, if any, including easements, licenses,
permits, rights, privileges, immunities, options, rights of first refusal, and any other interests, unless any of the foregoing agreements has been previously rejected or repudiated or is rejected or repudiated under the Plan. 

Modifications, amendments, supplements, and restatements to prepetition Executory Contracts and Unexpired Leases that have been executed by
the Debtors during the Chapter 11 Cases, shall not be deemed to alter the prepetition nature of the Executory Contract or Unexpired Lease, or the validity, priority, or amount of any Claims that may arise in connection therewith. 

 

	F.	 Reservation of Rights 

Neither the exclusion nor inclusion of any Executory Contract or Unexpired Lease on the Schedule of Rejected Executory Contracts and Unexpired
Leases, nor anything contained in the Plan, shall constitute an admission by the Debtors that any such contract or lease is in fact an Executory Contract or Unexpired Lease or that any Reorganized Debtor has any liability thereunder. If there is a
dispute regarding whether a contract or lease is or was executory or unexpired at the time of assumption or rejection, the Debtors, or, after the Effective Date, the Reorganized Debtors, in each case with the consent of the Requisite Creditors,
shall have thirty (30) days following entry of a Final Order resolving such dispute to alter the treatment of such contract or lease. 

  
 42 

	G.	 Nonoccurrence of Effective Date 

In the event that the Effective Date does not occur, the Court shall retain jurisdiction with respect to any request to extend the deadline
for assuming or rejecting Unexpired Leases pursuant to section 365(d)(4) of the Bankruptcy Code. 
  

	H.	 Contracts and Leases Entered into After the Petition Date 

Contracts and leases entered into after the Petition Date by any Debtor will be performed by the applicable Debtor or Reorganized Debtor
liable thereunder in the ordinary course of its business. Accordingly, such contracts and leases that have not been rejected as of the date of Confirmation will survive and remain unaffected by entry of the Confirmation Order. 

ARTICLE VI. 

PROVISIONS GOVERNING DISTRIBUTIONS 
  

	A.	 Timing and Calculation of Amounts to Be Distributed 

Unless otherwise provided in the Plan, on the Effective Date or as soon as reasonably practicable thereafter (or, if a Claim is not an Allowed
Claim on the Effective Date, on the date that such Claim becomes Allowed or as soon as reasonably practicable thereafter), each Holder of an Allowed Claim (or such Holder’s affiliate), including any portion of a Claim that is an Allowed Claim
notwithstanding that other portions of such Claim are a Disputed Claim, shall receive the full amount of the distributions that the Plan provides for Allowed Claims in each applicable Class. In the event that any payment or act under the Plan is
required to be made or performed on a date that is not a Business Day, then the making of such payment or the performance of such act may be completed on the next succeeding Business Day, but shall be deemed to have been completed as of the required
date. If and to the extent that there are Disputed Claims, distributions on account of any such Disputed Claims shall be made pursuant to the provisions set forth in Article VII of the Plan. Except as otherwise provided in the Plan, Holders of
Claims shall not be entitled to interest, dividends, or accruals on the distributions provided for in the Plan, regardless of whether such distributions are delivered on or at any time after the Effective Date. 

 

	B.	 Delivery of Distributions and Undeliverable or Unclaimed Distributions 

1.    Delivery of Distributions 
  

	 	a.	 Distribution Record Date 

As of the close of business on the Distribution Record Date, (i) the various transfer registers for each of the Classes of Claims and
Interests maintained by the Debtors, or their respective agents, and (ii) the transfer books and records of the respective Notes as maintained by the Indenture Trustee, its respective agents, or DTC, shall be deemed closed, and there shall be
no 

  
 43 

 
further changes in the record Holders of any of the Claims and Interests. The Debtors, the Reorganized Debtors, the Disbursing Agent, the GUC Administrator, and the Indenture Trustee, as
applicable, shall have no obligation to recognize any transfer of the Claims or Interests occurring on or after the Distribution Record Date. For the avoidance of doubt, the Distribution Record Date shall not apply to any distributions made through
DTC and shall be made through the facilities of the DTC in accordance with the customary practices of DTC for a mandatory distribution. 
  

	 	b.	 Delivery of Distributions in General 

Except as otherwise provided herein, distributions to Holders of Allowed Claims shall be made to the Holders of record as of the Distribution
Record Date by the Reorganized Debtors or the Disbursing Agent for all Claims other than General Unsecured Claims, and by the GUC Administrator for General Unsecured Claims, as follows: (1) to the signatory at the address set forth on the last
Proof of Claim Filed by such Holder or other representative identified therein (or at the last known addresses of such Holder if the Debtors have been notified in writing of a change of address); (2) at the address set forth in any written notice of
address changes delivered to the Reorganized Debtors after the Effective Date; (3) at the address reflected in the Schedules if no Proof of Claim has been Filed and the Reorganized Debtors have not received a written notice of a change of
address; or (4) to any counsel that has appeared in the Chapter 11 Cases on the Holder’s behalf. Subject to this Article VI, distributions under the Plan on account of Allowed Claims shall not be subject to levy, garnishment,
attachment, or like legal process, so that each Holder of an Allowed Claim shall have and receive the benefit of the distributions in the manner set forth in the Plan. The GUC Administrator, the Debtors, the Reorganized Debtors, and the Indenture
Trustee shall not incur any liability whatsoever on account of any distributions under the Plan except for fraud, gross negligence, or willful misconduct. 
  

	 	c.	 Delivery of Distributions to Prepetition Term Loan Lenders 

Any and all distributions to Holders of First Lien Claims as of the Distribution Record Date shall be governed by the Prepetition Term Loan
Agreement. The Prepetition Term Loan Agent shall cooperate with the Debtors and the Reorganized Debtors (including the Disbursing Agent) to enable the Debtors or the Reorganized Debtors (through the Disbursing Agent) to make such distributions,
including providing, within three (3) Business Days following the Distribution Record Date, the Debtors or the Reorganized Debtors (including the Disbursing Agent) with a list of all Holders of First Lien Claims as of the Distribution Record
Date, including the address at which each such Holder is authorized to receive its distribution under the Plan and the amount of First Lien Claims held by each such Holder. 
  

	 	d.	 Delivery of Distributions to Combined Prepetition Second Lien Noteholders 

Any and all distributions to the Holders of the Second Lien Notes Claims as of the Distribution Record Date shall be governed by the
Prepetition Second Lien Indenture or the Prepetition Second Lien PIK Indenture, as applicable. Each Indenture Trustee shall cooperate with the Debtors and Reorganized Debtors to enable the Debtors or Reorganized Debtors (through the Indenture
Trustee) to make such distributions, including providing, within three (3) Business Days following the Distribution Record Date, the Debtors or Reorganized Debtors with a list of all 

  
 44 

 
Holders of Second Lien Notes Claims as of the Distribution Record Date and the amount of the Second Lien Notes Claims held by each such Holder. Distributions to the Holders of the Second Lien
Notes Claims shall be deemed to have been made when reflected in the Reorganized Debtors’ stock register according to the information provided by the Indenture Trustee. 

All distributions on account of Allowed Second Lien Notes Claims (a) shall be governed by the Prepetition Second Lien Indenture or the
Prepetition Second Lien PIK Indenture, as applicable, and (b) will be made to (or in coordination with) the Prepetition Second Lien Trustee and the Prepetition Second Lien PIK Trustee, respectively, which will serve as the Reorganized
Debtors’ Disbursing Agent for purposes of making distributions under the Plan to Holders of the Second Lien Notes Claims. The Prepetition Second Lien Trustee and the Prepetition Second Lien PIK Trustee may transfer or direct the transfer of
such distributions directly through the facilities of DTC (with the accompanying surrender of the Second Lien Notes Claims) and will be entitled to recognize and deal for all purposes under the Plan with DTC, on or as soon as practicable after the
Effective Date, consistent with the customary practices of DTC. To the extent that any distributions are not eligible for distribution through DTC, the Prepetition Second Lien Trustee or the Prepetition Second Lien PIK Trustee, respectively, or the
applicable paying agent, as applicable, shall have no duties or responsibilities relating to any form of distribution that is not DTC eligible; provided that all such distributions shall be subject in all respects to the right of the
Prepetition Second Lien Trustee or the Prepetition Second Lien PIK Trustee to assert its applicable Charging Liens arising under and in accordance with the applicable Indenture and any ancillary document, instrument, or agreement, against such
distributions with respect to any unpaid fees and expenses (including professionals’ fees) or other amounts payable to the Prepetition Second Lien Trustee or the Prepetition Second Lien PIK Trustee, or any applicable paying agent, as
applicable, under the applicable Indenture and any related or ancillary document, instrument, agreement or principle of law as applicable. All distributions made to Holders of Allowed Second Lien Notes Claims are expected to be eligible to be
distributed through the facilities of DTC. 
 2.    Minimum Distributions 

No fractional shares of New Equity or fractions of New Second Lien PIK Notes shall be distributed, and no Cash shall be distributed in lieu of
such fractional shares of New Equity or fractions of New Second Lien PIK Notes. When any distribution pursuant to the Plan on account of an Allowed Claim would otherwise result in a fractional share of New Equity or a fraction of New Second Lien PIK
Notes, the actual issuance shall reflect a rounding as follows: (a) fractions of one-half or greater shall be rounded to the next higher whole number, and (b) fractions of less than one-half shall be rounded to the next lower whole number with no further payment therefor. The total number of authorized shares of New Equity and New Second Lien PIK Notes to be distributed pursuant to the Plan
shall be adjusted as necessary to account for the foregoing rounding. 
 Holders of Allowed Claims entitled to distributions of $50.00 or
less shall not receive distributions, and each Claim to which this limitation applies shall be discharged pursuant to Article VIII and its Holder shall be forever barred pursuant to Article VIII from asserting that Claim against the Reorganized
Debtors or their property. 

