Document:

Exhibit 10.20b

 

Second
AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT
TO CREDIT AGREEMENT (this “Amendment”) dated effective as of March 5, 2014, is entered into between AMERICAN
EAGLE ENERGY CORPORATION, a Nevada corporation (“Borrower”) and MORGAN STANLEY CAPITAL GROUP INC., as
Administrative Agent and as a Lender under the Credit Agreement referred to below.

 

W I T N E
S S E T H:

 

WHEREAS, Borrower,
the lenders from time to time party thereto (“Lenders”) and Morgan Stanley Capital Group Inc., as Administrative
Agent for such Lenders are parties to that certain Credit Agreement dated as of August 19, 2013, as amended by that certain First
Amendment to Credit Agreement dated as of October 2, 2013 (as may be further amended, modified or restated from time to time, including
by this Amendment, the “Credit Agreement”); and

 

WHEREAS, subject to
the satisfaction or waiver in writing of the conditions precedent set forth herein, the parties hereto have agreed to amend the
Credit Agreement as set forth in Section 2 below.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements contained herein, the parties to this Amendment hereby agree as follows:

 

SECTION 1.Certain
Definitions.

 

As used in this
Amendment, except as may otherwise be provided herein, all capitalized terms defined in the Credit Agreement shall have the same
meaning herein as therein, all of such terms and their definitions being incorporated herein by reference. The Credit Agreement,
as amended by this Amendment, is hereinafter called the “Agreement”. As used herein, the following terms
shall have the meanings indicated:

 

(a)               
“2013 Acquisitions” means the Mountainview Transfers, the Spyglass Amendments Transfers, and the
acquisition of Oil and Gas Properties from the months of September through December 2013, each as described in the final documents
related thereto, which have been provided to Administrative Agent, in form and substance satisfactory to Administrative Agent.

 

(b)              
“Mountainview Transfers” means the transfers of the Oil and Gas Properties described in the Mountainview
LOI.

 

(c)               
“Mountainview LOI” means the letter dated January 10, 2014 from Borrower to Mountainview Energy
Ltd. in the form attached to this Amendment as Exhibit A thereto.

 

(d)              
“Spyglass Amendments Transfers” means the transfers or substitutions of Oil and Gas Properties
described in the Spyglass Amendments (2014).

 

 

SECTION 2.Amendments
and Waivers to the Credit Agreement. Subject to the satisfaction or waiver in writing of conditions precedent set forth
in Section 4 hereof, the Credit Agreement is hereby amended as set forth below.

 

(a)               
Definitions. Section 1.01 of the Credit Agreement is amended to add or replace the definition below to read as set
forth below:

 

    	 

    	 

    

 

“Splyglass
Amendments (2014)” means the First Amendment to Carry Agreement, First Amendment to Farm-Out Agreement, and Amendment
to Stipulation of Interest and Cross-Conveyance in form and substance approved in writing (which may include e-mail approval) by
the Administrative Agent, which approval shall not be unreasonably withheld.

 

(b)              
Amendments. The sections below are amended as set forth below. For the avoidance of doubt, words depicted in strikethrough
are to be excluded in the interpretation thereof, and words are bold underlined only to show the additional words as compared to
the provision before giving effect to this Amendment.

 

		(i)	Section 5.08(a) is amended by replacing the first sentence, and adding a sentence after the first
sentence, to read as follows:

 

“Upon the acquisition
of any Oil and Gas Properties or changes thereto, but no more frequently than quarterly, or if the aggregate fair market value
of all acquired Oil and Gas Properties during any quarter exceeds $250,000, Borrower must provide new Mortgages or provide
amendments or supplements to existing Mortgages on or before each March 15 and September 15 (starting with March 15, 2014),
such that all Oil and Gas Properties (other than the Excluded Oil and Gas Properties, unless otherwise requested by Administrative
Agent in its sole discretion) are subject to an Acceptable Security Interest and otherwise comply with this Agreement. Without
limitation to the foregoing, prior to any preparation of a drilling site, and in any event prior to drilling, Borrower must provide
new Mortgages or provide amendments or supplements to existing Mortgages such that all Oil and Gas Properties on which such drilling
site is located and any other Oil and Gas Properties which is entitled to any revenues or payments in respect of such drilling
site (other than the Excluded Oil and Gas Properties, unless otherwise requested by Administrative Agent in its sole discretion)
are subject to an Acceptable Security Interest and otherwise comply with this Agreement.”

 

		(ii)	Section 5.12 is amended by adding the following sentence to the end us such Section:

 

“Borrower may not acquire
any Oil and Gas Properties without the prior written consent of the Required Lenders if the consideration paid or exchanged for
such Oil and Gas Properties, together with the consideration paid or exchanged for other Oil and Gas Properties (whether or not
consents were delivered therefor), exceeds: (i) $5,000,000 during the period from January 1 to June 30 of any calendar year or
July 1 to December 31 of any calendar year or (ii) $10,000,000 during the period from January 1 to December 31 of any calendar
year.

 

		(iii)	Section 6.17 is amended to read as follows, with the bold and italicized words showing the differences
from the existing Section 6.17.

 

“Section
6.17. Amendments to Spyglass Transaction Documents. Borrower shall not amend, supplement or otherwise modify any of the
documents and agreements relating to the Spyglass Transaction Documents without the prior written consent of the Administrative
Agent other than the Spyglass Amendments (2014).”

 

(c)               
Waivers. Section 6.04 is waived only to the extent that the Mountainview Transfers or the Spyglass Amendments Transfers
would violate such section and only if the final documents related thereto are in form and substance satisfactory to the Administrative
Agent. Section 5.06(p) is waived only to the extent that notice is required with respect to the 2013 Acquisitions and only if the
final documents related thereto are in form and substance satisfactory to the Administrative Agent.

 

    	2

    	 

    

 

SECTION 3.Guarantor and Borrower
Confirmation.

 

(a)               
Each Guarantor hereby consents and agrees to this Amendment and each of the transactions contemplated thereby and hereby.

 

(b)              
Borrower and each Guarantor ratifies and confirms the debts, duties, obligations, liabilities, rights, titles, pledges,
grants of security interests, Liens, powers, and privileges existing by virtue of the Loan Documents to which it is a party.

 

(c)               
Borrower and each Guarantor agrees that the guarantees, pledges, grants of security interests and other obligations, and
the terms of each of the Security Instruments and any Guaranty to which it is a party, are not impaired, released, diminished or
reduced in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all Secured Obligations.

 

(d)              
Borrower and each Guarantor acknowledges and agrees that all terms, provisions, and conditions of the Loan Documents to
which it is a party (as amended by this Amendment) shall continue in full force and effect and shall remain enforceable and binding
in accordance with their respective terms.

 

SECTION 4.Conditions
of Effectiveness. The obligations of Administrative Agent and the Lenders to amend the Credit Agreement as provided herein
are subject to the fulfillment of the following conditions precedent:

 

(a) The Administrative
Agent shall have received a counterpart of, or signature page to, this Amendment which shall have been executed by the Administrative
Agent, the Lenders, Borrower, and each Guarantor (which may be by telecopy or PDF transmission);

 

(b)no Material Adverse Change
shall have occurred; and

 

(c)no Default or Event of
Default shall have occurred.

 

SECTION 5.Representations
and Warranties. Borrower and each Guarantor, as applicable, represents and warrants to Administrative Agent and the Lenders,
with full knowledge that Administrative Agent and the Lenders are relying on the following representations and warranties in executing
this Amendment, as follows:

 

(a)Borrower has
the organizational power and authority to execute, deliver and perform this Amendment and all other Loan Documents executed and
delivered herewith, and all organizational action on the part of it, requisite for the due execution, delivery and performance
of this Amendment and all other Loan Documents executed and delivered herewith, has been duly and effectively taken.

 

(b)The Agreement
and the Loan Documents and each and every other document executed and delivered in connection with this Amendment to which it is
a party constitute the legal, valid and binding obligations of it, to the extent it is a party thereto, enforceable against such
Person in accordance with their respective terms.

 

(c)This Amendment
does not and will not violate any provisions of any of the organizational documents of it or any contract, agreement, instrument
or requirement of any Governmental Authority to which it is subject. The execution of this Amendment will not result in the creation
or imposition of any Lien upon any of its properties other than those permitted by the Agreement and this Amendment.

 

    	3

    	 

    

 

(d)No approval,
consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or
required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Amendment.

 

(e)As of the date
of this Amendment, Borrower is Solvent.

 

(f)After giving
effect to this Amendment, no Default or Event of Default will exist, and all of the representations and warranties contained in
the Agreement and all instruments and documents executed pursuant thereto or contemplated thereby are true and correct in all material
respects on and as of this date other than those which have been disclosed to Administrative Agent in writing (except to the extent
such representations and warranties expressly refer to an earlier or other date, in which case they shall be true and correct as
of such earlier or other date).

 

(g)Nothing in this Section
5 is intended to amend any of the representations or warranties contained in the Agreement or of the Loan Documents to
which Borrower or any Guarantor is a party.

 

SECTION 6.Cost, Expenses
and Taxes. Borrower agrees to pay all reasonable legal fees and expenses to be incurred in connection with the preparation,
reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered in connection with
the transactions associated herewith, including reasonable attorneys’ fees and out-of-pocket expenses of Administrative Agent
and Lenders, and agrees to save Administrative Agent and each Lender harmless from and against any and all liabilities with respect
to or resulting from any delay in paying or omission to pay such fees.

 

SECTION 7.Extent
of Amendment. Upon the effectiveness hereof, on and after the date hereof, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like
import, shall mean and be a reference to the Credit Agreement as amended hereby. Borrower hereby ratifies and confirms that:

 

(a) except as expressly amended hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions
of the Agreement remain in full force and effect and each of the Loan Documents to which it is a party are and remain legal, valid
and binding obligations of Borrower, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law;

 

(b) the
Collateral is unimpaired by this Amendment and any and all Liens and other security or Collateral now or hereafter held by
Administrative Agent or the Lenders as security for payment and performance of the obligations are hereby renewed and
carried forth to secure payment and performance of all of the Obligations;

 

(c) nothing
in this Amendment implies any obligation on the part of Administrative Agent or the Lenders, and none of Administrative Agent
or the Lenders shall be obligated, at any time, to grant further amendments; and

 

(d) a breach of
a representation, warranty or covenant in this Amendment shall constitute an immediate Event of Default under the
Agreement.

 

    	4

    	 

    

 

SECTION 8.Claims.
As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce Administrative
Agent and the Lenders to enter into this Amendment, Borrower represents and warrants that it does not know of any defenses, counterclaims
or rights of setoff to the payment of any Obligations of Borrower to Administrative Agent or the Lenders.

 

SECTION 9.Waiver
and Release. In consideration of the amendment herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower and Guarantor EACH hereby waives,
remises, releases, and forever discharges each Lender and Administrative Agent, their predecessors and its successors, assigns,
affiliates, shareholders, directors, officers, accountants, attorneys, employees, agents, representatives, and servants (collectively,
the “Released Parties”) of, from and against any and all claims, actions, causes of action, suits, proceedings,
contracts, judgments, damages, accounts, reckonings, executions, and liabilities whatsoever of every name and nature, whether known
or unknown, whether or not well founded in fact or in law, and whether in law, at equity, or otherwise, which the undersigned ever
had or now has for or by reason of any matter, cause, or anything whatsoever to this date relating to or arising out of the Loans,
or any of them, or any of the loan Documents, including without limitation any actual or alleged act or omission of any of the
Released Parties with respect to the Loans, or any of them, or any of the loan Documents, or any Liens or Collateral in connection
therewith, or the enforcement of any of such Lender’s or Administrative Agent’s rights or remedies thereunder. The
terms of this waiver and release shall survive the termination of this Amendment, the Loans, or the loan Documents and shall remain
in full force and effect after the termination thereof.

 

SECTION 10.Execution and
Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or other electronic
transmission (such as Portable Document Format) shall be equally as effective as delivery of a manually executed counterpart of
this Amendment.

 

SECTION 11.Governing
Law; Service; Jurisdiction; Venue; Waiver of Jury Trial. This Amendment
and the rights and obligations of the parties hereunder shall be deemed a contract under, and shall be governed by, and construed
and enforced in accordance with, the INTERNAL laws (AND NOT THE LAW OF CONFLICTS) of the State of New York. Sections 9.14
of the Credit Agreement (Submission to Jurisdiction; Waiver of Venue) and 9.17 of the
Credit Agreement (Wavier of Jury Trial) are hereby incorporated herein by reference, mutatis mutandis, as a part
hereof for all purposes.

 

SECTION 12.Headings.
Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part of this
Amendment for any other purpose.

 

SECTION 13.Integration.
THIS AGREEMENT AND THE LOAN DOCUMENTS, AS DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT
TO THE SUBJECT MATTERS SET FORTH HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES.

 

    	5

    	 

    

 

SECTION 14.No
Waiver. Borrower agrees that, except as expressly set forth herein, no Event of Default and no Default has been waived
or remedied by the execution of this Amendment by Administrative Agent and the Lenders, and any such Default or Event of Default
heretofore arising and currently continuing shall continue after the execution and delivery hereof. Except as expressly set forth
herein nothing contained in this Amendment nor any past indulgence by Administrative Agent or the Lenders, nor any other action
or inaction on behalf of Administrative Agent or the Lenders (i) shall constitute or be deemed to constitute a waiver of any Defaults
or Events of Default which may exist under the Agreement or the other Loan Documents, or (ii) shall constitute or be deemed to
constitute an election of remedies by Administrative Agent or the Lenders or a waiver of any of the rights or remedies of Administrative
Agent or the Lenders provided in the Agreement or the other Loan Documents or otherwise afforded at law or in equity.

 

[Signature Pages Follow]

 

    	6

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized.

 

	 	Administrative Agent 
	 	 	 
	 	MORGAN STANLEY CAPITAL GROUP INC.,
	 	as Administrative Agent
	 	 	 
	 	 	 
	 	By: 	/s/ Nancy King
	 	 	Nancy King
	 	 	Vice President
	 	 	 
	 	 	 
	 	LENDER:
	 	MORGAN STANLEY CAPITAL GROUP INC.
	 	 	 
	 	 	 
	 	By:	/s/ Nancy King
	 	 	Nancy King
	 	 	Vice President

 

 

Signature Page to Second Amendment
to Credit Agreement

 

    	 

    	 

    

  

	 	BORROWER:
	 	 	 
	 	AMERICAN EAGLE ENERGY CORPORATION,  
	 	as Borrower
	 	 	 
	 	 	 
	 	By: 	/s/ Bradley M. Colby
	 	 	Bradley M. Colby
	 	 	President and Chief Executive Officer

 

 

Signature Page to Second Amendment
to Credit Agreement

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each of the undersigned, as a Guarantor under the Credit Agreement, hereby (i) acknowledges Borrower’s execution and delivery
of this Amendment and (ii) affirms that the execution and delivery of this Amendment has no affect on such Guarantor’s agreements
and obligations under its applicable Guaranty and the other Loan Documents to which such Guarantor is a party, all of which remain
the legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with their respective
terms.

 

 

	 	AMZG, INC.,
	 	a Nevada corporation
	 	 	 
	 	 	 
	 	By:	/s/ Bradley M Colby
	 	 	Bradley M. Colby
	 	 	President 
	 	 	 
	 	AEE Canada Inc.,
	 	an Alberta, Canada corporation
	 	 	 
	 	 	 
	 	By: 	/s/ Bradley M. Colby
	 	 	Bradley M. Colby
	 	 	President 
	 	 	 
	 	EERG Energy ULC,
	 	a Alberta, Canada unlimited liability company
	 	 	 
	 	 	 
	 	By:	/s/ Bradley M. Colby
	 	 	Bradley M. Colby
	 	 	President 

  

 

Guarantor Confirmation to Second Amendment
to Credit Agreement

 

    	 

    	 

    

 

Exhibit A

 

Mountainview LOIExhibit 10.28

 

Execution
Version 

 

 

 

 

 

 

 

 

  

 

 

AMERICAN EAGLE
ENERGY CORPORATION

 

and
each of the Guarantors PARTY HERETO

 

11.0% SENIOR
SECURED NOTES DUE 2019

 

 

 

INDENTURE

 

Dated as of
August 27, 2014

 

 

 

 

 

 

U.S. BANK NATIONAL
ASSOCIATION

 

Trustee

 

 

 

 

 

 

U.S. BANK NATIONAL
ASSOCIATION

 

Collateral Agent

 

 

 

 

    	 

    	 

    

 

CROSS-REFERENCE
TABLE*

 

	Trust Indenture

    Act Section	Indenture Section
	310(a)(1)	7.10
	(a)(2)	7.10
	(a)(3)	N.A.
	(a)(4)	N.A.
	(a)(5)	7.10
	(b)	7.10
	(c)	N.A.
	311(a)	7.11
	(b)	7.11
	(c)	N.A.
	312(a)	2.05
	(b)	12.03
	(c)	12.03
	313(a)	7.06
	(b)(1)	10.03
	(b)(2)	7.06; 7.07
	(c)	7.06; 10.03; 12.02
	(d)	7.06
	314(a)	4.03;12.02; 12.05
	(b)	10.02
	(c)(1)	12.04
	(c)(2)	12.04
	(c)(3)	N.A.
	(d)	10.03; 10.04; 10.05
	(e)	12.05
	(f)	N.A.
	315(a)	7.01
	(b)	7.05; 12.02
	(c)	7.01
	(d)	7.01
	(e)	6.11
	316(a) (last sentence)	2.09
	(a)(1)(A)	6.05
	(a)(1)(B)	6.04
	(a)(2)	N.A.
	(b)	6.07
	(c)	2.12
	317(a)(1)	6.08
	(a)(2)	6.09
	(b)	2.04
	318(a)	12.01
	(b)	N.A.
	(c)	12.01

 

N.A. means
not applicable.

 

* This Cross
Reference Table is not part of the Indenture.

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	 	ARTICLE
    1	 
	 	DEFINITIONS
    AND INCORPORATION	 
	 	BY
    REFERENCE	 
	 	 	
	Section
    1.01	Definitions.	1
	Section
    1.02	Other Definitions	32
	Section
    1.03	Incorporation
    by Reference of Trust Indenture Act.	33
	Section
    1.04	Rules of Construction.	33
	 	 	 
	 	ARTICLE
    2	 
	 	THE
    NOTES	 
	 	 	 
	Section
    2.01	Form and Dating.	34
	Section
    2.02	Execution
    and Authentication.	34
	Section
    2.03	Registrar
    and Paying Agent.	35
	Section
    2.04	Paying Agent
    to Hold Money in Trust.	35
	Section
    2.05	Holder Lists.	36
	Section
    2.06	Transfer and
    Exchange.	36
	Section
    2.07	Replacement
    Notes.	48
	Section
    2.08	Outstanding
    Notes.	48
	Section
    2.09	Treasury Notes.	48
	Section
    2.10	Temporary
    Notes.	48
	Section
    2.11	Cancellation.	49
	Section
    2.12	Defaulted
    Interest.	49
	 	 	 
	 	ARTICLE
    3	 
	 	REDEMPTION
    AND PREPAYMENT	 
	 	 	 
	Section
    3.01	Notices to
    Trustee.	49
	Section
    3.02	Selection
    of Notes to Be Redeemed or Purchased.	49
	Section
    3.03	Notice of
    Redemption.	50
	Section
    3.04	Effect of
    Notice of Redemption.	51
	Section
    3.05	Deposit of
    Redemption or Purchase Price.	51
	Section
    3.06	Notes Redeemed
    or Purchased in Part.	51
	Section
    3.07	Optional Redemption.	51
	Section
    3.08	Mandatory
    Redemption.	52
	Section
    3.09	Offer to Purchase
    by Application of Excess Proceeds.	52
	 	 	 
	 	ARTICLE
    4	 
	 	COVENANTS	 
	 	 	 
	Section
    4.01	Payment of
    Notes.	54
	Section
    4.02	Maintenance
    of Office or Agency.	54
	Section
    4.03	Reports.	55
	Section
    4.04	Compliance
    Certificate.	56
	Section
    4.05	Taxes.	56
	Section
    4.06	Stay, Extension
    and Usury Laws.	56
	Section
    4.07	Restricted
    Payments.	57
	Section
    4.08	Dividend and
    Other Payment Restrictions Affecting Restricted Subsidiaries.	60
	Section
    4.09	Incurrence
    of Indebtedness and Issuance of Preferred Stock.	62
	Section
    4.10	Asset Sales.	65

 

    	 

    	 

    

 

	 	 	Page
	 	 	 
	Section
    4.11	Transactions
    with Affiliates.	67
	Section
    4.12	Liens.	69
	Section
    4.13	Business Activities.	69
	Section
    4.14	Corporate
    Existence.	69
	Section
    4.15	Offer to Repurchase
    Upon Change of Control.	69
	Section
    4.16	Limitation
    on Sale and Leaseback Transactions	71
	Section
    4.17	Payments for
    Consent.	71
	Section
    4.18	Additional
    Note Guarantees.	72
	Section
    4.19	Designation
    of Restricted and Unrestricted Subsidiaries.	72
	Section
    4.20	Further Assurances.	72
	 	 	 
	 	ARTICLE
    5	 
	 	SUCCESSORS	 
	 	 	 
	Section
    5.01	Merger, Consolidation
    or Sale of Assets.	73
	Section
    5.02	Successor
    Corporation Substituted.	74
	 	 	 
	 	ARTICLE
    6	 
	 	DEFAULTS
    AND REMEDIES	 
	 	 	 
	Section
    6.01	Events of
    Default.	74
	Section
    6.02	Acceleration.	77
	Section
    6.03	Other Remedies.	77
	Section
    6.04	Waiver of
    Past Defaults.	77
	Section
    6.05	Control by
    Majority.	77
	Section
    6.06	Limitation
    on Suits.	78
	Section
    6.07	Rights of
    Holders of Notes to Receive Payment.	78
	Section
    6.08	Collection
    Suit by Trustee and Collateral Agent.	78
	Section
    6.09	Trustee May
    File Proofs of Claim.	79
	Section
    6.10	Priorities.	79
	Section
    6.11	Undertaking
    for Costs.	79
	 	 	 
	 	ARTICLE
    7	 
	 	TRUSTEE	 
	 	 	 
	Section
    7.01	Duties of
    Trustee.	80
	Section
    7.02	Rights of
    Trustee.	81
	Section
    7.03	Individual
    Rights of Trustee.	81
	Section
    7.04	Trustee’s
    Disclaimer.	81
	Section
    7.05	Notice of
    Defaults.	82
	Section
    7.06	Reports by
    Trustee to Holders of the Notes.	82
	Section
    7.07	Compensation
    and Indemnity.	82
	Section
    7.08	Replacement
    of Trustee.	83
	Section
    7.09	Successor
    Trustee by Merger, etc.	84
	Section
    7.10	Eligibility;
    Disqualification.	84
	Section
    7.11	Preferential
    Collection of Claims Against Company.	84
	Section
    7.12	Collateral
    Agent.	84
	 	 	 
	 	ARTICLE
    8	 
	 	LEGAL
    DEFEASANCE AND COVENANT DEFEASANCE	 
	 	 	 
	Section
    8.01	Option to
    Effect Legal Defeasance or Covenant Defeasance.	84
	Section
    8.02	Legal Defeasance
    and Discharge.	85
	Section
    8.03	Covenant Defeasance.	85
	Section
    8.04	Conditions
    to Legal or Covenant Defeasance.	86

 

    	ii

    	 

    

 

	 	 	Page
	 	 	 
	Section
    8.05	Deposited
    Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions.	87
	Section
    8.06	Repayment
    to Company.	87
	Section
    8.07	Reinstatement.	88
	 	 	 
	 	ARTICLE
    9	 
	 	AMENDMENT,
    SUPPLEMENT AND WAIVER	 
	 	 	 
	Section
    9.01	Without Consent
    of Holders of Notes.	88
	Section
    9.02	With Consent
    of Holders of Notes.	89
	Section
    9.03	Compliance
    with Trust Indenture Act.	90
	Section
    9.04	Revocation
    and Effect of Consents.	91
	Section
    9.05	Notation on
    or Exchange of Notes.	91
	Section
    9.06	Trustee to
    Sign Amendments, etc.	91
	 	 	 
	 	ARTICLE
    10	 
	 	COLLATERAL
    AND SECURITY	 
	 	 	 
	Section
    10.01	Security Documents.	91
	Section
    10.02	Recording
    and Opinions.	92
	Section
    10.03	Release of
    Collateral.	92
	Section
    10.04	Release of
    Liens in Respect of Notes.	93
	Section
    10.05	Certificates
    of the Company.	93
	Section
    10.06	Certificates
    of the Trustee.	93
	Section
    10.07	Authorization
    of Actions to Be Taken Under the Security Documents.	93
	Section
    10.08	Authorization
    of Receipt of Funds by the Trustee Under the Security Documents.	94
	Section
    10.09	Intercreditor
    Agreement.	94
	 	 	 
	 	ARTICLE
    11	 
	 	NOTE
    GUARANTEES	 
	 	 	 
	Section
    11.01	Guarantee.	94
	Section
    11.02	Limitation
    on Guarantor Liability.	95
	Section
    11.03	Execution
    and Delivery of Note Guarantee.	96
	Section
    11.04	Guarantors
    May Consolidate, etc., on Certain Terms.	96
	Section
    11.05	Releases.	97
	 	 	 
	 	ARTICLE
    12	 
	 	satisfaction
    and discharge	 
	 	 	 
	Section
    12.01	Satisfaction
    and Discharge.	98
	Section
    12.02	Application
    of Trust Money.	99
	 	 	 
	 	ARTICLE
    13	 
	 	MISCELLANEOUS	 
	 	 	 
	Section
    13.01	Trust Indenture
    Act Controls.	99
	Section
    13.02	Notices.	100
	Section
    13.03	Communication
    by Holders of Notes with Other Holders of Notes.	101
	Section
    13.04	Certificate
    and Opinion as to Conditions Precedent.	101
	Section
    13.05	Statements
    Required in Certificate or Opinion.	101
	Section
    13.06	Rules by Trustee
    and Agents.	102
	Section
    13.07	No Personal
    Liability of Directors, Officers, Employees and Stockholders.	102
	Section
    13.08	Governing
    Law.	102
	Section
    13.09	No Adverse
    Interpretation of Other Agreements.	102
	Section
    13.10	Successors.	102

 

    	iii

    	 

    

 

	 	 	Page
	 	 	 
	Section 13.11	Severability.	102
	Section 13.12	Counterpart Originals.	103
	Section 13.13	Table of Contents, Headings, etc.	103

 

EXHIBITS

 

	Exhibit A	FORM OF NOTE
	Exhibit B	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
    INVESTOR
	Exhibit E	FORM OF NOTATION OF GUARANTEE
	Exhibit F	FORM OF SUPPLEMENTAL INDENTURE
	Exhibit G	FORM OF INTERCREDITOR AGREEMENT

 

    	iv

    	 

    

 

INDENTURE
dated as of August 27, 2014 among American Eagle Energy Corporation, a Nevada corporation, the Guarantors (as defined), U.S. Bank
National Association, as Trustee, and U.S. Bank National Association, as Collateral Agent.

 

The
Company, the Guarantors, the Trustee and the Collateral Agent agree as follows for the benefit of each other and for the equal
and ratable benefit of the Holders (as defined) of the 11.0% Senior Secured Notes due 2019 (the “Notes”):

 

ARTICLE
1

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section
1.01         Definitions.

 

“144A
Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the
Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that
will be issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

 

“Acquired
Debt” means, with respect to any specified Person:

 

(1)         Indebtedness
of any other Person existing at the time such other Person is merged with or into or became a Subsidiary of such specified Person,
whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into,
or becoming a Restricted Subsidiary of, such specified Person; and

 

(2)         Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

“Act
of Required Debtholders” means, as to any matter at any time:

 

(1)         prior
to the Discharge of Priority Lien Obligations, a direction in writing delivered to the Priority Lien Collateral Agent by or with
the written consent of the Required Priority Lien Debtholders; and

 

(2)         at
any time after the Discharge of Priority Lien Obligations, a direction in writing delivered to the Collateral Agent by or with
the written consent of the Required Noteholders.

 

For
purposes of this definition, (a) Secured Debt registered in the name of, or beneficially owned by, the Company or any Affiliate
of the Company will be deemed not to be outstanding, and (b) votes will be determined in accordance with the provisions of
the applicable Secured Debt Document.

 

“Additional
Notes” means additional Notes (other than the Initial Notes) issued under this Indenture in accordance with Sections
2.02 and 4.09 hereof, as part of the same series as the Initial Notes.

