Document:

exv10w7

EXECUTION

SECOND LIEN SENIOR TERM LOAN AGREEMENT

Among

QUEST CHEROKEE, LLC,

as the Borrower,

QUEST ENERGY PARTNERS, L.P.,

as a Guarantor

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

KEYBANK NATIONAL ASSOCIATION,

as Syndication Agent

SOCIÉTÉ
GÉNÉRALE,

as Documentation Agent

and

The Lenders Party Hereto

$45,000,000

TERM LOAN FACILITY

RBC CAPITAL MARKETS

As Lead Arranger and Sole Bookrunner

Dated as of July 11, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I.

	 	DEFINITIONS AND ACOUNTING TERMS
	 	 	1	 
	1.01

	 	Defined Terms
	 	 	1	 
	1.02

	 	Other Interpretive Provisions
	 	 	20	 
	1.03

	 	Accounting Terms
	 	 	21	 
	1.04

	 	Rounding
	 	 	21	 
	1.05

	 	References to Agreements and Laws
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE II.

	 	THE TERM LOAN COMMITMENT AND BORROWING
	 	 	22	 
	2.01

	 	Term Loans
	 	 	22	 
	2.02

	 	Borrowings, Conversions and Continuations of Loans
	 	 	22	 
	2.03

	 	Prepayments
	 	 	23	 
	2.04

	 	Repayment of Term Loans
	 	 	24	 
	2.05

	 	Interest
	 	 	24	 
	2.06

	 	Fees
	 	 	25	 
	2.07

	 	Computation of Interest and Fees
	 	 	25	 
	2.08

	 	Evidence of Debt
	 	 	25	 
	2.09

	 	Payments Generally
	 	 	26	 
	2.10

	 	Sharing of Payments
	 	 	28	 
	2.11

	 	Pari Passu Lien Securing Lender Hedging Obligations
	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 	TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	28	 
	3.01

	 	Taxes
	 	 	29	 
	3.02

	 	Illegality
	 	 	31	 
	3.03

	 	Inability to Determine Rates
	 	 	31	 
	3.04

	 	Increased Cost and Reduced Return; Capital Adequacy;
Reserves on Eurodollar Rate Loans
	 	 	31	 
	3.05

	 	Compensation for Losses
	 	 	32	 
	3.06

	 	Matters Applicable to all Requests for Compensation
	 	 	33	 
	3.07

	 	Survival
	 	 	33	 
	3.08

	 	Mitigation Obligations
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE IV.

	 	CONDITIONS PRECEDENT TO BORROWING
	 	 	33	 
	4.01

	 	Conditions Precedent to Borrowing
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 	REPRESENTATIONS AND WARRANTIES
	 	 	36	 
	5.01

	 	Existence; Qualification and Power; Compliance with Laws
	 	 	37	 
	5.02

	 	Authorization; No Contravention
	 	 	37	 
	5.03

	 	Governmental Authorization
	 	 	37	 
	5.04

	 	Binding Effect
	 	 	38	 
	5.05

	 	Financial Statements; No Material Adverse Effect
	 	 	38	 
	5.06

	 	Litigation
	 	 	38	 
	5.07

	 	No Default
	 	 	38	 

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	 	 	 	 	Page
	 
	5.08

	 	Title; Liens; Priority of Liens
	 	 	38	 
	5.09

	 	Environmental Compliance
	 	 	39	 
	5.10

	 	Insurance
	 	 	39	 
	5.11

	 	Taxes
	 	 	39	 
	5.12

	 	ERISA Compliance
	 	 	39	 
	5.13

	 	Subsidiaries and other Investments
	 	 	40	 
	5.14

	 	Margin Regulations; Investment Company Act; Use of Proceeds
	 	 	40	 
	5.15

	 	Disclosure; No Material Misstatements
	 	 	41	 
	5.16

	 	Location of Business and Offices
	 	 	41	 
	5.17

	 	Compliance with Laws
	 	 	41	 
	5.18

	 	Third Party Approvals
	 	 	41	 
	5.19

	 	Solvency
	 	 	41	 
	5.20

	 	Oil and Gas Leases
	 	 	41	 
	5.21

	 	Oil and Gas Contracts
	 	 	41	 
	5.22

	 	Producing Wells
	 	 	42	 
	5.23

	 	Purchasers of Production
	 	 	42	 
	5.24

	 	Swap Contracts
	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE VI.

	 	AFFIRMATIVE COVENANTS
	 	 	42	 
	6.01

	 	Financial Statements
	 	 	42	 
	6.02

	 	Certificates; Other Information
	 	 	43	 
	6.03

	 	Notices
	 	 	44	 
	6.04

	 	Payment of Obligations
	 	 	44	 
	6.05

	 	Preservation of Existence, Etc.
	 	 	45	 
	6.06

	 	Maintenance of Assets and Business
	 	 	45	 
	6.07

	 	Maintenance of Insurance
	 	 	45	 
	6.08

	 	Compliance with Laws and Contractual Obligations
	 	 	46	 
	6.09

	 	Books and Records
	 	 	46	 
	6.10

	 	Inspection Rights
	 	 	46	 
	6.11

	 	Compliance with ERISA
	 	 	46	 
	6.12

	 	Use of Proceeds
	 	 	46	 
	6.13

	 	Material Agreements
	 	 	46	 
	6.14

	 	Guaranties
	 	 	47	 
	6.15

	 	Further Assurances; Additional Collateral; In Lieu Letters
	 	 	47	 
	6.16

	 	Title Defects
	 	 	48	 
	6.17

	 	Leases
	 	 	48	 
	6.18

	 	Operation of Oil and Gas Properties
	 	 	49	 
	6.19

	 	Change of Purchasers of Production
	 	 	49	 
	6.20

	 	Fiscal Year
	 	 	49	 
	6.21

	 	Repayment/Refinance Covenant
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 	NEGATIVE COVENANTS
	 	 	50	 
	7.01

	 	Liens
	 	 	50	 
	7.02

	 	Investments
	 	 	53	 
	7.03

	 	Hedging Agreements
	 	 	53	 

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	 	 	 	 	Page
	 
	7.04

	 	Indebtedness
	 	 	54	 
	7.05

	 	Lease Obligations
	 	 	55	 
	7.06

	 	Fundamental Changes
	 	 	55	 
	7.07

	 	Dispositions
	 	 	56	 
	7.08

	 	Restricted Payments; Distributions and Redemptions
	 	 	56	 
	7.09

	 	ERISA
	 	 	57	 
	7.10

	 	Nature of Business; Risk Management
	 	 	57	 
	7.11

	 	Transactions with Affiliates
	 	 	57	 
	7.12

	 	Burdensome Agreements
	 	 	57	 
	7.13

	 	Use of Proceeds
	 	 	57	 
	7.14

	 	Material Agreements
	 	 	57	 
	7.15

	 	Pooling or Unitization
	 	 	58	 
	7.16

	 	Financial Covenants
	 	 	58	 
	 
	 	 	 	 	 	 
	ARTICLE VIII.

	 	EVENTS OF DEFAULT AND REMEDIES
	 	 	59	 
	8.01

	 	Events of Default
	 	 	59	 
	8.02

	 	Remedies Upon Event of Default
	 	 	61	 
	8.03

	 	Application of Funds
	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE IX.

	 	ADMINISTRATIVE AGENT
	 	 	62	 
	9.01

	 	Appointment and Authorization of Agents; Lender Hedging Agreements
	 	 	62	 
	9.02

	 	Delegation of Duties
	 	 	62	 
	9.03

	 	Default; Collateral
	 	 	63	 
	9.04

	 	Liability of Agents
	 	 	64	 
	9.05

	 	Reliance by Administrative Agent
	 	 	65	 
	9.06

	 	Notice of Default
	 	 	65	 
	9.07

	 	Credit Decision; Disclosure of Information by Administrative Agent
	 	 	66	 
	9.08

	 	Indemnification of Agents
	 	 	66	 
	9.09

	 	Administrative Agent in its Individual Capacity
	 	 	67	 
	9.10

	 	Successor Administrative Agent and Collateral Agent
	 	 	67	 
	9.11

	 	Other Agents; Arranger
	 	 	68	 
	9.12

	 	Administrative Agent May File Proofs of Claim
	 	 	68	 
	9.13

	 	Hedging Agreements
	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 	MISCELLANEOUS
	 	 	69	 
	10.01

	 	Amendments, Release of Collateral, Etc
	 	 	69	 
	10.02

	 	Notices and Other Communications; Facsimile Copies
	 	 	71	 
	10.03

	 	No Waiver; Cumulative Remedies
	 	 	72	 
	10.04

	 	Attorney Costs; Expenses and Taxes
	 	 	72	 
	10.05

	 	Indemnification
	 	 	72	 
	10.06

	 	Payments Set Aside
	 	 	73	 
	10.07

	 	Successors and Assigns
	 	 	74	 
	10.08

	 	Confidentiality
	 	 	76	 
	10.09

	 	Set-off
	 	 	76	 
	10.10

	 	Interest Rate Limitation
	 	 	77	 

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	 	 	 	 	Page
	 
	10.11

	 	Counterparts
	 	 	77	 
	10.12

	 	Integration
	 	 	77	 
	10.13

	 	Survival of Representations and Warranties
	 	 	77	 
	10.14

	 	Severability
	 	 	78	 
	10.15

	 	Replacement of Lenders
	 	 	78	 
	10.16

	 	Governing Law
	 	 	78	 
	10.17

	 	Waiver of Right to Trial by Jury, Etc
	 	 	79	 
	10.18

	 	No General Partner’s Liability
	 	 	80	 
	10.19

	 	Time of the Essence
	 	 	80	 
	10.20

	 	ENTIRE AGREEMENT
	 	 	80	 

iv

 