  
 45 

 3.    Undeliverable Distributions and Unclaimed Property 

In the event that any distribution to any Holder is returned as undeliverable, no distribution to such Holder shall be made unless and until
the Debtors or the Reorganized Debtors (including the Disbursing Agent), as applicable, or the GUC Administrator solely with respect to General Unsecured Claims, shall have determined the then-current address of such Holder, at which time such
distribution shall be made to such Holder without interest; provided that such distributions shall be deemed unclaimed property under section 347(b) of the Bankruptcy Code at the expiration of one year from the Effective Date. After such
date, all unclaimed property or interests in property shall be property of the Reorganized Debtors or distributed to Holders of General Unsecured Claims if part of the General Unsecured Claims Distribution without need for a further order by the
Court (notwithstanding any applicable federal, provincial, or state escheat, abandoned, or unclaimed property laws to the contrary), and the Claim of any Holder to such property or Interest in property shall be discharged and forever barred. 

 

	C.	 Securities Registration Exemption 

Notwithstanding any provision of the Registration Rights Agreement, all shares of New Equity and New Second Lien PIK Notes issued under the
Plan will be issued to the fullest extent permitted by section 1145 of the Bankruptcy Code without registration under the Securities Act and any other applicable securities laws. These Securities may be resold without registration under the
Securities Act or other federal securities laws pursuant to the exemption provided by section 4(a)(1) of the Securities Act, subject to certain exceptions if the Holder is an “underwriter” with respect to such Securities, as such term is
defined in section 1145(b) of the Bankruptcy Code. In addition, Securities that are exempt pursuant to section 1145 of the Bankruptcy Code generally may be resold without registration under state securities laws pursuant to various exemptions
provided by the respective laws of the several states. The New Equity underlying the Management Incentive Plan will be issued pursuant to an available exemption from registration under the Securities Act and other applicable law. On the Effective
Date, PetroQuest shall have deregistered under Section 12 of the Exchange Act and New Parent will be subject to the reporting requirements under Section 15(d) of the Exchange Act. 

Should the Reorganized Debtors elect, on or after the Effective Date, to reflect all or any portion of the ownership of the New Equity or New
Second Lien PIK Notes to be held through the facilities of DTC, none of the Debtors, the Reorganized Debtors, nor any other Person shall be required to provide any further evidence other than the Plan and Confirmation Order with respect to the
treatment of the New Equity or New Second Lien PIK Notes under applicable securities laws, and the Plan or Confirmation Order shall be deemed to be legal and binding obligations of the Reorganized Debtors in all respects. 

The DTC shall be required to accept and conclusively rely upon the Plan and Confirmation Order in lieu of a legal opinion regarding whether
the New Equity or New Second Lien PIK Notes are exempt from registration and/or eligible for DTC book-entry delivery, settlement, and depositary services. 

Notwithstanding anything to the contrary in the Plan, no Entity (including, for the avoidance of doubt, DTC) may require a legal opinion
regarding the validity of any transaction contemplated by the Plan, including, for the avoidance of doubt, whether the New Equity and New Second Lien PIK Notes are exempt from registration and/or eligible for DTC book-entry delivery, settlement, and
depositary services. 

  
 46 

	D.	 Compliance with Tax Requirements 

In connection with the Plan, to the extent applicable, the Debtors or the Reorganized Debtors, as applicable, shall comply with all tax
withholding and reporting requirements imposed on them by any Governmental Unit, and all distributions pursuant to the Plan shall be subject to such withholding and reporting requirements. Notwithstanding any provision in the Plan to the contrary,
the Debtors or the Reorganized Debtors, as applicable, shall be authorized to take all actions necessary or appropriate to comply with such withholding and reporting requirements, including liquidating a portion of the distribution to be made under
the Plan to generate sufficient funds to pay applicable withholding taxes, withholding distributions pending receipt of information necessary to facilitate such distributions, or establishing any other mechanisms they believe are reasonable and
appropriate. The Debtors or the Reorganized Debtors, as applicable, reserve the right to allocate all distributions made under the Plan in compliance with applicable wage garnishments, alimony, child support, and other spousal awards, liens, and
encumbrances. 
  

	E.	 Allocations 

Each Holder of an Allowed Claim shall have the option to apply such Holder’s Pro Rata share of consideration distributed under the Plan
(cash or value) to satisfy outstanding principal of or accrued interest on such Holder’s Allowed Claim, as such allocation is determined by such Holder in its sole discretion. 

 

	F.	 No Postpetition Interest on Claims 

Unless otherwise specifically provided for in an order of the Court, the Plan, or the Confirmation Order, or required by applicable bankruptcy
law, postpetition interest shall not accrue or be paid on any Claims or Interests and no Holder of a Claim or Interest shall be entitled to interest accruing on or after the Petition Date on any such Claim. 

 

	G.	 Setoffs and Recoupment 

The Debtors or the Reorganized Debtors, as applicable, may, but shall not be required to, set off against, or recoup from, any Claim against a
Debtor of any nature whatsoever that the applicable Debtor may have against the claimant, but neither the failure to do so nor the allowance of any Claim against a Debtor hereunder shall constitute a waiver or release by the applicable Debtor of any
such Claim it may have against the Holder of such Allowed Claim. 
  

	H.	 Claims Paid or Payable by Third Parties 

1.    Claims Paid by Third Parties 

The Debtors or the Reorganized Debtors, as applicable, with respect to Claims other than General Unsecured Claims, and the GUC Administrator
with respect to General Unsecured Claims, shall reduce in full an Allowed Claim, and such Claim shall be Disallowed without a 

  
 47 

 
Claim objection having to be Filed and without any further notice to or action, order, or approval of the Court, to the extent that the Holder of such Claim receives payment in full on account of
such Claim from a party that is not a Debtor or Reorganized Debtor. Subject to the last sentence of this paragraph, to the extent a Holder of a Claim receives a distribution on account of such Claim and thereafter receives payment from a party that
is not a Debtor, a Reorganized Debtor, or the GUC Administrator on account of such Claim, such Holder shall, within fourteen (14) days of receipt thereof, repay or return the distribution to the Reorganized Debtors or the GUC Administrator, as
applicable, to the extent the Holder’s total recovery on account of such Claim from the third party and under the Plan exceeds the amount of such Claim as of the Petition Date. The failure of such Holder to timely repay or return such
distribution shall result in the Holder owing the Reorganized Debtors or the GUC Administrator, as applicable, annualized interest at the Federal Judgment Rate on such amount owed for each Business Day after the fourteen (14) day grace period
specified above until the amount is repaid. 
 2.    Claims Payable by Insurers 

Holders of Claims that are covered by the Debtors’ insurance policies shall seek payment of such Claims from applicable insurance
policies, provided that the Debtors, the Reorganized Debtors, and the GUC Administrator, as applicable, shall have no obligation to pay any amounts in respect of prepetition deductibles or self-insured retention amounts. No distributions
under the Plan shall be made on account of an Allowed Claim that is payable pursuant to one of the Debtors’ insurance policies until the Holder of such Allowed Claim has exhausted all remedies with respect to such insurance policy. To the
extent that one or more of the Debtors’ insurers agrees to satisfy in full or in part a Claim (if and to the extent adjudicated by a court of competent jurisdiction), then immediately upon such insurers’ agreement, the applicable portion
of such Claim may be expunged without an objection having to be Filed and without any further notice to or action, order, or approval of the Court. 