 

“Adjusted
Consolidated Net Tangible Assets” means (without duplication), as of the date of determination,

 

(1)         the
sum of:

 

    	1

    	 

    

 

(a)          the
discounted future net revenues from Proved Reserves of the Company and its Restricted Subsidiaries calculated in accordance with
SEC guidelines before any state or federal income taxes, as estimated in a Reserve Report prepared as of the end of the Company’s
most recently completed fiscal year, which Reserve Report is prepared or audited by independent petroleum engineers as to Proved
Reserves accounting for at least 80% of all such discounted future net revenues and by the Company’s petroleum engineers
with respect to any other Proved Reserves covered by such report, as increased by, as of the date of determination, the
estimated discounted future net revenues from:

 

(i)          estimated
Proved Reserves of the Company and its Restricted Subsidiaries acquired since the date of such year-end reserve report, and

 

(ii)         estimated
Proved Reserves of the Company and its Restricted Subsidiaries attributable to extensions, discoveries and other additions and
upward revisions of estimates of Proved Reserves (including previously estimated development costs incurred during the period
and the accretion of discount since the prior period end) since the date of such year-end reserve report due to exploration, development
or exploitation, production or other activities which would, in accordance with standard industry practice, cause such revisions,

 

and decreased
by, as of the date of determination, the discounted future net revenue attributable to:

 

(iii)        estimated
Proved Reserves of the Company and its Restricted Subsidiaries reflected in such Reserve Report produced or disposed of since
the date of such year-end Reserve Report, and

 

(iv)        reductions
in estimated Proved Reserves of the Company and its Restricted Subsidiaries reflected in such Reserve Report attributable to downward
revisions of estimates of Proved Reserves since such year-end due to changes in geological conditions or other factors which would,
in accordance with standard industry practice, cause such revisions;

 

in the case
of the preceding clauses (i) through (iv), calculated on a pre-tax basis in accordance with SEC guidelines (utilizing the
prices utilized in such Person’s year-end Reserve Report) and estimated by the Company’s petroleum engineers or any
independent petroleum engineers engaged by the Company for that purpose;

 

(b)          the
capitalized costs that are attributable to Oil and Gas Properties of the Company and its Restricted Subsidiaries to which no Proved
Reserves are attributable, based on the Company’s books and records as of a date no earlier than the last day of the Company’s
most recent quarterly or annual period for which internal financial statements are available;

 

(c)          the
Consolidated Net Working Capital of the Company and its Restricted Subsidiaries as of a date no earlier than the last day of the
Company’s most recent quarterly or annual period for which internal financial statements are available; and

 

(d)          the
greater of:

 

    	2

    	 

    

 

(i)          the
net book value, and

 

(ii)         the
appraised value, as estimated by independent appraisers, of other tangible assets (including, without limitation, Investments
in unconsolidated Subsidiaries),

 

in
each case, of the Company and its Restricted Subsidiaries as of a date no earlier than the last day of the date of the Company’s
most recent quarterly or annual period for which internal financial statements are available; provided that if no such
appraisal has been performed, the Company shall not be required to obtain such an appraisal and only clause (1)(d)(i) of
this definition shall apply,

 

minus,
to the extent not otherwise taken into account in this clause (1),

 

(2)         the
sum of:

 

(a)          minority
interests,

 

(b)          any
net gas balancing liabilities of the Company and its Restricted Subsidiaries as of the last day of the Company’s most recent
annual or quarterly period for which internal financial statements are available;

 

(c)          to
the extent included in clause (1)(a) above, the discounted future net revenues, calculated in accordance with SEC guidelines
(utilizing the prices utilized in the Company’s year-end Reserve Report), attributable to reserves that are required to
be delivered to third parties to fully satisfy the obligations of the Company and its Restricted Subsidiaries with respect to
Volumetric Production Payments on the schedules specified with respect thereto, and

 

(d)          the
discounted future net revenues, calculated in accordance with SEC guidelines, attributable to reserves subject to Dollar-Denominated
Production Payments that, based on the estimates of production and price assumptions included in determining the discounted future
net revenues specified in (1)(a) above, would be necessary to fully satisfy the payment obligations of the Company and its Restricted
Subsidiaries with respect to Dollar-Denominated Production Payments on the schedules specified with respect thereto.

 

If
the Company changes its method of accounting from the full cost method to the successful efforts method or a similar method of
accounting, “Adjusted Consolidated Net Tangible Assets” will continue to be calculated as if the Company
were still using the full cost method of accounting.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control,” as used with
respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this
definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings.

 

“Agent”
means any Registrar, co-registrar, Paying Agent or additional paying agent.

 

“Applicable
Premium” means, with respect to any Note on any redemption date, the greater of:

 

    	3

    	 

    

 

(1)         1.0%
of the principal amount of the Note; or

 

(2)         the
excess of:

 

(a)          the
present value at such redemption date of (i) the redemption price of the Note at September 1, 2016 (such redemption price being
set forth in the table appearing in Section 3.07 hereof) plus (ii) all required interest payments due on the Note through September
1, 2016 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate
as of such redemption date plus 50 basis points discounted to the redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months); over

 

(b)          the
principal amount of the Note.

 

“Applicable
Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules
and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.

 

“Asset
Sale” means:

 

(1)         the
sale, lease, conveyance or other disposition of any assets or rights by the Company or any of the Company’s Restricted Subsidiaries;
provided that the sale, lease, conveyance or other disposition of all or substantially all of the properties or assets
of the Company and its Restricted Subsidiaries taken as a whole will be governed by Sections 4.15 and/or 5.01 hereof and not by
Section 4.10 hereof; and

 

(2)         the
issuance of Equity Interests by any of the Company’s Restricted Subsidiaries or the sale by the Company or any of the Company’s
Restricted Subsidiaries of Equity Interests in any of the Company’s Subsidiaries.

 

Notwithstanding
the preceding, none of the following items will be deemed to be an Asset Sale:

 

(1)         any
single transaction or series of related transactions that involves assets having a Fair Market Value of less than $5.0 million;

 

(2)         a
transfer of assets between or among the Company and its Restricted Subsidiaries;

 

(3)         an
issuance or sale of Equity Interests by a Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary of
the Company;

 

(4)         the
sale, lease or other transfer of products, services or accounts receivable in the ordinary course of business and any sale or
other disposition of damaged, worn-out or obsolete assets in the ordinary course of business (including, without limitation, the
abandonment or other disposition of intellectual property that is, in the reasonable judgment of the Company, no longer economically
practicable to maintain or useful in the conduct of the business of the Company and its Restricted Subsidiaries taken as whole);

 

(5)         licenses
and sublicenses by the Company or any of its Restricted Subsidiaries of software or intellectual property in the ordinary course
of business;

 

    	4

    	 

    

 

(6)         any
surrender or waiver of contract rights or settlement, release, recovery on or surrender of contract, tort or other claims in the
ordinary course of business;

 

(7)         the
granting of Liens not prohibited by Section 4.12 hereof and dispositions in connection with Permitted Liens;

 

(8)         the
sale or other disposition of cash or Cash Equivalents or other financial instruments (other than Oil and Gas Hedging Contracts);

 

(9)         a
Restricted Payment that does not violate Section 4.07 hereof, or a Permitted Investment;

 

(10)        sale
or other disposition of Hydrocarbons or other mineral products in the ordinary course of business;

 

(11)        an
Asset Swap;

 

(12)        dispositions
of crude oil and natural gas properties; provided that at the time of any such disposition such properties do not have
associated with them any Proved Reserves; and

 

(13)        any
Production Payments and Reserve Sales; provided that any such Production Payments and Reserve Sales, other than incentive
compensation programs on terms that are reasonably customary in the Oil and Gas Business for geologists, geophysicists and other
providers of technical services to the Company or a Restricted Subsidiary, shall have been created, incurred, issued, assumed
or Guaranteed in connection with the financing of, and within 60 days after the acquisition of, the property that is subject
thereto.

 

“Asset
Swap” means any substantially contemporaneous (and in any event occurring within 180 days of each other) purchase
and sale or exchange of any assets or properties used or useful in the Oil and Gas Business between the Company or any of its
Restricted Subsidiaries and another Person; provided that the Fair Market Value of the properties or assets traded or exchanged
by the Company or such Restricted Subsidiary (together with any cash) is reasonably equivalent to the Fair Market Value of the
properties or assets (together with any cash) to be received by the Company or such Restricted Subsidiary, and provided further
that any net cash received must be applied in accordance with Section 4.10 hereof.

 

“Attributable
Debt” in respect of a Sale and Leaseback Transaction means, at the time of determination, the present value of the obligation
of the lessee for net rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction including
any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP;
provided, however, that if such Sale and Leaseback Transaction results in a Capital Lease Obligation, the amount
of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation.”

 

“Bankruptcy
Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors.

 

    	5

    	 

    

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the
Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such
“person” has the right to acquire by conversion or exercise of other securities, whether such right
is currently exercisable or is exercisable only after the passage of time. The terms “Beneficially Owns”
and “Beneficially Owned” have a corresponding meaning. For purposes of this definition, a Person
shall be deemed not to Beneficially Own securities that are the subject of a stock purchase agreement, merger agreement, amalgamation
agreement, arrangement agreement or similar agreement until consummation of the transactions or, as applicable, series of related
transactions contemplated thereby.

 

“Board
of Directors” means:

 

(1)         with
respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf
of such board;

 

(2)         with
respect to a partnership, the Board of Directors of the general partner of the partnership;

 

(3)         with
respect to a limited liability company, the managers, managing member or members or any controlling committee of managing members
thereof; and

 

(4)         with
respect to any other Person, the board or committee of such Person serving a similar function.

 

“Broker-Dealer”
has the meaning set forth in the Registration Rights Agreement.

 

“Business
Day” means any day other than a Legal Holiday.

 

“Calculation
Date” has the meaning assigned to such term in the definition of “Fixed Charge Coverage Ratio.”

 

“Capital
Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital
lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date
upon which such lease may be prepaid by the lessee without payment of a penalty. Notwithstanding the foregoing, any lease (whether
entered into before or after the date of this Indenture) that would have been classified as an operating lease pursuant to GAAP
as in effect on the date of this Indenture will be deemed not to represent a Capital Lease Obligation.

 

“Capital
Stock” means:

 

(1)         in
the case of a corporation, corporate stock;

 

(2)         in
the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

 

(3)         in
the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests;
and

 

(4)         any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

 

    	6

    	 

    

 

“Cash
Equivalents” means:

 

(1)         United
States dollars;

 

(2)         securities
issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United
States government (provided that the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than one year from the date of acquisition;

 

(3)         certificates
of deposit and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances
with maturities not exceeding one year and overnight bank deposits, in each case, with any lender party to the Senior Credit Facility
or with any domestic commercial bank or any branch or agency of a non-U.S. bank licenses to conduct business in the United States,
in each case having combined capital and surplus of at least $500.0 million and a Thomson BankWatch rating of “B”
or better;

 

(4)         repurchase
obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above
entered into with any financial institution meeting the qualifications specified in clause (3) above;

 

(5)         commercial
paper having one of the two highest ratings obtainable from Moody’s or S&P and, in each case, maturing within six months
after the date of acquisition; and

 

(6)         money
market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5)
of this definition.

 

“Change
of Control” means the occurrence of any of the following:

 

(1)         the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries
taken as a whole to any Person (including, without limitation, any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act));

 

(2)         the
adoption of a plan relating to the liquidation or dissolution of the Company;

 

(3)         the
consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
(as defined above) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Company,
measured by voting power rather than number of shares, units or the like; or

 

(4)         the
first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors.

 

“Class”
means (1) in the case of Priority Lien Debt, Indebtedness outstanding under the Senior Credit Facility that constitutes
Priority Lien Debt, and (2) in the case of the Notes, the Notes and any Additional Notes, if and when issued, taken together.

 

    	7

    	 

    

 

“Clearstream”
means Clearstream Banking, S.A.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Collateral”
means all properties and assets at any time owned or acquired by the Company or any of the other Pledgors (or, in the case
of the Company’s and the Guarantors’ Oil and Gas Properties, all Oil and Gas Properties that secure any Priority Lien
Obligations, but in any event not less than 80% of the total Recognized Value of the Company’s and the Guarantors’
Proved Reserves), except:

 

(1)         Excluded
Assets;

 

(2)         any
properties and assets in which the Collateral Agent is required to release its Liens pursuant to the provisions of the Intercreditor
Agreement; and

 

(3)         any
properties and assets that no longer secure the Notes or any Obligations in respect thereof pursuant to Section 10.04 hereof;

 

provided
that, in the case of clauses (2) and (3), if such Liens are required to be released as a result of the sale, transfer
or other disposition of any properties or assets of the Company or any other Pledgor, such assets or properties will cease to
be excluded from the Collateral if the Company or any other Pledgor thereafter acquires or reacquires such assets or properties.

 

The
Collateral shall include not less than 80% of the total Recognized Value of the Company’s and the Guarantors’ Proved
Reserves located in the United States or in adjacent Federal waters which are evaluated in the Company’s most recently completed
Reserve Report as filed with the SEC or furnished to the Collateral Agent. If no such Reserve Report is filed with the SEC or
furnished to the Collateral Agent, the Company shall deliver to the Collateral Agent semi-annually on or before March 1 and
September 1 in each calendar year an Officers’ Certificate certifying that, as of the date of such certificate, the
Collateral includes Oil and Gas Properties subject to Mortgages covering at least 80% of the total Recognized Value of the Company’s
and the Guarantors’ Proved Reserves located in the United States and adjacent Federal waters. To the extent that any Oil
and Gas Properties constituting Collateral are released after the date of any applicable Reserve Report or Officers’ Certificate
to be delivered pursuant to the first or second preceding sentences, and are then assigned to Persons other than the Company and
the Guarantors, any Proved Reserves attributable to such Oil and Gas Properties shall be deemed excluded from such Reserve Report
or Officers’ Certificate for the purpose of determining whether such 80% requirement is met after giving effect to such
release.

 

The
Collateral will not include the following (collectively, the “Excluded Assets”):

 

(1)         any
lease (other than an oil and gas lease), license, contract or agreement to which the Company or any other Pledgor is a party or
any of its rights or interests thereunder if and only for so long as the grant of a Lien under the security documents will constitute
or result in a termination under, or a default or breach thereof that would give the other party thereto the right to terminate,
any such lease, license, contract or agreement (other than to the extent that any such term would be rendered ineffective pursuant
to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code of any relevant jurisdiction or any other applicable
law or principles of equity); provided that such lease, license, contract or agreement will cease to be an Excluded Asset
immediately and automatically, at such time as such consequences will no longer result;

 

    	8

    	 

    

 

(2)         the
Capital Stock of any Foreign Subsidiary to the extent that the voting power of such Capital Stock aggregates to more than 65%
of the voting power of such Foreign Subsidiary or the Capital Stock of any Subsidiary of a Foreign Subsidiary;

 

(3)         the
Capital Stock of any Subsidiary to the extent (and only to the extent) that, in the reasonable judgment of the Company, if such
Capital Stock were not excluded from the Collateral then Rule 3-16 or Rule 3-10 of Regulation S-X under the Securities
Act would require the filing of separate financial statements of such Subsidiary with the SEC (or any other governmental agency)
in connection with a registration of the Notes under the Securities Act; and

 

(4)         fixed
or capital assets owned by the Company or any other Pledgor that is subject to a purchase money Lien or a Capital Lease Obligation
if the contractual obligation pursuant to which such Lien is granted (or in the document providing for such capital lease) prohibits
or requires the consent of any Person other than the Company or any of its Affiliates as a condition to the creation of any other
Lien on such fixed or capital assets.

 

“Collateral
Agent” means U.S. Bank National Association, in its capacity as collateral agent under the Security Documents, together
with its successors in such capacity.

 

“Company”
means American Eagle Energy Corporation, and any and all successors thereto.

 

“Consolidated
Cash Flow” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for
such period plus, without duplication:

 

(1)         an
amount equal to any extraordinary loss plus any net loss realized by such Person or any of its Restricted Subsidiaries in connection
with an Asset Sale, to the extent such losses were deducted in computing such Consolidated Net Income; plus

 

(2)         provision
for taxes based on income or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision
for taxes was deducted in computing such Consolidated Net Income; plus

 

(3)         the
Fixed Charges of such Person and its Restricted Subsidiaries for such period, to the extent that such Fixed Charges were deducted
in computing such Consolidated Net Income; plus

 

(4)         depreciation,
depletion, amortization (including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid
in a prior period), impairment and other non-cash charges and expenses (excluding any such non-cash charge or expense to the extent
that it represents an accrual of or reserve for cash charges or expenses in any future period or amortization of a prepaid cash
charge or expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent
that such depreciation, depletion, amortization, impairment and other non-cash charges or expenses were deducted in computing
such Consolidated Net Income; plus

 

(5)         if
such Person accounts for its oil and natural gas operations using successful efforts or a similar method of accounting, consolidated
exploration expense of such Person and its Restricted Subsidiaries; minus

 

(6)         non-cash
items increasing such Consolidated Net Income for such period, other than the accrual of revenue in the ordinary course of business;
and minus

 

    	9

    	 

    

 

(7)         to
the extent increasing such Consolidated Net Income for such period, the sum of (a) the amount of deferred revenues that are
amortized during such period and are attributable to reserves that are subject to Volumetric Production Payments and (b) amounts
recorded in accordance with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production Payments,

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated
Net Income” means, with respect to any specified Person for any period, the aggregate of the net income (loss) of such
Person and its Restricted Subsidiaries for such period, on a consolidated basis determined in accordance with GAAP and without
any reduction in respect of preferred stock dividends or distributions; provided that:

 

(1)         all
extraordinary gains (but not losses) and all gains (but not losses) realized in connection with any Asset Sale or the disposition
of securities or the early extinguishment of Indebtedness, together with any related provision for taxes on any such gain, will
be excluded;

 

(2)         the
net income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting
will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or
a Restricted Subsidiary of the Person;

 

(3)         the
net income (but not loss) of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends
or similar distributions by that Restricted Subsidiary of that net income is not at the date of determination permitted without
any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders, partners or members;

 

(4)         the
cumulative effect of a change in accounting principles will be excluded;

 

(5)         unrealized
losses and gains under derivative instruments included in the determination of Consolidated Net Income, including, without limitation,
those resulting from the application of FASB ASC 815 will be excluded; and

 

(6)         any
asset impairment writedowns on Oil and Gas Properties under GAAP or SEC guidelines will be excluded.

 

“Consolidated
Net Working Capital” means (a) all current assets of the Company and its Restricted Subsidiaries except current
assets from Oil and Natural Gas Hedging Contracts, less (b) all current liabilities of the Company and its Restricted Subsidiaries,
except (i) current liabilities included in Indebtedness, (ii) current liabilities associated with asset retirement obligations
relating to Oil and Gas Properties and (iii) any current liabilities from Oil and Natural Gas Hedging Contracts, in each
case as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP (excluding any adjustments
made pursuant to FASB ASC 815).

 

“continuing”
means, with respect to any Default or Event of Default, that such Default or Event of Default has not been cured or waived.
 

 

    	10

    	 

    

 

“Continuing
Directors” means, as of any date of determination, any member of the Board of Directors of the Company who:

 

(1)         was
a member of such Board of Directors on the date of this Indenture; or

 

(2)         was
nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election.

 

“Corporate
Trust Office of the Trustee” means the address of the Trustee specified in Section 13.02 hereof or such other address
as to which the Trustee may give notice to the Company.

 

“Credit
Facilities” means one or more debt facilities (including, without limitation, the Senior Credit Facility), indentures
or commercial paper facilities, in each case, with banks or other institutional lenders providing for revolving credit loans,
term loans, capital market financings, receivables financing (including, without limitation, through the sale of receivables to
such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit,
in each case, as amended, restated, modified, renewed, refunded, replaced in any manner (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from
time to time.

 

“Custodian”
means the Trustee, as custodian with respect to the Notes in global form, or any successor entity thereto.

 

“Customary
Recourse Exceptions” means, with respect to any Non-Recourse Debt of an Unrestricted Subsidiary, exclusions from the
exculpation provisions with respect to such Non-Recourse Debt for the voluntary bankruptcy of such Unrestricted Subsidiary, fraud,
misapplication of cash, environmental claims, waste, willful destruction and other circumstances customarily excluded by lenders
from exculpation provisions or included in separate indemnification agreements in non-recourse financings.

 

“Default”
means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Definitive
Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.06
hereof, substantially in the form of Exhibit A hereto except that such Note shall not bear the Global Note Legend and shall not
have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary”
means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in Section 2.03
hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having
become such pursuant to the applicable provision of this Indenture.

 

“Discharge
of Priority Lien Obligations” means the occurrence of all of the following:

 

(1)         termination
or expiration of all commitments to extend credit that would constitute Priority Lien Debt;

 

(2)         payment
in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (other than any undrawn letters
of credit);

 

    	11

    	 

    

 

(3)         discharge
or cash collateralization (at the lower of (1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate
undrawn amount required for release of liens under the terms of the applicable Priority Lien Document) of all outstanding letters
of credit constituting Priority Lien Debt; and

 

(4)         payment
in full in cash of all other Priority Lien Obligations that are outstanding and unpaid at the time the Priority Lien Debt is paid
in full in cash (other than any obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities
in respect of which no claim or demand for payment has been made at such time) (or the cash collateral of all such Hedging Obligations
on terms satisfactory to each applicable counterparty).

 

“Disqualified
Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or
for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event,
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder
of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding
the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock
have the right to require the Company to repurchase or redeem such Capital Stock upon the occurrence of a change of control or
an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide that the Company may not repurchase
or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07 hereof.
The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this Indenture will be the maximum amount
that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.

 

“Dollar-Denominated
Production Payments” means production payment obligations recorded as liabilities in accordance with GAAP, together
with all undertakings and obligations in connection therewith.

 

“Domestic
Subsidiary” means any Restricted Subsidiary of a Person that was formed under the laws of the United States or any state
of the United States or the District of Columbia or that Guarantees or otherwise provides direct credit support for any Indebtedness
of such Person.

 

“Equity
Interests” of any Person means (1) any and all Capital Stock of such Person and (2) all rights to purchase,
warrants or options (whether or not currently exercisable), participations or other equivalents of or interests in (however designated)
such Capital Stock of such Person, but excluding from all of the foregoing any debt securities convertible into Equity Interests,
regardless of whether such debt securities include any right of participation with Equity Interests.

 

“Equity
Offering” means a sale of Equity Interests of the Company (other than Disqualified Stock and other than to a Subsidiary
of the Company) made for cash on a primary basis by the Company after the date of this Indenture.

 

“Euroclear”
means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

 

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

 

“Exchange
Notes” means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof.

 

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“Exchange
Offer” has the meaning set forth in the Registration Rights Agreement.

 

“Exchange
Offer Registration Statement” has the meaning set forth in the Registration Rights Agreement.

 

“Excluded
Assets” has the meaning assigned to such term in the definition of “Collateral.”

 

“Existing
Indebtedness” means all Indebtedness of the Company and its Subsidiaries in existence on the date of this Indenture,
until such amounts are repaid.

 

“Fair
Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction
not involving distress or necessity of either party, determined in good faith by the Board of Directors of the Company in the
case of amounts of $10.0 million or more and otherwise by an officer of the Company (unless otherwise provided in this Indenture).

 

“FASB
ASC 815” means Financial Accounting Standards Board Accounting Standards Codification Topic No. 815, Derivatives
and Hedging.

 

“Fixed
Charge Coverage Ratio” means, with respect to any specified Person for any period, the ratio of the Consolidated Cash
Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that the specified Person
or any of its Restricted Subsidiaries incurs, assumes, Guarantees, repays, repurchases, redeems, defeases or otherwise discharges
any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on
which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”),
then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of Preferred
Stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference
period. For purposes of this definition, whenever pro forma effect is to be given to any calculation under this definition, the
pro forma calculations will be determined in good faith by the chief financial or accounting officer of the specified Person;
provided that such officer may in his or her discretion include any reasonably identifiable and factually supportable pro
forma changes to Consolidated Cash Flow, including any pro forma expenses and cost reductions, that have occurred or in the judgment
of such officer are reasonably expected to occur within 12 months of the date of the applicable transaction (regardless of whether
such expense or cost reduction or any other operating improvements could then be reflected properly in pro forma financial statements
prepared in accordance with Regulation S-X under the Securities Act or any other regulation or policy of the SEC) and that
are set forth in an Officers’ Certificate signed by the chief financial or accounting officer that states (a) the amount
of each such adjustment and (b) that such adjustments are based on the reasonable good faith belief of the officers executing
such Officers’ Certificate at the time of such execution and the factual basis on which such good faith belief is based.

 

In
addition, for purposes of calculating the Fixed Charge Coverage Ratio:

 

(1)         acquisitions
that have been made by the specified Person or any of its Restricted Subsidiaries, including, without limitation, through mergers
or consolidations, or any Person or any of its Restricted Subsidiaries acquired by the specified Person or any of its Restricted
Subsidiaries, and including, without limitation, all related financing transactions and including, without limitation, increases
in ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on
or prior to the Calculation Date, or that are to be made on the Calculation Date, will be given pro forma effect (in accordance
with Regulation S-X under the Securities Act) as if they had occurred on the first day of the four-quarter reference period;

 

    	13

    	 

    

 

(2)         the
Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses
(and ownership interests therein) disposed of prior to the Calculation Date, will be excluded;

 

(3)         the
Fixed Charges attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses (and
ownership interests therein) disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations
giving rise to such Fixed Charges will not be obligations of the specified Person or any of its Restricted Subsidiaries following
the Calculation Date;

 

(4)         any
Person that is a Restricted Subsidiary on the Calculation Date will be deemed to have been a Restricted Subsidiary at all times
during such four-quarter period;

 

(5)         any
Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to have been a Restricted Subsidiary at
any time during such four-quarter period; and

 

(6)         if
any Indebtedness bears a floating rate of interest, the interest expense on such Indebtedness will be calculated as if the rate
in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation
applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the Calculation Date in excess of 12 months).

 

“Fixed
Charges” means, with respect to any specified Person for any period, the sum, without duplication, of:

 

(1)         the
consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued (excluding
(i) any interest attributable to Dollar-Denominated Production Payments, (ii) write-off of deferred financing costs
and (iii) accretion of interest charges on future plugging and abandonment obligations, future retirement benefits and other
obligations that do not constitute Indebtedness, but including, without limitation, amortization of debt issuance costs and original
issue discount, non-cash interest payments, the interest component of all payments associated with Capital Lease Obligations,
imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings), and net of the effect of all payments made or received pursuant to Hedging
Obligations in respect of interest rates; plus

 

(2)         the
consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized during such period; plus

 

(3)         any
interest on Indebtedness of another Person that is Guaranteed by such Person or one of its Restricted Subsidiaries or secured
by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon;
plus

 

(4)         all
dividends or distributions, whether paid or accrued and whether or not in cash, on any series of Disqualified Stock of such Person
or any series of Preferred Stock of its Restricted Subsidiaries, other than dividends or distributions on Equity Interests payable
solely in Equity Interests of such Person (other than Disqualified Stock) or to such Person or a Restricted Subsidiary of such
Person,

 

    	14

    	 

    

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

“Foreign
Subsidiary” means any Restricted Subsidiary of a Person that is not a Domestic Subsidiary of such Person.

 

“GAAP”
means generally accepted accounting principles in the United States which are in effect from time to time.

 

“Global
Note Legend” means the legend set forth in Section 2.06(g)(2) hereof, which is required to be placed on all Global Notes
issued under this Indenture.

 

“Global
Notes” means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes deposited
with or on behalf of and registered in the name of the Depository or its nominee, substantially in the form of Exhibit A hereto
and that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note”
attached thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f) hereof.

 

“Government
Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment
for which the United States pledges its full faith and credit.

 

“Guarantee”
means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement
agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements,
or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise). When used as a verb, “Guarantee” has a correlative meaning.

 

“Guarantors”
means any Subsidiary of the Company that Guarantees the Notes in accordance with the provisions of this Indenture, and their
respective successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with
the provisions of this Indenture.

 

“Hedging
Obligations” means, with respect to any specified Person, the obligations of such Person under any (a) Interest Rate
Agreement and (b) Oil and Gas Hedging Contract.

 

“Holder”
means a Person in whose name a Note is registered.

 

“Hydrocarbons”
means oil, natural gas, casing head gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous
hydrocarbons and all constituents, elements or compounds thereof and products refined or processed therefrom.

 

“IAI
Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the
Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee that will
be issued in a denomination equal to the outstanding principal amount of the Notes sold to Institutional Accredited Investors.

 

“Indebtedness”
means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables),
whether or not contingent:

 

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(1)         in
respect of borrowed money;

 

(2)         evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

 

(3)         in
respect of bankers’ acceptances;

 

(4)         representing
Capital Lease Obligations or Attributable Debt in respect of Sale and Leaseback Transactions;

 

(5)         representing
the balance deferred and unpaid of the purchase price of any property or services due more than six months after such property
is acquired or such services are completed; or

 

(6)         representing
any Hedging Obligations,

 

if and to the
extent any of the preceding items (other than letters of credit, Attributable Debt and Hedging Obligations) would appear as a
liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness
is assumed by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness
of any other Person.

 

In
addition, “Indebtedness” of any Person shall include Indebtedness described in the preceding paragraph
that would not appear as a liability on the balance sheet of such Person if:

 

(1)         such
Indebtedness is the obligation of a partnership or joint venture that is not a Restricted Subsidiary (a “Joint Venture”);

 

(2)         such
Person or a Restricted Subsidiary of such Person is a general partner of the Joint Venture (a “Joint Venture General
Partner”); and

 

(3)         there
is recourse, by contract or operation of law, with respect to the payment of such Indebtedness to property or assets of such Person
or a Restricted Subsidiary of such Person; and then such Indebtedness shall be included in an amount not to exceed:

 

(a)          the
lesser of (i) the net assets of the Joint Venture General Partner and (ii) the amount of such obligations to the extent
that there is recourse, by contract or operation of law, to the property or assets of such Person or a Restricted Subsidiary of
such Person; or

 

(b)          if
less than the amount determined pursuant to clause (a) immediately above, the actual amount of such Indebtedness that is
recourse to such Person or a Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a writing and is for a
determinable amount and the related interest expense shall be included in Fixed Charges to the extent actually paid by such Person
or its Restricted Subsidiaries.

 

Notwithstanding
the preceding, “Indebtedness” of a Person shall not include:

 

    	16

    	 

    

 

(1)         any
indebtedness that has been defeased in accordance with GAAP or defeased pursuant to the deposit of cash or Cash Equivalents (in
an amount sufficient to satisfy all such indebtedness obligations at maturity or redemption, as applicable, and all payments of
interest and premium, if any) in a trust or account created or pledged for the sole benefit of the holders of such indebtedness,
and subject to no other Liens;

 

(2)         any
obligation of such Person in respect of a farm-in agreement or similar arrangement whereby such Person agrees to pay all or a
share of the drilling, completion or other expenses of an exploratory or development well (which agreement may be subject to a
maximum payment obligation, after which expenses are shared in accordance with the working or participation interest therein or
in accordance with the agreement of the parties) or perform the drilling, completion or other operation on such well in exchange
for an ownership interest in an oil or gas property; and

 

(3)         any
repayment or reimbursement obligation of such Person or any of its Restricted Subsidiaries with respect to Customary Recourse
Exceptions, unless and until an event or circumstance occurs that triggers the Person’s or such Restricted Subsidiary’s
direct repayment or reimbursement obligation (as opposed to contingent or performance obligations) to the lender or other Person
to whom such obligation is actually owed, in which case the amount of such direct payment or reimbursement obligation shall constitute
Indebtedness.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time.