SCHEDULES

	 	 	 	 	 
	2.01	 	Term Loan Commitments

	5.13	 	Subsidiaries and Equity Investments

	5.21	 	Take-or Pay and Gas Balancing Obligations

	5.23	 	Purchasers of Production

	5.24	 	Swap Contracts

	7.01	 	Existing Liens

	7.04	 	Indebtedness

	7.11	 	Transactions with Affiliates

	10.02	 	Addresses for Notices to Borrower, Guarantors and Administrative Agent

EXHIBITS

Exhibit: Form of:

	 	 	 
	A-1
	 	Borrowing Notice

	A-2
	 	Conversion/Continuation Notice

	A-3
	 	Repayment Notice

	B
	 	Term Note

	C
	 	Compliance Certificate pursuant to Section 6.02(a)

	D
	 	Assignment and Assumption

v

 

SECOND LIEN SENIOR TERM LOAN AGREEMENT

     THIS SECOND LIEN SENIOR TERM LOAN AGREEMENT is entered into as of July 11, 2008, among QUEST
CHEROKEE, LLC, a Delaware limited liability company (the “Borrower”), QUEST ENERGY PARTNERS, L.P.,
a Delaware master limited partnership (the “MLP”), each lender from time to time party hereto
(collectively, the “Lenders” and individually, “Lender”), ROYAL BANK OF CANADA, as Administrative
Agent and Collateral Agent, KEYBANK NATIONAL ASSOCIATION, as
Syndication Agent and SOCIÉTÉ
GÉNÉRALE, as Documentation Agent.

PRELIMINARY STATEMENTS

     (1) Pursuant to that certain Amended and Restated Credit Agreement dated as of November 15,
2007, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as
of April 15, 2008, among Quest Resource Corporation, a Nevada corporation, as initial co-borrower,
Borrower, Royal Bank of Canada, as administrative agent and collateral agent, KeyBank National
Association, as documentation agent, and the financial institutions from time to time party thereto
(the “First Lien Revolving Lenders”) (such Credit Agreement as heretofore or hereafter amended, the
“First Lien Credit Agreement”), the First Lien Revolving Lenders agreed to make revolving credit
loans to, and issue letters of credit for the benefit of, the Borrower.

     (2) The Borrower has requested the Lenders provide a $45,000,000 second lien senior term loan
to the Borrower.

     (3) The Lenders have agreed to make such loan subject to the terms and conditions of this
Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, and
of the loan hereinafter referred to, the parties hereto agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms.

     As used in this Agreement, the terms defined in the introductory paragraph and the Preliminary
Statements hereof shall have the meanings therein indicated and the following terms shall have the
meanings set forth below:

     Acquisition means the acquisition of the Acquisition Properties pursuant to the Purchase
Agreement.

     Acquisition Properties means the Oil and Gas Properties to be acquired by Borrower pursuant to
the Purchase Agreement.

     Adjusted Consolidated EBITDA means the sum of (i) Consolidated EBITDA plus (ii) the
Distribution Equivalent Amount.

Quest Cherokee

Second Lien Senior

Term Loan Agreement

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     Administrative Agent means Royal Bank of Canada in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

     Administrative Agent’s Office means the Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 10.02, or such other address or account as the Administrative
Agent may from time to time notify to the Borrower and the Lenders.

     Administrative Details Form means the Administrative Details Reply Form furnished by a Lender
to the Administrative Agent in connection with this Agreement.

     Affiliate means, as to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person. A Person shall be
deemed to be controlled by any other Person if such other Person possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

     Agent/Arranger Fee Letter has the meaning specified in Section 2.06.

     Agent-Related Persons means the Administrative Agent (including any successor administrative
agent), the Collateral Agent (including any successor collateral agent) and their respective
Affiliates (including the officers, directors, employees, agents and attorneys-in-fact of such
Person).

     Agreement means this Credit Agreement.

     Applicable Rate” means, from time to time, the following percentages per annum:

	 	 	 	 	 	 	 	 	 
	Applicable Rate
	 	 	Eurodollar	 	 
	Time Period	 	Rate +	 	Base Rate +
	From Closing Date through October 11, 2008

	 	 	6.50	%	 	 	5.50	%
	After October 11, 2008

	 	 	7.00	%	 	 	6.00	%

     Approved Fund means any Fund that is administered or managed by a Lender, an Affiliate of a
Lender, or an entity or an Affiliate of an entity that administers or manages a Lender.

     Arranger means RBC Capital Markets in its capacity as lead arranger and sole bookrunner.

     Assignment and Assumption means an Assignment and Assumption substantially in the form of
Exhibit D.

     Attorney Costs means and includes the reasonable fees and disbursements of any law firm or
other external counsel and the reasonable allocated cost of internal legal services and
disbursements of internal counsel.

     Attributable Indebtedness means, on any date, (a) in respect of any Capital Lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared
as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the
capitalized amount of the remaining lease payments under the relevant lease that would appear on a
balance sheet of

 Quest Cherokee

Second Lien Senior

Term Loan Agreement

2

 

such Person prepared as of such date in accordance with GAAP if such lease were accounted for
as a capital lease.

     Authorizations means all filings, recordings, and registrations with, and all validations or
exemptions, approvals, orders, authorizations, consents, franchises, licenses, certificates, and
permits from, any Governmental Authority.

     Base Rate means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by the Administrative Agent as its “prime rate.” Such rate is a rate
set by the Administrative Agent based upon various factors including the Administrative Agent’s
costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above, or below such announced rate. Any
change in such rate announced by the Administrative Agent shall take effect at the opening of
business on the day specified in the public announcement of such change.

     Base Rate Loan means a Term Loan that bears interest based on the Base Rate.

     Board means the Board of Governors of the Federal Reserve System of the United States.

     Borrower has the meaning specified in the introductory paragraph hereto.

     Borrower Affiliate means the Borrower, the General Partner, the MLP, and each of their
respective Subsidiaries.

     Borrowing means a borrowing consisting of simultaneous Term Loans of the same Type and having
the same Interest Period made by each of the Lenders pursuant to Section 2.01.

     Borrowing Notice means a notice of (a) the Borrowing of Term Loans hereunder on the Closing
Date, (b) a conversion of Term Loans from one Type to the other, or (c) a continuation of Term
Loans as the same Type, pursuant to Section 2.02(a), which, if in writing, shall be substantially
in the form of Exhibit A-1 or A-2, as applicable.

     Business Day means any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized to close under the Laws of New York, or are in fact closed and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits are
conducted by and between banks in the applicable offshore Dollar interbank market.

     Capital Lease means any capital lease or sublease which should be capitalized on a balance
sheet in accordance with GAAP.

     Cash Equivalents means:

     (a) United States Dollars;

     (b) direct general obligations, or obligations of, or obligations fully and
unconditionally guaranteed as to the timely payment of principal and interest by, the United

 Quest Cherokee

Second Lien Senior

Term Loan Agreement

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States or any agency or instrumentality thereof having remaining maturities of not more
than thirteen (13) months, but excluding any such securities whose terms do not provide for
payment of a fixed dollar amount upon maturity or call for redemptions;

     (c) certificates of deposit and eurodollar-time deposits with remaining maturities of
thirteen (13) months or less, bankers acceptances with remaining maturities not exceeding
one hundred eighty (180) days, overnight bank deposits and other similar short term
instruments, in each case with any domestic commercial bank having capital and surplus in
excess of $250,000,000 and having a rating of at least “A2” by Moody’s or at least “A” by
S&P;

     (d) repurchase obligations with a remaining term of not more than thirteen (13) months
for underlying securities of the types described in (b) and (c) above entered into with any
financial institution meeting the qualifications in (c) above;

     (e) commercial paper (having remaining maturities of not more than two hundred seventy
(270) days) of any Person rated “P-1” or better by Moody’s or “A-1” or the equivalent by
S&P;

     (f) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7
under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P or Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and

     (g) money market mutual or similar funds having assets in excess of $100,000,000, at
least 95% of the assets of which are comprised of assets specified in clause (a) through (f)
above, except that with respect to the maturities of the assets included in such funds the
requirements of clauses (a) through (f) shall not be applied to the individual assets
included in such funds but to the weighted-average maturity of all assets included in such
funds.

     Change in Law means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any
Lender (or, for purposes of Section 3.04(b), by any Lending Office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of this Agreement.

     Change of Control means (a) Quest Parent shall fail to own, directly or indirectly, or fail to
have voting control over, at least 51% of the equity interest of the General Partner, (b) any
Person, entity or group (other than a Quest Party) acquires beneficial ownership (within the
meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act
of 1934) of 51% or more of the equity interests in the MLP, (c) the MLP shall fail to own, directly
or indirectly, 100% of the equity interests in the Borrower, or (e) a Parent Change of Control
shall occur.

     Closing Date means the first date all the conditions precedent in Section 4.01 are satisfied
or waived (or, in the case of Sections 4.01(f) and (g), waived by the Person entitled to receive
the applicable payment).

 Quest Cherokee

Second Lien Senior

Term Loan Agreement

4

 

     Code means the Internal Revenue Code of 1986.