3.    Applicability of Insurance Policies 

Except as otherwise provided in the Plan, distributions to Holders of Allowed Claims shall be in accordance with the provisions of any
applicable insurance policy. Nothing contained in the Plan shall constitute or be deemed a waiver of any Cause of Action that the Debtors or any Entity may hold against any other Entity, including insurers under any policies of insurance, nor shall
anything contained herein constitute or be deemed a waiver by such insurers of any defenses, including coverage defenses, held by such insurers. 

ARTICLE VII. 

PROCEDURES FOR RESOLVING CONTINGENT, UNLIQUIDATED, AND DISPUTED CLAIMS 

 

	A.	 Allowance of Claims 

On or after the Effective Date, the Reorganized Debtors and the GUC Administrator (solely with respect to General Unsecured Claims) shall have
any and all rights and defenses the Debtors had with respect to any Claim immediately prior to the Effective Date. Except as expressly provided in the Plan or in any order entered in the Chapter 11 Cases before the Effective Date

  
 48 

 
(including the Confirmation Order), no Claim shall become an Allowed Claim unless and until such Claim is deemed Allowed under the Plan or the Bankruptcy Code, or the Court has entered a Final
Order, including the Confirmation Order (when it becomes a Final Order), in the Chapter 11 Cases allowing such Claim. 
  

	B.	 Claims and Interests Administration Responsibilities 

1.    Reorganized Debtors 

Except as otherwise specifically provided in the Plan and notwithstanding any requirements that may be imposed pursuant to Bankruptcy
Rule 9019, after the Effective Date, the Reorganized Debtors, by order of the Court, shall have the sole authority: (1) to File, withdraw, or litigate to judgment objections to Claims (other than General Unsecured Claims); (2) to settle or
compromise any Disputed Claim (other than General Unsecured Claims) without any further notice to or action, order, or approval by the Court; and (3) to administer and adjust the Claims Register (except with respect to General Unsecured Claims)
to reflect any such settlements or compromises without any further notice to or action, order, or approval by the Court. 

2.    GUC Administrator 

Except as otherwise specifically provided in the Plan and notwithstanding any requirements that may be imposed pursuant to Bankruptcy
Rule 9019, after the Effective Date, the GUC Administrator, by order of the Court, shall have the sole authority: (1) to File, withdraw, or litigate to judgment objections to General Unsecured Claims; (2) to settle or compromise any
Disputed Claim that is a General Unsecured Claim without any further notice to or action, order, or approval by the Court; and (3) to administer and adjust the Claims Register (solely with respect to General Unsecured Claims) to reflect any
such settlements or compromises without any further notice to or action, order, or approval by the Court. 
  

	C.	 Estimation of Claims 

Before or after the Effective Date, the Debtors or the Reorganized Debtors, as applicable, or the GUC Administrator (solely with respect to
General Unsecured Claims), may (but are not required to) at any time request that the Court estimate any Disputed Claim pursuant to section 502(c) of the Bankruptcy Code, regardless of whether any party previously has objected to such Claim, and the
Court shall retain jurisdiction to estimate any such Claim, including during the litigation of any objection to any Claim or during any appeal relating to such objection. In the event that the Court estimates any Disputed Claim, that estimated
amount shall constitute a maximum limitation on such Claim for all purposes under the Plan (including for purposes of distributions), and the Debtors, the Reorganized Debtors, or the GUC Administrator, as applicable, may elect to pursue any
supplemental proceedings to object to any ultimate distribution on such Claim. Notwithstanding section 502(j) of the Bankruptcy Code, in no event shall any Holder of a Claim that has been estimated pursuant to section 502(c) of the Bankruptcy Code
or otherwise be entitled to seek reconsideration of such estimation unless such Holder has Filed a motion requesting the right to seek such reconsideration on or before twenty-one (21) days after the date
on which such Claim is estimated. All of the aforementioned Claims and objection, estimation, and resolution procedures are cumulative and not exclusive of one another. Claims may be estimated and subsequently compromised, settled, withdrawn, or
resolved by any mechanism approved by the Court. 

  
 49 

	D.	 Adjustment to Claims Without Objection 

Any Claim that has been paid or satisfied, or any Claim that has been amended or superseded, may be adjusted or expunged on the Claims
Register without a Claims objection having to be Filed and without any further notice to or action, order, or approval of the Court. 
  

	E.	 Disputed Claims Reserve 

On or prior to the Effective Date, the Debtors or the Reorganized Debtors, as applicable, or the GUC Administrator (solely with respect to
General Unsecured Claims), shall be authorized, in consultation with the Requisite Creditors and the Creditors’ Committee, to establish one or more Disputed Claims Reserves, which Disputed Claims Reserve(s) shall be administered by the
Reorganized Debtors or the GUC Administrator, as applicable. 
 1.    Reorganized Debtors 

The Reorganized Debtors or the Disbursing Agent may, in their sole discretion, hold Cash in a Disputed Claims Reserve in trust for the benefit
of the Holders of Claims (other than General Unsecured Claims) ultimately determined to be Allowed after the Effective Date. The Reorganized Debtors shall distribute such amounts (net of any expenses, including any taxes relating thereto), as
provided herein, as such Disputed Claims are resolved by a Final Order or agreed to by settlement, and such amounts will be distributable on account of such Disputed Claims as such amounts would have been distributable had such Disputed Claims been
Allowed Claims as of the Effective Date. 
 2.    GUC Administrator 

The GUC Administrator may, in its sole discretion, hold Cash in a Disputed Claims Reserve from the General Unsecured Claims Distribution in
trust solely for the benefit of the Holders of General Unsecured Claims ultimately determined to be Allowed after the Effective Date. The GUC Administrator shall distribute such amounts (net of any expenses, including any taxes relating thereto), as
provided herein, as such Disputed Claims are resolved by a Final Order or agreed to by settlement, and such amounts will be distributable on account of such Disputed Claims as such amounts would have been distributable had such Disputed Claims been
Allowed Claims as of the Effective Date. 
  

	F.	 Time to File Objections to Claims 

Subject to Article VII.B. above, any objections to Claims, which, prior to the Effective Date, may be Filed by any party, shall be Filed on or
before the Claims Objection Deadline. 
  

	G.	 Disallowance of Claims 

Any Claims held by Entities from which property is recoverable under section 542, 543, 550, or 553 of the Bankruptcy Code or that is a
transferee of a transfer avoidable under section 

  
 50 

 
522(f), 522(h), 544, 545, 547, 548, 549, or 724(a) of the Bankruptcy Code, shall be deemed Disallowed pursuant to section 502(d) of the Bankruptcy Code, and Holders of such Claims may not receive
any distributions on account of such Claims until such time as such Causes of Action against that Entity have been settled or a Court order with respect thereto has been entered and all sums due, if any, to the Debtors by that Entity have been
turned over or paid to the Debtors, the Reorganized Debtors, or the GUC Administrator, as applicable. 
 Except as provided herein
(including with respect to any counterparties to rejected Executory Contracts or Unexpired Leases who are required to File Proofs of Claim after the rejection of their contracts or leases), any and all Proofs of Claim or requests for payment of
Administrative Claims, as applicable, Filed after the applicable Claims Bar Date, Administrative Claims Bar Date, Governmental Bar Date, and applicable deadline for Filing Proofs of Claim based on the Debtors’ rejection of Executory Contracts
or Unexpired Leases, as applicable, shall be deemed Disallowed and expunged as of the Effective Date without any further notice to or action, order, or approval of the Court, and Holders of such Claims may not receive any distributions on account of
such Claims, unless on or before the Confirmation Hearing such late Filed Claim has been deemed timely Filed by a Final Order. 
  

	H.	 Amendments to Claims 

After the Claims Bar Date, except as provided in the Plan or the Confirmation Order, a Claim may not be Filed or amended without the prior
authorization of the Court and any such new or amended Claim Filed shall be deemed Disallowed in full and expunged without any further action, order, or approval of the Court. 

 

	I.	 No Distributions Pending Allowance 

No payment or distribution provided under the Plan shall be made to the extent that any Claim is a Disputed Claim, including if an objection
to a Claim or portion thereof is Filed as set forth in Article VII, unless and until such Disputed Claim becomes an Allowed Claim; provided that any portion of a Claim that is an Allowed Claim shall receive the payment or distribution
provided under the Plan thereon notwithstanding that any other portion of such Claim is a Disputed Claim. 
  