 

“Indirect
Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial
Notes” means the first $175,000,000 million aggregate principal amount of Notes issued under this Indenture on the date
hereof.

 

“Initial
Reserve Report” means, that certain reserve report prepared by Ryder Scott Company, L.P., dated July 14, 2014,
evaluating the Oil and Gas Properties of the Company and its subsidiaries as of June 30, 2014, true and correct copies of
which have been delivered to the Collateral Agent.

 

“Initial
Purchasers” means GMP Securities L.P., Canaccord Genuity Inc., Global Hunter Securities LLC and Johnson Rice & Company
L.L.C.

 

“insolvency
or liquidation proceeding” means:

 

(1)         any
case commenced by or against the Company or any other Pledgor under Title 11, U.S. Code or any similar federal or state law for
the relief of debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets
or liabilities of the Company or any other Pledgor, any receivership or assignment for the benefit of creditors relating to the
Company or any other Pledgor or any similar case or proceeding relative to the Company or any other Pledgor or its creditors,
as such, in each case whether or not voluntary;

 

(2)         any
liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to the Company or any other
Pledgor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

 

(3)         any
other proceeding of any type or nature in which substantially all claims of creditors of the Company or any other Pledgor are
determined and any payment or distribution is or may be made on account of such claims.

 

    	17

    	 

    

 

“Institutional
Accredited Investor” means an institution that is an “accredited investor” as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs.

 

“Intercreditor
Agreement” means the intercreditor agreement, in form and substance substantially identical to Exhibit G hereto, to
be entered into by and among the Company, the other Pledgors, the Priority Lien Collateral Agent, the Trustee and the Collateral
Agent, as amended, supplemented or otherwise modified from time to time. By their acceptance of the Notes, Holders are deemed
to have authorized the Collateral Agent, on behalf of itself and the Holders of the Notes, to enter into an Intercreditor Agreement
with the Priority Lien Collateral Agent, on behalf of itself and the other holders of any Priority Lien Obligations. Although
the Holders of the Notes will not be party to the Intercreditor Agreement, by their acceptance of the Notes they agree to be bound
thereby.

 

“Interest
Rate Agreement” means any interest rate swap agreement (whether from fixed to floating or from floating to fixed), interest
rate cap agreement, interest rate collar agreement or other similar agreement or arrangement designed to protect the Company or
any of its Restricted Subsidiaries against fluctuations in interest rates and is not for speculative purposes..

 

“Investments”
means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including, without
limitation, Affiliates) in the forms of loans (including Guarantees or other obligations), advances or capital contributions (excluding
commission, travel and similar advances to officers and employees made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other securities (excluding any interest in an oil or natural
gas leasehold to the extent constituting a security under applicable law), together with all items that are or would be classified
as investments on a balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary of the Company
sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that,
after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company
will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Company’s
Investments in such Subsidiary that were not sold or disposed of in an amount determined as provided in Section 4.07(c) hereof.
The acquisition by the Company or any Restricted Subsidiary of the Company of a Person that holds an Investment in a third Person
will be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person in an amount equal to the
Fair Market Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in Section
4.07(c) hereof. Except as otherwise provided in this Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Joint
Venture” has the meaning assigned to such term in the definition of “Indebtedness.”

 

“Joint
Venture General Partner” has the meaning assigned to such term in the definition of “Indebtedness.”

 

“Legal
Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City of New York or at a place of
payment are authorized by law, regulation or executive order to remain closed. If a payment date is a Legal Holiday at a place
of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue
on such payment for the intervening period.

 

“Letter
of Transmittal” means the letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for
use by such Holders in connection with the Exchange Offer.

 

    	18

    	 

    

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including, without limitation, any
conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or
give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction.

 

“Moody’s”
means Moody’s Investors Service, Inc., and any successor to the ratings business thereof.

 

“Mortgaged
Property” means any property owned by the Company or any other Pledgor that is subject to the Liens existing and to
exist under the terms of the Security Documents.

 

“Mortgages”
means all mortgages, deeds of trust and similar documents, instruments and agreements (and all amendments, modifications and
supplements thereof) creating, evidencing, perfecting or otherwise establishing the Liens on Mortgaged Property to secure payment
of the Notes and the Note Guarantees or any party thereof.

 

“Net
Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Company or any of its Restricted Subsidiaries
in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition
of any non-cash consideration received in any Asset Sale but excluding any non-cash consideration deemed to be cash for purposes
of Section 4.10 hereof), net of the direct costs relating to such Asset Sale, including, without limitation, legal, accounting
and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale, taxes
paid or payable as a result of the Asset Sale, in each case, after taking into account any available tax credits or deductions
and any tax sharing arrangements, and amounts required to be applied to the repayment of Indebtedness, other than revolving credit
Indebtedness under a Credit Facility, secured by a Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment or indemnification obligations in respect of the sale price of such asset or assets established in accordance
with GAAP.

 

“Non-Recourse
Debt” means Indebtedness:

 

(1)         as
to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor
or otherwise, except for Customary Recourse Exceptions; and

 

(2)         as
to which the lenders have been notified in writing that they will not have any recourse to the Capital Stock or assets of the
Company or any of its Restricted Subsidiaries (other than the Equity Interests of an Unrestricted Subsidiary), except for Customary
Recourse Exceptions.

 

“Non-U.S.
Person” means a Person who is not a U.S. Person.

 

“Note
Documents” means this Indenture, the Notes and the Security Documents.

 

“Note
Guarantee” means any Guarantee by a Guarantor of the Company’s obligations under this Indenture and the Notes,
as provided in this Indenture.

 

    	19

    	 

    

 

“Note
Lien” means a Lien granted by a Security Document to the Collateral Agent, at any time, upon any property of the Company
or any other Pledgor to secure Note Obligations.

 

“Note
Obligations” means the Notes and all other Obligations in respect thereof.

 

“Notes”
has the meaning assigned to it in the preamble to this Indenture. The Initial Notes and the Additional Notes shall be treated
as a single class for all purposes under this Indenture, and unless the context otherwise requires, all references to the Notes
shall include the Initial Notes and any Additional Notes.

 

“Obligations”
means any principal (including reimbursement obligations with respect to letters of credit whether or not drawn), interest
(including, to the extent legally permitted, all interest accrued thereon after the commencement of any insolvency or liquidation
proceeding at the rate, including any applicable post-default rate, specified in the Note Documents, even if such interest is
not enforceable, allowable or allowed as a claim in such proceeding), premium (if any), fees, indemnifications, reimbursements,
expenses and other liabilities payable under the documentation governing any Indebtedness.

 

“Offering
Memorandum” means the Offering Memorandum of the Company dated August 13, 2014, relating to the initial offering of
the Notes.

 

“Officer”
means, with respect to any Person, the Chairman of the Board of Directors, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or
any Vice-President of such Person.

 

“Officers’
Certificate” means a certificate signed on behalf of the Company by two Officers of the Company, one of whom must be
the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company,
that meets the requirements of Section 13.05 hereof.

 

“Oil
and Gas Business” means (i) the acquisition, exploration, development, production, operation and disposition of
interests in oil, gas and other Hydrocarbon properties, (ii) the gathering, marketing, treating, processing (but not refining),
storage, selling and transporting of any production from such interests or properties, (iii) any business relating to exploration
for or development, production, treatment, processing (but not refining), storage, transportation or marketing of oil, gas and
other minerals and products produced in association therewith and (iv) any activity that is ancillary to or necessary or
appropriate for the activities described in clauses (i) through (iii) of this definition.

 

“Oil
and Gas Hedging Contracts” means any puts, cap transactions, floor transactions, collar transactions, forward contract,
commodity swap agreement, commodity option agreement or other similar agreement or arrangement in respect of Hydrocarbons to be
used, produced, processed or sold by the Company or any of its Restricted Subsidiary that are customary in the Oil and Gas Business
and designed to protect such Person against fluctuation in Hydrocarbons prices and not for speculative purposes.

 

“Oil
and Gas Properties” means all properties, including, without limitation, equity or other ownership interest therein,
owned by such Person or any of its Restricted Subsidiaries which contain or are believed to contain “proved oil and
gas reserves” as defined in Rule 4-10 of Regulation S-X of the Securities Act.

 

    	20

    	 

    

 

“Opinion
of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements
of Section 13.05 hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee
or the Collateral Agent.

 

“Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear
or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).

 

“Permitted
Acquisition Indebtedness” means Indebtedness or Disqualified Stock of the Company or any of its Restricted Subsidiaries
(a) incurred to finance an acquisition of assets used or useful in the Oil and Gas Business by the Company or any of its
Restricted Subsidiaries or (b) to the extent such Indebtedness or Disqualified Stock was Indebtedness or Disqualified Stock
of any other Person existing at the time (x) such Person became a Restricted Subsidiary of the Company or (y) such Person
was merged or consolidated with or into the Company or any of its Restricted Subsidiaries (in either case under this clause (b),
whether or not such Indebtedness was incurred in contemplation of such merger or consolidation); provided that on the date
such (i) assets were acquired by the Company or any of its Restricted Subsidiaries, (ii) Person became a Restricted
Subsidiary of the Company or (iii) Person was merged or consolidated with or into the Company or any of its Restricted Subsidiaries,
as applicable, either

 

(1)         immediately
after giving effect to such transaction and any related financing transaction on a pro forma basis as if the same had occurred
at the beginning of the applicable four-quarter period, the Company or such Person (if the Company is not the survivor in the
transaction) would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 4.09(a) hereof; or

 

(2)         immediately
after giving effect to such transaction and any related financing transaction on a pro forma basis as if the same had occurred
at the beginning of the applicable four-quarter period, the Fixed Charge Coverage Ratio of the Company or such Person (if the
Company is not the survivor in the transaction) is equal to or greater than the Fixed Charge Coverage Ratio of the Company immediately
prior to such transaction.

 

“Permitted
Investments” means:

 

(1)         any
Investment in the Company or in a Restricted Subsidiary of the Company;

 

(2)         any
Investment in Cash Equivalents;

 

(3)         any
Investment by the Company or any Restricted Subsidiary of the Company in a Person, if as a result of such Investment:

 

(a)          such
Person becomes a Restricted Subsidiary of the Company; or

 

(b)          such
Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its properties or assets
to, or is liquidated into, the Company or a Restricted Subsidiary of the Company;

 

(4)         any
Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance
with Section 4.10 hereof, including pursuant to an Asset Swap;

 

    	21

    	 

    

 

(5)         any
acquisition of assets or Capital Stock solely in exchange for the issuance of Equity Interests (other than Disqualified Stock)
of the Company;

 

(6)         any
Investments received in compromise or resolution of (a) obligations of trade creditors or customers that were incurred in
the ordinary course of business of the Company or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization
or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or (b) litigation, arbitration
or other disputes;

 

(7)         Investments
represented by Hedging Obligations;

 

(8)         loans
or advances to officers, directors or employees made in the ordinary course of business of the Company or any Restricted Subsidiary
of the Company in an aggregate principal amount not to exceed $2.0 million at any one time outstanding;

 

(9)         repurchases
of the Notes;

 

(10)        any
Guarantee of Indebtedness permitted to be incurred by Section 4.09 hereof other than a Guarantee of Indebtedness of an Affiliate
of the Company that is not a Restricted Subsidiary of the Company;

 

(11)        any
Investment existing on, or made pursuant to binding commitments existing on, the date of this Indenture and any Investment consisting
of an extension, modification or renewal of any Investment existing on, or made pursuant to a binding commitment existing on,
the date of this Indenture; provided that the amount of any such Investment may be increased (a) as required by the
terms of such Investment as in existence on the date of this Indenture or (b) as otherwise permitted under this Indenture;

 

(12)        Investments
acquired after the date of this Indenture as a result of the acquisition by the Company or any Restricted Subsidiary of the Company
of another Person, including by way of a merger, amalgamation or consolidation with or into the Company or any of its Restricted
Subsidiaries in a transaction that is not prohibited by Section 5.01 hereof after the date of this Indenture to the extent that
such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence
on the date of such acquisition, merger, amalgamation or consolidation;

 

(13)        Investments
made in the ordinary course of, and of a nature that is or shall have become customary in, the Oil and Gas Business as a means
of actively exploiting, exploring for, acquiring, developing, processing, gathering, marketing or transporting oil and natural
gas through agreements, transactions, interests or arrangements which permit one to share risks or costs jointly with third parties,
including Investments in the form of or pursuant to operating agreements, processing agreements, farm in agreements, farm-out
agreements, developments agreements, area of mutual interest agreements, unitization agreements, pooling agreements, joint bidding
agreements, service contracts, subscription agreements, stock purchase agreements and other similar agreements with third parties;

 

(14)        Investments
constituting ownership interests in oil, natural gas, other Hydrocarbon properties or any interest therein or gathering, transportation,
processing, storage or related systems, drilling rigs, fracturing units and other related equity equipment; and

 

    	22

    	 

    

 

(15)        other
Investments in any Person other than an Affiliate of the Company that is not a Subsidiary of the Company having an aggregate Fair
Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when
taken together with all other Investments made pursuant to this clause (15) that are at the time outstanding that do not
exceed $20.0 million; provided, however, that if any Investment pursuant to this clause (15) is made in
any Person that is not a Restricted Subsidiary at the date of the making of such Investment and such Person becomes a Restricted
Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (1) above and
shall cease to have been made pursuant to this clause (15) for so long as such Person continues to be a Restricted Subsidiary.

 

“Permitted
Liens” means:

 

(1)         Liens
on assets of the Company or any Guarantor securing Indebtedness and other Obligations under Credit Facilities that was permitted
by the terms of this Indenture to be incurred pursuant to clause (1) of the definition of Permitted Debt or securing Hedging
Obligations related thereto or securing Obligations with regard to Treasury Management Arrangements;

 

(2)         Liens
in favor of the Collateral Agent created pursuant to this Indenture and the Security Documents with respect to the Notes, Note
Guarantees, the Exchange Notes and exchange guarantees, any Additional Notes and any Note Guarantees related thereto; provided
that the Company and the Guarantors may only incur Liens to secure Additional Notes and Note Guarantees related to such Additional
Notes if the Company’s Secured Leverage Ratio, after giving effect to the issuance of such Additional Notes and the application
of the net proceeds therefrom, is less than 3.0 to 1.0;

 

(3)         Liens
in favor of the Company or the Guarantors;

 

(4)         Liens
on property of a Person existing at the time such Person becomes a Restricted Subsidiary of the Company or is merged with or into
or consolidated with the Company or any Restricted Subsidiary of the Company; provided that such Liens were in existence
prior to the contemplation of such Person becoming a Restricted Subsidiary of the Company or such merger or consolidation and
do not extend to any assets other than those of the Person that becomes a Restricted Subsidiary of the Company or is merged with
or into or consolidated with the Company or any Restricted Subsidiary of the Company;

 

(5)         Liens
on property (including, without limitation, Capital Stock) existing at the time of acquisition of the property by the Company
or any Subsidiary of the Company; provided that such Liens were in existence prior to such acquisition and not incurred
in contemplation of, such acquisition;

 

(6)         Liens
to secure the performance of statutory obligations, insurance, surety or appeal bonds, workers’ compensation obligations,
bid, plugging and abandonment and performance bonds or other obligations of a like nature incurred in the ordinary course of business
(including, without limitation, Liens to secure letters of credit issued to assure payment of such obligations);

 

(7)         Liens
to secure Indebtedness (including, without limitation, Capital Lease Obligations) permitted by Section 4.09(b)(4) hereof covering
only the assets acquired with or financed by such Indebtedness;

 

    	23

    	 

    

 

(8)         Liens
existing on the date of this Indenture;

 

(9)         Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under this Indenture; provided, however,
that:

 

(a)          the
new Lien is limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which
the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions
thereof); and

 

(b)          the
Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (x) the outstanding principal
amount, or, if greater, committed amount, of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged
with such Permitted Refinancing Indebtedness and (y) an amount necessary to pay any fees and expenses, including, without
limitation, premiums, related to such renewal, refunding, refinancing, replacement, defeasance or discharge;

 

(10)        Liens
on insurance policies and proceeds thereof, or other deposits, to secure insurance premium financings;

 

(11)        filing
of Uniform Commercial Code financing statements as a precautionary measure in connection with operating leases;

 

(12)        bankers’
Liens, rights of setoff, Liens arising out of judgments or awards not constituting an Event of Default and notices of lis pendens
and associated rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves
have been made;

 

(13)        Liens
on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;

 

(14)        Liens
on specific items of inventory or other goods (and the proceeds thereof) of any Person securing such Person’s obligations
in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods;

 

(15)        grants
of software and other technology licenses in the ordinary course of business;

 

(16)        Liens
arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the
ordinary course of business;

 

(17)        Liens
in respect of Production Payments and Reserve Sales; provided that such Liens are limited to the property that is subject
to such Production Payments and Reserve Sales;

 

(18)        Liens
arising under oil and gas leases or subleases, assignments, farm-out agreements, farm-in agreements, division orders, contracts
for the sale, purchase, exchange, transportation, gathering or processing of Hydrocarbons, unitizations and pooling designations,
declarations, orders and agreements, development agreements, joint venture agreements, partnership agreements, operating agreements,
royalties, working interests, net profits interests, joint interest billing arrangements, participation agreements, production
sales contracts, area of mutual interest agreements, gas balancing or deferred production agreements, injection, repressuring
and recycling agreements, salt water or other disposal agreements, seismic or geophysical permits or agreements, licenses, sublicenses
and other agreements which are customary in the Oil and Gas Business; provided, however, in all instances that such
Liens are limited to the assets that are the subject of the relevant agreement, program, order or contract;

 

    	24

    	 

    

 

(19)        Liens
to secure performance of Hedging Obligations of the Company or any of its Restricted Subsidiaries entered into in the ordinary
course of business;

 

(20)        Liens
incurred in the ordinary course of business of the Company or any Restricted Subsidiary of the Company with respect to Indebtedness
that does not exceed in aggregate principal amount $20.0 million; and

 

(21)        any
Lien renewing, extending, refinancing or refunding a Lien permitted by clauses (1) through (20) above; provided that
(a) the principal amount of the Indebtedness secured by such Lien is not increased except by an amount equal to a reasonable
premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection therewith and by an amount equal
to any existing commitments unutilized thereunder and (b) no assets are encumbered by any such Lien other than the assets
permitted to be encumbered immediately prior to such renewal, extension, refinance or refund (other than improvements thereon,
accessions thereto and proceeds thereof).

 

“Permitted
Prior Liens” means:

 

(1)         Liens
described in clauses (4), (5), (6) or (7) of the definition of “Permitted Liens” and, to the extent relating
to any of the foregoing Liens, Liens described in clause (21) of the definition of “Permitted Liens”;
and

 

(2)         Permitted
Liens that arise by operation of law and are not voluntarily granted, to the extent entitled by law to priority over the Liens
created by the Priority Lien Security Documents or the Security Documents.

 

“Permitted
Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries or any Disqualified
Stock of the Company issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease
or discharge other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness) or
any Disqualified Stock of the Company; provided that:

 

(1)         the
principal amount (or accreted value, if applicable), or in the case of Disqualified Stock, the amount thereof determined in accordance
with the definition of Disqualified Stock, of such Permitted Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable) of the Indebtedness or the amount of the Disqualified Stock renewed, refunded, refinanced, replaced,
defeased or discharged (plus all accrued interest on the Indebtedness or accrued and unpaid dividends on the Disqualified
Stock, as the case may be, and the amount of all fees and expenses, including premiums, incurred in connection therewith);

 

(2)         such
Permitted Refinancing Indebtedness has a final maturity date or redemption date, as applicable, that is (a) later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity
of, the Indebtedness or Disqualified Stock being renewed, refunded, refinanced, replaced, defeased or discharged or (b) more
than 90 days after the final maturity date of the Notes;

 

    	25

    	 

    

 

(3)         if
the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is subordinated in right of payment to
the Notes or the Note Guarantees, such Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes or
the Note Guarantees, as applicable, on terms at least as favorable to the holders of the Notes as those contained in the documentation
governing the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; and

 

(4)         such
Indebtedness is not incurred (other than by way of a Guarantee) by a Restricted Subsidiary of the Company if the Company is the
issuer or other primary obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged.

 

Notwithstanding
the foregoing, any Indebtedness incurred under Credit Facilities shall be subject to the refinancing provisions of the definition
of “Credit Facilities” and not pursuant to the requirements of the foregoing definition.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

 

“Pledgors”
means the Company, the Guarantors and any other Person (if any) that provides collateral security for any Secured Debt Obligations.

 

“Preferred
Stock” means, with respect to any Person, any and all preferred or preference stock or other similar Equity Interests
(however designated) of such Person whether outstanding or issued after the date of this Indenture.

 

“Priority
Lien” means a Lien granted by a security document to the Priority Lien Collateral Agent, at any time, upon any property
of the Company or any Guarantor to secure Priority Lien Obligations.

 

“Priority
Lien Collateral Agent” means the collateral agent or other representative of lenders or holders of Priority Lien Obligations
designated pursuant to the terms of the Priority Lien Documents and the Intercreditor Agreement.

 

“Priority
Lien Debt” means Indebtedness of the Company or any Guarantor consisting of Indebtedness under any Senior Credit Facility,
Hedging Obligations under any agreement pertaining to Hedging Obligations permitted to be incurred under this Indenture or Obligations
with respect to any Treasury Management Arrangement permitted to be incurred under this Indenture; provided, that:

 

(a)          on
or before the date on which such Indebtedness is incurred by the Company, such Indebtedness is designated by the Company, in an
Officers’ Certificate delivered to the Priority Lien Collateral Agent and the Collateral Agent, as “Priority
Lien Debt” for the purposes of the Secured Debt Documents and the Intercreditor Agreement; provided that Notes
may not be designated as Priority Lien Debt;

 

(b)          the
Priority Lien Collateral Agent, the Collateral Agent, the Company and each applicable Guarantor have duly executed and delivered
the Intercreditor Agreement (or a joinder to the Intercreditor Agreement or a new intercreditor agreement substantially similar
to Exhibit G hereto, and in a form reasonably acceptable to each of the parties thereto); and

 

    	26

    	 

    

 

(c)          all
other requirements set forth in the Intercreditor Agreement as to the confirmation, grant or perfection of the Priority Lien Collateral
Agent’s Liens to secure such Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such
requirements and the other provisions of this clause (c) will be conclusively established if the Company delivers to the Priority
Lien Collateral Agent and the Collateral Agent an Officers’ Certificate stating that such requirements and other provisions
have been satisfied and that such Indebtedness is “Priority Lien Debt”).

 

“Priority
Lien Documents” means the Senior Credit Facility pursuant to which any Priority Lien Debt is incurred and the Priority
Lien Security Documents.

 

“Priority
Lien Obligations” means the Priority Lien Debt and all other Obligations in respect of Priority Lien Debt together with
Hedging Obligations.

 

“Priority
Lien Representative” means the administrative agent under the Senior Credit Facility.

 

“Priority
Lien Security Documents” means the Intercreditor Agreement and all security agreements, pledge agreements, collateral
assignments, Mortgages, deeds of trust, collateral agency agreements, control agreements or other grants or transfers for security
executed and delivered by the Company or any other Pledgor creating (or purporting to create) a Priority Lien upon Collateral
in favor of the Priority Lien Collateral Agent, in each case, as amended, modified, renewed, restated or replaced, in whole or
in part, from time to time, in accordance with its terms.

 

“Private
Placement Legend” means the legend set forth in Section 2.06(g)(1) hereof to be placed on all Notes issued under this
Indenture except where otherwise permitted by the provisions of this Indenture.

 

“Production
Payments” means Dollar-Denominated Production Payments and Volumetric Production Payments, collectively.

 

“Production
Payments and Reserve Sales” means the grant or transfer by the Company or any of its Restricted Subsidiaries to any
Person of a royalty, overriding royalty, net profits interest, Production Payment, partnership or other interest in Oil and Gas
Properties, reserves or the right to receive all or a portion of the production or the proceeds from the sale of production attributable
to such properties where the holder of such interest has recourse solely to such production or proceeds of production, subject
to the obligation of the grantor or transferor to operate and maintain, or cause the subject interests to be operated and maintained,
in a reasonably prudent manner or other customary standard or subject to the obligation of the grantor or transferor to indemnify
for environmental, title or other matters customary in the Oil and Gas Business, including any such grants or transfers pursuant
to incentive compensation programs on terms that are reasonably customary in the Oil and Gas Business for geologists, geophysicists
or other providers of technical services to the Company or any of its Restricted Subsidiaries.

 

“Proved
Reserves” shall mean those Oil and Gas Properties designated as “proved” (in accordance with
SEC definitions and regulations) in the most recently filed or delivered Reserve Report.

 

“QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

 

    	27

    	 

    

 

“Recognized
Value” means the present value of the future net revenues from Proved Reserves of the Company and Guarantors, calculated
in accordance with SEC guidelines and pricing (and using the pricing utilized in such Reserve Report) and using a 10% discount
factor, before any state or federal income taxes, as estimated in the Company’s most recent Reserve Report.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated as of August 27, 2014, among the Company, the Guarantors
and the Initial Purchasers, as such agreement may be amended, modified or supplemented from time to time, and, with respect to
any Additional Notes, one or more registration rights agreements among the Company, the Guarantors and the other parties thereto,
as such agreement(s) may be amended, modified or supplemented from time to time, relating to rights given by the Company to the
purchasers of Additional Notes to register such Additional Notes under the Securities Act.

 

“Regulation
S” means Regulation S promulgated under the Securities Act.

 

“Regulation
S Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and
the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued
in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.

 

“Related
Party” means:

 

(1)         any
controlling stockholder, majority owned Subsidiary, or immediate family member (in the case of an individual) of any Person; or

 

(2)         any
trust, corporation, partnership, limited liability company or other entity, the beneficiaries, stockholders, partners, members,
owners or Persons beneficially holding a majority (and controlling) interest of which consist of any one or more Persons and/or
such other Persons referred to in the immediately preceding clause (1).

 

“Required
Noteholders” means, at any time, except as otherwise provided by this Indenture, the holders of a majority in aggregate
principal amount of all Notes then outstanding, calculated in accordance with the provisions hereof. For purposes of this definition,
any Notes registered in the name of, or beneficially owned by, the Company or any Affiliate of the Company will be deemed not
to be outstanding.

 

“Required
Priority Lien Debtholders” means, at any time, the holders of more than 50% of the sum of:

 

(a)          the
aggregate outstanding principal amount of Priority Lien Debt (including outstanding letters of credit whether or not then available
or drawn); and

 

(b)          other
than in connection with the exercise of remedies, the aggregate unfunded commitments to extend credit which, when funded, would
constitute Priority Lien Debt.

 

For
purposes of this definition, (a) Priority Lien Debt registered in the name of, or beneficially owned by, the Company or any
Affiliate of the Company will be deemed not to be outstanding, and (b) votes will be determined in accordance with the provisions
of the applicable Priority Lien Document.

 

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“Reserve
Report” means a report as of each December 31st (in such case prepared or reviewed by independent petroleum engineers)
and June 30th (in such case prepared or audited by independent petroleum engineers or prepared by the Company’s internal
petroleum engineer staff) setting forth the Proved Reserves of the Company and the Guarantors, together with a projection of the
rate of production and future net income, taxes, operating expenses and capital expenditures with respect thereto as of such date.
Until superseded, the Initial Reserve Report will be considered the Reserve Report

 

“Responsible
Officer,” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the
Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

 

“Restricted
Definitive Note” means a Definitive Note bearing the Private Placement Legend.

 

“Restricted
Global Note” means a Global Note bearing the Private Placement Legend.

 

“Restricted
Investment” means an Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

 

“Rule
144” means Rule 144 promulgated under the Securities Act.

 

“Rule
144A” means Rule 144A promulgated under the Securities Act.

 

“Rule
903” means Rule 903 promulgated under the Securities Act.

 

“Rule
904” means Rule 904 promulgated under the Securities Act.

 

“S&P”
means Standard & Poor’s Ratings Services, and any successor to the ratings business thereof.

 

“Sale
and Leaseback Transaction” means, with respect to the Company or any of its Restricted Subsidiaries, any arrangement
with any other Person providing for the sale by the Company or any of its Restricted Subsidiaries to such other Person of any
real property or equipment, acquired or placed into service by the Company or any of its Restricted Subsidiaries prior to such
arrangement, whereby such real property or equipment is concurrently leased back by the Company or any of its Restricted Subsidiaries
from such other Person.

 

“SEC”
means the Securities and Exchange Commission.

 

“Secured
Debt” means the Notes and Priority Lien Debt.

 

“Secured
Debt Documents” means the Note Documents and the Priority Lien Documents.

 

“Secured
Debt Representative” means the Trustee and the Priority Lien Representative.

 

“Secured
Leverage Ratio” means, on any date, the ratio of:

 

    	29

    	 

    

 

(1)         the
aggregate principal amount of Secured Debt outstanding on such date plus all Indebtedness of Restricted Subsidiaries of the Company
that are not Guarantors outstanding on such date, less the aggregate amount of unrestricted cash and Cash Equivalents on hand
as of such date (and, for this purpose, letters of credit will be deemed to have a principal amount equal to the face amount thereof,
whether or not drawn), to:

 

(2)         the
aggregate amount of the Company’s Consolidated Cash Flow for the most recent four-quarter period for which financial information
is available.