     Collateral means all property and interests in property and proceeds thereof now owned or
hereafter acquired by the MLP, the Borrower, and their respective Subsidiaries (other than any
Excluded Assets) in or upon which a Lien now or hereafter exists to secure the Indebtedness owing
under the First Lien Credit Agreement and in or upon which a Lien now or hereafter exists in favor
of the Secured Parties, or the Administrative Agent or Collateral Agent on behalf of the Secured
Parties, including, but not limited to Oil and Gas Properties and substantially all of the personal
property (including stock and other equity interests) of the MLP, the Borrower, and their
respective Subsidiaries, whether under this Agreement, the Collateral Documents, or under any other
document executed by any Borrower Affiliate and delivered to the Administrative Agent, Collateral
Agent or any Secured Party.

     Collateral Agent means Royal Bank of Canada in its capacity as collateral agent under any of
the Loan Documents, or any successor collateral agent.

     Collateral Documents means (a) each Guaranty, Security Agreement and Mortgage, and all other
security agreements, deeds of trust, mortgages, chattel mortgages, assignments, pledges,
guaranties, extension agreements and other similar agreements or instruments executed by the
Borrower, the MLP, any Guarantor, or any of their respective Subsidiaries for the benefit of the
Secured Parties now or hereafter delivered to the Secured Parties, the Administrative Agent or the
Collateral Agent pursuant to or in connection with the transactions contemplated hereby, and all
financing statements (or comparable documents now or hereafter filed in accordance with the Uniform
Commercial Code or comparable Law) against the Borrower, the MLP, any Guarantor, or any of their
respective Subsidiaries as debtor in favor of the Secured Parties, the Administrative Agent or the
Collateral Agent for the benefit of the Secured Parties, as secured party, to secure or guarantee
the payment of any part of the Obligations or the performance of any other duties and obligations
of Borrower under the Loan Documents, whenever made or delivered, and (b) any amendments,
supplements, modifications, renewals, replacements, consolidations, substitutions, restatements,
continuations, and extensions of any of the foregoing.

     Commitment Letter means that certain Second Lien Bridge Loan Commitment letter dated June 20,
2008 between Borrower and Royal Bank of Canada.

     Company and Companies means, on any date of determination thereof, the MLP, the Borrower and
each of their respective Subsidiaries.

     Compensation Period has the meaning set forth in Section 2.09(e)(ii).

     Compliance Certificate means a certificate substantially in the form of Exhibit C.

     Consolidated EBITDA means, for any period, for the MLP and its Subsidiaries on a consolidated
basis, an amount equal to the sum of (a) Consolidated Net Income, (b) Consolidated Interest
Charges, (c) the amount of taxes, based on or measured by income, used or included in the
determination of such Consolidated Net Income, (d) the amount of depreciation, depletion and
amortization expense deducted in determining such Consolidated Net Income, and (e) other non-cash
charges and expenses, including, without limitation, non-cash charges and expenses relating to Swap
Contracts or resulting from

 Quest Cherokee

Second Lien Senior

Term Loan Agreement

5

 

accounting convention changes, of the MLP and its Subsidiaries on a consolidated basis, all
determined in accordance with GAAP.

     Consolidated Funded Debt means, as of any date of determination, for the MLP and its
Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all
obligations and liabilities, whether current or long-term, for borrowed money (including
Obligations hereunder, but excluding all reimbursement obligations relating to outstanding but
undrawn letters of credit), (b) Attributable Indebtedness pertaining to Capital Leases, (c)
Attributable Indebtedness pertaining to Synthetic Lease Obligations, and (d) without duplication,
all Guaranty Obligations with respect to Indebtedness of the type specified in subsections (a)
through (c) above.

     Consolidated Interest Charges means, for any period, for the MLP and its Subsidiaries on a
consolidated basis, the excess of (I) the sum of (a) all interest, premium payments, fees, charges
and related expenses of the MLP and its Subsidiaries in connection with Indebtedness (net of
interest rate Swap Contract settlements) (including capitalized interest), in each case to the
extent treated as interest in accordance with GAAP, and (b) the portion of rent expense of the MLP
and its Subsidiaries with respect to such period under Capital Leases that is treated as interest
in accordance with GAAP over (II) all interest income for such period.

     Consolidated Net Income means, for any period, for the MLP and its Subsidiaries on a
consolidated basis, the net income or net loss of the MLP and its Subsidiaries from continuing
operations, provided that there shall be excluded from such net income (to the extent otherwise
included therein): (a) the income (or loss) of any entity other than a Subsidiary in which the MLP
or any Subsidiary has an ownership interest, except to the extent that any such income has been
actually received by the MLP or such Subsidiary in the form of cash dividends or similar cash
distributions; (b) net extraordinary gains and losses (other than, in the case of losses, losses
resulting from charges against net income to establish or increase reserves for potential
environmental liabilities), (c) any gains or losses attributable to non-cash write-ups or
write-downs of assets, (d) proceeds of any insurance on property, plant or equipment other than
business interruption insurance, (e) any gain or loss on the sale, retirement or other disposition
of assets (including the capital stock or other equity ownership of any other Person, but excluding
the sale of inventories in the ordinary course of business), and (f) the cumulative effect of a
change in accounting principles, net of taxes.

     Contractual Obligation means, as to any Person, any provision of any security issued by such
Person or of any agreement, instrument or other undertaking to which such Person is a party or by
which it or any of its property is bound.

     Debtor Relief Laws means the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or
other applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.

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

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     Default Rate means an interest rate equal to (a) the Base Rate plus (b) the Applicable Rate,
if any, applicable to Base Rate Loans plus (c) 2% per annum; provided, however, that with respect
to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Eurodollar Rate Loan plus 2% per
annum, in each case to the fullest extent permitted by applicable Laws.

     Defaulting Lender means any Lender that (a) has failed to fund any portion of the Term Loans
required to be funded by it under this Agreement, (b) has otherwise failed to pay over to
Administrative Agent or any other Lender any other amount required to be paid by it under this
Agreement within one Business Day of the date when due, unless the subject of a good faith dispute,
or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.

     Disposition or Dispose means the sale (excluding the sale of inventory in the ordinary course
of business), transfer, license or other disposition (including any sale and leaseback transaction)
of any property (including stock, partnership and other equity interests) by any Person of property
owned by such Person, including any sale, assignment, transfer or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims associated therewith. For
the avoidance of doubt, a Restricted Payment is not a Disposition.

     Distribution Equivalent Amount means for each fiscal quarter of the MLP the amount of cash
paid to the members of the General Partner’s management group and non-management directors with
respect to restricted common units, bonus units and/or phantom units of the MLP that are required
under GAAP to be treated as compensation expense prior to vesting (and which, upon vesting, are
treated as limited partner distributions under GAAP).

     Dollar and $ means lawful money of the United States.

     Eligible Assignee means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and
(d) any other Person (other than a natural Person) approved by the Administrative Agent and, unless
an Event of Default has occurred and is continuing, the Borrower (the Borrower’s approval not to be
unreasonably withheld, conditioned or delayed); provided that notwithstanding the foregoing,
“Eligible Assignee” shall not include the Borrower, the MLP, any Quest Party, or any of their
respective Affiliates or Subsidiaries.

     Environmental Law means any applicable Law that relates to (a) the condition or protection of
air, groundwater, surface water, soil, or other environmental media, (b) the environment, including
natural resources or any activity which affects the environment, (c) the regulation of any
pollutants, contaminants, wastes, substances, and Hazardous Substances, including, without
limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
§9601 et seq.) (“CERCLA”), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Federal Water
Pollution Control Act, as amended by the Clean Water Act (33 U.S.C. § 1251 et seq.), the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et seq.), the Emergency Planning and
Community Right to Know Act of 1986 (42 U.S.C. § 1100 1 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. § 1801 et seq.), the National Environmental Policy Act of 1969 (42
U.S.C. § 4321 et seq.), the Oil Pollution Act (33 U.S.C. § 2701 et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. § 6901 et seq.), the Rivers and Harbors Act (33 U.S.C. §401 et seq.),
the Safe Drinking Water Act (42 U.S.C. § 201 and § 300f et seq.), the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act

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of 1976 and the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. § 6901 et seq.), the
Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), and analogous state and local Laws, as any
of the foregoing may have been and may be amended or supplemented from time to time, and any
analogous enacted or adopted Law, or (d) the Release or threatened Release of Hazardous Substances.

     ERISA means the Employee Retirement Income Security Act of 1974 and any regulations issued
pursuant thereto.

     ERISA Affiliate means any trade or business (whether or not incorporated) under common control
with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and
(o) of the Code for purposes of provisions of this Agreement relating to obligations imposed under
Section 412 of the Code).

     ERISA Event means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by
the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or
any ERISA Affiliate.

     Eurodollar Rate means for any Interest Period with respect to any Eurodollar Rate Loan:

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

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

     (c) if the rates referenced in the preceding subsections (a) and (b) are not available,
the rate per annum determined by the Administrative Agent as the rate of interest (rounded
upward to the next 1/100th of 1%) at which deposits in Dollars for delivery on the first day
of

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

     Eurodollar Rate Loan means a Term Loan that bears interest at a rate based on the Eurodollar
Rate.

     Event of Default means any of the events or circumstances specified in Article VIII.

     Excluded Assets means any contracts, agreements or permits as to which the granting of a
security interest in same would cause a default, termination or penalty thereunder or under any
applicable requirement of a Governmental Authority.

     Federal Funds Rate means, for any day, the rate per annum (rounded upwards to the nearest
1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate charged to the Administrative Agent on
such day on such transactions as determined by the Administrative Agent.

     First Lien Agent means Royal Bank of Canada, as administrative agent and collateral agent
pursuant to the First Lien Credit Agreement.