	J.	 Distributions After Allowance 

To the extent that a Disputed Claim ultimately becomes an Allowed Claim, distributions (if any) shall be made to the Holder of such Allowed
Claim in accordance with the provisions of the Plan. As soon as reasonably practicable after the date that the order or judgment of the Court allowing any Disputed Claim becomes a Final Order, the distribution (if any) to which such Holder is
entitled under the Plan as of the Effective Date, without any interest, dividends, or accruals shall be paid to the Holder of such Allowed Claim on account of such Allowed Claim unless required under applicable bankruptcy law or as otherwise
provided in herein. 
  

	K.	 Single Satisfaction of Claims 

Holders of Allowed Claims may assert such Claims against each Debtor obligated with respect to such Claim, and such Claims shall be entitled
to share in the recovery provided for the 

  
 51 

 
applicable Class of Claims against each obligated Debtor based upon the full Allowed amount of the Claim. Notwithstanding the foregoing, in no case shall the aggregate value of all property
received or retained under the Plan on account of any Allowed Claim exceed 100% of such Allowed Claim plus applicable interest. For the avoidance of doubt, this shall not affect the obligation of each and every Debtor to pay U.S. Trustee Fees until
such time as such Debtor’s Chapter 11 Case is closed, dismissed, or converted. 
 ARTICLE VIII.

 SETTLEMENT, RELEASE, INJUNCTION, AND RELATED PROVISIONS 

 

	A.	 Compromise and Settlement of Claims, Interests, and Controversies 

As discussed in detail in the Disclosure Statement and as otherwise provided herein, pursuant to sections 363 and 1123 of the Bankruptcy Code
and Bankruptcy Rule 9019 and in consideration for the distributions and other benefits provided pursuant to the Plan, which distributions and other benefits shall be irrevocable and not subject to challenge upon the Effective Date, the provisions of
the Plan, and the distributions and other benefits provided hereunder, shall constitute a good-faith compromise and settlement of all issues in respect of the Chapter 11 Cases (collectively, the “Settled Issues”), including,
without limitation: 
 1.    the valuation of the Reorganized Debtors’ enterprise, including the value of any
unencumbered assets; 
 2.    any dispute regarding the application of the equities of the case exception under section
552(b) of the Bankruptcy Code or surcharge under section 506(c) of the Bankruptcy Code in respect of the First Lien Claims and the Second Lien Notes Claims; 

3.    the amount of the First Lien Claims and the Second Lien Notes Claims and such Holders’ Allowed Claims, and the
validity and enforceability of the Liens securing such Claims; 
 4.    the amount of adequate protection claims held by
the Prepetition Term Loan Lenders and the Combined Prepetition Second Lien Noteholders under the Cash Collateral Order; 

5.    any challenges to Cash transfers; 

6.    any challenges to transfers made by the Debtors to any related Entities; 

7.    the releases, exculpations, and injunctions provided in the Plan; and 

8.    any claims for payment of administrative expenses as a substantial contribution under section 503 of the Bankruptcy
Code. 
 The Plan shall be deemed a motion to approve the good-faith compromise and settlement of all such Claims, Interests, and
controversies pursuant to Bankruptcy Rule 9019, and the entry of the Confirmation Order shall constitute the Court’s approval of the compromise and settlement of all such Claims, Interests, and controversies, as well as a finding by the Court
that all such compromises and settlements are in the best interests of the Debtors, their Estates, and Holders of Claims and Interests and is fair, equitable, and reasonable. In accordance with the provisions of

  
 52 

 
the Plan, pursuant to Bankruptcy Rule 9019, without any further notice to or action, order, or approval of the Court, after the Effective Date, the Reorganized Debtors may compromise and settle
Claims against, and Interests in, the Debtors and their Estates and Causes of Action against other Entities. 
  

	B.	 Discharge of Claims and Termination of Interests 

Pursuant to section 1141(d) of the Bankruptcy Code, and except as otherwise specifically provided in the Plan and the Plan Supplement, or in
any contract, instrument, or other agreement or document created pursuant to the Plan and the Plan Supplement, the distributions, rights, and treatment that are provided in the Plan shall be in complete satisfaction, discharge, and release,
effective as of the Effective Date, of Claims (including any Intercompany Claims resolved or compromised after the Effective Date by the Reorganized Debtors), Interests, and Causes of Action of any nature whatsoever, including any interest accrued
on Claims or Interests from and after the Petition Date, whether known or unknown, against, liabilities of, liens on, obligations of, rights against, and interests in, the Debtors or any of their assets or properties, regardless of whether any
property shall have been distributed or retained pursuant to the Plan on account of such Claims and Interests, including demands, liabilities, and Causes of Action that arose before the Effective Date, any contingent or non-contingent liability on account of representations or warranties issued on or before the Effective Date, and all debts of the kind specified in section 502(g), 502(h), or 502(i) of the Bankruptcy Code, in each
case whether or not: (a) a Proof of Claim based upon such debt or right is Filed or deemed Filed pursuant to section 501 of the Bankruptcy Code; (b) a Claim or Interest based upon such debt, right, or Interest is Allowed pursuant to
section 502 of the Bankruptcy Code; or (c) the Holder of such a Claim or Interest has accepted the Plan. Any default or “event of default” by the Debtors or Affiliates with respect to any Claim or Interest that existed immediately
before or on account of the Filing of the Chapter 11 Cases shall be deemed cured (and no longer continuing) as of the Effective Date. The Confirmation Order shall be a judicial determination of the discharge of all Claims and Interests subject to
the Effective Date occurring. 
  

	C.	 Term of Injunctions or Stays 

Unless otherwise provided herein or in a Final Order, all injunctions or stays arising under or entered during the Chapter 11 Cases under
section 362 of the Bankruptcy Code or otherwise and in existence on the Confirmation Date, shall remain in full force and effect until the later of the Effective Date and the date set forth in the order providing for such injunction or stay. 

 

	D.	 Release of Liens 

Except as otherwise specifically provided in the Plan, the New Second Lien PIK Notes Documents (including in connection with any express
written amendment of any mortgage, deed of trust, Lien, pledge, or other security interest under the New Second Lien PIK Notes Documents), or in any other contract, instrument, agreement or document created pursuant to the Plan, on the Effective
Date and concurrently with the applicable distributions or other treatment made pursuant to the Plan, all mortgages, deeds of trust, Liens, pledges, or other security interests against any property of the Estates shall be fully released and
discharged, and all of the right, title, and interest of any Holder of such mortgages, deeds of trust, Liens, pledges, or other security interests shall revert to the Reorganized Debtors and their

  
 53 

 
successors and assigns, in each case, without any further approval or order of the Court and without any action or Filing being required to be made by the Debtors or the Reorganized Debtors. In
addition, at the Debtors’ or Reorganized Debtors’ sole expense, the Prepetition Term Loan Agent and the Indenture Trustee shall execute and deliver all documents reasonably requested by the Reorganized Debtors, or the administrative agent
or indenture trustee for the Exit Facility or New Second Lien PIK Notes to evidence the release of such mortgages, deeds of trust, Liens, pledges, and other security interests and shall authorize the Reorganized Debtors to file UCC-3 termination statements and other release documentation (to the extent applicable) with respect thereto. 
  

	E.	 Releases by the Debtors 

Pursuant to section 1123(b) of the Bankruptcy Code, for good and valuable consideration, on and after the Effective Date, each Released
Party is deemed released and discharged by the Debtors, their Estates, and the Reorganized Debtors from any and all Claims, Causes of Action, obligations, suits, judgments, damages, demands, losses, or liabilities whatsoever, whether known or
unknown, foreseen or unforeseen, existing or hereinafter arising, in law, equity, or otherwise, that such Entity would have been legally entitled to assert (whether individually or collectively), including any derivative claims, asserted on behalf
of the Debtors, that the Debtors, their Estates, or the Reorganized Debtors would have been legally entitled to assert in their own right (whether individually or collectively) or on behalf of the Holder of any Claim or Interest or other Entity,
based on or relating to, or in any manner arising from, in whole or in part, the Debtors (including the management, ownership or operation thereof), the Debtors’ in- or out-of-court restructuring efforts, the Debtors’ intercompany transactions (including dividends paid), transactions pursuant and/or related to the Prepetition Term Loan Agreement, the Prepetition Second
Lien Indenture, the Prepetition Second Lien PIK Indenture, the Notes, the Cash Collateral Order (and any payments or transfers in connection therewith), any Avoidance Actions, the purchase, sale, or rescission of the purchase or sale of any Security
of the Debtors or the Reorganized Debtors, the subject matter of, or the transactions or events giving rise to, any Claim or Interest that is treated in this Plan, the business or contractual arrangements between any Debtor and any Released Party,
the formulation, preparation, dissemination, negotiation, or Filing of the Restructuring Support Agreement, the Restructuring Support Agreement, the restructuring of any Claim or Interest before or during the Chapter 11 Cases, or any Restructuring
Transaction, contract, instrument, document, release, or other agreement or document (including any legal opinion regarding any such transaction, contract, instrument, document, release, or other agreement or the reliance by any Released Party on
the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Restructuring Support Agreement, the Restructuring Support Agreement, the Disclosure Statement, the Plan, the related agreements,
instruments, and other documents (including the Definitive Documentation), the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the solicitation of votes with respect to this Plan, the
administration and implementation of the Plan, including the issuance or distribution of Securities or other property pursuant to the Plan, the Definitive Documentation, or upon any other act or omission, transaction, agreement, event, or other
occurrence taking place on or before the Effective Date related or relating to the foregoing. Notwithstanding anything to the contrary in the foregoing, (i) the 