 

The
Secured Leverage Ratio shall be calculated using the same methodology and assumptions described in the definition of “Fixed
Charge Coverage Ratio.”

 

“Secured
Obligations” means the Note Obligations and Priority Lien Obligations.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Security
Documents” means the Intercreditor Agreement and all security agreements, pledge agreements, collateral assignments,
Mortgages, deeds of trust, collateral agency agreements, control agreements or other grants or transfers for security executed
and delivered by the Company or any other Pledgor creating (or purporting to create) a Note Lien upon Collateral in favor of the
Collateral Agent, in each case, as amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in
accordance with its terms and the provisions described in the Security Documents.

 

“Senior
Credit Facility” means any Credit Facility pursuant to which the Company or any Guarantor incurs Indebtedness solely
pursuant to clause (1) of the definition of “Permitted Debt.”

 

“Series
of Secured Debt” means the Notes and Indebtedness outstanding under any Senior Credit Facility that constitutes Priority
Lien Debt.

 

“Shelf
Registration Statement” means the Shelf Registration Statement as defined in the Registration Rights Agreement.

 

“Significant
Subsidiary” means any Restricted Subsidiary that would be a “significant subsidiary” as defined
in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the
date of this Indenture.

 

“Special
Interest” has the meaning assigned to that term pursuant to the Registration Rights Agreement.

 

“Stated
Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on
which the payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness,
and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

 

“Subsidiary”
means, with respect to any specified Person:

 

(1)         any
corporation, association or other business entity (other than a partnership or limited liability company) of which more than 50%
of the total voting power of its Voting Stock is at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person (or a combination thereof); and

 

    	30

    	 

    

 

(2)         any
partnership or limited liability company of which (a) more than 50% of the capital accounts, distribution rights, total equity
and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership,
general, special or limited partnership interests or otherwise, and (b) such Person or any Subsidiary of such Person is a controlling
general partner or otherwise controls such entity.

 

“TIA”
means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

 

“Treasury
Management Arrangement” means any agreement or other arrangement governing the provision of treasury or cash management
services, including deposit accounts, overdraft, credit or debit card, funds transfer, automated clearinghouse, zero balance accounts,
returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services
and other cash management services.

 

“Treasury
Rate” means, as of any redemption date, the yield to maturity as of the time of computation of United States Treasury
securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519)
that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is
no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption
date to September 1, 2016; provided, however, that if the period from the redemption date to September 1, 2016,
is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year will be used. The Company will (1) calculate the Treasury Rate on the second Business Day immediately preceding
the applicable redemption date and (2) prior to such redemption date file with the Trustee an Officers’ Certificate
setting forth the Applicable Premium and the Treasury Rate and showing the calculation of each in reasonable detail.

 

“Trustee”
means U.S. Bank National Association, until a successor replaces it in accordance with the applicable provisions of this Indenture
and thereafter means the successor serving hereunder.

 

“Unrestricted
Definitive Note” means a Definitive Note that does not bear and is not required to bear the Private Placement Legend.

 

“Unrestricted
Global Note” means a Global Note that does not bear and is not required to bear the Private Placement Legend.

 

“Unrestricted
Subsidiary” means any Subsidiary of the Company (including any newly acquired or newly formed Subsidiary or a Person
becoming a Subsidiary through merger or consolidation or Investment therein) that is designated by the Board of Directors of the
Company as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but only to the extent that such Subsidiary:

 

(1)         has
no Indebtedness other than Non-Recourse Debt;

 

(2)         except
as permitted by Section 4.11 hereof, is not party to any agreement, contract, arrangement or understanding with the Company or
any Restricted Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no
less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company;

 

    	31

    	 

    

 

(3)         is
a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation
(a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results; and

 

(4)         has
not Guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its Restricted
Subsidiaries, except to the extent such Guarantee would be released upon such designation.

 

All Subsidiaries
of an Unrestricted Subsidiary shall also be Unrestricted Subsidiaries.

 

“U.S.
Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities Act.

 

“Volumetric
Production Payments” means production payment obligations recorded as deferred revenue in accordance with GAAP, together
with all undertakings and obligations in connection therewith.

 

“Voting
Stock” of any specified Person as of any date means the Capital Stock of such Person entitling the holders thereof (whether
at all times or only so long as no senior class of Capital Stock has voting power by reason of any contingency) to vote in the
election of members of the Board of Directors of such Person; provided that with respect to a limited partnership or other
entity which does not have a Board of Directors, Voting Stock means the Capital Stock of the general partner of such limited partnership
or other business entity with the ultimate authority to manage the business and operations of such Person.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness or Disqualified Stock at any date, the number of years
obtained by dividing:

 

(1)         the
sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity or redemption, in respect of the Indebtedness or Disqualified
Stock, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of
such payment; by

 

(2)         the
then outstanding aggregate amount of such Indebtedness or Disqualified Stock.

 

Section
1.02         Other Definitions

  

	 	 	Defined

    in
	Term	 	Section
	“Affiliate Transaction”	 	4.11
	“Asset Sale Offer”	 	3.09
	“Authentication Order”	 	2.02
	“Change of Control Offer”	 	4.15
	“Change of Control Payment”	 	4.15
	“Change of Control Payment Date”	 	4.15
	“Covenant Defeasance”	 	8.03
	“DTC”	 	2.03

 

    	32

    	 

    

 

	 	 	Defined

    in
	Term	 	Section
	“Event of Default”	 	6.01
	“Excess Proceeds”	 	4.10
	“incur”	 	4.09
	“Indemnified Party”	 	7.07
	“Legal Defeasance”	 	8.02
	“Offer Amount”	 	3.09
	“Offer Period”	 	3.09
	“Paying Agent”	 	2.03
	“Permitted Debt”	 	4.09
	“Payment Default”	 	6.01
	“Purchase Date”	 	3.09
	“Registrar”	 	2.03
	“Restricted Payments”	 	4.07

 

Section
1.03         Incorporation by Reference of Trust
Indenture Act.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.

 

The
following TIA terms used in this Indenture have the following meanings:

 

“indenture
securities” means the Notes;

 

“indenture
security Holder” means a Holder of a Note;

 

“indenture
to be qualified” means this Indenture;

 

“indenture
trustee” or “institutional trustee” means the Trustee; and

 

“obligor”
on the Notes and the Note Guarantees means the Company and the Guarantors, respectively, and any successor obligor upon the
Notes and the Note Guarantees, respectively.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC
rule under the TIA have the meanings so assigned to them.

 

Section
1.04         Rules of Construction.

 

Unless
the context otherwise requires:

 

(1)         a
term has the meaning assigned to it;

 

(2)         an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)         “or”
is not exclusive;

 

(4)         “including”
is not limiting;

 

    	33

    	 

    

 

(5)         words
in the singular include the plural, and in the plural include the singular;

 

(6)         “will”
shall be interpreted to express a command;

 

(7)         provisions
apply to successive events and transactions;

 

(8)         all
references to “interest” in this Indenture are deemed to include any Special Interest that may be payable on the Notes
pursuant to the Registration Rights Agreement; and

 

(9)         references
to sections of or rules under the Securities Act will be deemed to include substitute, replacement of successor sections or rules
adopted by the SEC from time to time.

 

ARTICLE
2

THE NOTES

 

Section
2.01         Form and Dating.

 

(a)          General.
The Notes and the Trustee’s certificate of authentication will be substantially in the form of Exhibit A hereto. The Notes
may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of
its authentication. The Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

The
terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture and the Company,
the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions
and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

 

(b)          Global
Notes. Notes issued in global form will be substantially in the form of Exhibit A hereto (including the Global Note Legend
thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive
form will be substantially in the form of Exhibit A hereto (but without the Global Note Legend thereon and without the “Schedule
of Exchanges of Interests in the Global Note” attached thereto). Each Global Note will represent such of the outstanding
Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes
from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made
by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof
as required by Section 2.06 hereof.

 

(c)          Euroclear
and Clearstream Procedures Applicable. The provisions of the “Operating Procedures of the Euroclear System” and
“Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking”
and “Customer Handbook” of Clearstream will be applicable to transfers of beneficial interests in the Regulation S
Global Note that are held by Participants through Euroclear or Clearstream.

 

Section
2.02         Execution and Authentication.

 

At
least one Officer must sign the Notes for the Company by manual or facsimile signature.

 

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If
an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note will nevertheless
be valid.

 

A
Note will not be valid until authenticated by the manual signature of the Trustee. The signature will be conclusive evidence that
the Note has been authenticated under this Indenture.

 

The
Trustee will, upon receipt of a written order of the Company signed by one Officer (an “Authentication
Order”), authenticate Notes for original issue that may be validly issued under this Indenture, including any Additional
Notes. The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes
authorized for issuance by the Company pursuant to one or more Authentication Orders, except as provided in Section 2.07 hereof.

 

The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication
by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company.

 

Section
2.03         Registrar and Paying Agent.

 

The
Company will maintain an office or agency where Notes may be presented for registration of transfer or for exchange (“Registrar”)
and an office or agency where Notes may be presented for payment (“Paying Agent”). The Registrar will keep
a register of the Notes and of their transfer and exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes
any additional paying agent. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company will
notify the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the Company fails to appoint
or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar.

 

The
Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global
Notes.

 

The
Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act as Custodian with respect to the Global
Notes.

 

Section
2.04         Paying Agent to Hold Money in Trust.

 

The
Company will require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, premium, if any, on,
or interest on, the Notes, and will notify the Trustee of any default by the Company in making any such payment. While any such
default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if
other than the Company or a Subsidiary) will have no further liability for the money. If the Company or a Subsidiary acts as Paying
Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent.
Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee will serve as Paying Agent for the Notes.

 

    	35

    	 

    

 

Section
2.05         Holder Lists.

 

The
Trustee will preserve in as current a form as is reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA §312(a). If the Trustee is not the Registrar, the Company will
furnish to the Trustee at least seven Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of
the Holders of Notes and the Company shall otherwise comply with TIA §312(a).

 

Section
2.06         Transfer and Exchange.

 

(a)          Transfer
and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or
any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the
Company for Definitive Notes if:

 

(1)         DTC
(a) notifies the Company that it is unwilling or unable to continue as depositary for the Global Note or (b) has ceased
to be a clearing agency registered under the Exchange Act and, in either case, the Company fails to appoint a successor depositary
within 90 days;

 

(2)         the
Company, at its option but subject to DTC’s requirements, notifies the Trustee in writing that it elects to cause the issuance
of the Definitive Notes; or

 

(3)         there
has occurred and is continuing an Event of Default, and DTC notifies the Trustee of its decision to exchange such Global Note
for Definitive Notes.

 

Upon
the occurrence of any of the preceding events in (1), (2) or (3) above, Definitive Notes shall be issued in such names as the
Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Sections 2.07 or 2.10 hereof, shall be authenticated and delivered in the form of, and shall
be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a), however,
beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

 

(b)          Transfer
and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global
Notes will be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures.
Beneficial interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to those set forth
herein to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also will require compliance
with either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

 

(1)         Transfer
of Beneficial Interests in the Same Global Note. Beneficial interests in any Restricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the
Restricted Period, transfers of beneficial interests in the Regulation S Global Note may not be made to a U.S. Person or for the
account or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted Global Note may
be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note. No written
orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.06(b)(1).

 

    	36

    	 

    

 

(2)         All
Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar
either:

 

(A)         both:

 

(i)          a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to
the beneficial interest to be transferred or exchanged; and

 

(ii)         instructions
given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with
such increase; or

 

(B)         both:

 

(i)          a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred
or exchanged; and

 

(ii)         instructions
given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall
be registered to effect the transfer or exchange referred to in (1) above

 

Upon consummation
of an Exchange Offer by the Company in accordance with Section 2.06(f) hereof, the requirements of this Section 2.06(b)(2) shall
be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered
by the Holder of such beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer
or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the
Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

 

(3)         Transfer
of Beneficial Interests to Another Restricted Global Note. A beneficial interest in any Restricted Global Note may be transferred
to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.06(b)(2) above and the Registrar receives the following:

 

(A)         if
the transferee will take delivery in the form of a beneficial interest in the 144A Global Note, then the transferor must deliver
a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

 

    	37

    	 

    

 

(B)         if
the transferee will take delivery in the form of a beneficial interest in the Regulation S Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and

 

(C)         if
the transferee will take delivery in the form of a beneficial interest in the IAI Global Note, then the transferor must deliver
a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item
(3) thereof, if applicable.

 

(4)         Transfer
and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global Note.
A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted
Global Note or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note if the exchange or transfer complies with the requirements of Section 2.06(b)(2) above and:

 

(A)         such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the holder
of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies
in the applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of
the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)         such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

 

(C)         such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

 

(D)         the
Registrar receives the following:

 

(i)          if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial
interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications
in item (1)(a) thereof; or

 

(ii)         if
the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who
shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such holder
in the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance
with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

    	38

    	 

    

 

If
any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet
been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial
interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form
of, a beneficial interest in a Restricted Global Note.

 

(c)          Transfer
or Exchange of Beneficial Interests for Definitive Notes.

 

(1)         Beneficial
Interests in Restricted Global Notes to Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest
to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the
following documentation:

 

(A)         if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof;

 

(B)         if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (1) thereof;

 

(C)         if
such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

 

(D)         if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act
in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a)
thereof;

 

(E)         if
such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration
requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect
set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof,
if applicable;

 

(F)         if
such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

 

(G)         if
such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate
to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

 

    	39

    	 

    

 

the Trustee
shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h)
hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions
a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose names such
Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant
to this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained
therein.

 

(2)         Beneficial
Interests in Restricted Global Notes to Unrestricted Definitive Notes. A holder of a beneficial interest in a Restricted Global
Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note only if:

 

(A)         such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the holder
of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes
or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)         such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

 

(C)         such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

 

(D)         the
Registrar receives the following:

 

(i)          if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for an Unrestricted
Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof;
or

 

(ii)         if
the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who
shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit
B hereto, including the certifications in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance
with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

    	40

    	 

    

 

(3)         Beneficial
Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. If any holder of a beneficial interest in an Unrestricted
Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(2)
hereof, the Trustee will cause the aggregate principal amount of the applicable Unrestricted Global Note to be reduced accordingly
pursuant to Section 2.06(h) hereof, and the Company will execute and the Trustee will authenticate and deliver to the Person designated
in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(3) will be registered in such name or names and in such authorized denomination or denominations
as the holder of such beneficial interest requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are
so registered. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear
the Private Placement Legend.

 

(d)          Transfer
and Exchange of Definitive Notes for Beneficial Interests.

 

(1)         Restricted
Definitive Notes to Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to
a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the
Registrar of the following documentation:

 

(A)         if
the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global
Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof;

 

(B)         if
such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (1) thereof;

 

(C)         if
such Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903
or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

 

(D)         if
such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities
Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item
(3)(a) thereof;

 

(E)         if
such Restricted Definitive Note is being transferred to an Institutional Accredited Investor in reliance on an exemption from
the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate
to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item
(3) thereof, if applicable;

 

(F)         if
such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

 

(G)         if
such Restricted Definitive Note is being transferred pursuant to an effective registration statement under the Securities Act,
a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

 

    	41

    	 

    

 

the
Trustee will cancel the Restricted Definitive Note, increase or cause to be increased the aggregate principal amount of, in the
case of clause (A) above, the appropriate Restricted Global Note, in the case of clause (B) above, the 144A Global Note, in the
case of clause (C) above, the Regulation S Global Note, and in all other cases, the IAI Global Note.

 

(2)         Restricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange
such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if:

 

(A)         such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the Holder,
in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that
it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is
an affiliate (as defined in Rule 144) of the Company;

 

(B)         such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

 

(C)         such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

 

(D)         the
Registrar receives the following:

 

(i)          if
the Holder of such Definitive Notes proposes to exchange such Notes for a beneficial interest in the Unrestricted Global Note,
a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or

 

(ii)         if
the Holder of such Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of
a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including
the certifications in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance
with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

Upon
satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2), the Trustee will cancel the Definitive
Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note.

 

(3)         Unrestricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may exchange
such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note any time. Upon receipt of a request for such an exchange
or transfer, the Trustee will cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate
principal amount of one of the Unrestricted Global Notes.

 

    	42

    	 

    

 

If
any such exchange or transfer from a Definitive Note to a beneficial interest is effected pursuant to subparagraphs (2)(B), (2)(D)
or (3) above at a time when an Unrestricted Global Note has not yet been issued, the Company will issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

 

(e)          Transfer
and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s
compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes.
Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Registrar the Definitive
Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e).

 

(1)         Restricted
Definitive Notes to Restricted Definitive Notes. Any Restricted Definitive Note may be transferred to and registered in the
name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following:

 

(A)         if
the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

 

(B)         if
the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit
B hereto, including the certifications in item (2) thereof; and

 

(C)         if
the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable.

 

(2)         Restricted
Definitive Notes to Unrestricted Definitive Notes. Any Restricted Definitive Note may be exchanged by the Holder thereof for
an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted
Definitive Note if:

 

(A)         such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the Holder,
in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that
it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is
an affiliate (as defined in Rule 144) of the Company;

 

(B)         any
such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

 

    	43

    	 

    

 

(C)         any
such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or

 

(D)         the
Registrar receives the following:

 

(i)          if
the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate
from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or

 

(ii)         if
the Holder of such Restricted Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in
the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications
in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions
on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the
Securities Act.

 

(3)         Unrestricted
Definitive Notes to Unrestricted Definitive Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes to a
Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a
transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof.

 

(f)          Exchange
Offer. Upon the occurrence of the Exchange Offer in accordance with the Registration Rights Agreement, the Company will issue
and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate:

 

(1)         one
or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes accepted for exchange in the Exchange Offer by Persons that certify in the applicable Letters of Transmittal
that (A) they are not Broker-Dealers, (B) they are not participating in a distribution of the Exchange Notes and (C) they are
not affiliates (as defined in Rule 144) of the Company; and

 

(2)         Unrestricted
Definitive Notes in an aggregate principal amount equal to the principal amount of the Restricted Definitive Notes accepted for
exchange in the Exchange Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not Broker-Dealers,
(B) they are not participating in a distribution of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
of the Company.

 

Concurrently
with the issuance of such Notes, the Trustee will cause the aggregate principal amount of the applicable Restricted Global Notes
to be reduced accordingly, and the Company will execute and the Trustee will authenticate and deliver to the Persons designated
by the Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate principal amount.

 

    	44

    	 

    

 

(g)          Legends.
The following legends will appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

 

(1)         Private
Placement Legend.

 

(A)         Except
as permitted by subparagraph (B) below, each Global Note and each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear the legend in substantially the following form:

 

“THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, ACCORDINGLY,
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER
(1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
(A “QIB”), (B) IT IS NOT A U.S. PERSON, IS NOT ACQUIRING THIS NOTE FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON AND
IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL
“ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) (AN
“IAI”), (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO UNDER RULE 144 (TAKING INTO ACCOUNT THE PROVISIONS
OF RULE 144(d) UNDER THE SECURITIES ACT, IF APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS
NOTE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON WHOM THE HOLDER
REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR 904 OF REGULATION S UNDER
THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
(E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE REGISTRATION OF TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE) OR (F) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS, AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN WITHIN THE TIME PERIOD REFERRED
TO ABOVE, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND
SUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES”
AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE
CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS.”

 

(B)         Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2),
(e)(3) or (f) of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) will not bear the Private
Placement Legend.

 

    	45

    	 

    

 

(2)         Global
Note Legend. Each Global Note will bear a legend in substantially the following form:

 

“THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT
OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY
MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH
THE PRIOR WRITTEN CONSENT OF AMERICAN EAGLE ENERGY CORPORATION.

 

UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.”

 

(h)          Cancellation
and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged
for beneficial interests in another Global Note or Definitive Notes or a particular Global Note has been redeemed, repurchased
or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance
with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for
or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made
on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such
Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

 

(i)          General
Provisions Relating to Transfers and Exchanges.

 

    	46

    	 

    

 

(1)         To
permit registrations of transfers and exchanges, the Company will execute and the Trustee will authenticate Global Notes and Definitive
Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

 

(2)         No
service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable
upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

 

(3)         The
Registrar will not be required to register the transfer of or exchange of any Note selected for redemption in whole or in part,
except the unredeemed portion of any Note being redeemed in part.

 

(4)         All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will
be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as
the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(5)         Neither
the Registrar nor the Company will be required:

 

(A)         to
issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before
the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of selection;

 

(B)         to
register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part; or

 

(C)         to
register the transfer of or to exchange a Note between a record date and the next succeeding interest payment date.

 

(6)         Prior
to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem and treat the
Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal
of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Company shall be affected
by notice to the contrary.

 

(7)         The
Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof.

 

(8)         All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to
effect a registration of transfer or exchange may be submitted by facsimile.

 

    	47

    	 

    

 

Section
2.07         Replacement Notes.

 

If
any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives evidence to its satisfaction of the destruction,
loss or theft of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate
a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the Company, an indemnity bond must
be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee,
any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company may charge
for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and will be entitled to all of the benefits of this Indenture equally
and proportionately with all other Notes duly issued hereunder.

 

Section
2.08         Outstanding Notes.

 

The
Notes outstanding at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions
hereof, and those described in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds the Note.

 

If
a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory
to it that the replaced Note is held by a protected purchaser.

 

If
the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it
ceases to accrue.

 

If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity
date, money sufficient to pay Notes payable on that date, then on and after that date such Notes will be deemed to be no longer
outstanding and will cease to accrue interest.

 

Section
2.09         Treasury Notes.

 

In
determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company or any Guarantor, or by any Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Company or any Guarantor, will be considered as though not outstanding, except that for the
purposes of determining whether the Trustee will be protected in relying on any such direction, waiver or consent, only Notes
that the Trustee actually knows are so owned will be so disregarded.

 

Section
2.10         Temporary Notes.

 

Until
certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication
Order, will authenticate temporary Notes. Temporary Notes will be substantially in the form of certificated Notes but may have
variations that the Company considers appropriate for temporary Notes and as may be reasonably acceptable to the Trustee. Without
unreasonable delay, the Company will prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes.

 

Holders
of temporary Notes will be entitled to all of the benefits of this Indenture.

 

    	48

    	 

    

 

Section
2.11         Cancellation.

 

The
Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent will forward to the Trustee
any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel all Notes
surrendered for registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled Notes (subject
to the record retention requirements of the Exchange Act). Certification of the destruction of all canceled Notes will be delivered
to the Company. The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee
for cancellation.

 

Section
2.12         Defaulted Interest.

 

If
the Company defaults in a payment of interest on the Notes, it will pay the defaulted interest in any lawful manner plus, to the
extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date,
in each case at the rate provided in the Notes and in Section 4.01 hereof. The Company will notify the Trustee in writing of the
amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment. The Company will fix or cause
to be fixed each such special record date and payment date; provided that no such special record date may be less than
10 days prior to the related payment date for such defaulted interest. At least 15 days before the special record date, the Company
(or, upon the written request of the Company, the Trustee in the name and at the expense of the Company) will mail or cause to
be mailed to Holders a notice that states the special record date, the related payment date and the amount of such interest to
be paid.

 

ARTICLE
3

REDEMPTION AND PREPAYMENT

 

Section
3.01         Notices to Trustee.

 

If
the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it must furnish to the
Trustee, at least 30 days but not more than 60 days before a redemption date, an Officers’ Certificate setting forth:

 

(1)         the
clause of this Indenture pursuant to which the redemption shall occur;

 

(2)         the
redemption date;

 

(3)         the
principal amount of Notes to be redeemed; and

 

(4)         the
redemption price.

 

Section
3.02         Selection of Notes to Be Redeemed
or Purchased.

 

If
less than all of the Notes are to be redeemed at any time, the Trustee will select Notes for redemption on a pro rata basis
(or, in the case of Notes issued in global form pursuant to Article 2 hereof, based on a method as DTC or its nominee or successor
may require or, where such nominee or successor is the Trustee, a method that most nearly approximates pro rata selection
as the Trustee deems fair and appropriate unless otherwise required by law) unless otherwise required by law or applicable stock
exchange or depositary requirements.

 

The
Trustee will promptly notify the Company in writing of the Notes selected for redemption or purchase and, in the case of any Note
selected for partial redemption or purchase, the principal amount thereof to be redeemed or purchased. Notes and portions of Notes
selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder
are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased. Except
as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also
apply to portions of Notes called for redemption or purchase.

 

    	49

    	 

    

 

Section
3.03         Notice of Redemption.

 

Subject
to the provisions of Section 3.09 hereof, at least 30 days but not more than 60 days before a redemption date, the Company will
mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered
address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in
connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Articles 8 or 12 hereof.

 

The
notice will identify the Notes to be redeemed and will state:

 

(1)         the
redemption date;

 

(2)         the
redemption price;

 

(3)         if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

 

(4)         the
name and address of the Paying Agent;

 

(5)         that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(6)         that,
unless the Company defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and
after the redemption date;

 

(7)         the
paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed;
and

 

(8)         that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the
Notes.

 

At
the Company’s request, the Trustee will give the notice of redemption in the Company’s name and at its expense; provided,
however, that the Company has delivered to the Trustee, at least 45 days prior to the redemption date, an Officers’
Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph.

 

Any
such redemption may, at the Company’s discretion, be subject to one or more conditions precedent, including any related
Equity Offering or a Change of Control. In addition, if such redemption is subject to the satisfaction of one or more conditions
precedent, the related notice shall describe each such condition, and if applicable, shall state that, in the Company’s
discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied or waived (provided
that in no event shall such redemption date be delayed to a date later than 60 days after the date on which such notice was mailed),
or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have
been satisfied or waived by the redemption date, or by the redemption date as so delayed.

 

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Section
3.04         Effect of Notice of Redemption.

 

Once
notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and
payable on the redemption date at the redemption price; provided, however, that in the event any redemption is subject
to conditions precedent pursuant to Section 3.03 hereof, such Notes called for redemption shall become irrevocably due and payable
on the redemption date at the redemption price only upon the satisfaction or waiver of such conditions precedent.

 

Section
3.05         Deposit of Redemption or Purchase
Price.

 

One
Business Day prior to the redemption or purchase date, the Company will deposit with the Trustee or with the Paying Agent money
sufficient to pay the redemption or purchase price of, and accrued interest, if any, on all Notes to be redeemed or purchased
on that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the redemption or purchase price of, and accrued interest
on all Notes to be redeemed or purchased.

 

If
the Company complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest will
cease to accrue on the Notes or the portions of Notes called for redemption or purchase. If a Note is redeemed or purchased on
or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall
be paid to the Person in whose name such Note was registered at the close of business on such record date. If any Note called
for redemption or purchase is not so paid upon surrender for redemption or purchase because of the failure of the Company to comply
with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or purchase date until such
principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided
in the Notes and in Section 4.01 hereof.

 

Section
3.06         Notes Redeemed or Purchased in Part.

 

Upon
surrender of a Note that is redeemed or purchased in part, the Company will issue and, upon receipt of an Authentication Order,
the Trustee will authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed
or unpurchased portion of the Note surrendered.

 

Section
3.07         Optional Redemption.

 

(a)          At
any time prior to September 1, 2016, the Company may on any one or more occasions redeem up to 35% of the aggregate principal
amount of Notes issued under this Indenture, upon notice as provided in Section 3.03 hereof, at a redemption price equal to 111.000%
of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to the date of redemption (subject to
the rights of Holders of Notes on the relevant record date to receive interest on the relevant interest payment date), with an
amount of cash not greater than the net cash proceeds of an Equity Offering by the Company; provided that:

 

(1)         at
least 65% of the aggregate principal amount of Notes originally issued under this Indenture (excluding Notes held by the Company
and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and

 

(2)         the
redemption occurs within 90 days of the date of the closing of such Equity Offering.

 

    	51

    	 

    

 

At
any time prior to September 1, 2016, the Company may on any one or more occasions redeem all or a part of the Notes, upon notice
as provided in Section 3.03 hereof, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the
Applicable Premium as of, and accrued and unpaid interest, if any, to the applicable date of redemption, subject to the rights
of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date.

 

(b)          On
or after September 1, 2016, the Company may, on any one or more occasions, redeem all or a part of the Notes, upon notice as provided
in Section 3.03 hereof, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued
and unpaid interest, if any, on the Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month
period beginning on September 1 of the years indicated below, subject to the rights of Holders of Notes on the relevant record
date to receive interest on the relevant interest payment date:

 

	Year	 	Percentage	 
	2016	 	 	108.250	%
	2017	 	 	105.500	%
	2018 and thereafter	 	 	100.000	%

 

Unless
the Company defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called
for redemption on the applicable redemption date.

 

(c)          Except
pursuant to the preceding paragraphs and Section 4.15(e) hereof, the Notes will not be redeemable at the Company’s option
prior to September 1, 2016.

 

(d)          Any
redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

 

Section
3.08         Mandatory Redemption.

 

The
Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes. The Company and its Affiliates
may at any time and from time to time purchase Notes in the open market, by tender offer, negotiated transactions or otherwise.

 

Section
3.09         Offer to Purchase by Application of
Excess Proceeds.

 

In
the event that, pursuant to Section 4.10 hereof, the Company is required to commence an offer to all Holders to purchase Notes
(an “Asset Sale Offer”), it will follow the procedures specified below.

 

The
Asset Sale Offer shall be made to all Holders and all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers to purchase, prepay or redeem with the proceeds
of sales of assets. The Asset Sale Offer will remain open for a period of at least 20 Business Days following its commencement
and not more than 30 Business Days, except to the extent that a longer period is required by applicable law (the “Offer
Period”). No later than three Business Days after the termination of the Offer Period (the “Purchase Date”),
the Company will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari
passu Indebtedness (on a pro rata basis based on the principal amount of Notes and such other pari passu Indebtedness
surrendered, if applicable) or, if less than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the same manner as interest payments are
made.