     First Lien Credit Agreement has the meaning specified in the First Preliminary Statement
hereof.

     First Lien Revolving Lenders has the meaning specified in the First Preliminary Statement
hereof.

     Foreign Lender means any Lender that is organized under the laws of a jurisdiction other than
that in which the Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

     Fund means any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
the ordinary course of its business.

     GAAP means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board and the
Public Company Accounting Oversights Board or such other principles as may be approved by a
significant segment of the accounting profession, that are applicable to the circumstances as of
the date of determination, consistently applied.

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     General Partner means Quest Energy GP, LLC, a Delaware limited liability company, the sole
general partner of the MLP.

     Governmental Authority means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative
tribunal, central bank or other legal entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

     Guarantors means any Person, including the MLP and every present and future Subsidiary of
Borrower and the MLP, which undertakes to be liable for all or any part of the Obligations by
execution of a Guaranty, or otherwise.

     Guaranty means a Guaranty now or hereafter made by any Guarantor in favor of the
Administrative Agent on behalf of the Lenders, including the MLP Guaranty and any Subsidiary
Guaranty, each in form and substance acceptable to the Administrative Agent.

     Guaranty Obligation means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
payment obligation of another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or other payment
obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring
the obligee in respect of such Indebtedness or other payment obligation of the payment of such
Indebtedness or other payment obligation, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other payment obligation, or (iv) entered into for the purpose
of assuring in any other manner the obligees in respect of such Indebtedness or other payment
obligation of the payment thereof or to protect such obligees against loss in respect thereof (in
whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other
payment obligation of any other Person, whether or not such Indebtedness or other payment
obligation is assumed by such Person; provided, however, that the term “Guaranty Obligation” shall
not include endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Guaranty Obligation shall be deemed to be the lesser of (a) an amount
equal to the stated or determinable outstanding amount of the related primary obligation and (b)
the maximum amount for which such guaranteeing Person may be liable pursuant to the terms of the
instrument embodying such Guaranty Obligation, unless the outstanding amount of such primary
obligation and the maximum amount for which such guaranteeing Person may be liable are not stated
or determinable, in which case the amount of such Guaranty Obligation shall be the maximum
reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in
good faith.

     Hazardous Substance means any substance that poses a threat to, or is regulated to protect,
human health, safety, public welfare, or the environment, including without limitation: (a) any
“hazardous substance,” “pollutant” or “contaminant,” and any “petroleum” or “natural gas liquids”
as those terms are defined or used under Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended ( 42 U.S.C. §§ 9601 et seq.) (CERCLA), (b)
“solid waste” as defined by the federal Solid Waste Disposal Act (42 U. S.C. § § 6901 et seq.), (c)
asbestos or a material containing asbestos, (d) any material that contains lead or lead-based
paint, (e) any item or equipment that

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contains or is contaminated by polychlorinated biphenyls, (f) any radioactive material, (g)
urea formaldehyde, (h) putrescible materials, (i) infectious materials, (j) toxic microorganisms,
including mold, or (k) any substance the presence or Release of which requires reporting,
investigation or remediation under any Environmental Law.

     Hydrocarbons means crude oil, condensate, natural gas, natural gas liquids, coal bed methane
and other hydrocarbons and all products refined or separated therefrom.

     Indebtedness means, as to any Person at a particular time, all of the following:

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

     (b) the face amount of all letters of credit (including standby and commercial),
banker’s acceptances, surety bonds, and similar instruments issued for the account of such
Person, and, without duplication, all drafts drawn and unpaid thereunder;

     (c) whether or not so included as liabilities in accordance with GAAP, all obligations
of such Person to pay the deferred purchase price of property or services, other than trade
accounts payable in the ordinary course of business not overdue by more than 90 days, and
Indebtedness of others (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person, whether or not such Indebtedness shall have been
assumed by such Person or is limited in recourse;

     (d) all obligations of such Person under conditional sales or other title retention
agreements relating to property acquired by such Person;

     (e) Capital Leases and Synthetic Lease Obligations of such Person; and

     (f) all Guaranty Obligations of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture in which such Person is a general partner, unless such Indebtedness is
expressly made non-recourse to such Person except for customary exceptions acceptable to the
Required Lenders. The amount of any Capital Lease or Synthetic Lease Obligation as of any date
shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.
In addition, the determination of Indebtedness of the MLP, the Borrower and/or their Subsidiaries
shall be made on a consolidated basis without taking into account any Indebtedness owed by any such
Person to any other such Person.

     Indemnified Liabilities has the meaning set forth in Section 10.05.

     Indemnitees has the meaning set forth in Section 10.05.

     Intercreditor Agreement means that certain Intercreditor Agreement of even date herewith among
Royal Bank of Canada, as administrative agent and collateral agent for the First Lien Revolving
Lenders under the First Lien Credit Agreement, the Administrative Agent, as administrative agent
and

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collateral agent for the Lenders party to this Agreement, Royal Bank of Canada, as collateral
agent and the Borrower.

     Interest Coverage Ratio means for any relevant period and as of any determination date, as
calculated based on the quarterly compliance certificate most recently delivered pursuant to
Section 6.02(a) for the MLP and its Subsidiaries, the ratio of (a) Adjusted Consolidated EBITDA for
such period ending on the determination date to (b) Consolidated Interest Charges during such
period.

     Interest Payment Date means, (a) as to any Term Loan other than a Base Rate Loan, the last day
of each Interest Period applicable to such Term Loan; and (b) as to any Base Rate Loan, the last
Business Day of each March, June, September and December and the Maturity Date.

     Interest Period means, as to each Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending
on the date one, two or three months thereafter, as selected by the Borrower in its Borrowing
Notice; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar
Rate Loan, such Business Day falls in another calendar month, in which case such Interest
Period shall end on the next preceding Business Day;

     (ii) any Interest Period pertaining to a Eurodollar Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of the calendar month at the end of such Interest Period; and

     (iii) no Interest Period shall extend beyond the Maturity Date.

     Investment means, as to any Person, any acquisition or investment by such Person, whether by
means of (a) the purchase or other acquisition of capital stock or other securities of another
Person, (b) a loan, advance or capital contribution to, guaranty of Indebtedness of, or purchase or
other acquisition of any other Indebtedness or equity participation or interest in, another Person,
including any partnership or joint venture interest in such other Person, or (c) the purchase or
other acquisition (in one transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall
be the amount actually invested, without adjustment for subsequent increases or decreases in the
value of such Investment, less all returns of principal or equity thereon, and shall, if made by
the transfer or exchange of property other than cash be deemed to have been made in an amount equal
to the fair market value of such property.

     IRS means the United States Internal Revenue Service.

     ISDA means the International Swaps and Derivatives Association, Inc.

     Laws means, collectively, all applicable international, foreign, federal, state and local
statutes, treaties, rules, regulations, ordinances, codes and administrative or judicial precedents
or authorities, including the interpretation or administration thereof by any Governmental
Authority charged with the

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enforcement, interpretation or administration thereof, and all applicable administrative
orders, licenses, authorizations and permits of, any Governmental Authority.

     Leases means oil and gas leases and all oil, gas and mineral leases constituting any part of
the Oil and Gas Properties.

     Lender has the meaning specified in the introductory paragraph hereto.

     Lender Hedging Agreement means a Swap Contract between a Company and a Lender or an Affiliate
of a Lender.

     Lending Office means, as to any Lender, the office or offices of such Lender set forth on its
Administrative Details Form, or such other office or offices as a Lender may from time to time
notify the Borrower and the Administrative Agent.

     Leverage Ratio means, for the MLP and its Subsidiaries on a consolidated basis, the ratio, as
calculated based on the quarterly compliance certificate most recently delivered pursuant to
Section 6.02(a), of (a) Consolidated Funded Debt as of the determination date to (b) Adjusted
Consolidated EBITDA for the four (4) fiscal quarters ending on the applicable determination date.

     Lien means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security interest or
preferential arrangement of any kind or nature whatsoever to secure or provide for payment of any
obligation of any Person (including any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the foregoing, and the
filing of any financing statement under the Uniform Commercial Code or comparable Laws of any
jurisdiction, other than any financing statement filed as a notice filing), including the interest
of a purchaser of accounts receivable.

     LLC Agreement means the Second Amended and Restated Limited Liability Company Agreement of the
Borrower dated effective November 14, 2005, as amended on November 15, 2007.

     Loan Documents means this Agreement, each Term Note, each of the Collateral Documents, the
Agent/Arranger Fee Letter, the Commitment Letter, the Borrowing Notice, each Compliance
Certificate, the Guaranties, and each other agreement, document or instrument delivered by any Loan
Party or any of their respective Subsidiaries from time to time in connection with this Agreement
and the Term Notes.

     Loan Party means each of the Borrower, each Guarantor (including the MLP), and each other
entity that is an Affiliate of the Borrower that executes one or more Loan Documents.

     Marketable Title means good and indefeasible title, free and clear of all Liens other than
Permitted Liens.

     Material Acquisition means any acquisition of Oil and Gas Properties or series of related
acquisitions of Oil and Gas Properties that involves the payment of consideration (including,
without limitation, the issuance of equity) by the Borrower and its Subsidiaries in excess of ten
percent (10%) of the value of the Oil and Gas Properties.

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     Material Adverse Effect means: (a) a material adverse change in, or a material adverse effect
upon, the operations, business, properties or financial condition of the MLP and its Subsidiaries
taken as a whole; (b) a material adverse effect on the ability of any Loan Party to perform its
obligations under the Loan Documents to which it is a party; (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against the Borrower or any other Loan Party
of any Loan Documents; or (d) a material adverse change in, or a material adverse effect upon, the
Oil and Gas Properties, taken as a whole, excluding changes in commodity prices.