  
 54 

 
releases set forth herein do not release any post-Effective Date obligations of any party or Entity under the Plan, including under any of the Restructuring Transactions, and (ii) nothing in
this provision shall, nor shall it be deemed to, release any Released Party from any Claims or Causes of Action that are found, pursuant to a Final Order, to be the result of such Released Party’s gross negligence, actual fraud, or willful
misconduct. 
 Entry of the Confirmation Order shall constitute the Court’s approval, pursuant to Bankruptcy Rule 9019, of the
releases by the Debtors set forth in this Article VIII.E, which includes by reference each of the related provisions and definitions contained herein, and, further, shall constitute the Court’s finding that such releases are: (1) in
exchange for the good and valuable consideration provided by the Released Parties; (2) a good faith settlement and compromise of the claims released by such releases; (3) in the best interests of the Debtors and their Estates;
(4) fair, equitable and reasonable; (5) given and made after due notice and opportunity for hearing; (6) an essential component of the Plan and the Restructuring Transactions; and (7) a bar to any of the Debtors or their Estates
asserting any claim or cause of action released pursuant to such releases. 
  

	F.	 Releases by Holders of Claims and Interests 

As of the Effective Date, to the fullest extent of the law, each Releasing Party is deemed to have released and discharged each Released
Party from any and all Claims, Causes of Action, obligations, suits, judgments, damages, demands, losses, or liabilities whatsoever, whether known or unknown, foreseen or unforeseen, existing or hereinafter arising, in law, equity, or otherwise,
that such Entity would have been legally entitled to assert (whether individually or collectively), including any derivative claims, asserted on behalf of the Debtors, that the Debtors, their Estates, or the Reorganized Debtors would have been
legally entitled to assert in their own right (whether individually or collectively) or on behalf of the Holder of any Claim or Interest or other Entity, based on or relating to, or in any manner arising from, in whole or in part, the Debtors
(including the management, ownership or operation thereof), the Debtors’ in- or out-of-court restructuring efforts, the
Debtors’ intercompany transactions (including dividends paid), transactions pursuant and/or related to the Prepetition Term Loan Agreement, the Prepetition Second Lien Indenture, the Prepetition Second Lien PIK Indenture, the Notes, the Cash
Collateral Order (and any payments or transfers in connection therewith), any Avoidance Actions, the purchase, sale, or rescission of the purchase or sale of any Security of the Debtors or the Reorganized Debtors, the subject matter of, or the
transactions or events giving rise to, any Claim or Interest that is treated in this Plan, the business or contractual arrangements between any Debtor and any Releasing Party, the formulation, preparation, dissemination, negotiation, or Filing of
the Restructuring Support Agreement, the Restructuring Support Agreement, the restructuring of any Claim or Interest before or during the Chapter 11 Cases, or any Restructuring Transaction, contract, instrument, document, release, or other agreement
or document (including any legal opinion regarding any such transaction, contract, instrument, document, release, or other agreement or the reliance by any Releasing Party on the Plan or the Confirmation Order in lieu of such legal opinion) created
or entered into in connection with the Restructuring Support Agreement, the Restructuring Support Agreement, the Disclosure Statement, the Plan, the related agreements, instruments, and other documents (including the Definitive Documentation), the
Chapter 11 Cases, the filing of the Chapter 11 

  
 55 

 
Cases, the pursuit of Confirmation, the pursuit of Consummation, the solicitation of votes with respect to this Plan, the administration and implementation of the Plan, including the issuance or
distribution of Securities or other property pursuant to the Plan, the Definitive Documentation, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Effective Date related or relating
to the foregoing. Notwithstanding anything to the contrary in the foregoing, (i) the releases set forth herein do not release any post-Effective Date obligations of any party or Entity under the Plan, including under any of the Restructuring
Transactions, and (ii) nothing in this provision shall, nor shall it be deemed to, release any Released Party from any Claims or Causes of Action that are found, pursuant to a Final Order, to be the result of such Released Party’s gross
negligence, actual fraud, or willful misconduct. 
 Entry of the Confirmation Order shall constitute the Court’s approval,
pursuant to Bankruptcy Rule 9019, of the releases by Holders of Claims and Interests set forth in this Article VIII.F, which includes by reference each of the related provisions and definitions contained herein, and, further, shall constitute the
Court’s finding that such releases are: (1) in exchange for the good and valuable consideration provided by the Released Parties; (2) a good faith settlement and compromise of the claims released by such releases; (3) in the best
interests of the Debtors and their Estates; (4) fair, equitable and reasonable; (5) given and made after due notice and opportunity for hearing; (6) an essential component of the Plan and the Restructuring Transactions; and (7) a
bar to any of the Releasing Parties asserting any claim or cause of action released pursuant to such releases. 
  

	G.	 Exculpation 

Except as otherwise specifically provided in the Plan and only to the fullest extent permitted under Bankruptcy Code section 1125(e), no
Exculpated Party shall have or incur liability for, and each Exculpated Party is hereby released and exculpated from, any Claim, Cause of Action, obligation, suit, judgment, damage, demand, loss, or liability for any claim related to any act or
omission in connection with, relating to, or arising out of, the Chapter 11 Cases, the formulation, preparation, dissemination, negotiation, Filing, or termination of the Restructuring Support Agreement and related prepetition transactions, the
Restructuring Support Agreement, the Disclosure Statement, the Plan, the related agreements, instruments, and other documents (including the Definitive Documentation), the solicitation of votes with respect to this Plan, or any Restructuring
Transaction, contract, instrument, release or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the Plan or the
reliance by any Exculpated Party on the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Debtors’ in or
out-of-court restructuring efforts, the Disclosure Statement, the Plan, the Restructuring Support Agreement, the related agreements, instruments, and other documents
(including the Definitive Documentation), the Filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance of Securities pursuant to the Plan, or
the distribution of property under the Plan, the related agreements, instruments, and other documents (including the Definitive Documentation), or any other related agreement, except for claims related to any act or omission that is determined in a
Final Order to have 

  
 56 

 
constituted actual fraud, willful misconduct, or gross negligence, but in all respects such Entities shall be entitled to reasonably rely upon the advice of counsel with respect to their duties
and responsibilities pursuant to the Plan. The Exculpated Parties (to the extent applicable) have, and upon completion of the Plan shall be deemed to have, participated in good faith and in compliance with the applicable laws with regard to the
solicitation of, and distribution of, consideration pursuant to the Plan and, therefore, are not, and on account of such distributions shall not be, liable at any time for the violation of any applicable law, rule, or regulation governing the
solicitation of acceptances or rejections of the Plan or such distributions made pursuant to the Plan. 
  

	H.	 Injunction 

Except as otherwise expressly provided in the Plan or for obligations issued or required to be paid pursuant to the Plan or Confirmation
Order, all Entities who have held, hold, or may hold Claims or Interests that have been released pursuant to Article VIII.E or Article VIII.F of the Plan, discharged pursuant to Article VIII.B of the Plan, or are subject to exculpation pursuant to
Article VIII.G of the Plan, are permanently enjoined, from and after the Effective Date, from taking any of the following actions against, as applicable, the Debtors, the Reorganized Debtors, the Released Parties, or the Exculpated Parties:
(a) commencing or continuing in any manner any action or other proceeding of any kind on account of or in connection with or with respect to any such Claims or Interests; (b) enforcing, attaching, collecting, or recovering by any manner or
means any judgment, award, decree, or order against such Entities on account of or in connection with or with respect to any such Claims or Interests; (c) creating, perfecting, or enforcing any Lien or encumbrance of any kind against such
Entities or the property or the estates of such Entities on account of or in connection with or with respect to any such Claims or Interests; (d) asserting any right of setoff, subrogation, or recoupment of any kind against any obligation due
from such Entities or against the property of such Entities on account of or in connection with or with respect to any such Claims or Interests; and (e) commencing or continuing in any manner any action or other proceeding of any kind on
account of or in connection with or with respect to any such Claims or Interests released or settled pursuant to the Plan. Notwithstanding anything to the contrary in the foregoing, the injunction does not enjoin any party under the Plan or under
any document, instrument, or agreement (including those attached to the Disclosure Statement or set forth in the Plan Supplement, to the extent finalized) executed to implement the Plan from bringing an action to enforce the terms of the Plan or
such document, instrument, or agreement (including those attached to the Disclosure Statement or set forth in the Plan Supplement, to the extent finalized) executed to implement the Plan. 