 

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If
the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid
interest, if any, will be paid to the Person in whose name a Note is registered at the close of business on such record date,
and no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale Offer.

 

Upon
the commencement of an Asset Sale Offer, the Company will send, by first class mail, a notice to the Trustee and each of the Holders,
with a copy to the Trustee. The notice will contain all instructions and materials necessary to enable such Holders to tender
Notes pursuant to the Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will state:

 

(1)         that
the Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale
Offer will remain open;

 

(2)         the
Offer Amount, the purchase price and the Purchase Date;

 

(3)         that
any Note not tendered or accepted for payment will continue to accrue interest;

 

(4)         that,
unless the Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer will cease
to accrue interest after the Purchase Date;

 

(5)         that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in denominations of
$2,000 or an integral multiple of $1,000 in excess thereof;

 

(6)         that
Holders electing to have Notes purchased pursuant to any Asset Sale Offer will be required to surrender the Note, with the form
entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer,
to the Company, a Depositary, if appointed by the Company, or a Paying Agent at the address specified in the notice at least three
days before the Purchase Date;

 

(7)         that
Holders will be entitled to withdraw their election if the Company, the Depositary or the Paying Agent, as the case may be, receives,
not later than the expiration of the Offer Period, a telegram, electronic or facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing
his election to have such Note purchased;

 

(8)         that,
if the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by holders thereof exceeds the
Offer Amount, the Company will select the Notes and other pari passu Indebtedness to be purchased on a pro rata
basis based on the principal amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments
as may be deemed appropriate by the Company so that only Notes in denominations of $2,000, or an integral multiple of $1,000 in
excess thereof, will be purchased); and

 

(9)         that
Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered (or transferred by book-entry transfer).

 

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On
or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on a pro rata basis to the extent
necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer
Amount has been tendered, all Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the Company
in accordance with the terms of this Section 3.09. The Company, the Depositary or the Paying Agent, as the case may be, will promptly
(but in any case not later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to
the purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company will promptly
issue a new Note, and the Trustee, upon written request from the Company, will authenticate and mail or deliver (or cause to be
transferred by book entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered.
Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company will publicly
announce the results of the Asset Sale Offer on the Purchase Date except to the extent the Company reasonably believes such announcement
would conflict with applicable securities laws.

 

Other
than as specifically provided in this Section 3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the provisions
of Sections 3.01 through 3.06 hereof.

 

ARTICLE
4

COVENANTS

 

Section
4.01         Payment of Notes.

 

The
Company will pay or cause to be paid the principal of, premium, if any, on, and interest on the Notes on the dates and in the
manner provided in the Notes. Principal, premium, if any, and interest will be considered paid on the date due if the Paying Agent,
if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the
Company in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then
due. The Company will pay all Special Interest, if any, in the same manner on the dates and in the amounts set forth in the Registration
Rights Agreement.

 

The
Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at
a rate that is 1% higher than the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest, if any (without regard
to any applicable grace period), at the same rate to the extent lawful.

 

Section
4.02         Maintenance of Office or Agency.

 

The
Company will maintain in the Borough of Manhattan, the City of New York, an office or agency (which may be an office of the Trustee
or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for
exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company
will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at
any time the Company fails to maintain any such required office or agency or fails to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.

 

The
Company may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered
for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation
or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan,
the City of New York for such purposes. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

 

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The
Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance
with Section 2.03 hereof.

 

Section
4.03         Reports.

 

(a)          Whether
or not required by the rules and regulations of the SEC, so long as any Notes are outstanding, the Company will furnish to the
Holders of Notes or cause the Trustee to furnish to the Holders of Notes (or file with the SEC for public availability), within
the time periods specified in the SEC’s rules and regulations:

 

(1)         all
quarterly and annual reports that would be required to be filed with the SEC on Forms 10-Q and 10-K if the Company were required
to file such reports, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
and, with respect to the annual information only, a report thereon by the Company’s certified independent accountants; and

 

(2)         all
current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports.

 

All
such reports will be prepared in all material respects in accordance with all of the rules and regulations applicable to such
reports. In addition, the Company will file a copy of each of the reports referred to in clauses (1) and (2) above with the SEC
for public availability within the time periods specified in the rules and regulations applicable to such reports (unless the
SEC will not accept such a filing) and will post the reports on its website within those time periods. The Company will at all
times comply with TIA §314(a).

 

If,
at any time, the Company is no longer subject to the periodic reporting requirements of the Exchange Act for any reason, the Company
will nevertheless continue filing the reports specified in the preceding paragraphs of this covenant with the SEC within the time
periods specified above unless the SEC will not accept such a filing. The Company will not take any action for the purpose of
causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s
filings for any reason, the Company will post the reports referred to in the preceding paragraphs on its website within the time
periods that would apply if the Company were required to file those reports with the SEC.

 

(b)          If
the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual financial information
required by Section 4.03(a) hereof will include a reasonably detailed presentation, either on the face of the financial statements
or in the footnotes thereto, and in Management’s Discussion and Analysis of Financial Condition and Results of Operations,
of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the Company.

 

(c)          The
Company and the Guarantors agree that, for so long as any Notes remain outstanding, if at any time they are not required to file
with the SEC the reports required by Sections 4.03(a) and 4.03(b) hereof, the Company and the Guarantors will furnish to the Holders
of Notes and to securities analysts and prospective investors, upon their request, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act.

 

    	55

    	 

    

 

Section
4.04         Compliance Certificate.

 

(a)          The
Company and each Guarantor (to the extent that such Guarantor is so required under the TIA) shall deliver to the Trustee, within
120 days after the end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Company
and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view
to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture and the Security
Documents, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge the
Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and the Security Documents
and is not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture or the
Security Documents (or, if a Default or Event of Default has occurred, describing all such Defaults or Events of Default of which
he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best
of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal
of, premium, if any, on, or interest on the Notes is prohibited or if such event has occurred, a description of the event and
what action the Company is taking or proposes to take with respect thereto.

 

(b)          So
long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end
financial statements delivered pursuant to Section 4.03 above shall be accompanied by a written statement of the Company’s
independent public accountants (who shall be a firm of established national reputation) that in making the examination necessary
for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Company
has violated any provisions of Article 4 or Article 5 hereof or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person
for any failure to obtain knowledge of any such violation.

 

(c)          So
long as any of the Notes are outstanding, the Company will deliver to the Trustee, forthwith upon any Officer becoming aware of
any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

 

Section
4.05         Taxes.

 

The
Company will pay, and will cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental
levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is
not adverse in any material respect to the Holders of the Notes.

 

Section
4.06         Stay, Extension and Usury Laws.

 

The
Company and each of the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company and
each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

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Section
4.07         Restricted Payments.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(1)         declare
or pay any dividend or make any other payment or distribution on account of the Company’s or any of its Restricted Subsidiaries’
Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’
Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified
Stock) of the Company and other than dividends or distributions payable to the Company or a Restricted Subsidiary of the Company);

 

(2)         repurchase,
redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation
involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company;

 

(3)         make
any payment on or with respect to, or repurchase, redeem, defease or otherwise acquire or retire for value any Indebtedness of
the Company or any Guarantor that is contractually subordinated to the Notes or to any Note Guarantee (excluding any intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries), except a payment of interest or principal at
the Stated Maturity thereof; or

 

(4)         make
any Restricted Investment (all such payments and other actions set forth in these clauses (1) through (4) being collectively referred
to as “Restricted Payments”),

 

unless,
at the time of and after giving effect to such Restricted Payment:

 

(I)         no
Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;

 

(II)        the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment
had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof; and

 

(III)       such
Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries since the date of this Indenture (excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6), (7),
(8) and (9) of Section 4.07(b) hereof), is less than the sum, without duplication, of:

 

(A)         50%
of the Consolidated Net Income of the Company for the period (taken as one accounting period) from the beginning of the first
fiscal quarter commencing after the date of this Indenture to the end of the Company’s most recently ended fiscal quarter
for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income
for such period is a deficit, less 100% of such deficit); plus

 

    	57

    	 

    

 

(B)         100%
of the aggregate net cash proceeds and the Fair Market Value of property or securities other than cash (including Capital Stock
of Persons, other than the Company or a Subsidiary of the Company, engaged primarily in the Oil and Gas Business or assets used
in the Oil and Gas Business), in each case received by the Company since the date of this Indenture as a contribution to its common
equity capital or from the issue or sale of Equity Interests of the Company (other than (i) Disqualified Stock and (ii) net
cash proceeds received from an issuance or sale of such Equity Interests to a Subsidiary of the Company or an employee stock ownership
plan, option plan or similar trust to the extent such sale to an employee stock ownership plan, option plan or similar trust is
financed by loans from or Guaranteed by the Company or any Restricted Subsidiary (unless such loans have been repaid with cash
on or prior to the date of determination)); plus

 

(C)         to
the extent not already included in Consolidated Net Income for such period, if any Restricted Investment that was made by the
Company or any of its Restricted Subsidiaries after the date of this Indenture is sold for cash (other than to the Company or
any Subsidiary of the Company) or otherwise cancelled, liquidated or repaid for cash, the cash return of capital with respect
to such Restricted Investment resulting from such sale, liquidation or repayment (less any out-of-pocket costs incurred in connection
with any such sale); plus

 

(D)         the
amount by which Indebtedness of the Company or its Restricted Subsidiaries is reduced on the Company’s balance sheet upon
the conversion or exchange (other than by a Subsidiary of the Company) subsequent to the date of this Indenture of any such Indebtedness
of the Company or its Restricted Subsidiaries convertible or exchangeable for Equity Interests (other than Disqualified Stock)
of the Company (less the amount of any cash, or the Fair Market Value of any other property (other than such Equity Interests),
distributed by the Company upon such conversion or exchange and excluding the net cash proceeds from the conversion or exchange
financed, directly or indirectly, using funds borrowed from the Company or any Subsidiary), together with the net proceeds, if
any, received by the Company or any of its Restricted Subsidiaries upon such conversion or exchange; plus

 

(E)         to
the extent that any Unrestricted Subsidiary of the Company designated as such after the date of this Indenture is redesignated
as a Restricted Subsidiary pursuant to the terms of this Indenture or is merged or consolidated with or into, or transfers or
otherwise disposes of all of substantially all of its properties or assets to or is liquidated into, the Company or a Restricted
Subsidiary after the date of this Indenture, the lesser of, as of the date of such redesignation, merger, consolidation, transfer,
disposition or liquidation, (A) the Fair Market Value of the Company’s Restricted Investment in such Subsidiary (or of the
properties or assets disposed of, as applicable) as of the date of such redesignation, merger, consolidation, transfer, disposition
or liquidation and (B) such Fair Market Value as of the date on which such Subsidiary was originally designated as an Unrestricted
Subsidiary after the date of this Indenture; plus 

 

(F)         
50% of any dividends or distributions received in cash by the Company or a Restricted Subsidiary of the Company that is a Guarantor
after the date of this Indenture from an Unrestricted Subsidiary of the Company, to the extent that such dividends or distributions
were not otherwise included in the Consolidated Net Income of the Company for such period.

 

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(b)          So
long as no Default or Event of Default has occurred and is continuing or would be caused thereby, the provisions of Section 4.07(a)
hereof will not prohibit:

 

(1)         the
payment of any dividend or distribution or the consummation of any irrevocable redemption within 60 days after the date of declaration
of the dividend or distribution or giving of the redemption notice, as the case may be, if at the date of declaration or notice,
the dividend, distribution or redemption payment would have complied with the provisions of this Indenture;

 

(2)         the
making of any Restricted Payment in exchange for, or out of or with the net cash proceeds of the substantially concurrent sale
(other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock) or from the substantially
concurrent contribution of common equity capital to the Company; provided that the amount of any such net cash proceeds
that are utilized for any such Restricted Payment will not be considered to be net proceeds of Equity Interests for purposes of
Section 4.07(a)(III)(B) and will not be considered to be net cash proceeds from an Equity Offering for purposes of Section 3.07
of this Indenture;

 

(3)         the
payment of any dividend or distribution by a Restricted Subsidiary of the Company to the holders of its Equity Interests on a
pro rata basis;

 

(4)         the
repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness of the Company or any Guarantor
that is contractually subordinated to the Notes or to any Note Guarantee with the net cash proceeds from a substantially concurrent
incurrence of Permitted Refinancing Indebtedness;

 

(5)         repurchases
of Indebtedness of the Company or any Guarantor that is contractually subordinated in right of payment to the Notes or a Note
Guarantee at a purchase price not greater than (i) 101% of the principal amount of such subordinated Indebtedness in the
event of a Change of Control or (ii) 100% of the principal amount of such subordinated Indebtedness in the event of an Asset
Sale, in each case plus accrued and unpaid interest thereon, to the extent required by the terms of such Indebtedness, but only
if:

 

(a)          in
the case of a Change of Control, the Company has first complied with and fully satisfied its obligations in accordance with Section
4.15 hereof; or

 

(b)          in
the case of an Asset Sale, the Company has complied with and fully satisfied its obligations under Section 4.10 hereof;

 

(6)         the
repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company or any Restricted Subsidiary
of the Company held by any current or former officer, director or employee of the Company or any of its Restricted Subsidiaries
pursuant to any equity subscription agreement, stock option agreement, shareholders’ agreement or similar agreement; provided
that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed $4.0
million in any twelve-month period;

 

(7)         the
repurchase of Equity Interests deemed to occur upon the exercise of stock or other equity options to the extent such Equity Interests
represent a portion of the exercise price of those stock or other equity options, and any repurchase or other acquisition of Equity
Interests made in lieu of withholding taxes in connection with any exercise or exchange of stock options, warrants, incentives
or other rights to acquire Equity Interests;

 

    	59

    	 

    

 

(8)         the
declaration and payment of regularly scheduled or accrued dividends or distributions to holders of any class or series of Disqualified
Stock of the Company or any Preferred Stock of any Restricted Subsidiary of the Company issued on or after the date of this Indenture
in accordance with Section 4.09 hereof;

 

(9)         payments
of cash, dividends, distributions, advances or other Restricted Payments by the Company or any of its Restricted Subsidiaries
to allow the payment of cash in lieu of the issuance of fractional shares upon (i) the exercise of options or warrants or (ii)
the conversion or exchange of Capital Stock of any such Person; and

 

(10)        other
Restricted Payments in an aggregate amount not to exceed $20.0 million since the date of this Indenture.

 

(c)          The
amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment (or, in
the case of a dividend or distribution, on the date of declaration) of the asset(s) or securities proposed to be transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair Market Value
of any assets or securities that are required to be valued by this Section 4.07 will be determined, in the case of amounts under
$10.0 million, by an Officer of the Company and, in the case of amounts of $10.0 million or more, by the Board of Directors of
the Company whose resolution with respect thereto will be delivered to the Trustee.

 

Section
4.08         Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist
or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

 

(1)         pay
dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries or with respect
to any other interest or participation in, or measured by, its profits, or pay any indebtedness owed to the Company or any of
its Restricted Subsidiaries; provided that the priority that any series of Preferred Stock of a Restricted Subsidiary has
in receiving dividends, distributions or liquidating distributions before dividends, distributions or liquidating distributions
are paid in respect of common stock of such Restricted Subsidiary shall not constitute a restriction on the ability to pay dividends
or make distributions on Capital Stock for purposes of this covenant;

 

(2)         make
loans or advances to the Company or any of its Restricted Subsidiaries (it being understood that the subordination of loans or
advances made to the Company or any of its Restricted Subsidiaries to other Indebtedness incurred by the Company or any of its
Restricted Subsidiaries shall not be deemed a restriction on the ability to make loans or advances); or

 

(3)         sell,
lease or transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries.

 

(b)          The
restrictions in Section 4.08(a) hereof will not apply to encumbrances or restrictions existing under or by reason of:

 

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(1)         agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date of this Indenture and any amendments, restatements,
modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the encumbrances
or restrictions contained in the amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings
are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those
contained in those agreements on the date of this Indenture;

 

(2)         this
Indenture, the Notes, the Note Guarantees and the Security Documents;

 

(3)         agreements
governing other Indebtedness permitted to be incurred under Section 4.09 hereof and any amendments, restatements, modifications,
renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the encumbrances or
restrictions contained therein are not, in the reasonable good faith judgment of the Chief Executive Officer and the Chief Financial
Officer of the Company, materially more restrictive, taken as a whole, than those contained in this Indenture, the Notes and the
Note Guarantees or the Security Documents;

 

(4)         applicable
law, rule, regulation or order;

 

(5)         any
instrument governing Indebtedness or Capital Stock of a Person acquired by the Company or any of its Restricted Subsidiaries as
in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection
with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of the Person, so acquired, and any amendments, restatements,
modifications, renewals, extensions, supplements, increases, refundings, replacements or refinancings thereof; provided,
that the encumbrances and restrictions in any such amendments, restatements, modifications, renewals, extensions, supplements,
increases, refundings, replacements or refinancings are, in the reasonable good faith judgment of the Chief Executive Officer
and Chief Financial Officer of the Company, no more restrictive, taken as a whole, than those in effect on the date of the acquisition;
provided further, that, in the case of Indebtedness, such Indebtedness was permitted to be incurred by the terms of this
Indenture;

 

(6)         customary
non-assignment provisions in Hydrocarbon purchase and sale or exchange agreements or similar operational agreements or in licenses,
easements or leases, in each case, entered into in the ordinary course of business;

 

(7)         purchase
money obligations for property acquired in the ordinary course of business and Capital Lease Obligations that impose restrictions
on the property purchased or leased of the nature described in Section 4.08(a)(3) hereof;

 

(8)         any
agreement for the sale or other disposition of a Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending its sale or other disposition;

 

(9)         Permitted
Refinancing Indebtedness; provided that the restrictions contained in the agreements governing such Permitted Refinancing
Indebtedness are, in the reasonable good faith judgment of the Chief Executive Officer and Chief Financial Officer of the Company,
not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced;

 

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(10)        Liens
permitted to be incurred under the provisions of Section 4.12 hereof that limit the right of the debtor to dispose of the assets
subject to such Liens;

 

(11)        provisions
limiting the disposition or distribution of assets or property in joint venture agreements, operating agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements (including, without limitation, agreements entered
into in connection with a Restricted Investment) entered into with the approval of the Company’s Board of Directors, which
limitation is applicable only to the assets that are the subject of such agreements;

 

(12)        encumbrances
or restrictions on cash or other deposits or net worth imposed by customers or lessors under contracts or leases entered into
in the ordinary course of business; and

 

(13)        customary
encumbrances and restrictions contained in agreements of the types described in clauses (13) and (14) of the definition of “Permitted
Investments.”

 

Section
4.09         Incurrence of Indebtedness and Issuance
of Preferred Stock.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume,
Guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt), and the Company will not issue any Disqualified Stock and will not permit any of its
Restricted Subsidiaries to issue any Preferred Stock; provided, however, that the Company may incur Indebtedness
(including Acquired Debt) or issue Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or
issue Preferred Stock, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or such Preferred Stock is issued, as the case may be, would have been at least 2.25 to 1.0,
determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness
had been incurred or the Disqualified Stock or the Preferred Stock had been issued, as the case may be, at the beginning of such
four-quarter period.

 

(b)          Section
4.09(a) hereof will not prohibit the incurrence of any of the following items of Indebtedness or issuances of Disqualified Stock
or Preferred Stock, as applicable (collectively, “Permitted Debt”):

 

(1)         the
incurrence by the Company and any Guarantor of additional Indebtedness and letters of credit under Credit Facilities in an aggregate
principal amount at any one time outstanding under this clause (1) (with letters of credit being deemed to have a principal
amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries thereunder) not to exceed the greater
of (a) $60.0 million and (b) 20.0% of the Company’s Adjusted Consolidated Net Tangible Assets determined
on the date of such incurrence;

 

(2)         the
incurrence by the Company and its Restricted Subsidiaries of the Existing Indebtedness;

 

(3)         the
incurrence by the Company and the Guarantors of Indebtedness represented by the Notes to be issued on the date of this Indenture
and the related Note Guarantees, their respective Obligations arising under the Security Documents to the extent such obligations
constitute Indebtedness, and the Exchange Notes and the related Note Guarantees to be issued pursuant to the Registration Rights
Agreement;

 

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(4)         the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase
price or cost of design, construction, installation or improvement of property, plant or equipment used in the business of the
Company or any of its Restricted Subsidiaries, in an aggregate principal amount outstanding, including all Permitted Refinancing
Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause
(4), not to exceed at any time outstanding $15.0 million;

 

(5)         the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the
net proceeds of which are used to renew, refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany
Indebtedness) of the Company or any of its Restricted Subsidiaries or any Disqualified Stock of the Company, in each case that
was to be incurred under Section 4.09(a) hereof or clauses (2), (3), (4), (5), (14) or (15) of this Section 4.09(b);

 

(6)         the
incurrence by the Company or any Guarantor of intercompany Indebtedness between or among the Company and any Guarantor; provided,
however, that:

 

(A)         such
Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash of all Obligations then due with
respect to the Notes, in the case of the Company, or the Note Guarantee, in the case of a Guarantor; and

 

(B)         
(i) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other
than the Company or a Guarantor of the Company and (ii) any sale or other transfer of any such Indebtedness to a Person that is
not either the Company or a Guarantor,

 

will
be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or such Guarantor, as the case may be,
that was not permitted by this clause (6);

 

(7)         the
issuance by any of the Company’s Restricted Subsidiaries to the Company or to any of its Restricted Subsidiaries of any
Preferred Stock; provided, however, that:

 

(A)         any
subsequent issuance or transfer of Equity Interests that results in any such Preferred Stock being held by a Person other than
the Company or a Restricted Subsidiary of the Company; and

 

(B)         any
sale or other transfer of any such Preferred Stock to a Person that is not either the Company or a Restricted Subsidiary of the
Company,

 

will
be deemed, in each case, to constitute an issuance of such Preferred Stock by such Restricted Subsidiary that was not permitted
by this clause (7);

 

(8)         the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations in the ordinary course of business and
not for speculative purposes;

 

(9)         the
Guarantee by the Company or any of the Guarantors of Indebtedness of the Company or a Restricted Subsidiary of the Company to
the extent that the guaranteed Indebtedness was permitted to be incurred by another provision of this Section 4.09; provided
that if the Indebtedness being guaranteed is subordinated to or pari passu with the Notes, then the Guarantee must
be subordinated or pari passu, as applicable, to the same extent as the Indebtedness guaranteed;

 

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(10)        the
incurrence by the Company or any of the Guarantors of Indebtedness in respect of self-insurance obligations or bid, plugging and
abandonment, appeal, reimbursement, performance, surety and similar bonds and completion guarantees provided by the Company or
a Restricted Subsidiary in the ordinary course of business and any Guarantees or letters of credit functioning as or supporting
any of the foregoing bonds or obligations and workers’ compensation claims in the ordinary course of business;

 

(11)        the
incurrence by the Company or any of the Guarantors of Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered
within five Business Days;

 

(12)        the
incurrence by the Company or any of its Restricted Subsidiaries of in kind obligations relating to net oil or natural gas balancing
positions arising in the ordinary course of business;

 

(13)        any
obligation arising from agreements of the Company or any Restricted Subsidiary of the Company providing for indemnification, adjustment
of purchase price, earn outs, or similar obligations, in each case, incurred or assumed in connection with the disposition or
acquisition of any business, assets or Capital Stock of a Restricted Subsidiary in a transaction permitted by this Indenture;
provided that such obligation is not reflected as a liability on the face of the balance sheet of the Company or any Restricted
Subsidiary;

 

(14)        the
incurrence by the Company and its Restricted Subsidiaries of any Permitted Acquisition Indebtedness; and

 

(15)        the
incurrence by the Company or any of its Restricted Subsidiaries of additional Indebtedness or the issuance by the Company of any
Disqualified Stock in an aggregate principal amount (or accreted value, as applicable) at any time outstanding, including all
Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred
or Disqualified Stock issued pursuant to this clause (15), not to exceed $20.0 million.

 

The
Company will not incur, and will not permit any Guarantor to incur, any Indebtedness (including Permitted Debt) that is contractually
subordinated in right of payment to any other Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes or the applicable Note Guarantee on substantially identical terms; provided,
however, that no Indebtedness will be deemed to be contractually subordinated in right of payment to any other Indebtedness
of the Company or any Guarantor solely by virtue of being unsecured or by virtue of being secured on a junior priority basis.

 

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For
purposes of determining compliance with this Section 4.09, in the event that an item of Indebtedness meets the criteria of more
than one of the categories of Permitted Debt described in clauses (2) through (15) of Section 4.09(b) hereof, or is entitled to
be incurred pursuant to Section 4.09(a) hereof, the Company will be permitted to divide, classify and reclassify such item of
Indebtedness on the date of its incurrence, or later redivide or reclassify all or a portion of such item of Indebtedness, in
any manner that complies with this Section 4.09. Indebtedness under Senior Credit Facilities outstanding on the date on which
Notes are first issued and authenticated under this Indenture will initially be deemed to have been incurred on such date in reliance
on the exception provided by clause (1) of the definition of Permitted Debt. The accrual of interest or Preferred Stock or Disqualified
Stock dividends or distributions, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness
not secured by a Lien in the form of additional Indebtedness with the same terms, the reclassification of Preferred Stock or Disqualified
Stock as Indebtedness due to a change in accounting principles, and the payment of dividends or distributions on Preferred Stock
or Disqualified Stock in the form of additional securities of the same class of Preferred Stock or Disqualified Stock will not
be deemed to be an incurrence of Indebtedness or an issuance of Preferred Stock or Disqualified Stock for purposes of this Section
4.09; provided that the amount thereof is included in Fixed Charges of the Company as accrued to the extent required by
the definition of such term.

 

The
amount of any Indebtedness outstanding as of any date will be:

 

(a)          the
accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount;

 

(b)          the
principal amount of the Indebtedness, in the case of any other Indebtedness; and

 

(c)          in
respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of:

 

(A)         the
Fair Market Value of such assets at the date of determination; and

 

(B)         the
amount of the Indebtedness of the other Person.

 

Section
4.10         Asset Sales.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

 

(1)         the
Company (or a Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal to
the Fair Market Value (measured as of the date of the definitive agreement with respect to such Asset Sale) of the assets or Equity
Interests issued or sold or otherwise disposed of; and

 

(2)         at
least 75% of the aggregate consideration received in such Asset Sale by the Company or a Restricted Subsidiary is in the form
of cash or Cash Equivalents. For purposes of this provision, each of the following will be deemed to be cash:

 

(A)         any
liabilities, as shown on the Company’s most recent consolidated balance sheet, of the Company or any Restricted Subsidiary
(other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any Note Guarantee) that
are assumed by the transferee of any such assets pursuant to a customary novation or indemnity agreement that releases the Company
or such Restricted Subsidiary from or indemnifies the Company or such Restricted Subsidiary against further liability;

 

(B)         with
respect to any Asset Sale of Oil and Gas Properties by the Company or any Restricted Subsidiary where the Company or such Restricted
Subsidiary retains an interest in such Oil and Gas Properties, any agreement by the transferee (or an Affiliate thereof) to pay
all or a portion of the costs and expenses of the Company or such Restricted Subsidiary related to the exploration, development,
completion or production of such Oil and Gas Properties and activities related thereto;

 

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(C)         any
securities, notes or other obligations received by the Company or any Restricted Subsidiary from such transferee that are, within
30 days of the Asset Sale, converted by the Company or such Restricted Subsidiary into cash, to the extent of the cash received
in that conversion; and

 

(D)         any
Capital Stock or assets of the kind referred to in clause (2) or (4) Section 4.10(b) hereof.

 

(b)          Within
360 days after the receipt of any Net Proceeds from an Asset Sale, the Company (or any Restricted Subsidiary) may apply such Net
Proceeds at its option to any combination of the following:

 

(1)         to
repay Indebtedness and other Obligations under a Senior Credit Facility that are secured by a Lien or which are secured by a Permitted
Prior Lien;

 

(2)         to
acquire all or substantially all of the assets, or any Capital Stock, of, one or more other Persons primarily engaged in the Oil
and Gas Business, if, after giving effect to any such acquisition of Capital Stock, such Person becomes a Restricted Subsidiary
of the Company;

 

(3)         to
make capital expenditures in respect of the Company’s or any Restricted Subsidiaries’ Oil and Gas Business; or

 

(4)         to
acquire other assets that are not classified as current assets under GAAP and that are used or useful in the Oil and Gas Business.

 

The
requirement of clause (2) or (4) of this Section 4.09(b) shall be deemed to be satisfied if a bona fide binding contract
committing to make the investment, acquisition or expenditure referred to therein is entered into by the Company or any of its
Restricted Subsidiaries with a Person other than an Affiliate of the Company within the time period specified in Section 4.09(b)
and such Net Proceeds are subsequently applied in accordance with such contract within 180 days following the date such agreement
is entered into.

 

Pending
the final application of any Net Proceeds, the Company (or any of its Restricted Subsidiaries) may invest the Net Proceeds in
any manner that is not prohibited by this Indenture.