     Material Agreements means the following: (a) the Omnibus Agreement, (b) the LLC Agreement, (c)
the Partnership Agreement (MLP), and any agreement or agreements entered into in replacement or
substitution of any of the forgoing. “Material Agreement” means each of such Material Agreements.

     Material Disposition means any sale, transfer or other disposition of Oil and Gas Properties,
individually or in the aggregate, or series of related sales, transfers or other dispositions of
Oil and Gas Properties that yields gross proceeds to the Borrower or any Subsidiaries in excess of
$5,000,000.

     Maturity Date means (a) January 12, 2009 or (b) such earlier date as a result of any
acceleration pursuant to Section 8.02(a).

     Maximum Amount and Maximum Rate respectively mean, for each Lender, the maximum non-usurious
amount and the maximum non-usurious rate of interest which, under applicable Law, such Lender is
permitted to contract for, charge, take, reserve, or receive on the Obligations.

     MLP has the meaning specified in the introductory paragraph hereto.

     MLP Guaranty means the MLP Guaranty made by the MLP as of the Closing Date in favor of the
Administrative Agent on behalf of the Lenders in form and substance acceptable to the
Administrative Agent.

     Moody’s means Moody’s Investors Service, Inc.

     Mortgaged Properties means collectively all the Mortgaged Property as defined in the Mortgages
and Mortgaged Property individual means any one of such Mortgaged Properties.

     Mortgages means the mortgages, deeds of trust, or similar instruments executed by any of the
Loan Parties in favor of Administrative Agent or Collateral Agent, for the benefit of the Secured
Parties, and all supplements, assignments, amendments, and restatements thereto (or any agreement
in substitution therefor, and Mortgage means each of such Mortgages).

     Multiemployer Plan means any employee benefit plan of the type described in Section 4001(a)(3)
of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions,
or during the preceding three calendar years, has made or been obligated to make contributions.

     Net Cash Proceeds means (a) with respect to any Disposition, cash (including any cash received
by way of deferred payment as and when received) received by the MLP, the Borrower or any of its
Subsidiaries in connection with and as consideration therefor, on or after the date of consummation
of

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such transaction, after (i) deduction of Taxes payable in connection with or as a result of
such transaction, and (ii) payment of all brokerage commissions and all other fees and expenses
related to such transaction (including, without limitation, attorneys’ fees and closing costs
incurred in connection with such transaction), (b) with respect to the Take-Out Financing or any
other Indebtedness refinancing the Term Loans, proceeds of such Take-Out Financing or other
refinancing Indebtedness after payment of all fees, closing costs and transaction costs, and (c)
with respect to any Securities Offering, proceeds of such Securities Offering after payment of
underwriting fees and payment of all closing costs and transaction costs.

     Obligations means all advances to, and debts, liabilities, obligations, covenants and duties
of, any Loan Party arising under any Loan Document, whether direct or indirect (including those
acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter
arising and including interest that accrues after the commencement by or against any Loan Party of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding. In
addition, all references to the “Obligations” in the Collateral Documents and in Sections 2.11 and
10.09 of this Agreement shall, in addition to the foregoing, also include all present and future
indebtedness, liabilities, and obligations (and all renewals and extensions thereof or any part
thereof) now or hereafter owed to any Lender or any Affiliate of a Lender arising pursuant to any
Lender Hedging Agreement.

     Obligor means the Borrower or any other Person (other than the Administrative Agent,
Collateral Agent or any Lender) obligated under any Loan Document.

     Oil and Gas Properties means fee, leasehold or other interests in or under mineral estates or
Hydrocarbon leases with respect to properties situated in the United States, including overriding
royalty and royalty interests, leasehold estate interests, net profits interests, production
payment interests and mineral fee interests, together with contracts executed in connection
therewith and all tenements, hereditaments, appurtenances and properties, real or personal,
appertaining, belonging, affixed or incidental thereto which are pledged to secure Borrower’s
Indebtedness under the First Lien Credit Agreement and which are pledged, on a second-priority
basis, to secure the Obligations under this Agreement.

     Omnibus Agreement means the Omnibus Agreement dated as of November 15, 2007 among the MLP, the
General Partner, the Borrower and Quest Parent.

     Organization Documents means, (a) with respect to any corporation, the certificate or articles
of incorporation and the bylaws; (b) with respect to any limited liability company, the certificate
of formation and operating agreement; and (c) with respect to any partnership, joint venture, trust
or other form of business entity, the partnership, joint venture or other applicable agreement of
formation and any agreement, instrument, filing or notice with respect thereto filed in connection
with its formation with the secretary of state or other department in the state of its formation,
in each case as amended from time to time.

     Other Taxes has the meaning specified in Section 3.01(b).

     Outstanding Amount on any date (i) with respect to Term Loans, means the aggregate principal
amount thereof after giving effect to any Borrowings and prepayments or repayments occurring on
such

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date, and (ii) for purposes of Section 2.09(d) with respect to Obligations under a Lender
Hedging Agreement, means the amount then due and payable under such Lender Hedging Agreement.

     Parent Change of Control means the acquisition by any Person, or two or more Persons acting in
concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934) of 50% or more of the outstanding shares of
Voting Stock of Quest Parent; provided, however, that a merger of Quest Parent into another entity
in which the other entity is the survivor shall not be deemed a Parent Change of Control if Quest
Parent’s stockholders of record as constituted immediately prior to such acquisition hold more than
50% of the outstanding shares of Voting Stock of the surviving entity.

     Participant has the meaning specified in Section 10.07(d).

     Partnership Agreement (MLP) means the First Amended and Restated Agreement of Limited
Partnership of the MLP dated effective November 15, 2007, as amended effective as of January 1,
2008.

     PBGC means the Pension Benefit Guaranty Corporation.

     Pension Plan means any “employee pension benefit plan” (as such term is defined in Section
3(2)(A) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five plan years.

     Permitted Liens means Liens permitted under Section 7.01 as described in such Section.

     Person means any individual, trustee, corporation, general partnership, limited partnership,
limited liability company, joint stock company, trust, unincorporated organization, bank, business
association, firm, joint venture or Governmental Authority.

     Plan means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by the Borrower or any ERISA Affiliate.

     Pro Rata Share with respect to each Lender, prior to the funding of the Term Loan, the Pro
Rata Share of each Lender as set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, and
at any time after the funding of the Term Loan, a fraction (expressed as a percentage, carried out
to the ninth decimal place), the numerator of which is the amount of the Term Loan of such Lender
at such time and the denominator of which is the amount of the Term Loans of all Lenders at such
time.

     Proved Developed Non-Producing Reserves means Proved Reserves which are categorized as
“Developed” but not “Producing” in the Definitions for Oil and Gas reserves promulgated by the
Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in
question.

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     Proved Developed Producing Reserves means Proved Reserves which are categorized as both
“Developed” and “Producing” in the Definitions for Oil and Gas reserves promulgated by the Society
of Petroleum Engineers (or any generally recognized successor) as in effect at the time in
question.

     Proved Reserves means Proved Reserves as defined in the Definitions for Oil and Gas reserves
promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in
effect at the time in question.

     Purchase Agreement means that certain Agreement for Purchase and Sale among Quest Parent,
Quest Eastern Resource LLC f/k/a PetroEdge Resources (WV), LLC and Borrower dated July 11, 2008
pursuant to which Borrower will acquire from Quest Eastern Resource LLC, its proved developed
producing wells and proved developed non-producing wells and related assets.

     PV10 means the present worth of future net income, discounted to present value at the simple
interest rate of ten percent (10%) per year.

     Quarterly Borrower Distributions means with respect to the Borrower, the distributions by the
Borrower to the MLP for the purpose of providing funds to the MLP constituting Available Cash (as
defined in the Partnership Agreement (MLP)) for distribution to the MLP’s equity owners.

     Quarterly MLP Distributions means with respect to the MLP, the distributions by the MLP of
Available Cash (as defined in the Partnership Agreement (MLP)) to the MLP’s equity owners.

     Quest Parent means Quest Resource Corporation, a Nevada corporation.

     Quest Party means Quest Parent or any Subsidiary of Quest Parent, other than the General
Partner, the MLP and its subsidiaries and the Borrower and its Subsidiaries.

     Reference Period has the meaning set forth in Section 7.16.

     Register has the meaning set forth in Section 10.07(c).

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

     Release means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, disposal, deposit, dispersal, migrating, or other movement
into the air, ground, or surface water, or soil.

     Reportable Event means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

     Required Lenders means, as of any date of determination, Lenders having more than 66+2/3% of
the Term Loans; provided, however, the portion of the Term Loans held or deemed held by any
Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders; and
provided further, that any time there are three or fewer Lenders, Required Lenders shall be all of
the Lenders.

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     Repayment Notice means a notice of repayment of a Borrowing pursuant to Section 2.03(a),
which, if in writing, shall be substantially in the form of Exhibit A-3.

     Reserve Report means a report prepared by an internal petroleum engineer of the Borrower
regarding the Proved Reserves attributable to the Oil and Gas Properties, using the criteria and
parameters required by and acceptable to the Securities and Exchange Commission and incorporating
the present cost of appropriate plugging and abandonment obligations to be incurred in the future,
taking into account any plugging and abandonment fund required to be accrued or established by
Borrower out of cash flow from the Oil and Gas Properties covered by such report with respect to
such future obligations.