 

	I.	 Protection Against Discriminatory Treatment 

Consistent with section 525 of the Bankruptcy Code and the Supremacy Clause of the U.S. Constitution, all Entities, including Governmental
Units, shall not discriminate against the Reorganized Debtors or deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, or discriminate with respect to such a grant
against, the Reorganized Debtors, or another Entity with whom the Reorganized Debtors have been associated, solely because each Debtor has been a debtor under chapter 11 of the Bankruptcy Code, has been insolvent before the commencement of the
Chapter 11 Cases (or during the Chapter 11 Cases but before the Debtors are granted or denied a discharge), or has not paid a debt that is dischargeable in the Chapter 11 Cases. 

  
 57 

	J.	 Recoupment 

In no event shall any Holder of an Allowed Claim be entitled to recoup against any Claim, right, or Cause of Action of the Debtors or the
Reorganized Debtors, as applicable, unless such Holder actually has performed such recoupment and provided notice thereof in writing to the Debtors on or before the Confirmation Date, notwithstanding any indication in any Proof of Claim or otherwise
that such Holder asserts, has, or intends to preserve any right of recoupment. 
  

	K.	 Subordination Rights 

Any distributions under the Plan shall be received and retained free from any obligations to hold or transfer the same to any other Holder and
shall not be subject to levy, garnishment, attachment, or other legal process by any Holder by reason of claimed contractual subordination rights. Any such subordination rights shall be waived, and the Confirmation Order shall constitute an
injunction enjoining any Entity from enforcing or attempting to enforce any contractual, legal, or equitable subordination rights to property distributed under the Plan, in each case other than as provided in the Plan. 

 

	L.	 Reimbursement or Contribution 

If the Court disallows a Claim for reimbursement or contribution of an Entity pursuant to section 502(e)(1)(B) of the Bankruptcy Code, then to
the extent that such Claim is contingent as of the time of disallowance, such Claim shall be forever disallowed and expunged notwithstanding section 502(j) of the Bankruptcy Code, unless prior to the Confirmation Date: (1) such Claim has been
adjudicated as non-contingent; or (2) the relevant Holder of a Claim has Filed a non-contingent Proof of Claim on account of such Claim and a Final Order has been
entered prior to the Confirmation Date determining such Claim as no longer contingent. 
 ARTICLE IX.

 CONDITIONS PRECEDENT TO CONFIRMATION AND CONSUMMATION OF THE PLAN 

 

	A.	 Conditions Precedent to the Confirmation Date 

It shall be a condition to Confirmation of the Plan that the following conditions shall have been satisfied (or waived pursuant to the
provisions of Article IX.C hereof): 
 1.    The Court shall have approved in all material respects the compromise and
settlement of all the Settled Issues, which approval shall be expressly included in the Confirmation Order; 
 2.    The
Restructuring Support Agreement shall not have been breached in any material respect and shall remain in full force and effect; 

  
 58 

 3.    The Plan, including any exhibits, schedules, amendments,
modifications, or supplements thereto, shall have been Filed subject to the terms hereof; 
 4.    The Plan Supplement,
including any exhibits, schedules, amendments, modifications, or supplements thereto, shall have been Filed subject to the terms hereof; and 

5.    The Confirmation Order shall have been entered by the Court. 

 

	B.	 Conditions Precedent to the Effective Date 

It shall be a condition to Consummation of the Plan that the following conditions shall have been satisfied (or waived pursuant to the
provisions of Article IX.C hereof): 
 1.    Entry of the Confirmation Order in a form and substance acceptable to the
Requisite Creditors, and such order shall have become a Final Order that has not been stayed, modified, or vacated on appeal; 

2.    All of the Consenting Creditors Fees shall have been paid or escrowed, as applicable, by the Debtors in accordance
with the terms hereof; 
 3.    All fees ordered to be paid pursuant to the Cash Collateral Order, including the
Consenting Creditors’ reasonable and documented professional fees, shall have been paid or will be paid prior to or contemporaneously with the Effective Date in accordance with the terms hereof and the Cash Collateral Order; 

4.    The Plan, including any exhibits, schedules, amendments, modifications, or supplements thereto, and inclusive of any
amendments, modifications, or supplements made after the Confirmation Date but prior to the Effective Date, shall be in form and substance acceptable in all respects to the Debtors and the Requisite Creditors; 

5.    The Plan Supplement, including any exhibits, schedules, amendments, modifications, or supplements thereto, and
inclusive of any amendments, modifications, or supplements made after the Confirmation Date but prior to the Effective Date, shall be in form and substance acceptable in all respects to the Debtors and the Requisite Creditors; 

6.    The Second Lien PIK Documents shall have been executed and delivered by all of the Entities that are parties
thereto, and all conditions precedent (other than any conditions related to the occurrence of the Effective Date) to the consummation of the New Second Lien PIK Notes shall have been waived or satisfied in accordance with the terms thereof, and the
issuance of the New Second Lien PIK Notes shall be deemed to occur concurrently with the occurrence of the Effective Date; 

7.    The Exit Facility Documents shall have been executed and delivered by all of the Entities that are parties thereto,
and all conditions precedent (other than any conditions related to the occurrence of the Effective Date) to the consummation of the Exit Facility shall have been waived or satisfied in accordance with the terms thereof, and the closing of the Exit
Facility shall be deemed to occur concurrently with the occurrence of the Effective Date; 

  
 59 

 8.    All other Definitive Documentation shall be acceptable in all
respects to the Requisite Creditors and executed in accordance with the terms hereof; 
 9.    All conditions precedent
to the issuance of the New Equity, other than any conditions related to the occurrence of the Effective Date, shall have occurred; 

10.    The New Organizational Documents shall be in form and substance acceptable in all respects to the Debtors and the
Requisite Creditors and shall have been duly filed with the applicable authorities in the relevant jurisdictions; 

11.    All governmental and third-party approvals and consents, including Court approval, necessary in connection with the
transactions provided for in the Plan shall have been obtained, are not subject to unfulfilled conditions, and are in full force and effect, and all applicable waiting periods have expired without any action having been taken by any competent
authority that would restrain or prevent such transactions; 
 12.    All documents and agreements necessary to
implement the Plan, including any revised employment agreements, shall have (a) been tendered for delivery and (b) been effected or executed by all Entities party thereto, and all conditions precedent to the effectiveness of such documents
and agreements (other than any conditions related to the occurrence of the Effective Date) shall have been satisfied or waived pursuant to the terms of such documents or agreements (including, without limitation, the Exit Facility Documents); and

 13.    All Allowed Professional Fee Claims approved by the Court shall have been paid in full and the Professional
Fee Escrow Account shall have been funded in the Professional Fee Reserve Amount. 
  

	C.	 Waiver of Conditions 

The conditions precedent to Confirmation of the Plan and to the Effective Date of the Plan set forth in this Article IX may be waived only by
consent of the Debtors and the Requisite Creditors without notice, leave, or order of the Court or any formal action other than proceedings to confirm or consummate the Plan. 
  

	D.	 Substantial Consummation 

“Substantial Consummation” of the Plan, as defined in section 1101(2) of the Bankruptcy Code, shall be deemed to occur on the
Effective Date. 
  

	E.	 Effect of Non-Occurrence of Conditions to the Confirmation Date or
the Effective Date 

 If the Confirmation Date and/or the Effective Date do(es) not occur, the Plan shall be null and
void in all respects and nothing contained in the Plan, the Disclosure Statement, or the Restructuring Support Agreement shall: (1) constitute a waiver or release of any Claims by or Claims against or Interests in the Debtors;
(2) prejudice in any manner the rights of the Debtors, any Holders of a Claim or Interest or any other Entity; (3) constitute an admission, acknowledgment, offer, or undertaking by the Debtors, any Holders of Claims or Interests, or any
other Entity in any respect; or (4) be used by the Debtors or any Entity as evidence (or in any other way) in any litigation, including with regard to the strengths or weaknesses of any of the parties’ positions, arguments or claims. 

  
 60 

 ARTICLE X. 