 

(c)          Any
Net Proceeds from Asset Sales that are not applied or invested as provided in Section 4.10(b) hereof will constitute “Excess
Proceeds.” When the aggregate amount of Excess Proceeds exceeds $20.0 million, within five days thereof, the Company
will make an offer (an “Asset Sale Offer”) to all Holders of Notes and all holders of other Indebtedness that
is pari passu with the Notes containing provisions similar to those set forth in this Indenture with respect to offers
to purchase, prepay or redeem with the proceeds of sales of assets in accordance with Section 3.09 hereof to purchase, prepay
or redeem, on a pro rata basis, the maximum principal amount of Notes and such other pari passu Indebtedness (plus
all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith)
that may be purchased, prepaid or redeemed out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to
100% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase, prepayment or redemption, subject
to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and
will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company or any of its Restricted
Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal
amount of Notes tendered in such Asset Sale Offer exceeds the amount of Excess Proceeds allocated to the purchase of the Notes,
the Trustee will select the Notes to be purchased on a pro rata basis (except that any Notes represented by a Note in global
form will be selected by such method as DTC or its nominee or successor may require or, where such nominee or successor is the
Trustee, a method that most nearly approximates pro rata selection as the Trustee deems fair and appropriate unless otherwise
required by law), based on the amounts tendered (with such adjustments as may be deemed appropriate by the Company so that only
Notes in denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be purchased). Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

 

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(d)          The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale
Offer. To the extent that the provisions of any securities laws or regulations conflict with the provisions of Section 3.09 hereof
or this Section 4.10, the Company will comply with the applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 hereof or this Section 4.10 by virtue of such compliance.

 

Section
4.11         Transactions with Affiliates.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend
any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of
the Company (each, an “Affiliate Transaction”) involving aggregate payments or consideration in excess of $1.0
million, unless:

 

(1)         the
Affiliate Transaction is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person or,
if in the good faith judgment of the Board of Directors of the Company, no comparable transaction is available with which to compare
such Affiliate Transaction, such Affiliate Transaction is otherwise fair to the Company or the relevant Restricted Subsidiary
from a financial point of view; and

 

(2)         the
Company delivers to the Trustee:

 

(A)         with
respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
$10.0 million, an Officers’ Certificate certifying that such Affiliate Transaction or series of related Affiliate Transactions
complies with this Section 4.11;

 

(B)         with
respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
$20.0 million, a resolution of the Board of Directors of the Company set forth in an Officers’ Certificate certifying
that such Affiliate Transaction or series of related Affiliated Transactions complies with this Section 4.11 and that such Affiliate
Transaction or series of related Affiliate Transactions has been approved by a majority of the disinterested members of the Board
of Directors of the Company, if any; and

 

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(C)         with
respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
$30.0 million, an opinion as to the fairness to the Company or such Restricted Subsidiary of such Affiliate Transaction or series
of related Affiliate Transactions from a financial point of view issued by an accounting, appraisal or investment banking firm
of national standing.

 

(b)          The
following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section
4.11(a) hereof:

 

(1)         
any employment or consulting agreement, employee benefit plan, officer or director indemnification, compensation or severance
agreement or any similar arrangement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course
of business and payments pursuant thereto;

 

(2)         transactions
between or among the Company and/or its Restricted Subsidiaries;

 

(3)         payment
of reasonable and customary fees and reimbursements of expenses (pursuant to indemnity arrangements or otherwise) of officers,
directors, employees or consultants of the Company or any of its Restricted Subsidiaries;

 

(4)         any
issuance of Equity Interests (other than Disqualified Stock) of the Company to Affiliates of the Company;

 

(5)         transactions
effected in accordance with the terms of the agreements described in the Offering Memorandum under the caption “Certain
Relationships and Related Transactions,” as such agreements are in effect on the date of this Indenture, and any amendment
or replacement of any of such agreements so long as such amendment or replacement agreement is no less advantageous to the Company
in any material respect than the agreement so amended or replaced;

 

(6)         advances
to or reimbursements of expenses incurred by employees for moving, entertainment and travel expenses and similar expenditures
in the ordinary course of business;

 

(7)         transactions
between the Company or any of its Restricted Subsidiaries and any other Person, a director of which is also on the Board of Directors
of the Company or any direct or indirect parent company of the Company, and such common director is the sole cause for such other
Person to be deemed an Affiliate of the Company or any of its Restricted Subsidiaries; provided, however, that such director
abstains from voting as a member of the Board of Directors of the Company or any direct or indirect parent company of the Company,
as the case may be, on any transaction with such other Person; and

 

(8)         in
the case of contracts for exploring for, producing, marketing, storing or otherwise handling Hydrocarbons, or activities or services
reasonably related or ancillary thereto, or other operational contracts, any such contracts entered into in the ordinary course
of business and otherwise in compliance with the terms of this Indenture (a) which are fair to the Company and its Restricted
Subsidiaries, in the reasonable determination of the Board of Directors of the Company or the senior management thereof, or are
on terms at least as favorable as might reasonably have been obtained at such time from an unaffiliated party and (b) with
respect to which the Company has complied with Section 4.11(a)(2)(A), Section 4.11(a)(2)(B) and Section 4.11(a)(2)(C) hereof.

 

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Section
4.12         Liens.

 

The
Company will not and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or suffer
to exist any Lien of any kind other than Permitted Liens.

 

Section
4.13         Business Activities.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to, engage in any business other than the Oil and Gas
Business, except to such extent as would not be material to the Company and its Restricted Subsidiaries taken as a whole.

 

Section
4.14         Corporate Existence.

 

Subject
to Article 5 hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect:

 

(1)         its
corporate existence, and the corporate, partnership or other existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the Company or any such Subsidiary; and

 

(2)         the
rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;

 

provided,
however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership
or other existence of any of its Subsidiaries, if the Board of Directors of the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that
the loss thereof is not adverse in any material respect to the Holders of the Notes.

 

Section
4.15         Offer to Repurchase Upon Change of
Control.

 

(a)          Upon
the occurrence of a Change of Control, the Company will make an offer (a “Change of Control Offer”) to each
Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s
Notes pursuant to a Change of Control Offer on the terms set forth in this Indenture (including, but not limited to, this Section
4.15 and Article 3 hereof). In the Change of Control Offer, the Company will offer to make a cash payment (a “Change
of Control Payment”) equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest,
if any, on the Notes repurchased to the date of purchase (the “Change of Control Purchase Date”), subject to
the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant interest payment date.
Within ten days following any Change of Control, the Company will mail a notice to each Holder describing the transaction or transactions
that constitute the Change of Control and stating:

 

(1)         that
the Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment;

 

(2)         the
purchase price and the purchase date, which shall be no earlier than 30 days and no later than 60 days from the date such notice
is mailed (the “Change of Control Payment Date”);

 

(3)         that
any Note not tendered will continue to accrue interest;

 

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(4)         that,
unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change
of Control Offer will cease to accrue interest after the Change of Control Payment Date;

 

(5)         that
Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the Notes, with
the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date;

 

(6)         that
Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the
second Business Day preceding the Change of Control Payment Date, a telegram, electronic or facsimile transmission or letter setting
forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing
his election to have the Notes purchased; and

 

(7)         that
Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000
in excess thereof.

 

The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change
in Control. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section
4.15, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance.

 

(b)          Promptly
following the expiration of the Change of Control Offer, the Company will, to the extent lawful, accept for payment all Notes
or portions of Notes properly tendered pursuant to the Change of Control Offer. Promptly after such acceptance, the Company will,
on the Change of Control Purchase Date:

 

(1)         deposit
with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered;
and

 

(2)         deliver
or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.

 

The
Paying Agent will promptly mail (but in any case not later than five days after the Change of Control Payment Date) to each Holder
of Notes properly tendered the Change of Control Payment for such Notes (or, if all the Notes are then in global form, make such
payment through the facilities of DTC), and the Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any. The Company
will announce to the Holders of Notes the results of the Change of Control Offer on or as soon as practicable after the Change
of Control Purchase Date.

 

(c)          Notwithstanding
anything to the contrary in this Section 4.15, the Company will not be required to make a Change of Control Offer upon a Change
of Control if (1) a third party makes the Change of Control Offer in the manner, at the time and otherwise in compliance with
the requirements set forth in this Section 4.15 and purchases all Notes properly tendered and not withdrawn under the Change of
Control Offer or (2) notice of redemption of all outstanding Notes has been given pursuant to Section 3.07 hereof, unless and
until there is a default in payment of the applicable redemption price.

 

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(d)          Notwithstanding
anything to the contrary contained herein, a Change of Control Offer may be made in advance of a Change of Control, conditioned
upon the consummation of such Change of Control, if a definitive agreement is in place for the Change of Control at the time the
Change of Control Offer is made. In such a case, the related notice shall describe such condition, and if applicable, shall state
that, in the Company’s discretion, the purchase date may be delayed until such time as such condition shall be satisfied
(provided that in no event shall such purchase date be delayed to a date later than 60 days after the date on which such notice
was mailed), or such purchase may not occur and such notice may be rescinded in the event that such condition shall not have been
satisfied by the purchase date, or by the purchase date as so delayed.

 

(e)          In
the event that Holders of not less than 90% in aggregate principal amount of the outstanding Notes accept a Change of Control
Offer and the Company (or any third party making such Change of Control Offer in lieu of the Company as described above) purchases
all of the Notes held by such Holders, the Company will have the right, upon not less than 30 nor more than 60 days prior
notice, given not more than 30 days following the purchase pursuant to the Change of Control Offer described above, to redeem
all of the Notes that remain outstanding following such purchase at a redemption price equal to the Change of Control Payment
plus, to the extent not included in the Change of Control Payment, accrued and unpaid interest, if any, on the Notes that
remain outstanding, to the date of redemption (subject to the rights of Holders of record on the relevant record date to receive
interest due on an interest payment date that is on or prior to the redemption date).

 

Section
4.16         Limitation on Sale and Leaseback Transactions

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to, enter into any Sale and Leaseback Transaction; provided
that the Company or any Guarantor may enter into a Sale and Leaseback Transaction if:

 

(1)         the
Company or that Guarantor, as applicable, could have (a) incurred Indebtedness in an amount equal to the Attributable Debt relating
to such Sale and Leaseback Transaction under the Fixed Charge Coverage Ratio test in Section 4.09(a) hereof and (b) incurred a
Lien to secure such Indebtedness pursuant to Section 4.12 hereof;

 

(2)         the
gross proceeds of that Sale and Leaseback Transaction are at least equal to the Fair Market Value of the real property or equipment
that is the subject of that Sale and Leaseback Transaction; and

 

(3)         the
sale of assets in that Sale and Leaseback Transaction is permitted by, and the application of the Net Proceeds of such transaction
by the lessee does not violate, Section 4.10 hereof.

 

Section
4.17         Payments for Consent.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any
of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid and is paid to all Holders
of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.

 

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Section
4.18         Additional Note Guarantees.

 

If
the Company or any of its Restricted Subsidiaries acquires or creates another Domestic Subsidiary after the date of this Indenture
or any other Subsidiary of the Company that is not already a Guarantor becomes obligated with respect to any Indebtedness in excess
of $1.0 million, then, in either case, that Subsidiary will, within 30 days after the date that Subsidiary was acquired or
created or on which it became obligated with respect to such Indebtedness, (i) become a Guarantor by executing a supplemental
indenture in substantially the form attached as Exhibit E hereto, (ii) deliver an Opinion of Counsel to the Trustee reasonably
acceptable to the Trustee and (iii) execute and deliver a joinder to each of the necessary Security Documents in form and
substance reasonably acceptable to the Collateral Agent.

 

Section
4.19         Designation of Restricted and Unrestricted
Subsidiaries.

 

The
Board of Directors of the Company may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation
would not cause a Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value
of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted
will be deemed to be either an Investment made as of the time of the designation that will reduce the amount available for Restricted
Payments under Section 4.07 hereof or represent a Permitted Investment under one or more clauses of the definition of Permitted
Investments, as determined by the Company. That designation will only be permitted if the Investment would be permitted at that
time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.

 

Any
designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee
a certified copy of a resolution of the Board of Directors of the Company giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the preceding conditions and was permitted by Section 4.07 hereof.
If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will
thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary will
be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted
to be incurred as of such date under Section 4.09 hereof, the Company will be in default of such covenant.

 

The
Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary of the Company;
provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company
of any outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be permitted if (1) such Indebtedness
is permitted under Section 4.09 hereof, calculated on a pro forma basis as if such designation had occurred at the beginning of
the applicable reference period; and (2) no Default or Event of Default would be in existence following such designation.

 

Section
4.20         Further Assurances.

 

The
Company and each of the other Pledgors will do or cause to be done all acts and things that may be required, or that the Collateral
Agent from time to time may reasonably request, to assure and confirm that the Collateral Agent holds (or, as provided in the
Intercreditor Agreement, the Priority Lien Collateral Agent holds), for the benefit of the Holders of Notes, duly created and
enforceable and perfected Note Liens upon the Collateral (including any property or assets that are acquired or otherwise become
Collateral after the Notes are issued), in each case, as contemplated by, and with the Lien priority required under, the Note
Documents.

 

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Upon
the reasonable request of the Collateral Agent or the Trustee at any time and from time to time, the Company and each of the other
Pledgors will promptly execute, acknowledge and deliver such Security Documents, instruments, certificates, notices and other
documents, and take such other actions as shall be reasonably required, or that the Collateral Agent may reasonably request, to
create, perfect, protect, assure or enforce the Liens and benefits intended to be conferred, in each case as contemplated by the
Note Documents for the benefit of the Holders of Notes.

 

If
at any time of certification by the Company with respect to the Recognized Value of Oil and Gas Properties subject to a Mortgage
as described in the definition of the term “Collateral” in this Indenture, such Oil and Gas Properties represent less
than 80% of the Recognized Value of the Company’s and the Guarantors’ Proved Reserves located in the United States
and adjacent Federal waters, the Company will promptly, and in any event within 90 days after the date of such certification,
cause to be delivered to the Collateral Agent (in form and substance reasonably satisfactory to the Collateral Agent) such Mortgages
or amendments or supplements to prior Mortgages as may be necessary to increase such percentage to at least 80% of such Recognized
Value.

 

If
the Company or any other Pledgor creates any additional Lien upon any Oil and Gas Properties to secure a Senior Credit Facility,
the Company or such other Pledgor will grant a Note Lien upon such property, subject to Permitted Prior Liens, and the relevant
Priority Lien, as security for the Note Obligations substantially concurrently with granting any such additional Lien.

 

ARTICLE
5

SUCCESSORS

 

Section
5.01         Merger, Consolidation or Sale of Assets.

 

The
Company will not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company is
the survivor); or (2) sell, assign, transfer, convey, lease or otherwise dispose of all or substantially all of its properties
or assets, in one or more related transactions, to another Person, unless:

 

(1)         either:

 

(A)         the
Company is the surviving Person; or

 

(B)         the
Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, assignment,
transfer, conveyance, lease or other disposition has been made is an entity organized or existing under the laws of the United
States, any state of the United States or the District of Columbia; and, if such entity is not a corporation, a co-obligor of
the Notes is a corporation organized or existing under any such laws;

 

(2)         the
Person formed by or surviving any such consolidation or merger (if other than the Company) or the Person to which such sale, assignment,
transfer, conveyance, lease or other disposition has been made assumes all the obligations of the Company under the Notes, this
Indenture, the Registration Rights Agreement and the Security Documents pursuant to agreements in a form reasonably satisfactory
to the Trustee;

 

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(3)         
immediately after giving effect to such transaction, no Default or Event of Default exists; and

 

(4)         immediately
after giving effect to such transaction and any related financing transaction on a pro forma basis as if the same had occurred
at the beginning of the applicable four-quarter period, either (a) the Company or the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, conveyance, lease or other disposition
has been made, would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 4.09(a) hereof or (b) the Fixed Charge Coverage Ratio of the Company or the Person formed by or
surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, conveyance,
lease or other disposition has been made, is equal to or greater than the Fixed Charge Coverage Ratio of the Company immediately
prior to such transaction.

 

This Section
5.01 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of properties or assets between
or among the Company and its Restricted Subsidiaries. Clauses (3) and (4) of this Section 5.01 will not apply to (1) any merger
or consolidation of the Company with or into one of its Restricted Subsidiaries for any purpose or (2) any merger with or into
an Affiliate solely for the purpose of reincorporating the Company in another jurisdiction.

 

Section
5.02         Successor Corporation Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, transfer, conveyance, lease or other disposition of all or substantially
all of the properties or assets of the Company in a transaction that is subject to, and that complies with the provisions of,
Section 5.01 hereof, the successor Person formed by such consolidation or into or with which the Company is merged or to which
such sale, assignment, transfer, conveyance, lease or other disposition is made shall succeed to, and be substituted for (so that
from and after the date of such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” shall refer instead to the successor Person and not to the
Company), and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; provided, however, that the predecessor Company shall not be relieved from
the obligation to pay the principal of, premium, if any, on, and interest on the Notes except in the case of a sale of all of
the Company’s assets in a transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

Section
6.01         Events of Default.

 

Each
of the following is an “Event of Default”:

 

(1)         default
for 30 days in the payment when due of interest on the Notes;

 

(2)         default
in the payment when due (at Stated Maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes;

 

(3)         failure
by the Company to comply with the provisions of Sections 4.07, 4.09, 4.10, 4.15 or 5.01 hereof;

 

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(4)         failure
by the Company for 180 days after notice from the Trustee or Holders of at least 25% in aggregate principal amount of the Notes
then outstanding to comply with Section 4.03 hereof.

 

(5)         failure
by the Company for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount
of the Notes then outstanding to comply with any of its other agreements in this Indenture (other than a default referred to in
clause (1), (2), (3) or (4) of this Section 6.01);

 

(6)         default
under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Company or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee now exists, or is created after the
date of this Indenture, if that default:

 

(A)         is
caused by a failure to pay principal of, premium, if any, on, or interest on such Indebtedness prior to the expiration of the
grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or

 

(B)         results
in the acceleration of such Indebtedness prior to its Stated Maturity,

 

and,
in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more;
provided, however, that if, prior to any acceleration of the Notes, (i) any such Payment Default is cured or
waived, (ii) any such acceleration is rescinded, or (iii) such Indebtedness is repaid during the 10 Business Day period
commencing upon the end of any applicable grace period for such Payment Default or the occurrence of such acceleration, as the
case may be, any Default or Event of Default (but not any acceleration of the Notes) caused by such Payment Default or acceleration
shall be automatically rescinded, so long as such rescission does not conflict with any judgment, decree or applicable law;

 

(7)         failure
by the Company or any of its Restricted Subsidiaries to pay final judgments entered by a court or courts of competent jurisdiction
aggregating in excess of $25.0 million (to the extent not covered by insurance by a reputable and creditworthy insurer as to which
the insurer has not disclaimed coverage), which judgments are not paid, discharged or stayed, for a period of 60 days;

 

(8)         the
occurrence of any of the following:

 

(a)          except
as permitted by this Indenture, any Security Document ceases for any reason to be fully enforceable; provided, that it
will not be an Event of Default under this clause (8)(a) if the sole result of the failure of one or more Security Documents
to be fully enforceable is that any Note Lien purported to be granted under such Security Documents on Collateral, individually
or in the aggregate, having a Fair Market Value of not more than $10.0 million ceases to be an enforceable and perfected
first-priority Lien, subject only to the Priority Liens and Permitted Prior Liens;

 

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(b)          any
Note Lien purported to be granted under any Security Document on Collateral, individually or in the aggregate, having a Fair Market
Value in excess of $25.0 million ceases to be an enforceable and perfected first-priority Lien, subject only to the Priority
Liens and Permitted Prior Liens; or

 

(c)          the
Company or any other Pledgor, or any Person acting on behalf of any of them, denies or disaffirms, in writing, any obligation
of the Company or any other Pledgor set forth in or arising under any Security Document;

 

(9)         except
as permitted by this Indenture, any Note Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases
for any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms
its obligations under its Note Guarantee;

 

(10)        the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A)         commences
a voluntary case,

 

(B)         consents
to the entry of an order for relief against it in an involuntary case,

 

(C)         consents
to the appointment of a custodian of it or for all or substantially all of its property,

 

(D)         makes
a general assignment for the benefit of its creditors, or

 

(E)         generally
is not paying its debts as they become due; and

 

(11)        a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)         is
for relief against the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary in an involuntary case;

 

(B)         appoints
a custodian of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries
of the Company that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property
of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries
of the Company that, taken together, would constitute a Significant Subsidiary; or

 

(C)         orders
the liquidation of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary;

 

and
the order or decree remains unstayed and in effect for 60 consecutive days.

 

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Section
6.02         Acceleration.

 

In
the case of an Event of Default specified in clause (10) or (11) of Section 6.01 hereof, with respect to the Company,
any Restricted Subsidiary of the Company that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least
25% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately.

 

Upon
any such declaration, the Notes shall become due and payable immediately.

 

The
Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf
of all of the Holders of all the Notes, rescind an acceleration and its consequences hereunder, if the rescission would not conflict
with any judgment or decree and if all existing Events of Default (except nonpayment of principal of, premium, if any, on, or
interest on the Notes that has become due solely because of the acceleration) have been cured or waived.

 

Section
6.03         Other Remedies.

 

If
an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal
of, premium, if any, on, or interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.

 

Section
6.04         Waiver of Past Defaults.

 

The
Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf
of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences hereunder, except a continuing
Default or Event of Default in the payment of principal of, premium, if any, on, or interest on the Notes (including in connection
with an offer to purchase); provided, however, that the Holders of a majority in aggregate principal amount of the then
outstanding Notes may rescind an acceleration and its consequences, including any related payment default that resulted from such
acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed
to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

 

Section
6.05         Control by Majority.

 

Holders
of a majority in aggregate principal amount of the then outstanding Notes may direct the time, method and place of conducting
any proceeding for exercising any remedy available to the Trustee or the Collateral Agent or exercising any trust or power conferred
on it, as applicable. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture that the
Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal
liability.

 

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Section
6.06         Limitation on Suits.

 

Except
to enforce the right to receive payment of principal, premium, if any, or interest when due, no Holder of a Note may pursue any
remedy with respect to this Indenture or the Notes unless:

 

(1)         such
Holder has previously given the Trustee written notice that an Event of Default is continuing;

 

(2)         Holders
of at least 25% in aggregate principal amount of the then outstanding Notes make a written request to the Trustee to pursue the
remedy;

 

(3)         such
Holder or Holders offer and, if requested, provide to the Trustee security or indemnity reasonably satisfactory to the Trustee
against any loss, liability or expense;

 

(4)         the
Trustee does not comply with such request within 60 days after receipt of the request and the offer of security or indemnity;
and

 

(5)         during
such 60-day period, Holders of a majority in aggregate principal amount of the then outstanding Notes do not give the Trustee
a direction inconsistent with such request.

 

A
Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority
over another Holder of a Note.

 

Section
6.07         Rights of Holders of Notes to Receive
Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal of, premium, if any,
on, or interest on the Note, on or after the respective due dates expressed in the Note (including in connection with an offer
to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired
or affected without the consent of such Holder; provided that a Holder shall not have the right to institute any such suit
for the enforcement of payment if and to the extent that the institution or prosecution thereof or the entry of judgment therein
would, under applicable law, result in the surrender, impairment, waiver or loss of the Lien of this Indenture upon any property
subject to such Lien.

 

Section
6.08         Collection Suit by Trustee and Collateral
Agent.

 

If
an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is continuing, the Trustee or the Collateral Agent is
authorized to recover judgment (a) in its own name and (b)(i) in the case of the Trustee, as trustee of an express trust or (ii)
in the case of the Collateral Agent, as collateral agent on behalf of the Holders, in each case against the Company for the whole
amount of principal of, premium, if any, on, and interest remaining unpaid on the Notes and, to the extent lawful, interest on
overdue principal and interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, the Collateral Agent and their respective agents
and counsel.

 

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Section
6.09         Trustee May File Proofs of Claim.

 

The
Trustee or the Collateral Agent is authorized to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee or the Collateral Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, the Collateral Agent and their respective agents and counsel) and the Holders
of the Notes allowed in any judicial proceedings relative to the Company (or any other obligor upon the Notes), its creditors
or its property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee or the Collateral Agent, and in the event that the Trustee or the Collateral Agent shall consent to the
making of such payments directly to the Holders, to pay to the Trustee or the Collateral Agent, as applicable, any amount due
to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, the Collateral Agent and their respective
agents and counsel, and any other amounts due the Trustee or the Collateral Agent under Section 7.07 hereof. To the extent that
the payment of any such compensation, expenses, disbursements and advances of the Trustee, the Collateral Agent and their respective
agents and counsel, and any other amounts due the Trustee or the Collateral Agent under Section 7.07 hereof out of the estate
in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out
of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained
shall be deemed to authorize the Trustee or the Collateral Agent to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee or the Collateral Agent to vote in respect of the claim of any Holder in any such proceeding.

 

Section
6.10         Priorities.

 

If
the Trustee collects any money or property pursuant to this Article 6, it shall pay out the money or property in the following
order:

 

First:      to
the Trustee, the Collateral Agent and their respective agents and attorneys for amounts due under Section 7.07 hereof, including
payment of all compensation, expenses and liabilities incurred, and all advances made, by the Trustee and the Collateral Agent
and the costs and expenses of collection;

 

Second:   to
Holders of Notes for amounts due and unpaid on the Notes for principal, premium, if any, and interest ratably, without preference
or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, and interest respectively;
and

 

Third:      to
the Company or to such party as a court of competent jurisdiction shall direct.

 

The
Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10.

 

Section
6.11         Undertaking for Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee or the Collateral
Agent, as the case may be, for any action taken or omitted by it as Trustee or Collateral Agent, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard
to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit
by the Trustee or the Collateral Agent, as the case may be, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a
suit by Holders of more than 10% in aggregate principal amount of the then outstanding Notes.

 

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ARTICLE
7

TRUSTEE

 

Section
7.01         Duties of Trustee.

 

(a)          If
an Event of Default has occurred and is continuing, the Trustee will exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

 

(b)          Except
during the continuance of an Event of Default:

 

(1)         the
duties of the Trustee will be determined solely by the express provisions of this Indenture and the Trustee need perform only
those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(2)         in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture. However, the Trustee will examine the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)          The
Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1)         this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

(2)         the
Trustee will not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and

 

(3)         the
Trustee will not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received
by it pursuant to Section 6.05 hereof.

 

(d)          Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), and (c) of this Section 7.01.

 

(e)          No
provision of this Indenture will require the Trustee to expend or risk its own funds or incur any liability. The Trustee will
be under no obligation to exercise any of its rights or powers under this Indenture at the request of any Holders, unless such
Holder has furnished to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.

 

(f)          The
Trustee will not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

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Section
7.02         Rights of Trustee.

 

(a)          The
Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)          Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The
Trustee will not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate
or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel will
be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

 

(c)          The
Trustee may act through its attorneys and agents and will not be responsible for the misconduct or negligence of any agent appointed
with due care.

 

(d)          The
Trustee will not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within
the rights or powers conferred upon it by this Indenture.

 

(e)          Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company will be sufficient
if signed by an Officer of the Company.

 

(f)          The
Trustee will be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders unless such Holders have furnished to the Trustee reasonable indemnity or security satisfactory to the Trustee
against the losses, liabilities and expenses that might be incurred by it in compliance with such request or direction.

 

Section
7.03         Individual Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company
or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee
acquires any conflicting interest (as defined in the TIA) after a Default has occurred and is continuing, it must eliminate such
conflict within 90 days, apply to the SEC for permission to continue as trustee (if this Indenture has been qualified under the
TIA) or resign. Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

 

Section
7.04         Trustee’s Disclaimer.

 

The
Trustee will not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes,
it shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon
the Company’s direction under any provision of this Indenture, it will not be responsible for the use or application of
any money received by any Paying Agent other than the Trustee, and it will not be responsible for any statement or recital herein
or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication.

 

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Section
7.05         Notice of Defaults.

 

If
a Default or Event of Default occurs and is continuing and if it is actually known to the Trustee, the Trustee will mail to Holders
of Notes, with a copy to the Collateral Agent, a notice of the Default or Event of Default within 90 days after it occurs. Except
in the case of a Default or Event of Default in payment of principal of, premium, if any, on, or interest on, any Note, the Trustee
may withhold the notice if and so long as the Trustee in good faith determines that withholding the notice is in the interests
of the Holders of the Notes.

 

Section
7.06         Reports by Trustee to Holders of the
Notes.

 

(a)          Within
60 days after each May 15 beginning with the May 15 following the date of this Indenture, and for so long as Notes remain outstanding,
the Trustee will mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA §313(a)
(but if no event described in TIA §313(a) has occurred within the twelve months preceding the reporting date, no report need
be transmitted). The Trustee also will comply with TIA §313(b)(2). The Trustee will also transmit by mail all reports as
required by TIA §313(c).

 

(b)          A
copy of each report at the time of its mailing to the Holders of Notes will be mailed by the Trustee to the Company and filed
by the Trustee with the SEC and each stock exchange on which the Notes are listed in accordance with TIA §313(d). The Company
will promptly notify the Trustee when the Notes are listed on any stock exchange.

 

Section
7.07         Compensation and Indemnity.

 

(a)          The
Company will pay to the Trustee and the Collateral Agent (each, an “Indemnified Party”) from time to time reasonable
compensation for its acceptance of this Indenture, the Security Documents and services hereunder and thereunder. The Trustee’s
compensation will not be limited by any law on compensation of a trustee of an express trust. The Company will reimburse the Indemnified
Party promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses will include the reasonable compensation, disbursements and expenses of the Indemnified
Party’s agents and counsel.

 

(b)          The
Company and the Guarantors will indemnify and hold harmless the Indemnified Party against any and all losses, liabilities or expenses
incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including
the costs and expenses of enforcing this Indenture or the Security Documents, against the Company and the Guarantors (including
this Section 7.07) and defending itself against any claim (whether asserted by the Company, the Guarantors, any Holder or any
other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to
the extent any such loss, liability or expense may be attributable to its negligence, willful misconduct or bad faith. The Indemnified
Party will notify the Company promptly of any claim for which it may seek indemnity. Failure by the Indemnified Party to so notify
the Company will not relieve the Company or any of the Guarantors of their obligations hereunder, except to the extent such failure
is prejudicial to the Company. The Company or such Guarantor will defend the claim and the Indemnified Party will cooperate in
the defense. The Indemnified Party may have separate counsel and the Company will pay the reasonable fees and expenses of such
counsel. Neither the Company nor any Guarantor need pay for any settlement made without its consent, which consent will not be
unreasonably withheld.