     Responsible Officer means the president, chief executive officer, executive vice president,
senior vice president, vice president, chief financial officer, controller, treasurer or assistant
treasurer of a Person. Any document delivered hereunder that is signed by a Responsible Officer of
a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate,
partnership, limited liability company, and/or other action on the part of such Loan Party and such
Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

     Restricted Payment by a Person means any dividend or other distribution (whether in cash,
securities or other property) with respect to any equity interest in such Person, or any payment
(whether in cash, securities or other property), including any sinking fund or similar deposit on
account of the purchase, redemption, retirement, acquisition, cancellation or termination of any
such equity interest or of any option, warrant or other right to acquire any such equity interest.

     Rights means rights, remedies, powers, privileges, and benefits.

     S&P means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

     Secured Parties means the Lenders party to this Agreement and the Lenders and/or any Affiliate
of a Lender party to a Lender Hedging Agreement. The term “Secured Parties” shall include a former
Lender or an Affiliate of a former Lender that is party to a Swap Contract with any Loan Party;
provided that such former Lender or Affiliate was a Lender or an Affiliate of a Lender at the time
it entered into such Swap Contract.

     Securities Offering has the meaning specified in Section 6.21(a).

     Security Agreements means, collectively, the security agreements, or similar instruments,
executed by any of the Loan Parties in favor of the Administrative Agent or the Collateral Agent
for the benefit of the Secured Parties, in form and substance acceptable to the Administrative
Agent, and all supplements, assignments, amendments, and restatements thereto (or any agreement in
substitution therefor), and “Security Agreement” means each of such Security Agreements.

     Subsidiary of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of securities or other interests
having ordinary voting power for the election of directors or other governing body (other than
securities or interests having such power only by reason of the happening of a contingency) are at
the time beneficially owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more

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intermediaries, or both, by such Person. Unless otherwise specified, all references herein to
a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

     Subsidiary Guaranty means any Subsidiary Guaranty made by a Subsidiary of the Borrower or
the MLP in favor of the Administrative Agent on behalf of the Lenders, in form and substance
acceptable to the Administrative Agent.

     Swap Contract means (a) any and all interest rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

     Swap Termination Value means, in respect of any one or more Swap Contracts, after taking into
account the effect of any legally enforceable netting agreement relating to such Swap Contracts,
(a) for any date on or after the date such Swap Contracts have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior
to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for
such Swap Contracts, as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may include any Lender).

     Synthetic Lease Obligation means the monetary obligation of a Person under (a) a so-called
synthetic or tax retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but which are
depreciated for tax purposes by such Person.

     Take-Out Financing means financing arranged by the Arranger for Borrower to refinance the Term
Loans, in an amount sufficient to repay the Term Loans in full on or before the Maturity Date, such
financing to be on terms and conditions then prevailing in the credit market place for borrowers
comparable to Borrower.

     Taxes has the meaning set forth in Section 3.01(a).

     Term Loan Commitment means, as to each Lender, its obligation to make Term Loans to Borrower
pursuant to Section 2.01.

     Term Loan means a term loan by a Lender to the Borrower pursuant to Section 2.01.

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     Term Loan Facility means the term loan facility as described in and subject to the limitations
set forth in Section 2.01.

     Term Note means a term promissory note of Borrower in substantially the form of Exhibit B,
evidencing the obligation of Borrower to repay the Term Loans and all renewals and extensions of
all or any part thereof and “Term Notes” collectively means all of such promissory notes.

     Total Reserves means as of any date of determination, the sum of the value (based on PV10
using strip prices in effect on the date of determination) of the Borrower’s (i) Proved Developed
Producing Reserves, (ii) Proved Developed Non-producing Reserves and (iii) Undeveloped Reserves.

     Total Reserve Leverage Ratio means, the ratio, as calculated based on the quarterly Compliance
Certificate of the Borrower most recently delivered pursuant to Section 6.02(a), of (a) Total
Reserves to (b) Consolidated Funded Debt as of the determination date.

     Type means, with respect to a Term Loan, its character as a Base Rate Loan or a Eurodollar
Rate Loan.

     Undeveloped Reserves means Proved Reserves which are categorized as neither “Developed” nor
“Producing” in the Definitions for Oil and Gas reserves promulgated by the Society of Petroleum
Engineers (or any generally recognized successor) as in effect at the time in question.

     Unfunded Pension Liability means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in
accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the
Code for the applicable plan year.

     United States or U.S. means the United States of America, its fifty states and the District of
Columbia.

     Voting Stock means the capital stock (or equivalent thereof) of any class or kind, of a
Person, the holders of which are entitled to vote for the election of directors, managers, or other
voting members of the governing body of such Person.

     Wholly-Owned when used in connection with a Person means any Subsidiary of such Person of
which all of the issued and outstanding equity interests (except shares required as directors’
qualifying shares) shall be owned by such Person or one or more of its Wholly-Owned Subsidiaries.

1.02 Other Interpretive Provisions.

     (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

     (b) (i) The words “herein” and “hereunder” and words of similar import when used in any Loan
Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

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     (ii) Unless otherwise specified herein, Article, Section, Exhibit and Schedule
references are to this Agreement.

     (iii) The term “including” is by way of example and not limitation.

     (iv) The term “documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings, however evidenced.

     (c) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;”
and the word “through” means “to and including.”

     (d) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms.

     (a) All accounting terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data required to be submitted pursuant to this Agreement shall
be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time,
applied in a manner consistent with that used in preparing the audited financial statements, except
as otherwise specifically prescribed herein.

     (b) If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall
so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (a) such
ratio or requirement shall continue to be computed in accordance with GAAP prior to such change
therein and (b) the Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably requested hereunder
setting forth a reconciliation between calculations of such ratio or requirement made before and
after giving effect to such change in GAAP.

     1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05 References to Agreements and Laws. Unless otherwise expressly provided herein, (a) references to agreements (including the Loan
Documents) and other contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only to the extent that
such amendments, restatements, extensions, supplements and other modifications are not prohibited
by any Loan Document; and (b) references to any Law shall

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include all statutory and regulatory
provisions consolidating, amending, replacing, supplementing or interpreting such Law.

ARTICLE II.

THE TERM LOAN COMMITMENT AND BORROWING

     2.01 Term Loans. Subject to and in reliance upon the terms, conditions, representations, and
warranties in the Loan Documents, each Lender severally, but not jointly, agrees to make Term Loans
to Borrower in a single disbursement on the Closing Date (but in no event or under any
circumstances later than July 31, 2008), in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Term Loan Commitment as set forth on Schedule 2.01. If all
or a portion of the Term Loan is paid or prepaid, then the amount so paid or prepaid may not be
reborrowed. Any portion of the Term Loan Commitment that remains undisbursed after the initial
disbursement under the Term Loan Facility shall be reduced to zero and canceled on the date of such
initial disbursement. Term Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
provided herein.

     2.02 Borrowings, Conversions and Continuations of Loans.

     (a) The initial Borrowing, each conversion of Term Loans from one Type to the other, and each
continuation of Term Loans as the same Type shall be made upon the Borrower’s irrevocable notice to
the Administrative Agent, which may be given by telephone. Each such notice must be received by
the Administrative Agent not later than noon, New York time, (i) three Business Days prior to the
requested date of the conversion to or continuation of Eurodollar Rate Loans, and (ii) one Business
Day prior to the conversion of Eurodollar Rate Loans to Base Rate Loans, or the requested date of
the initial Borrowing of Base Rate Loans. Each such telephonic notice must be confirmed promptly
by delivery to the Administrative Agent of a written Borrowing Notice, appropriately completed and
signed by a Responsible Officer of the Borrower. Each conversion to or continuation of Eurodollar
Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess
thereof. The initial Borrowing of, and each conversion to, Base Rate Loans shall be in a principal
amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each Borrowing Notice
(whether telephonic or written) shall specify (i) whether the Borrower is requesting the initial
Borrowing, a conversion of Term Loans from one Type to the other, or a continuation of Term Loans
as the same Type, (ii) the requested date of the Borrowing, conversion or continuation, as the case
may be (which shall be a Business Day), (iii) the principal amount of Term Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans are
to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.
If the Borrower fails to specify a Type of Term Loan in a Borrowing Notice or if the Borrower fails
to give a timely notice requesting a conversion or continuation, then the applicable Term Loans
shall be made or continued as, or converted to, Base Rate Loans. Any such automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Rate Loans. If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Borrowing Notice,
but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of
one month.

     (b) Following receipt of a Borrowing Notice, the Administrative Agent shall promptly notify
each Lender of its Pro Rata Share of the applicable Borrowing, and if no timely notice of a
conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each
Lender of the details

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of any automatic conversion to Base Rate Loans described in the preceding
subsection. In the case of the initial Borrowing, each Lender shall make the amount of its Term
Loan available to the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than noon, New York time, on the Business Day specified in the Borrowing
Notice. Upon satisfaction of the applicable conditions set forth in Section 4.01, the
Administrative Agent shall make all funds so received available to the Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account of the Borrower on the
books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such
funds, in each case in accordance with instructions provided to the Administrative Agent by the
Borrower.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of the Interest Period for such Eurodollar Rate Loan. During the existence of
an Event of Default, no Term Loans may be converted to or continued as Eurodollar Rate Loans
without the consent of the Required Lenders, and the Required Lenders may demand that any or all of
the then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans. The
Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Eurodollar Rate Loan upon determination of such interest rate. The determination
of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence of manifest
error.