MODIFICATION, REVOCATION, OR WITHDRAWAL OF THE PLAN 
  

	A.	 Modification and Amendments 

Subject to the limitations contained herein and the terms of the Restructuring Support Agreement, the Debtors reserve the right to modify the
Plan and seek Confirmation consistent with the Bankruptcy Code and, as appropriate, not resolicit votes on such modified Plan; provided that such modifications do not modify the treatment of General Unsecured Claims as provided in the Plan
without the consent of the Creditors’ Committee. Subject to certain restrictions and requirements set forth in section 1127 of the Bankruptcy Code and Bankruptcy Rule 3019, those restrictions on modifications set forth in the Plan, and the
terms of the Restructuring Support Agreement, the Debtors expressly reserve their right to alter, amend, or modify materially the Plan, one or more times, after Confirmation, and, to the extent necessary, may initiate proceedings in the Court to so
alter, amend, or modify the Plan, or remedy any defect or omission, or reconcile any inconsistencies in the Plan, the Disclosure Statement, or the Confirmation Order, in such matters as may be necessary to carry out the purposes and intent of the
Plan; provided that such modifications do not modify the treatment of General Unsecured Claims. 
  

	B.	 Effect of Confirmation on Modifications 

Entry of the Confirmation Order shall mean that all modifications or amendments to the Plan occurring after the solicitation thereof are
approved pursuant to section 1127(a) of the Bankruptcy Code and do not require additional disclosure or resolicitation under Bankruptcy Rule 3019. 
  

	C.	 Revocation or Withdrawal of the Plan 

The Debtors, with the consent of the Requisite Creditors, reserve the right to revoke or withdraw the Plan with respect to any or all Debtors
prior to the Confirmation Date and to File subsequent plans of reorganization. If the Debtors, with the consent of the Requisite Creditors, revoke or withdraw the Plan, or if Confirmation and Consummation does not occur, then: (1) the Plan
shall be null and void in all respects; (2) any settlement or compromise embodied in the Plan (including the fixing or limiting to an amount certain of any Claim or Interest or Class of Claims or Interests), assumption or rejection of
Executory Contracts or Unexpired Leases effected by the Plan, and any document or agreement executed pursuant to the Plan, shall be deemed null and void; and (3) nothing contained in the Plan shall: (i) constitute a waiver or release of
any Claims or Interests; (ii) prejudice in any manner the rights of the Debtors or any other Entity, including the Holders of Claims; (iii) constitute an admission, acknowledgement, offer, or undertaking of any sort by the Debtors or any
other Entity; or (iv) be used by the Debtors or any Entity as evidence (or in any other way) in any litigation, including with regard to the strengths or weaknesses of any of the parties’ positions, arguments or claims. 

  
 61 

 ARTICLE XI. 

RETENTION OF JURISDICTION 

Notwithstanding the entry of the Confirmation Order and the occurrence of the Effective Date, on and after the Effective Date, the Court shall
retain jurisdiction over the Chapter 11 Cases and all matters, arising out of, or related to, the Chapter 11 Cases and the Plan to the fullest extent allowed by applicable law, including jurisdiction to: 

1.    Allow, Disallow, determine, liquidate, classify, estimate, or establish the priority, Secured or Unsecured status,
or amount of any Claim against a Debtor, including the resolution of any request for payment of any Administrative Claim and the resolution of any and all objections relating to any of the foregoing; 

2.    decide and resolve all matters related to the granting and denying, in whole or in part, any applications for
allowance of compensation or reimbursement of expenses to Professionals; 
 3.    resolve any matters related to:
(a) the assumption, assignment, or rejection of any Executory Contract or Unexpired Lease and to hear, determine, and, if necessary, liquidate, any Claims arising therefrom, including Claims related to the rejection of an Executory Contract or
Unexpired Lease, any Cure Claims, or any other matter related to such Executory Contract or Unexpired Lease; (b) the Debtors or the Reorganized Debtors, as applicable, amending, modifying, or supplementing, pursuant to Article V hereof, the
Schedule of Assumed Executory Contracts and Unexpired Leases or the Schedule of Rejected Executory Contracts and Unexpired Leases; and (c) any dispute regarding whether a contract or lease is or was an Executory Contract or Unexpired Lease;

 4.    ensure that distributions to Holders of Allowed Claims are accomplished pursuant to the provisions of the Plan;

 5.    adjudicate, decide, or resolve any motions, adversary proceedings, contested, or litigated matters, and grant
or deny any applications involving a Debtor that may be pending on the Effective Date; 
 6.    adjudicate, decide, or
resolve any and all matters related to Causes of Action by or against a Debtor; 
 7.    adjudicate, decide, or resolve
any and all matters related to sections 1141, 1145, and 1146 of the Bankruptcy Code; 
 8.    enter and implement such
orders as may be necessary or appropriate to execute, implement, or consummate the provisions of the Plan and the Restructuring Support Agreement, and all contracts, instruments, releases, indentures, and other agreements or documents created in
connection with the Plan or the Restructuring Support Agreement; 
 9.    enter and enforce any order for the sale of
property pursuant to section 363 or 1123 of the Bankruptcy Code; 

  
 62 

 10.    resolve any cases, controversies, suits, disputes, or Causes of
Action that may arise in connection with the Consummation, interpretation, or enforcement of the Plan or any Entity’s obligations incurred in connection with the Plan or the Restructuring Support Agreement; 

11.    issue injunctions, enter and implement other orders, or take such other actions as may be necessary or appropriate
to restrain interference by any Entity with Consummation or enforcement of the Plan; 
 12.    resolve any cases,
controversies, suits, disputes, or Causes of Action with respect to the settlements, compromises, discharges, releases, injunctions, exculpations, and other provisions contained in Article VIII hereof and enter such orders as may be necessary or
appropriate to implement such releases, injunctions, and other provisions; 
 13.    resolve any cases, controversies,
suits, disputes, or Causes of Action with respect to the repayment or return of distributions and the recovery of additional amounts owed by the Holder of a Claim or Interest for amounts not timely repaid pursuant to Article VI.H.1 hereof; 

14.    enter and implement such orders as are necessary or appropriate if the Confirmation Order is for any reason
modified, stayed, reversed, revoked, or vacated; 
 15.    determine any other matters that may arise in connection with
or relate to the Restructuring Support Agreement, the Plan, the Disclosure Statement, the Confirmation Order, or the Plan Supplement; 

16.    adjudicate any and all disputes arising from or relating to distributions under the Plan or any transactions
contemplated therein, including any Restructuring Transactions; 
 17.    consider any modifications of the Plan, to
cure any defect or omission, or to reconcile any inconsistency in any Court order, including the Confirmation Order; 

18.    determine requests for the payment of Claims entitled to priority pursuant to section 507 of the Bankruptcy
Code; 
 19.    hear and determine matters concerning state, local, and federal taxes in accordance with sections 346,
505, and 1146 of the Bankruptcy Code; 
 20.    hear and determine all disputes involving the existence, nature, or
scope of the release provisions set forth in the Plan, including any dispute relating to any liability arising out of the termination of employment or the termination of any employee or retiree benefit program, regardless of whether such termination
occurred prior to or after the Effective Date; 
 21.    enforce all orders previously entered by the Court; 

22.    hear any other matter not inconsistent with the Bankruptcy Code; 

23.    enter an order concluding or closing the Chapter 11 Cases; and 

  
 63 

 24.    enforce the injunction, release, and exculpation provisions set
forth in Article VIII hereof. 
 ARTICLE XII. 

MISCELLANEOUS PROVISIONS 
  

	A.	 Immediate Binding Effect 

Subject to Article IX.A hereof and notwithstanding Bankruptcy Rule 3020(e), 6004(h), or 7062 or otherwise, upon the occurrence of the
Effective Date, the terms of the Plan, the final versions of the documents contained in the Plan Supplement, and the Confirmation Order shall be immediately effective and enforceable and deemed binding upon the Debtors or the Reorganized Debtors, as
applicable, and any and all Holders of Claims or Interests (regardless of whether the Holders of such Claims or Interests are deemed to have accepted or rejected the Plan), all Entities that are parties to or are subject to the settlements,
compromises, releases, and injunctions provided for in the Plan, each Entity acquiring property under the Plan or the Confirmation Order, and any and all non-Debtor parties to Executory Contracts and Unexpired
Leases. All Claims and debts shall be as fixed, adjusted, or compromised, as applicable, pursuant to the Plan regardless of whether any Holder of a Claim or debt has voted on the Plan. 