 

(c)          The
obligations of the Company and the Guarantors under this Section 7.07 will survive the satisfaction and discharge of this Indenture
and the termination of the Security Documents or earlier resignation or removal of the Trustee.

 

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(d)          To
secure the Company’s and the Guarantors’ payment obligations in this Section 7.07, each Indemnified Party will have
a Lien prior to the Notes on all money or property held or collected by the Trustee, in its capacity as trustee, or the Collateral
Agent, in its capacity as collateral agent, except, in the case of the Trustee, that held in trust to pay principal of, premium,
if any, on, or interest on, particular Notes. Such Lien will survive the satisfaction and discharge of this Indenture or earlier
resignation or removal of the Trustee.

 

(e)          When
an Indemnified Party incurs expenses or renders services after an Event of Default specified in clause (10) or (11) of Section
6.01 hereof occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel)
are intended to constitute expenses of administration under any Bankruptcy Law.

 

(f)          The
Trustee will comply with the provisions of TIA §313(b)(2) to the extent applicable.

 

Section
7.08         Replacement of Trustee.

 

(a)          A
resignation or removal of the Trustee and appointment of a successor Trustee will become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08.

 

(b)          The
Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders
of a majority in aggregate principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and
the Company in writing. The Company may remove the Trustee if:

 

(1)         the
Trustee fails to comply with Section 7.10 hereof;

 

(2)         the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

(3)         a
custodian or public officer takes charge of the Trustee or its property; or

 

(4)         the
Trustee becomes incapable of acting.

 

(c)          If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company will promptly appoint
a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal
amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

(d)          If
a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company, or the Holders of at least 10% in aggregate principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

(e)          If
the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.10
hereof, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

(f)          A
successor Trustee will deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon,
the resignation or removal of the retiring Trustee will become effective, and the successor Trustee will have all the rights,
powers and duties of the Trustee under this Indenture. The successor Trustee will mail a notice of its succession to Holders.
The retiring Trustee will promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums
owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement
of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

 

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Section
7.09         Successor Trustee by Merger, etc.

 

If
the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act will be the successor Trustee.

 

Section
7.10         Eligibility; Disqualification.

 

There
will at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States
of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to
supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $100.0 million
as set forth in its most recent published annual report of condition.

 

This
Indenture will always have a Trustee who satisfies the requirements of TIA §310(a)(1), (2) and (5). The Trustee is subject
to TIA §310(b).

 

Section
7.11         Preferential Collection of Claims
Against Company.

 

The
Trustee is subject to TIA §311(a), excluding any creditor relationship listed in TIA §311(b). A Trustee who has resigned
or been removed shall be subject to TIA §311(a) to the extent indicated therein.

 

Section
7.12         Collateral Agent.

 

(a)          References
to the Trustee in Sections 7.01(b) and (f) (“Duties of Trustee”), 7.02 (“Rights of Trustee”), 7.03 (“Individual
Rights of Trustee”), 7.04 (“Trustee’s Disclaimer”), 7.07 (“Compensation and Indemnity”), 7.08
(“Replacement of Trustee”) and 7.09 (“Successor Trustee by Merger, etc.”) shall be read to apply to the
Collateral Agent and the Security Documents, mutatis mutandis, in addition to this Indenture. The privileges, rights, indemnities,
immunities and exculpatory provisions contained in this Indenture, including the right to be indemnified, shall apply to the Collateral
Agent, whether it is acting under this Indenture or the Security Documents, and shall be enforceable by the Collateral Agent.

 

ARTICLE
8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section
8.01         Option to Effect Legal Defeasance
or Covenant Defeasance.

 

The
Company may at any time, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate,
elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth
below in this Article 8.

 

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Section
8.02         Legal Defeasance and Discharge.

 

Upon
the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company and each of
the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged
from their obligations with respect to all outstanding Notes (including the Note Guarantees) on the date the conditions set forth
below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company
and the Guarantors will be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including
the Note Guarantees), which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof
and the other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all their other obligations
under such Notes, the Note Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated
or discharged hereunder:

 

(1)         the
rights of Holders of outstanding Notes to receive payments in respect of the principal of, premium, if any, on, or interest on,
such Notes when such payments are due from the trust referred to in Section 8.04 hereof;

 

(2)         the
Company’s obligations with respect to such Notes under Article 2 and Section 4.02 hereof;

 

(3)         the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s and the Guarantors’ obligations
in connection therewith; and

 

(4)         this
Section 8.02.

 

Subject
to compliance with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise
of its option under Section 8.03 hereof.

 

Section
8.03         Covenant Defeasance.

 

Upon
the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company and each of
the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from each of
their obligations under the covenants and restrictions contained in Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16,
4.17, 4.18, 4.19 and 4.20 hereof and clause (4) of Section 5.01 hereof with respect to the outstanding Notes on and after the
date the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and
the Notes will thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes will not be deemed outstanding for accounting purposes).
For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Note Guarantees, the Company and the
Guarantors may omit to comply with and will have no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any other document and such omission to comply will not
constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture
and such Notes and Note Guarantees will be unaffected thereby. In addition, upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, Sections 6.01(3), (4), (5), (6), (7), (8) and (9) hereof will not constitute Events of Default.

 

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Section
8.04         Conditions to Legal or Covenant Defeasance.

 

In
order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02 or 8.03 hereof:

 

(1)         the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of Notes, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in amounts as will be sufficient, in the opinion of an accounting, appraisal
or investment banking firm of national standing, to pay the principal of, premium, if any, and interest on the outstanding Notes
on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Company must specify
whether the Notes are being defeased to such stated date for payment or to a particular redemption date (provided that
if such redemption is made as provided in the second paragraph of Section 3.07(a) hereof, (x) the amount of cash in U.S.
dollars, non-callable Government Securities, or a combination thereof, that must be irrevocably deposited will be determined using
an assumed Applicable Premium calculated as of the date of such deposit and (y) the depositor must irrevocably deposit or
cause to be deposited additional money in trust two days immediately prior to the redemption date as necessary to pay the Applicable
Premium as determined on such date);

 

(2)         in
the case of an election under Section 8.02 hereof, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable
to the Trustee confirming that:

 

(A)         the
Company has received from, or there has been published by, the Internal Revenue Service a ruling; or

 

(B)         since
the date of this Indenture, there has been a change in the applicable federal income tax law,

 

in
either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Notes
will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(3)         in
the case of an election under Section 8.03 hereof, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable
to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)         no
Default or Event of Default shall have occurred and is continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating to other
Indebtedness), and the granting of Liens to secure such borrowings);

 

(5)         such
Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture and the agreements governing any other Indebtedness being defeased, discharged
or replaced) to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

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(6)         the
Company must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of Notes over the other creditors of the Company with the intent of defeating, hindering, delaying
or defrauding any creditors of the Company or others; and

 

(7)         the
Company must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

The
Collateral will be released from the Lien securing the Notes, as provided in Section 10.04 hereof, upon a Legal Defeasance or
Covenant Defeasance in accordance with the provisions described above.

 

Section
8.05         Deposited Money and Government Securities
to be Held in Trust; Other Miscellaneous Provisions.

 

Subject
to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee
(or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section
8.04 hereof in respect of the outstanding Notes will be held in trust and applied by the Trustee, in accordance with the provisions
of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect
of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required
by law.

 

The
Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other
than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

 

Notwithstanding
anything in this Article 8 to the contrary, the Trustee will deliver or pay to the Company from time to time upon the request
of the Company any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in excess of the amount thereof that would then
be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section
8.06         Repayment to Company.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of,
premium, if any, on, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any, or interest
has become due and payable shall be paid to the Company on its request or (if then held by the Company) will be discharged from
such trust; and the Holder of such Note will thereafter be permitted to look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof,
will thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date specified therein, which will not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

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Section
8.07         Reinstatement.

 

If
the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government Securities in accordance with Section
8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s and the Guarantors’ obligations under this
Indenture and the Notes and the Note Guarantees will be revived and reinstated as though no deposit had occurred pursuant to Section
8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium,
if any, on, or interest on any Note following the reinstatement of its obligations, the Company will be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE
9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section
9.01         Without Consent of Holders of Notes.

 

Notwithstanding
Section 9.02 of this Indenture, without the consent of any Holder of Notes, the Company, the Guarantors and the Trustee may amend
or supplement this Indenture, the Notes or the Note Guarantees:

 

(1)         to
cure any ambiguity, defect or inconsistency;

 

(2)         to
provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(3)         to
provide for the assumption of the Company’s or a Guarantor’s obligations to the Holders of the Notes and Note Guarantees
by a successor to the Company or such Guarantor pursuant to Article 5 or Article 11 hereof;

 

(4)         to
make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect
the legal rights hereunder of any Holder; including, without limitation, to comply with requirements of the SEC or DTC in order
to maintain the transferability of the Notes pursuant to Rule 144A or Regulation S;

 

(5)         to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA;

 

(6)         to
conform the text of this Indenture, the Notes or the Note Guarantees to any provision of the “Description of Notes”
section of the Offering Memorandum;

 

(7)         to
provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the date hereof;
or

 

(8)         to
secure the Notes or the Note Guarantees pursuant to the requirements of Section 4.12 hereof;

 

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(9)         to
make, complete or confirm any grant of Collateral permitted or required by this Indenture or any of the Security Documents or
any release of Collateral that becomes effective as set forth herein or therein;

 

(10)        to
add any additional Guarantor or to evidence the release of any Guarantor from its Note Guarantee, in each case as provided in
this Indenture; or

 

(11)        to
evidence or provide for the acceptance of appointment under this Indenture of a successor Trustee.

 

After
an amendment, supplement or waiver under this Indenture requiring the approval of the Holders becomes effective, the Company will
mail to the Holders a notice briefly describing the amendment, supplement or waiver. However, the failure to give such notice,
or any defect in the notice, will not impair or affect the validity of the amendment, supplement or waiver.

 

Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended
or supplemental indenture, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will
join with the Company and the Guarantors in the execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but
the Trustee will not be obligated to enter into such amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

 

Section
9.02         With Consent of Holders of Notes.

 

Except
as provided below in this Section 9.02, the Company, the Trustee and the Collateral Agent may amend or supplement this Indenture
(including, without limitation, Sections 3.09, 4.10 and 4.15 hereof) and the Notes and the Note Guarantees with the consent of
the Holders of at least a majority in aggregate principal amount of the then outstanding Notes (including, without limitation,
Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any, on, or interest
on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision
of this Indenture or the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class
(including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).

 

Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended
or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee
will join with the Company, the Guarantors and the Collateral Agent in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended
or supplemental Indenture.

 

It
is not necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed
amendment, supplement or waiver, but it is sufficient if such consent approves the substance thereof.

 

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After
an amendment, supplement or waiver under this Section 9.02 becomes effective, the Company will mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any
defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver.
Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal amount of the Notes then outstanding
voting as a single class may waive compliance in a particular instance by the Company with any provision of this Indenture, the
Notes or the Note Guarantees. However, without the consent of each Holder of Notes affected, an amendment, supplement or waiver
under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

 

(1)         reduce
the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;

 

(2)         reduce
the principal of or change the fixed maturity of any Note or alter or waive any of the provisions with respect to the redemption
or repurchase of the Notes (except as provided above with respect to Sections 3.09, 4.10 and 4.15 hereof);

 

(3)         reduce
the rate of or change the time for payment of interest, including default interest, on any Note;

 

(4)         waive
a Default or Event of Default in the payment of principal of, premium, if any, on, or interest on the Notes (except a rescission
of acceleration of the Notes by the Holders of a majority in aggregate principal amount of the then outstanding Notes and a waiver
of the payment default that resulted from such acceleration);

 

(5)         make
any Note payable in money other than that stated in the Notes;

 

(6)         make
any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of, premium, if any, on, or interest on the Notes (other than as permitted by clause (7) of this Section
9.02);

 

(7)         waive
a redemption or repurchase payment with respect to any Note (other than a payment required by Sections 3.09, 4.10 or 4.15 hereof);

 

(8)         release
any Guarantor from any of its obligations under its Note Guarantee or this Indenture, except in accordance with the terms of this
Indenture; or

 

(9)         make
any change in the preceding amendment, supplement and waiver provisions.

 

In
addition, any amendment to, or waiver of, the provisions of this Indenture or any Security Document that has the effect of releasing
all or substantially all of the Collateral from the Liens securing the Notes will require the consent of the Holders of at least
662/3% in aggregate principal amount of the Notes then outstanding.

 

Section
9.03         Compliance with Trust Indenture Act.

 

Every
amendment or supplement to this Indenture or the Notes will be set forth in an amended or supplemental indenture that complies
with the TIA as then in effect.

 

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Section
9.04         Revocation and Effect of Consents.

 

Until
an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder
of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note
may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the amendment, supplement
or waiver becomes effective. An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter
binds every Holder.

 

Section
9.05         Notation on or Exchange of Notes.

 

The
Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company
in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that
reflect the amendment, supplement or waiver.

 

Failure
to make the appropriate notation or issue a new Note will not affect the validity and effect of such amendment, supplement or
waiver.

 

Section
9.06         Trustee to Sign Amendments, etc.

 

The
Trustee will sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does
not adversely affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental
indenture until the Board of Directors of the Company approves it. In executing any amended or supplemental indenture, the Trustee
will be entitled to receive and (subject to Section 7.01 hereof) will be fully protected in relying upon, in addition to the documents
required by Section 12.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
amended or supplemental indenture is authorized or permitted by this Indenture.

 

ARTICLE
10

COLLATERAL AND SECURITY

 

Section
10.01         Security Documents.

 

(a)          The
due and punctual payment of the principal of, premium, if any, on, and interest on the Notes when and as the same shall be due
and payable, whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest
on the overdue principal of, premium, if any, on, and interest (to the extent permitted by law) on the Notes and performance of
all other obligations of the Company to the Holders of Notes or the Trustee under this Indenture and the Notes (including, without
limitation, the Note Guarantees), according to the terms hereunder or thereunder, are secured as provided in the Security Documents.

 

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(b)          Each
Holder of Notes, by its acceptance thereof, consents and agrees to the terms of each Security Document (including, without limitation,
the provisions providing for foreclosure and release of Collateral) as the same may be in effect or may be amended from time to
time in accordance with its terms and authorizes and directs the Collateral Agent to enter into the Security Documents (including,
if applicable, the Intercreditor Agreement or any replacement of such agreement, in either case substantially in the form of Exhibit
G hereto) and to perform its obligations and exercise its rights thereunder in accordance therewith. The Company will deliver
to the Trustee copies of all documents delivered to the Collateral Agent pursuant to the Security Documents, and will do or cause
to be done all such acts and things as may be necessary or proper, or as may be required by the provisions of the Security Documents,
to assure and confirm to the Trustee and the Collateral Agent the security interest in the Collateral contemplated hereby, by
the Security Documents or any part thereof, as from time to time constituted, so as to render the same available for the security
and benefit of this Indenture and of the Notes secured hereby, according to the intent and purposes herein expressed. Subject
to the Intercreditor Agreement, the Company will take, and will cause its Subsidiaries to take, upon request of the Collateral
Agent, any and all actions reasonably required to cause the Security Documents to create and maintain, as security for the Obligations
of the Company hereunder, a valid and enforceable perfected first priority Lien in and on all the Collateral, in favor of the
Collateral Agent for the benefit of the Holders of Notes, superior to and prior to the rights of all third Persons, other than
holders of Priority Lien Debt and Permitted Priority Liens, and subject to no other Liens than Permitted Liens.

 

Section
10.02         Recording and Opinions.

 

(a)          The
Company will furnish to the Collateral Agent and to the Trustee simultaneously with the execution and delivery of this Indenture
a reliance letter with respect to the Opinion of Counsel of the Company delivered to the Initial Purchasers on the date of this
Indenture regarding the Lien intended to be created by the Security Documents.

 

(b)          The
Company will furnish to the Collateral Agent and the Trustee on May 1 in each year beginning with May 1, 2015, an Opinion of Counsel,
dated as of such date, either:

 

(1)         (A)
stating that, in the opinion of such counsel, action has been taken with respect to the recording, registering, filing, re-recording,
re-registering and re-filing of all supplemental indentures, financing statements, continuation statements or other instruments
of further assurance as is necessary to maintain the Lien of the Security Documents and reciting with respect to the security
interests in the Collateral the details of such action or referring to prior Opinions of Counsel in which such details are given,
and (B) stating that, in the opinion of such counsel, based on relevant laws as in effect on the date of such Opinion of Counsel,
all financing statements and continuation statements have been executed and filed that are necessary as of such date and during
the succeeding 12 months fully to preserve and protect, to the extent such protection and preservation are possible by filing,
the rights of the Holders of Notes and the Collateral Agent and the Trustee hereunder and under the Security Documents with respect
to the security interests in the Collateral;

 

(2)         stating
that, in the opinion of such counsel, no such action is necessary to maintain such Lien and assignment.

 

(c)          The
Company will otherwise comply with the provisions of TIA §314.

 

Section
10.03        Release of Collateral.

 

(a)          Collateral
may be released only in accordance with the terms of this Indenture and the Security Documents, as applicable.

 

(b)          The
release of any Collateral in accordance with the terms of this Indenture and the Security Documents, shall not be deemed to impair
the security under this Indenture and the Liens in favor of the Collateral Agent on the remaining Collateral in contravention
of the provisions hereof if and to the extent the Collateral is released pursuant to the terms of the applicable Security Documents.

 

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Section
10.04         Release of Liens in Respect of Notes.

 

The
Collateral Agent’s Note Liens upon the Collateral will no longer secure the Notes outstanding under this Indenture or any
other Obligations under this Indenture, and the right of the Holders of the Notes and such Obligations to the benefits and proceeds
of the Collateral Agent’s Note Liens on the Collateral will terminate and be discharged:

 

(1)         upon
satisfaction and discharge as set forth in Article 12 hereof;

 

(2)         upon
a Legal Defeasance or Covenant Defeasance of the Notes as set forth in Article 8 hereof;

 

(3)         upon
payment in full and discharge of all Notes under this Indenture and all Obligations that are outstanding, due and payable under
this Indenture at the time the Notes are paid in full and discharged; or

 

(4)         in
whole or in part, with the consent of the Holders of the requisite percentage of Notes in accordance with the provisions of Article
9 hereof.

 

Section
10.05         Certificates of the Company.

 

The
Company will furnish to the Trustee and the Collateral Agent, prior to each proposed release of Collateral pursuant to the Security
Documents:

 

(1)         all
documents required by TIA §314(d); and

 

(2)         an
Opinion of Counsel, which may be rendered by internal counsel to the Company, to the effect that such accompanying documents constitute
all documents required by TIA §314(d).

 

The
Trustee may, to the extent permitted by Sections 7.01 and 7.02 hereof, accept as conclusive evidence of compliance with the foregoing
provisions the appropriate statements contained in such documents and such Opinion of Counsel.

 

Section
10.06         Certificates of the Trustee.

 

In
the event that the Company wishes to release Collateral in accordance with the Security Documents and has delivered the certificates
and documents required by the Security Documents and Sections 13.03 and 13.04 hereof, the Trustee will determine whether it has
received all documentation required by TIA §314(d) in connection with such release and, based on such determination and the
Opinion of Counsel delivered pursuant to Section 13.04(2) hereof, will deliver a certificate to the Collateral Agent setting forth
such determination.

 

Section
10.07         Authorization of Actions to Be Taken
Under the Security Documents.

 

Subject
to the provisions of Section 7.01 and 7.02 hereof and to the terms of the Intercreditor Agreement, the Trustee may, in its sole
discretion and without the consent of the Holders of Notes, direct, on behalf of the Holders of Notes, the Collateral Agent to,
take all actions it deems necessary or appropriate in order to:

 

(1)         enforce
any of the terms of the Security Documents; and

 

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(2)         collect
and receive any and all amounts payable in respect of the Obligations of the Company hereunder and under the Security Documents.

 

The
Collateral Agent will have power to institute and maintain such suits and proceedings as it may deem expedient to prevent any
impairment of the Collateral by any acts that may be unlawful or in violation of the Security Documents or this Indenture, and
such suits and proceedings as the Collateral Agent may deem expedient to preserve or protect its interests and the interests of
the Holders of Notes in the Collateral (including power to institute and maintain suits or proceedings to restrain the enforcement
of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise
invalid if the enforcement of, or compliance with, such enactment, rule or order would impair the security interest hereunder
or be prejudicial to the interests of the Holders of Notes, of the Collateral Agent or of the Trustee).

 

Section
10.08         Authorization of Receipt of Funds
by the Trustee Under the Security Documents.

 

Subject
to the terms of the Intercreditor Agreement, proceeds in respect of the Collateral received by the Collateral Agent shall be passed
on to the Trustee. The Trustee is authorized to receive any funds for the benefit of the Holders of Notes distributed under the
Security Documents, and to make further distributions of such funds to the Holders of Notes according to the provisions of this
Indenture.

 

Section
10.09         Intercreditor Agreement.

 

(a)          If
the Company or any Guarantor enters into a Senior Credit Facility after the date hereof, the Company shall instruct the Trustee
in the form of an Officers’ Certificate to cause the Collateral Agent to enter into an Intercreditor Agreement substantially
in the form attached hereto as Exhibit G.

 

(b)          This
Indenture and the Security Documents are subject to the terms, limitations and conditions set forth in the Intercreditor Agreement.
Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent pursuant to this
Indenture and the Security Documents and the exercise of any right or remedy by the Collateral Agent hereunder and thereunder
are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor
Agreement, and this Indenture with respect to lien priority or rights and remedies in connection with any Collateral that also
secures a Senior Credit Facility, the terms of the Intercreditor Agreement shall govern.

 

ARTICLE
11

NOTE GUARANTEES

 

Section
11.01         Guarantee.

 

(a)          Subject
to this Article 11, each of the Guarantors hereby, jointly and severally, unconditionally guarantees to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and the Collateral Agent and their respective successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes, the Security Documents or the obligations of the
Company hereunder or thereunder, that:

 

(1)         
the principal of, premium, if any, on, and interest on the Notes will be promptly paid in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, if any, on, and interest on the Notes,
if lawful, and all other obligations of the Company to the Holders, the Trustee and the Collateral Agent hereunder or thereunder
or under any Security Document will be promptly paid in full or performed, all in accordance with the terms hereof and thereof;
and

 

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(2)         in
case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same will be promptly paid
in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

 

Failing payment when
due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)          The
Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability
of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same
or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenant
that this Note Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this
Indenture.

 

(c)          If
any Holder, the Collateral Agent or the Trustee is required by any court or otherwise to return to the Company, the Guarantors
or any custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any
amount paid by either to the Trustee, the Collateral Agent or such Holder, this Note Guarantee, to the extent theretofore discharged,
will be reinstated in full force and effect.

 

(d)          Each
Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the
Guarantors, on the one hand, and the Holders, the Collateral Agent and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes of this Note Guarantee, notwithstanding
any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2)
in the event of any declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations (whether
or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors
will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Note Guarantee.

 

Section
11.02       Limitation on Guarantor Liability.

 

Each Guarantor, and
by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of
such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Note Guarantee. To
effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of
such Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights
to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under this Article 11, result in the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent
transfer or conveyance.

 

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Section
11.03       Execution and Delivery of Note Guarantee.

 

To evidence its Note
Guarantee set forth in Section 11.01 hereof, each Guarantor hereby agrees that a notation of such Note Guarantee substantially
in the form attached as Exhibit E hereto will be endorsed by an Officer of such Guarantor on each Note authenticated and delivered
by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its Officers.

 

Each Guarantor hereby
agrees that its Note Guarantee set forth in Section 11.01 hereof will remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Note Guarantee.

 

If an Officer whose
signature is on this Indenture or on the Note Guarantee no longer holds that office at the time the Trustee authenticates the Note
on which a Note Guarantee is endorsed, the Note Guarantee will be valid nevertheless.

 

The delivery of any
Note by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Note Guarantee set forth in
this Indenture on behalf of the Guarantors.

 

In the event that the
Company or any of its Restricted Subsidiaries creates or acquires any Domestic Subsidiary after the date of this Indenture, if
required by Section 4.19 hereof, the Company will cause such Domestic Subsidiary to comply with the provisions of Section 4.19
hereof and this Article 11, to the extent applicable.

 

Section
11.04       Guarantors May Consolidate, etc., on Certain Terms.

 

Except as otherwise
provided in Section 11.05 hereof, no Guarantor may, directly or indirectly, sell, assign, transfer, convey, or otherwise dispose
of, in one or more related transactions, all or substantially all of its properties or assets to, or consolidate with or merge
with or into (whether or not such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor,
unless:

 

(1)         immediately
after giving effect to such transaction or series of transactions, no Default or Event of Default exists; and

 

(2)         either:

 

(a)          subject
to Section 11.05 hereof, the Person acquiring the property in any such sale, assignment, transfer, conveyance or disposition or
the Person formed by or surviving any such sale, assignment, transfer, conveyance, consolidation or merger unconditionally assumes
all the obligations of that Guarantor under its Note Guarantee, this Indenture, the Registration Rights Agreement and the Security
Documents on the terms set forth herein or therein, pursuant to a supplemental indenture and appropriate security documents in
form and substance reasonably satisfactory to the Trustee;

 

(b)          the
Net Proceeds of such sale, assignment, transfer, conveyance, or other disposition are applied in accordance with the applicable
provisions of this Indenture, including without limitation, Section 4.10 hereof.

 

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In case of any such
consolidation, merger, sale, assignment, transfer, or conveyance and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the
Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein
as a Guarantor. Such successor Person thereupon may cause to be signed any or all of the Note Guarantees to be endorsed upon all
of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the
Note Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture as the Note Guarantees
theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Note Guarantees had been
issued at the date of the execution hereof.

 

Except as set forth
in Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b) above, nothing contained in this Indenture or in any of the
Notes will prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor, or will prevent any
sale, assignment, transfer, or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

 

Section
11.05       Releases.

 

(a)          The
Note Guarantee of a Guarantor will be released:

 

(1)         in
connection with any sale or other disposition of all or substantially all of the properties or assets of that Guarantor, by way
of merger, consolidation or otherwise, to a Person that is not (either before or after giving effect to such transaction) the Company
or a Restricted Subsidiary of the Company, if the sale or other disposition does not violate Sections 3.09 and 4.10 hereof; or

 

(2)         in
connection with any sale or other disposition of the Capital Stock of that Guarantor to a Person that is not (either before or
after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, if the sale or other disposition
does not violate Sections 3.09 and 4.10 hereof and the Guarantor ceases to be a Restricted Subsidiary of the Company as a result
of the sale or other disposition;

 

provided,
in both cases, that the Net Proceeds of such sale, assignment, transfer, conveyance, or other disposition are applied in accordance
with the applicable provisions of this Indenture, including without limitation Section 4.10 hereof. Upon delivery by the Company
to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that such sale, assignment, transfer,
conveyance, or other disposition was made by the Company in accordance with the provisions of this Indenture, including without
limitation Section 4.10 hereof, the Trustee will execute any documents reasonably required in order to evidence the release of
any Guarantor from its obligations under its Note Guarantee;

 

(3)         upon
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in accordance with the terms of this
Indenture;

 

(4)         upon
Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and discharge of this Indenture in
accordance with Article 12 hereof, in which event each Guarantor will be released and relieved of any obligations under its Note
Guarantee;

 

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(5)         upon
the liquidation or dissolution of such Guarantor; or

 

(6)         upon
such Guarantor consolidating with, merging into or transferring all or substantially all of its properties or assets to the Company
or another Guarantor.

 

Upon the release of
a Note Guarantee in accordance with the terms of this Indenture, all Collateral owned by the released Guarantor and, solely with
respect to the release of a Note Guarantee under clauses (2) or (4) of the immediately preceding paragraph, the Capital Stock of
the released Guarantor, will also be automatically released.

 

(b)          Any
Guarantor not released from its obligations under its Note Guarantee as provided in this Section 11.05 will remain liable for the
full amount of principal of, premium, if any, and interest on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 11.

 

ARTICLE
12

satisfaction and discharge

 

Section
12.01       Satisfaction and Discharge.

 

This Indenture will
be satisfied and discharged and will cease to be of further effect as to all Notes issued hereunder (except as to surviving rights
of registration, of transfer or exchange of the Notes and as otherwise provided in this Indenture), when:

 

(1)         either:

 

(a)          all
Notes that have been authenticated, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose
payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation;
or

 

(b)          all
Notes that have not been delivered to the Trustee for cancellation have become due and payable by reason of the mailing of a notice
of redemption or otherwise or will become due and payable within one year and either the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S.
dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, without consideration
of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium, if any, on, and interest to the date of Stated Maturity or redemption (provided that if such redemption
is made as provided in the second paragraph of Section 3.07(a), (x) the amount of cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, that must be irrevocably deposited will be determined using an assumed Applicable Premium
calculated as of the date of such deposit and (y) the depositor must irrevocably deposit or cause to be deposited additional
money in trust on the redemption date as necessary to pay the Applicable Premium as determined by such date);

 

(2)         in
respect of Section 12.01(b)(1) hereof, no Event of Default has occurred and is continuing on the date of the deposit (other than
an Event of Default resulting from the borrowing of funds to be applied to such deposit and any similar deposit relating to other
Indebtedness and, in each case, the granting of Liens to secure such borrowings) and the deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the Company or any Guarantor is a party or by which
the Company or any Guarantor is bound (other than with respect to the borrowing of funds to be applied concurrently to make the
deposit required to effect such satisfaction and discharge and any similar concurrent deposit relating to other Indebtedness, and
in each case the granting of Liens to secure such borrowings);

 

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(3)         the
Company or any Guarantor has paid or caused to be paid all other sums payable by it under this Indenture; and

 

(4)         the
Company has delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Notes at Stated
Maturity or on the redemption date, as the case may be.