     (e) After giving effect to all Borrowings, all conversions of Term Loans from one Type to the
other, and all continuations of Term Loans as the same Type, there shall not be more than three (3)
Interest Periods in effect at any given time with respect to Term Loans.

     2.03 Prepayments. (a) Optional Prepayments. The Borrower may, upon delivery of a Repayment Notice to the
Administrative Agent, at any time or from time to time voluntarily prepay in whole or in part Term
Loans without premium or penalty; provided that (i) such notice must be received by the
Administrative Agent not later than noon, New York time, (A) three Business Days prior to any date
of prepayment of Eurodollar Rate Loans, and (B) the date of prepayment of Base Rate Loans; (ii) any
prepayment of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a
principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each such
notice shall specify the date and amount of such prepayment and the Type(s) of Term Loans to be
prepaid. The Administrative Agent will promptly notify each Lender of its receipt of each such
notice, and of such Lender’s Pro Rata Share of such prepayment. If such notice is given by the
Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05. Each such prepayment shall be applied to the Term Loans of the Lenders
in accordance with their respective Pro Rata Shares.

     (b) Mandatory Prepayments from Net Cash Proceeds.

     (i) All Net Cash Proceeds received by the Borrower or any Subsidiary from any Material
Disposition shall, after mandatory application pursuant to Section 2.04(c) of the First Lien
Credit Agreement, be reborrowed in the maximum amount permitted consistent with borrowing
base availability under the First Lien Credit Agreement and the terms hereof and such

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reborrowed amount shall be applied to pay any amounts due under Section 2.03(d) and to
prepay outstanding Term Loans; provided that the borrowing base under the First Lien Credit
Agreement remains conforming (that is, there is no resulting borrowing base deficiency)
after taking into account the Material Disposition and the reborrowing; and provided,
further, that after taking the Material Disposition into account, any corresponding
reduction in the borrowing base under the First Lien Credit Agreement, and the contemplated
reborrowing, there is at least $20,000,000 of availability under the First Lien Credit
Agreement borrowing base.

     (ii) If Net Cash Proceeds are received by the Borrower from the Securities Offering,
the Term Loans shall be prepaid by the Borrower in full within three (3) Business Days after
the close of the Securities Offering.

     (iii) If Net Cash Proceeds are received by the Borrower from the Take-Out Financing,
the Term Loans shall be prepaid by the Borrower in full immediately after receipt of such
Net Cash Proceeds.

     (c) Prepayment Upon Change of Control. The Term Loans shall be repaid in full upon
the occurrence of a Change of Control.

     (d) Prepayments: Interest/Consequential Loss. All prepayments under this Section 2.03
shall be made together with accrued interest to the date of such prepayment on the principal amount
prepaid and any amounts due under Section 3.05.

     2.04 Repayment of Term Loans. The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount
of Term Loans outstanding on such date, together with all accrued and unpaid interest and fees.

     2.05 Interest. (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate
Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a
rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate and
(ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate.

     (b) If any amount payable by Borrower under any Loan Document is not paid when due (after the
expiration of any applicable grace periods), whether at stated maturity, by acceleration or
otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by applicable Laws.
Furthermore, while any Event of Default exists or after acceleration (i) the Borrower shall pay
interest on the principal amount of all outstanding Obligations at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by applicable Law, and
(ii) accrued and unpaid interest on past due amounts (including interest on past due interest, to
the extent allowed by Law) shall be due and payable upon demand.

     (c) Interest on each Term Loan shall be due and payable in arrears on each Interest Payment
Date applicable thereto and at such other times as may be specified herein. Interest hereunder
shall be

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due and payable in accordance with the terms hereof before and after judgment, and before
and after the commencement of any proceeding under any Debtor Relief Law.

     (d) If the designated rate applicable to any Borrowing exceeds the Maximum Rate, the rate of
interest on such Borrowing shall be limited to the Maximum Rate, but any subsequent reductions in
such designated rate shall not reduce the rate of interest thereon below the Maximum Rate until the
total amount of interest accrued thereon equals the amount of interest which would have accrued
thereon if such designated rate had at all times been in effect. In the event that at maturity
(stated or by acceleration), or at final payment of the Term Loans, the total amount of interest
paid or accrued is less than the amount of interest which would have accrued if such designated
rates had at all times been in effect, then, at such time and to the extent permitted by Law, the
Borrower shall pay an amount equal to the difference between (a) the lesser of the amount of
interest which would have accrued if such designated rates had at all times been in effect and the
amount of interest which would have accrued if the Maximum Rate had at all times been in effect,
and (b) the amount of interest actually paid or accrued on the Term Loans.

     2.06 Fees. On the Closing Date, the Borrower shall pay certain fees to the Arranger and
Administrative Agent to be shared among them and the Borrower shall pay certain fees to the
Administrative Agent for the Administrative Agent’s own account as an administrative agency fee, in
the amounts and at the times specified in the letter agreement dated June 20, 2008 (the
“Agent/Arranger Fee Letter”), between the Borrower and Royal Bank of Canada. Such fees shall be
fully earned when paid and shall be nonrefundable for any reason whatsoever. Additionally,
Borrower shall pay to the Administrative Agent for the Administrative Agent’s own account the fees in the amounts and on the dates specified
in the Agent/Arranger Fee Letter.

     2.07 Computation of Interest and Fees. Computation of interest on Base Rate Loans and all fees
shall be calculated on the basis of a year of 365 or 366 days, as the case may be, and the actual
number of days elapsed. Computation of interest on Eurodollar Rate Loans shall be calculated on
the basis of a year of 360 days and the actual number of days elapsed, which results in a higher
yield to the payee thereof than a method based on a year of 365 or 366 days. Interest shall accrue
on each Term Loan for the day on which the Term Loan is made, and shall not accrue on a Term Loan,
or any portion thereof, for the day on which the Term Loan or such portion is paid; provided that
any Term Loan that is repaid on the same day on which it is made shall bear interest for one day.

     2.08 Evidence of Debt. The Borrowings made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent in the ordinary
course of business. The accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Term Loans made by the Lenders to
the Borrower and the interest and payments thereon. Any failure so to record or any error in doing
so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay
any amount owing with respect to the Term Loans. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of such Lender shall control. Upon the request
of any Lender made through the Administrative Agent, such Lender’s Term Loans may be evidenced by
one or more Term Notes. Each Lender may attach schedules to its Term Note(s) and endorse thereon
the date, Type (if applicable), amount and maturity of the applicable Term Loans and payments with
respect thereto.

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     2.09 Payments Generally.

     (a) All payments to be made by the Borrower shall be made without condition or deduction for
any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein,
all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than noon, New York time, on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Pro Rata
Share (or other applicable share as provided herein) of such payment in like funds as received by
wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent
after noon, New York time, shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue.

     (b) Subject to the definition of “Interest Period,” if any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the next following
Business Day, and such extension of time shall be reflected in computing interest or fees, as the
case may be.

     (c) If no Event of Default exists and if no order of application is otherwise specified in the
Loan Documents, payments and prepayments of the Obligations shall be applied first to fees, second
to accrued interest then due and payable on the Term Loans, and then to the remaining Obligations
in the order and manner as Borrower may direct.

     (d) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully the Obligations, or if an Event of Default exists, any payment or prepayment
shall be applied in the following order: (i) to the payment of enforcement expenses incurred by the
Administrative Agent, including Attorney Costs; (ii) to the ratable payment of all other fees,
expenses, indemnities and other amounts (including amounts payable under Article III) for which
the Administrative Agent or Lenders have not been paid or reimbursed in accordance with the Loan
Documents (as used in this Section 2.09(d)(ii), a “ratable payment” for any Lender or the
Administrative Agent shall be, on any date of determination, that proportion which the portion of
the total fees, expenses, indemnities and other amounts owed to such Lender or the Administrative
Agent bears to the total aggregate fees, expenses and indemnities owed to all Lenders and the
Administrative Agent on such date of determination); (iii) to the ratable payment of accrued and
unpaid interest on the Term Loans and the Outstanding Amount of Obligations under Lender Hedging
Agreements (it being understood that for purposes of this clause (iii) the Outstanding Amount of
Obligations under Lender Hedging Agreements refers only to payments owing pursuant to Section 2(a)
of the 2002 Master Agreement form promulgated by the ISDA (or equivalent type payment obligation
if some other form of Swap Contract is in effect)(as used in this Section 2.09(d)(iii), “ratable
payment” means, for any Lender (or Lender Affiliate, in the case of Lender Hedging Agreements), on
any date of determination, that proportion which the accrued and unpaid interest on the Term Loans
and the Outstanding Amount of Obligations under Lender Hedging Agreements owed to such Lender (or
Lender Affiliate, in the case of Lender Hedging Agreements) bears to the total accrued and unpaid
interest on the Term Loans and the Outstanding Amount of Obligations under Lender Hedging
Agreements owed to all Lenders (and Lender Affiliates, in the case of Lender Hedging Agreements));
(iv) to the ratable payment of the Term Loans and the Outstanding Amount of Obligations under
Lender Hedging Agreements (it being understood that for purposes of this clause (iv) the
Outstanding Amount of Obligations under Lender Hedging Agreements refers to payments owing in

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connection with an Early Termination Date as defined in the 2002 Master Agreement form promulgated
by the ISDA (or equivalent type payment obligation if some other form of Swap Contract is in
effect)(as used in this Section 2.09(d)(iv), “ratable payment” means for any Lender (or Lender
Affiliate, in the case of Lender Hedging Agreements), on any date of determination, that proportion
which the Term Loans and the Outstanding Amount of Obligations under Lender Hedging Agreements owed
to such Lender (or Lender Affiliate, in the case of Lender Hedging Agreements) bears to the Term
Loans and the Outstanding Amount of Obligations under Lender Hedging Agreements owed to all
Lenders)(and Lender Affiliates, in the case of Lender Hedging Agreements)); and (v) to the payment
of the remaining Obligations, if any, in the order and manner the Required Lenders deem
appropriate.