 

	B.	 Additional Documents 

On or before the Effective Date, with the consent of the Requisite Creditors and in accordance with the terms and conditions set forth in the
Restructuring Support Agreement, and with the consent of the Creditors’ Committee with respect to the treatment of General Unsecured Claims, the Debtors may File with the Court such agreements and other documents, in form and substance
acceptable to the Requisite Creditors, as may be necessary or appropriate to effectuate and further evidence the terms and conditions of the Plan. The Debtors, with the consent of the Requisite Creditors, and all Holders of Claims or Interests
receiving distributions pursuant to the Plan and all other parties in interest shall, from time to time, prepare, execute, and deliver any agreements or documents and take any other actions as may be necessary or advisable to effectuate the
provisions and intent of the Plan. 
  

	C.	 Dissolution of the Creditors’ Committee 

On the Effective Date, the Creditors’ Committee shall dissolve automatically, and the respective members thereof shall be released and
discharged from all rights and duties arising from, or related to, the Chapter 11 Cases; provided that such dissolution shall not affect the standing of Professionals for the Creditors’ Committee to submit and prosecute requests for
payment of Professional Fee Claims and any appeals thereof. The Reorganized Debtors shall no longer be responsible for paying any fees or expenses incurred by the Creditors’ Committee after the Effective Date other than Allowed Professional Fee
Claims, whenever incurred including, without limitation, those incurred after the Effective Date in connection with the consummation and implementation of the Plan. 

  
 64 

	D.	 Reservation of Rights 

Prior to the Effective Date, neither the Plan, any statement or provision contained in the Plan, nor any action taken or not taken by any
Debtor with respect to the Plan, the Disclosure Statement, the Confirmation Order, or the Plan Supplement shall be or shall be deemed to be an admission or waiver of any rights of any Debtor with respect to the Holders of Claims or Interests. 

Prior to the Effective Date, neither the Plan, any statement or provision contained in the Plan, nor any action taken or not taken by any
Holder of any Claim with respect to the Plan, the Disclosure Statement, the Confirmation Order, or the Plan Supplement shall be or shall be deemed to be an admission or waiver of any rights of any claimant with respect to any Claims or Interests.

  

	E.	 Successors and Assigns 

The rights, benefits, and obligations of any Entity named or referred to in the Plan or the Confirmation Order shall be binding on, and shall
inure to the benefit of any heir, executor, administrator, successor or assign, affiliate, officer, director, manager, agent, representative, attorney, beneficiaries, or guardian, if any, of each Entity. 

 

	F.	 Service of Documents 

Any pleadings, notice, or other documents required by the Plan to be served on or delivered to the following parties shall be served as
follows: 
  

			
	 Reorganized Debtors
	  	PetroQuest Energy, Inc.
400 E. Kaliste Saloom Road, Suite 6000 Lafayette, Louisiana 70508
Attn:Charles T. Goodson
		
	 Attorneys to the Debtors
	  	 Porter Hedges LLP
1000 Main Street
Houston, Texas 77002
Attn:John F. Higgins

E. James Cowen

		
	 United States Trustee
	  	Office of the United States Trustee
for the Southern District of Texas
515 Rusk Street, Suite 3516
Houston, Texas 77002
Attn:Hector Duran, Jr.
		
	 Counsel to the Consenting Creditors
	  	 Akin Gump Strauss Hauer & Feld LLP

One Bryant Park
 New York, New York 10036

Attn: Michael S. Stamer
  

Akin Gump Strauss Hauer & Feld LLP
2300 N. Field Street, Suite 1800
Dallas, Texas 75201
Attn: Sarah Link
Schultz

  
 65 

			
		
	 Counsel to the Creditors’ Committee
	  	 Heller, Draper, Patrick, Horn & Manthey, L.L.C.

650 Poydras Street, Suite 2500
 New Orleans, Louisiana 70130

Attn: William H. Patrick, III

		
	 Counsel to the Prepetition Term Loan Agent
	  	 Kelley Drye & Warren LLP
 101
Park Avenue
 New York, New York 10178
 Attn: Pamela Bruzzese-Szczygiel

		
	 Counsel to the Indenture Trustee
	  	 Reed Smith LLP
 1201 Market Street,
Suite 1500,
 Wilmington, Delaware 19801
Attn:Kurt F. Gwynne

  

	G.	 Term of Injunctions or Stays 

Unless otherwise provided in the Plan or in the Confirmation Order, all injunctions or stays in effect in the Chapter 11 Cases pursuant to
section 105 or 362 of the Bankruptcy Code or any order of the Court, and extant on the Confirmation Date (excluding any injunctions or stays contained in the Plan or the Confirmation Order) shall remain in full force and effect until the
Effective Date. All injunctions or stays contained in the Plan or the Confirmation Order shall remain in full force and effect in accordance with their terms. 
  

	H.	 Entire Agreement 

Except as otherwise indicated, the Plan, the Confirmation Order, the Plan Supplement, the Restructuring Support Agreement, the Exit Facility
Documents, the Registration Rights Agreement, and the New Second Lien PIK Notes Documents supersede all previous and contemporaneous negotiations, promises, covenants, agreements, understandings, and representations on such subjects, all of which
have become merged and integrated into the Plan. 
  

	I.	 Exhibits 

All exhibits and documents included in the Plan Supplement are incorporated into and are a part of the Plan as if set forth in full in the
Plan. After the exhibits and documents are Filed, copies of such exhibits and documents shall be available upon written request to the Debtors’ counsel at the address above or by downloading such exhibits and documents from the Debtors’
restructuring website at http://dm.epiq11.com/PetroQuest or the Court’s website at www.txs.uscourts.gov. To the extent any exhibit or document is inconsistent with the terms of the Plan, unless otherwise ordered by the Court, the non-exhibit or non-document portion of the Plan shall control. 

  
 66 

	J.	 Nonseverability of Plan Provisions 

If, prior to Confirmation, any term or provision of the Plan is held by the Court to be invalid, void, or unenforceable, the Court shall have
the power to alter and interpret such term or provision to make it valid or enforceable to the maximum extent practicable, consistent with the original purpose of the term or provision held to be invalid, void, or unenforceable, and such terms or
provision shall then be applicable as altered or interpreted, provided that any such alteration or interpretation shall be acceptable to the Debtors and the Requisite Creditors and with respect to General Unsecured Claims, the Creditors’
Committee. The Confirmation Order shall constitute a judicial determination and shall provide that each term and provision of the Plan, as it may have been altered or interpreted in accordance with the foregoing, is: (1) valid and enforceable
pursuant to its terms; (2) integral to the Plan and may not be deleted or modified without the Debtors’ and the Requisite Creditors’ consent; and (3) nonseverable and mutually dependent. 

 

	K.	 Votes Solicited in Good Faith 

Upon entry of the Confirmation Order, the Debtors will be deemed to have solicited votes on the Plan in good faith and in compliance with the
Bankruptcy Code, and pursuant to section 1125(e) of the Bankruptcy Code, the Debtors and each of their respective Affiliates, agents, representatives, members, principals, shareholders, officers, directors, employees, advisors, and attorneys will be
deemed to have participated in good faith and in compliance with the Bankruptcy Code in the offer, issuance, sale, and purchase of Securities offered and sold under the Plan and any previous plan, and, therefore, none of such parties or individuals
or the Reorganized Debtors will have any liability for the violation of any applicable law, rule, or regulation governing the solicitation of votes on the Plan or the offer, issuance, sale, or purchase of the Securities offered and sold under the
Plan and any previous plan. 
  

	L.	 Closing of Chapter 11 Cases 

The Reorganized Debtors shall, promptly after the full administration of the Chapter 11 Cases, File with the Court all documents required by
Bankruptcy Rule 3022 and any applicable order of the Court to close the Chapter 11 Cases. 
  

	M.	 Waiver or Estoppel 

Each Holder of a Claim shall be deemed to have waived any right to assert any argument, including the right to argue that its Claim should be
Allowed in a certain amount, in a certain priority, Secured or not subordinated by virtue of an agreement made with the Debtors or their counsel, or any other Entity, if such agreement or the Debtors or Reorganized Debtors’ right to enter into
settlements was not disclosed in the Plan, the Disclosure Statement, or papers Filed with the Court or the Notice and Claims Agent prior to the Confirmation Date. 

* * * * 

  
 67 

 Respectfully submitted, as of the date first set forth above, 

 

					
	Dated: January 14, 2019	 		 	 PETROQUEST ENERGY, INC.
 on behalf of itself
and all other Debtors

			
		 		 	/s/ Charles T. Goodson
		 		 	Charles T. Goodson
		 		 	President and Chief Executive Officer
		 		 	 400 E. Kaliste Saloom Road, Suite 6000

Lafayette, Louisiana 70508

  
 68

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]