 

In addition, the Company must deliver an
Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and
discharge have been satisfied.

 

Notwithstanding the
satisfaction and discharge of this Indenture, if money has been deposited with the Trustee pursuant to subclause (b) of clause
(1) of this Section 12.01, the provisions of Sections 12.02 and 8.06 hereof will survive. In addition, nothing in this Section
12.01 will be deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the satisfaction and discharge
of this Indenture.

 

The Collateral will
be released from the Lien securing the Notes and the other Note Documents, as provided in Section 10.04 hereof, upon a satisfaction
and discharge in accordance with the provisions described above.

 

Section
12.02        Application of Trust Money.

 

Subject to the provisions
of Section 8.06 hereof, all money deposited with the Trustee pursuant to Section 12.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal, premium, if any, and interest, for whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

 

If the Trustee or Paying
Agent is unable to apply any money or Government Securities in accordance with Section 12.01 hereof by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 12.01 hereof; provided that if the Company has made any
payment of principal of, premium, if any, on, or interest, on any Notes because of the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

 

ARTICLE
13

MISCELLANEOUS

 

Section
13.01       Trust Indenture Act Controls.

 

If any provision of
this Indenture limits, qualifies or conflicts with the duties imposed by TIA §318(c), the imposed duties will control.

 

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Section
13.02        Notices.

 

Any notice or communication
by the Company, any Guarantor, the Trustee or the Collateral Agent to the others is duly given if in writing and delivered in Person
or by first class mail (registered or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing
next day delivery, to the others’ address:

 

If to the Company and/or any Guarantor:

American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

Facsimile No.: 303-798-5767

Attention: Marty Beskow

 

With copies to:

Baker Hostetler LLP

600 Anton Blvd., Suite 900

Costa Mesa, California 92626

Facsimile: 714-966-8802

Attention: Randolph Katz, Esq.

and

 

Roberts & Olivia, LLC

2060 Broadway, Suite 250

Boulder, Colorado 80302

Facsimile No.: 720-210-5447

Attention: Bill Roberts, Esq.

 

If to the Trustee:

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Facsimile No.: 713-235-9213

Attention: Corporate Trust Services

 

If to the Collateral Agent:

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Facsimile No.: 713-235-9213

Attention: Corporate Trust Services

 

The Company, any Guarantor,
the Trustee or the Collateral Agent, by notice to the others, may designate additional or different addresses for subsequent notices
or communications.

 

    	100

    	 

    

 

All notices and communications
(other than those sent to Holders) will be deemed to have been duly given: at the time delivered by hand, if personally delivered;
five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
electronic image scan or facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

 

Any notice or communication
to a Holder will be mailed by first class mail, certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication will also
be given to any Person described in TIA §313(c), to the extent required by the TIA. Failure to send a notice or communication
to a Holder or any defect in it will not affect its sufficiency with respect to other Holders.

 

If a notice or communication
is given in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

 

If the Company sends
a notice or communication to Holders, it will send a copy to the Trustee and each Agent at the same time.

 

Section
13.03        Communication by Holders of Notes with Other Holders of Notes.

 

Holders may communicate
pursuant to TIA §312(b) with other Holders with respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA §312(c).

 

Section
13.04        Certificate and Opinion as to Conditions Precedent.

 

Upon any request or
application by the Company to the Trustee or the Collateral Agent, as applicable, to take any action under this Indenture, the
Company shall furnish to the Trustee or the Collateral Agent, as applicable:

 

(1)         an
Officers’ Certificate in form and substance reasonably satisfactory to the Trustee or the Collateral Agent, as applicable
(which must include the statements set forth in Section 13.05 hereof), stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture or any Security Document relating to the proposed action have been
satisfied; and

 

(2)         an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee or the Collateral Agent, as applicable (which must
include the statements set forth in Section 13.05 hereof), stating that, in the opinion of such counsel, all such conditions precedent
and covenants have been satisfied.

 

Section
13.05       Statements Required in Certificate or Opinion.

 

Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA §314(a)(4)) or Security Document must comply with the provisions of TIA §314(e) and must include:

 

(1)         a
statement that the Person making such certificate or opinion has read such covenant or condition;

 

    	101

    	 

    

 

(2)         a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(3)         a
statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him
or her to express an informed opinion as to whether or not such covenant or condition has been satisfied; and

 

(4)         a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied.

 

Section
13.06       Rules by Trustee and Agents.

 

The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

 

Section
13.07       No Personal Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer,
employee, incorporator or owner of Capital Stock of the Company or any Guarantor, as such, will have any liability for any obligations
of the Company or the Guarantors under the Notes, this Indenture, the Note Documents or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability.
The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities
under the federal securities laws.

 

Section
13.08       Governing Law.

 

THE INTERNAL LAW OF
THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

 

Section
13.09       No Adverse Interpretation of Other Agreements.

 

This Indenture may
not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person.
Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section
13.10       Successors.

 

All agreements of the
Company in this Indenture and the Notes will bind its successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Guarantor in this Indenture will bind its successors, except as otherwise provided in Section
11.05 hereof.

 

Section
13.11       Severability.

 

In case any provision
in this Indenture or in the Notes is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

 

    	102

    	 

    

 

Section
13.12       Counterpart Originals.

 

The parties may sign
any number of copies of this Indenture. Each signed copy will be an original, but all of them together represent the same agreement.
The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution
and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures
of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

Section
13.13       Table of Contents, Headings, etc.

 

The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

 

[Signatures on following page]

 

    	103

    	 

    

 

SIGNATURES

 

Dated as of August 27, 2014

 

	 	Issuer:
	 	 
	 	American Eagle Energy Corporation
	 	 	 
	 	By:	/s/ Brad Colby
	 	 	Name:  Brad Colby
	 	 	Title:  President
	 	 	 
	 	Guarantor:
	 	 
	 	AMZG, Inc.
	 	 	 
	 	By:	/s/ Brad Colby
	 	 	Name:  Brad Colby
	 	 	Title:  President
	 	 	 
	 	Trustee:
	 	 
	 	U.S. Bank National Association
	 	 	 
	 	By:	/s/ Mauri Cowen
	 	 	Name:  Mauri Cowen
	 	 	Title:  Vice President
	 	 	 
	 	Collateral Agent:
	 	 
	 	U.S. Bank National Association
	 	 	 
	 	By:	/s/ Mauri Cowen
	 	 	Name:  Mauri Cowen
	 	 	Title:  Vice President

 

Indenture

 

    	 

    	 

    

 

[Face
of Note]

 

CUSIP/CINS ____________

 

11.0% Senior Secured Notes due 2019

 

	No. ___	$____________

 

AMERICAN EAGLE ENERGY CORPORATION

 

promises to pay to               
or registered assigns,

 

the principal sum of __________________________________________________________
DOLLARS on September 1, 2019.

 

Interest Payment Dates: March 1 and September
1

 

Record Dates: February 15 and August 15

 

Dated: _______________

 

	 	AMERICAN EAGLE ENERGY CORPORATION
	 	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title: 

 

This is one of the Notes referred to

in the within-mentioned Indenture:

U.S. BANK NATIONAL ASSOCIATION, as Trustee

 

	By: 	 	 
	 	Authorized Signatory	 

 

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[Back of Note]

11.0% Senior Secured Notes due 2019

 

[Insert the Global Note Legend, if applicable
pursuant to the provisions of the Indenture]

 

[Insert the Private Placement Legend,
if applicable pursuant to the provisions of the Indenture]

 

Capitalized terms used
herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. All references to “interest”
herein are deemed to include any Special Interest that may be payable on the Notes pursuant to the Registration Rights Agreement.

 

(1)         Interest.
American Eagle Energy Corporation, a Nevada corporation (the “Company”), promises to pay or cause to be paid
interest on the principal amount of this Note at 11.0% per annum from ________________, ___ until maturity and shall pay the Special
Interest, if any, payable pursuant to the Registration Rights Agreement referred to below. The Company will pay interest semi-annually
in arrears on March 1 and September 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day
(each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from the date of issuance; provided that, if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from
such next succeeding Interest Payment Date; provided further that the first Interest Payment Date shall be _____________,
_____. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal
at a rate that is 1% higher than the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest, if any (without regard
to any applicable grace period), at the same rate to the extent lawful.

 

Interest
will be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(2)         Method
of Payment. The Company will pay interest on the Notes (except defaulted interest), if any, to the Persons who are registered
Holders of Notes at the close of business on the February 15 or August 15 next preceding the Interest Payment Date, even if such
Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the
Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium, if any, and interest at the office
or agency of the Paying Agent and Registrar within the City and State of New York, or, at the option of the Company, payment of
interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that
payment by wire transfer of immediately available funds will be required with respect to principal of, premium, if any, on, and
interest on all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company
or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

 

(3)         Paying
Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying
Agent and Registrar. The Company may change the Paying Agent or Registrar without prior notice to the Holders of the Notes. The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.

 

    	A-2

    	 

    

 

(4)         Indenture
and Security Documents. The Company issued the Notes under an Indenture dated as of August 27, 2014 (the “Indenture”)
among the Company, the Guarantors, the Trustee and the Collateral Agent. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the TIA. The Notes are subject to all such terms, and Holders are referred
to the Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are secured obligations
of the Company. The Notes are secured by a pledge of a first-priority Lien in and on all Collateral (subject to certain Permitted
Liens) pursuant to the Security Documents referred to in the Indenture. The Indenture does not limit the aggregate principal amount
of Notes that may be issued thereunder.

 

(5)         Optional
Redemption.

 

(a)          At
any time prior to September 1, 2016, the Company may, on any one or more occasions, redeem up to 35% of the aggregate principal
amount of Notes issued under the Indenture, upon notice as provided in Section 3.03 of the Indenture, at a redemption price equal
to 111.000% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to the date of redemption
(subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant Interest Payment Date),
with an amount of cash not greater than the net cash proceeds of an Equity Offering by the Company; provided that:

 

(i)          at
least 65% of the aggregate principal amount of Notes originally issued under the Indenture (excluding Notes held by the Company
and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and

 

(ii)         the
redemption occurs within 90 days of the date of the closing of such Equity Offering.

 

(b)          At
any time prior to September 1, 2016, the Company may, on any one or more occasions, redeem all or a part of the Notes, upon notice
as provided in Section 3.03 of the Indenture, at a redemption price equal to 100% of the principal amount of the Notes redeemed,
plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the date of redemption, subject to the rights of
Holders on the relevant record date to receive interest due on the relevant Interest Payment Date.

 

(c)          Except
pursuant to the preceding paragraphs and Section 4.15(e) of the Indenture, the Notes will not be redeemable at the Company’s
option prior to September 1, 2016.

 

(d)          On
or after September 1, 2016, the Company may on any one or more occasions redeem all or a part of the Notes, upon notice as provided
in Section 3.03 of the Indenture, at the redemption prices (expressed as percentages of principal amount) set forth below, plus
accrued and unpaid interest, if any, on the Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month
period beginning on September 1 of the years indicated below, subject to the rights of Holders of Notes on the relevant record
date to receive interest on the relevant Interest Payment Date:

  

	Year	 	Percentage	 
	2016	 	 	108.250	%
	2017	 	 	105.500	%

 

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	Year	 	Percentage	 
	2018 and thereafter	 	 	100.000	%

 

Unless the
Company defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called
for redemption on the applicable redemption date.

 

(6)         Mandatory
Redemption. The Company is not required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

(7)         Repurchase
at the Option of Holder.

 

(a)          Upon
the occurrence of a Change of Control, the Company will make an offer (a “Change of Control Offer”) to each
Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s
Notes pursuant to a Change of Control Offer on the terms set forth in the Indenture (including, but not limited to, Section 4.15
and Article 3 thereof). In the Change of Control Offer, the Company will offer to make a cash payment (a “Change of Control
Payment”) equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if
any, on the Notes repurchased to the date of purchase (the “Change of Control Payment”), subject to the rights
of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date. Within ten days
following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change
of Control Offer as required by the Indenture.

 

(b)          If
the Company or a Restricted Subsidiary of the Company consummates any Asset Sales, within five days of each date on which the aggregate
amount of Excess Proceeds exceeds $20.0 million, the Company will make an Asset Sale Offer to all Holders of Notes and all holders
of other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in the Indenture
with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets in accordance with the Indenture to purchase,
prepay or redeem the maximum principal amount of Notes and such other pari passu Indebtedness (plus all accrued interest
on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be
purchased, prepaid or redeemed out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the
principal amount, plus accrued and unpaid interest, if any, to the date of purchase, prepayment or redemption, subject to the rights
of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable
in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company or any of its Restricted Subsidiaries
may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes
tendered in such Asset Sale Offer exceeds the amount of Excess Proceeds allocated to the purchase of the Notes, the Trustee will
select the Notes to be purchased on a pro rata basis (except that any Notes represented by a Note in global form will be
selected by such method as DTC or its nominee or successor may require or, where such nominee or successor is the Trustee, a method
that most nearly approximates pro rata selection as the Trustee deems fair and appropriate unless otherwise required by law), based
on the amounts tendered or required to be prepaid or redeemed. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds
will be reset at zero. Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option
of Holder to Elect Purchase” attached to the Notes.

 

    	A-4

    	 

    

 

(8)         Notice
of Redemption. At least 30 days but not more than 60 days before a redemption date, the Company will mail or cause to
be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection
with a defeasance of the Notes or a satisfaction and discharge of the Indenture pursuant to Articles 8 or 12 thereof. Notes and
portions of Notes selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the
Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed
or purchased.

 

Any such redemption
may, at the Company’s discretion, be subject to one or more conditions precedent, including any related Equity Offering or
a Change of Control. In addition, if such redemption is subject to the satisfaction of one or more conditions precedent, the related
notice shall describe each such condition, and if applicable, shall state that, in the Company’s discretion, the date of
redemption may be delayed until such time as any or all such conditions shall be satisfied or waived (provided that in no event
shall such date of redemption be delayed to a date later than 60 days after the date on which such notice was mailed), or such
redemption or purchase may not occur and such notice may be rescinded in the event that any or all such conditions shall not have
been satisfied or waived by the date of redemption, or by the date of redemption as so delayed.

 

(9)         Denominations,
Transfer, Exchange. The Notes are in registered form in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar
and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company
may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or
register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a selection
of Notes to be redeemed or during the period between a record date and the next succeeding Interest Payment Date.

 

(10)        Persons
Deemed Owners. The registered Holder of a Note may be treated as the owner of it for all purposes. Only registered Holders
have rights under the Indenture.

 

(11)        Amendment,
Supplement and Waiver. Subject to certain exceptions, the Indenture, the Notes or the Note Guarantees may be amended
or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the then outstanding Notes
including Additional Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance with any
provision of the Indenture or the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes including Additional Notes, if any, voting as a single class. Without the consent
of any Holder of Notes, the Indenture, the Notes or the Note Guarantees may be amended or supplemented to cure any ambiguity, defect
or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption
of the Company’s or a Guarantor’s obligations to Holders of the Notes and Note Guarantees by a successor to the Company
or such Guarantor pursuant to the Indenture, to make any change that would provide any additional rights or benefits to the Holders
of the Notes or that does not adversely affect the legal rights under the Indenture of any Holder (including, without limitation,
to comply with requirements of the SEC or DTC in order to maintain the transferability of the Notes pursuant to Rule 144A
or Regulation S), to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture
under the TIA, to conform the text of the Indenture, the Notes, or the Note Guarantees to any provision of the “Description
of Notes” section of the Company’s Offering Memorandum dated August 13, 2014, relating to the initial offering of the
Notes, to secure the Notes or the Note Guarantees pursuant to the requirements of the Indenture, to make, complete or confirm any
grant of Collateral permitted or required by the Indenture or any of the Security Documents or any release of Collateral that becomes
effective as set forth therein, to add any additional Guarantor or to evidence the release of any Guarantor from its Note Guarantee,
or to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee.

 

    	A-5

    	 

    

 

(12)        Defaults
and Remedies. Events of Default include: (i) default for 30 days in the payment when due of interest on the Notes; (ii)
default in the payment when due (at Stated Maturity, upon redemption or otherwise) of the principal of, or premium, if any, on,
the Notes, (iii) failure by the Company or any of its Restricted Subsidiaries to comply with the provisions of Sections 4.07, 4.09,
4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the Company for 180 days after notice from the Trustee or Holders of at least
25% in aggregate principal amount of the Notes then outstanding to comply with Section 4.03 of the Indenture; (v) failure by the
Company for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of
the Notes then outstanding to comply with any of its other agreements in the Indenture; (vi) default under certain other agreements
relating to Indebtedness of the Company which default is a Payment Default or results in the acceleration of such Indebtedness
prior to its express maturity; (vii) failure by the Company or any of its Restricted Subsidiaries to pay certain final judgments,
which judgments are not paid, discharged or stayed, for a period of 60 days; (viii) subject to certain exceptions and except as
permitted by the Indenture, (A) any Security Document ceases for any reason to be fully enforceable; (B) any Note Lien purported
to be granted under any Security Document on Collateral, individually or in the aggregate, having a Fair Market Value in excess
of $25.0 million ceases to be an enforceable and perfected first-priority Lien; or (C) the Company or any other Pledgor, or any
Person acting on behalf of any of them, denies or disaffirms, in writing, any obligation of the Company or any other Pledgor set
forth in or arising under any Security Document; (ix) except as permitted by the Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor, or any Person
acting on behalf of any Guarantor, denies or disaffirms its obligations under its Note Guarantee, and (x) certain events of bankruptcy
or insolvency with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary.

 

(13)        In
the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company, any Restricted
Subsidiary of the Company that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately without further action
or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Holders may not enforce the Indenture
or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in aggregate principal
amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy
available to the Trustee or exercising any trust or power conferred on it. The Trustee may withhold from Holders of the Notes notice
of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium,
if any, or interest) if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal
amount of the then outstanding Notes by notice to the Trustee may, on behalf of all the Holders of Notes, rescind an acceleration
or waive an existing Default or Event of Default and its respective consequences under the Indenture except a continuing Default
or Event of Default in the payment of principal of, premium, if any, on, or interest on the Notes (including in connection with
an offer to purchase). The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Company is required, upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying
such Default or Event of Default.

 

    	A-6

    	 

    

 

(14)        Trustee
Dealings with Company. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from,
and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were
not the Trustee.

 

(15)        No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Company or any Guarantor,
as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Note
Guarantees, the Registration Rights Agreement or the Security Documents or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under
the federal securities laws.

 

(16)        Authentication.
This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

(17)        Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).

 

(18)        Additional
Rights of Holders of Restricted Global Notes and Restricted Definitive Notes. In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will have all the rights
set forth in the Registration Rights Agreement dated as of August [27], 2014, among the Company, the Guarantors and the other parties
named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive
Notes will have the rights set forth in one or more registration rights agreements, if any, among the Company, the Guarantors and
the other parties thereto, relating to rights given by the Company and the Guarantors to the purchasers of any Additional Notes
(collectively, the “Registration Rights Agreement”).

 

(19)        CUSIP
Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP numbers in notices of redemption as
a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption, and reliance may be placed only on the other identification numbers placed thereon.

 

    	A-7

    	 

    

 

(20)        GOVERNING
LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE
NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests
may be made to:

 

American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

Facsimile No.: 303-798-5767

Attention: Marty Beskow

 

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Assignment
Form

 

To assign this Note,
fill in the form below:

 

	(I) or (we) assign and transfer this Note to: 	 
	 	(Insert assignee’s legal name)

 

	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint _________________________________________________________to
transfer this Note on the books of the Company. The agent may substitute another to act for him.

 

Date: _______________

 

	Your Signature:   	 
	(Sign exactly as your name appears on the face of this

Note)

 

Signature Guarantee*: _________________________

 

*             Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    	A-9

    	 

    

 

Option of Holder to Elect Purchase

 

If you want to elect
to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

 

 ̈
Section 4.10  ̈ Section 4.15

 

If you want to elect
to have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount
you elect to have purchased:

 

$_______________

 

Date: _______________

 

	Your Signature:   	 
	(Sign exactly as your name appears on the face of this

Note)

 

	Tax Identification No.:   	 

 

Signature Guarantee*: _________________________

 

*              Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    	A-10

    	 

    

 

Schedule
of Exchanges of Interests in the Global Note *

 

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	Date of Exchange	 	Amount of

decrease in

Principal Amount 

of 

this Global Note	 	Amount of

increase in

Principal Amount 

of 

this Global Note	 	Principal Amount 

of this Global Note

following such

decrease 

(or increase)	 	Signature of

authorized officer

of Trustee or

Custodian
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

		*	This schedule should be included only if the Note is issued in global form. 

 

    	A-11

    	 

    

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

Facsimile No.: 303-798-5767

Attention: Marty Beskow

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Facsimile No.: 713-235-9213

Attention: Corporate Trust Services

 

Re: 11.0%
Senior Secured Notes Due 2019

 

Reference is hereby
made to the Indenture, dated as of August 27, 2014 (the “Indenture”), among American Eagle Energy Corporation,
as issuer (the “Company”), the Guarantors party thereto, U.S. Bank National Association, as trustee, and U.S.
Bank National Association, as collateral agent. Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

___________________,
(the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex
A hereto, in the principal amount of $___________ in such Note[s] or interests (the “Transfer”), to ___________________________
(the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  ̈
Check if Transferee will take delivery of a beneficial interest in the 144A Global Note or a Restricted Definitive Note pursuant
to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable blue sky securities
laws of any state of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture,
the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities
Act.

 

2.  ̈
Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Note or a Restricted Definitive
Note pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a Person
in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor
and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor
nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv)
if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S.
Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions
on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the Restricted Definitive
Note and in the Indenture and the Securities Act.

 

    	B-1

    	 

    

 

3.  ̈
Check and complete if Transferee will take delivery of a beneficial interest in the IAI Global Note or a Restricted Definitive
Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected
in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive
Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the
United States, and accordingly the Transferor hereby further certifies that (check one):

 

(a)           ̈
such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)           ̈
such Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)           ̈
such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with
the prospectus delivery requirements of the Securities Act;

 

or

 

(d)           ̈
such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements
of the Securities Act other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that it
has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies
with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and
the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in
the form of Exhibit D to the Indenture and (2) an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which
the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act.
Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the IAI Global
Note and/or the Restricted Definitive Notes and in the Indenture and the Securities Act.

 

4.  ̈
Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive
Note.

 

    	B-2

    	 

    

 

(a)  ̈
Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(b)  ̈
Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule
903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable
blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and
the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no
longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes,
on Restricted Definitive Notes and in the Indenture.

 

(c)  ̈
Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected pursuant to and in compliance with
an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance
with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United
States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 

This certificate and
the statements contained herein are made for your benefit and the benefit of the Company.

 

	 	 	 	 
	 	 	 	[Insert Name of Transferor]
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Dated:  	 	 	 	 

 

    	B-3

    	 

    

  

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.          The
Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)    ̈
a beneficial interest in the:

 

(i)           ̈
144A Global Note (CUSIP _________), or

 

(ii)          ̈
Regulation S Global Note (CUSIP _________), or

 

(iii)         ̈
IAI Global Note (CUSIP _________); or

 

(b)    ̈
a Restricted Definitive Note.

 

2.          After
the Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)    ̈
a beneficial interest in the:

 

(i)           ̈
144A Global Note (CUSIP _________), or

 

(ii)          ̈
Regulation S Global Note (CUSIP _________), or

 

(iii)         ̈
IAI Global Note (CUSIP _________); or

 

(iv)         ̈
Unrestricted Global Note (CUSIP _________); or

 

(b)    ̈
a Restricted Definitive Note; or

 

(c)    ̈
an Unrestricted Definitive Note,

 

in accordance with
the terms of the Indenture.

 

    	B-4

    	 

    

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

Facsimile No.: 303-798-5767

Attention: Marty Beskow

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Facsimile No.: 713-235-9213

Attention: Corporate Trust Services

 

Re: 11.0%
Senior Secured Notes Due 2019

 

(CUSIP ___________)

 

Reference is hereby
made to the Indenture, dated as of August 27, 2014 (the “Indenture”), among American Eagle Energy Corporation,
as issuer (the “Company”), the Guarantors party thereto, U.S. Bank National Association, as trustee, and U.S.
Bank National Association, as collateral agent. Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

__________________________,
(the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the
principal amount of $____________ in such Note[s] or interests (the “Exchange”). In connection with the Exchange,
the Owner hereby certifies that:

 

1.          Exchange
of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial
Interests in an Unrestricted Global Note

 

(a)  ̈
Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note.
In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest
in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required
in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being
acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

(b)  ̈
Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note. In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the
Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant
to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

 

    	C-1

    	 

    

 

(c)  ̈
Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note. In connection
with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner
hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in
compliance with any applicable blue sky securities laws of any state of the United States.

 

(d)  ̈
Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In connection with the Owner’s
Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive
Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act,
(iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

 

2.          Exchange
of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial
Interests in Restricted Global Notes

 

(a)  ̈
Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note. In connection with
the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal
principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive
Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Definitive Note and in the Indenture and the Securities Act.

 

(b)  ̈
Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with
the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE]  ̈
144A Global Note,  ̈ Regulation S Global Note,  ̈
IAI Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the
Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance
with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

 

This certificate and
the statements contained herein are made for your benefit and the benefit of the Company.

 

	 	 	 	 
	 	 	 	[Insert Name of Transferor]
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Dated:  	 	 	 	 

 

    	C-2

    	 

    

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

American Eagle Energy Corporation

2549 W. Main Street, Suite 202

Littleton, Colorado 80120

Facsimile No.: 303-798-5767

Attention: Marty Beskow

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Facsimile No.: 713-235-9213

Attention: Corporate Trust Services

 

Re: 11.0%
Senior Secured Notes Due 2019

 

Reference is hereby
made to the Indenture, dated as of August 27, 2014 (the “Indenture”), among American Eagle Energy Corporation,
as issuer (the “Company”), the Guarantors party thereto, U.S. Bank National Association, as trustee, and U.S.
Bank National Association, as collateral agent. Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

In connection with
our proposed purchase of $____________ aggregate principal amount of:

 

(a)  ̈
a beneficial interest in a Global Note, or

 

(b)  ̈
a Definitive Note,

 

we confirm that:

 

1.          We
understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions
set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes
or any interest therein except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

 

2.          We
understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest
therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do
so only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a “qualified
institutional buyer” (as defined therein), (C) to an institutional “accredited investor” (as defined below) that,
prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and an Opinion of Counsel in form reasonably acceptable to the Company to the effect that
such transfer is in compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation
S under the Securities Act, (E) pursuant to the provisions of Rule 144 under the Securities Act or (F) pursuant to an effective
registration statement under the Securities Act, and we further agree to provide to any Person purchasing the Definitive Note or
beneficial interest in a Global Note from us in a transaction meeting the requirements of clauses (A) through (E) of this paragraph
a notice advising such purchaser that resales thereof are restricted as stated herein.

 

    	D-1

    	 

    

 

3.          We
understand that, on any proposed resale of the Notes or beneficial interest therein, we will be required to furnish to you and
the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm
that the proposed sale complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear
a legend to the foregoing effect.

 

4.          We
are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits
and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk
of our or its investment.

 

5.          We
are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or more accounts (each of
which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

 

You and the Company
are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

 

	 	 	 	 
	 	 	 	[Insert Name of Accredited Investor]
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Dated:  	 	 	 	 

 

    	D-2

    	 

    

 

EXHIBIT E

 

FORM OF NOTATION OF GUARANTEE

 

For value received,
each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, unconditionally guaranteed,
to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of August 27, 2014 (the “Indenture”)
among American Eagle Energy Corporation (the “Company”), the Guarantors party thereto, U.S. Bank National Association,
as trustee (the “Trustee”), and U.S. Bank National Association, as collateral agent, (a) the due and punctual
payment of the principal of, premium, if any, on, and interest on the Notes, whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal of, premium, if any, on, and interest on the Notes, if
any, if lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all
in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any
of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders
of Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article 11 of the Indenture
and reference is hereby made to the Indenture for the precise terms of the Note Guarantee.

 

Capitalized terms used
but not defined herein have the meanings given to them in the Indenture.

 

	 	 
	 	[Name of Guarantor(s)]
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	E-1

    	 

    

 

EXHIBIT F

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

Supplemental
Indenture (this “Supplemental Indenture”), dated as of ________________, among __________________ (the
“Guaranteeing Subsidiary”), a subsidiary of American Eagle Energy Corporation (or its permitted successor),
a Nevada corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred
to herein) and U.S. Bank National Association, as trustee under the Indenture referred to below (the “Trustee”),
and U.S. Bank National Association, as Collateral Agent.

 

WITNESETH

 

WHEREAS, the Company
has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of August 27,
2014 providing for the issuance of 11.0% Senior Secured Notes due 2019 (the “Notes”);

 

WHEREAS, the Indenture
provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

 

WHEREAS, pursuant to
Section 11.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

 

1.          Capitalized
Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.          Agreement
to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Note Guarantee on the terms and subject
to the conditions set forth in the Notes and in the Indenture including but not limited to Article 11 thereof.

 

4.          No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as
such, will have any liability for any obligations of the Company or the Guarantors under the Notes, this Indenture, the Note Guarantees,
the Security Documents or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder
of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance
of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

 

5.          NEW
YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

    	F-1

    	 

    

 

6.          Counterparts.
The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

 

7.          Effect
of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

8.          The
Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency
of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by
the Guaranteeing Subsidiary and the Company.

 

    	F-2

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

Dated: _______________,

 

	 	[Guaranteeing Subsidiary]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[Company]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[Existing Guarantors]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	[Trustee],
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Signatory
	 	 	 
	 	[Collateral Agent],
	 	as Collateral Agent
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    	F-3

    	 

    

 

EXHIBIT G

 

FORM OF INTERCREDITOR AGREEMENT

 

    	G-1

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