     (e) Unless the Borrower or any Lender has notified the Administrative Agent prior to the date
any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower
or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume
that the Borrower or such Lender, as the case may be, has timely made such payment and may (but
shall not be so required to), in reliance thereon, make available a corresponding amount to the
Person entitled thereto. If and to the extent that such payment was not in fact made to the
Administrative Agent in immediately available funds, then:

     (i) if the Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the Administrative
Agent in immediately available funds, at the Federal Funds Rate from time to time in effect;
and

     (ii) if any Lender failed to make such payment, such Lender shall forthwith on demand
pay to the Administrative Agent the amount thereof in immediately available funds, together
with interest thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by the
Administrative Agent (the “Compensation Period”) at a rate per annum equal to the Federal
Funds Rate from time to time in effect. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Term Loan, included in
the applicable Borrowing. If such Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent may make a demand therefor
upon the Borrower, and the Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the Compensation Period at a rate per annum equal to the
rate of interest applicable to the applicable Borrowing. Nothing herein shall be deemed to
relieve any Lender from its obligation to fulfill its Term Loan Commitment or to prejudice
any rights which the Administrative Agent or the Borrower may have against any Lender as a
result of any default by such Lender hereunder.

     A notice of the Administrative Agent to any Lender with respect to any amount owing under this
subsection (e) shall be conclusive, absent manifest error.

     (f) If any Lender makes available to the Administrative Agent funds for the Term Loan to be
made by such Lender as provided in the foregoing provisions of this Article II, and the conditions
to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with
the terms

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hereof, the Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

     (g) The obligations of the Lenders hereunder to make Term Loans are several and not joint.
The failure of any Lender to make the Term Loan on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Term Loan.

     (h) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Term
Loan in any particular place or manner or to constitute a representation by any Lender that it has
obtained or will obtain the funds for any Term Loan in any particular place or manner.

     2.10 Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Term Loans made by it, any payment (whether voluntary, involuntary,
through the exercise of any right of set-off, or otherwise) in excess of its ratable share (or
other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent, of such fact, and (b) purchase from the other Lenders such participations in
the Term Loans made by them, as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Term Loan or such participations,
as the case may be, pro rata with each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender, such purchase shall to that
extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price
paid therefor, together with an amount equal to such paying Lender’s ratable share (according to
the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total
amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. The Borrower agrees that any
Lender so purchasing a participation from another Lender may, to the fullest extent permitted by
law, exercise all its rights of payment (including the right of set-off, but subject to Section
10.09) with respect to such participation as fully as if such Lender were the direct creditor of
the Borrower in the amount of such participation. The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of participations
purchased under this Section and will in each case notify the Lenders following any such purchases
or repayments. Each Lender that purchases a participation pursuant to this Section shall from and
after such purchase have the right to give all notices, requests, demands, directions and other
communications under this Agreement with respect to the portion of the Obligations purchased to the
same extent as though the purchasing Lender were the original owner of the Obligations purchased.

     2.11 Pari Passu Lien Securing Lender Hedging Obligations. All Obligations arising under the
Loan Documents, including, without limitation, Obligations under this Agreement and Obligations
under any Lender Hedging Agreement (but not Indebtedness of any Loan Party owing to any non-Lender
or non-Lender Affiliate which enters into a Swap Contract with the Borrower or any other Loan
Party), shall be secured pari passu by the Collateral. No Lender or any Affiliate of a Lender
shall have any voting rights under any Loan Document as a result of the existence of obligations
owed to it under any such Lender Hedging Agreement.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

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     3.01 Taxes.

     (a) Any and all payments by the Borrower to or for the account of the Administrative Agent or
any Lender under any Loan Document shall be made free and clear of and without deduction for any
and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto; excluding, in the case
of the Administrative Agent and each Lender, taxes imposed on or measured by its net income
(including any franchise taxes imposed on or measured by its net income), by the jurisdiction (or
any political subdivision thereof) under the Laws of which the Administrative Agent or such Lender,
as the case may be, is organized or maintains its Lending Office (all such non-excluded taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as “Taxes”). If the Borrower shall be required by any
Laws to deduct any Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section), each of the Administrative Agent and such Lender receives an amount equal to
the sum it would have received had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable Laws.

     (b) In addition, the Borrower agrees to pay any and all present or future stamp, mortgage,
court or documentary taxes and any other excise or property taxes or charges or similar levies
which arise from any payment made under any Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, any Loan Document
(hereinafter referred to as “Other Taxes”).

     (c) If the Borrower shall be required to deduct or pay any Taxes or Other Taxes from or in
respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, the
Borrower shall also pay to the Administrative Agent (for the account of such Lender) or to such
Lender, at the time interest is paid, such additional amount that such Lender specifies as
necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on
or measured by net income) such Lender would have received if such Taxes or Other Taxes had not
been imposed.

     (d) The Borrower agrees to indemnify the Administrative Agent and each Lender for (i) the full
amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such
Lender, and (ii) amounts payable under Section 3.01(c) and (iii) any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto, except to the extent
such sums are determined by a court of competent jurisdiction by final and non-appealable judgment
to have resulted from the gross negligence or willful misconduct of the Administrative Agent or
such Lender, as applicable. Neither the Administrative Agent nor any Lender shall be entitled to
receive any payment with respect to any indemnity claim under this Section 3.01 with respect to
Taxes or Other Taxes that are incurred or accrued more than 180 days prior to the date such party
gives notice and demand with respect thereto to the Borrower. Payment under this subsection (d)
shall be made within 30 days after the date the Lender or the Administrative Agent makes a demand
therefor.

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     (e) As soon as practicable after any payment of indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

     (f) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the Law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty
to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan
Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or
times prescribed by applicable Law or reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation prescribed by applicable law, or
reasonably requested by Borrower, as will permit such payments to be made without withholding or at
a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

     Without limiting the generality of the foregoing, in the event that the Borrower is resident
for tax purposes in the United States, any Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party;

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI;

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN; or

     (iv) any other form prescribed by applicable Law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable Law to permit the Borrower to
determine the withholding or deduction required to be made.

     (f) If the Administrative Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower
or with respect to which the Borrower has paid additional amounts pursuant to this Section, it
shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity
payments made, or

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additional amounts paid, by the Borrower under this Section with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or such Lender, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided that
the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This subsection shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to its taxes that it
deems confidential) to the Borrower or any other Person.

     3.02 Illegality. If any Lender determines that any Change in Law has made it unlawful for any
Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
materially restricts the authority of such Lender to purchase or sell, or to take deposits of,
Dollars in the applicable offshore Dollar market, or to determine or charge interest rates based
upon the Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to
convert Base Rate Loans to Eurodollar Rate Loans shall be
suspended until such Lender notifies the Administrative Agent and the Borrower that the
circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the
Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or,
if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on the
last day of the Interest Period thereof, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower shall
also pay interest on the amount so prepaid or converted and all amounts due under Section 3.05 in
accordance with the terms thereof due to such prepayment or conversion. Each Lender agrees to
designate a different Lending Office if such designation will avoid the need for such notice and
will not, in the reasonable judgment of such Lender, otherwise be materially disadvantageous to
such Lender.

     3.03 Inability to Determine Rates. If the Administrative Agent determines in connection with any
request for a conversion or continuation of a Eurodollar Rate Loan that (a) Dollar deposits are not
being offered to banks in the applicable offshore Dollar market for the applicable amount and
Interest Period of such Eurodollar Rate Loan, or adequate and reasonable means do not exist for
determining the Eurodollar Rate for such Eurodollar Rate Loan, or (b) if the Required Lenders
determine and notify the Administrative Agent that the Eurodollar Rate for such Eurodollar Rate
Loan does not adequately and fairly reflect the cost to the Lenders of funding such Eurodollar Rate
Loan, then the Administrative Agent will promptly notify the Borrower and all Lenders. Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until
the Administrative Agent revokes such notice. Upon receipt of such notice, the Borrower may revoke
any pending request for a conversion or continuation of Eurodollar Rate Loans or, failing that,
will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in
the amount specified therein.

     3.04 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.

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     (a) If any Lender determines that as a result of a Change in Law, or such Lender’s compliance
therewith, there shall be any increase in the cost to such Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans or a reduction in the amount received or receivable by
such Lender in connection with any of the foregoing (excluding for purposes of this subsection (a)
any such increased costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to
which Section 3.01 shall govern), (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any political subdivision
of either thereof under the Laws of which such Lender is organized or has its Lending Office, and
(iii) reserve requirements contemplated by Section 3.04(c) utilized, as to Eurodollar Rate Loans,
in the determination of the Eurodollar Rate), then from time to time upon demand of such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender
such additional amounts as will compensate such Lender for such increased cost or reduction.

     (b) If any Lender determines a Change in Law has the effect of reducing the rate of return on
the capital of such Lender or any corporation controlling such Lender as a consequence of such
Lender’s obligations hereunder (taking into consideration its policies with respect to capital
adequacy and such Lender’s desired return on capital), then from time to time upon demand of such Lender (with a
copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such reduction.

     (c) The Borrower shall pay to each Lender, as long as such Lender shall be required under
regulations of the Board to maintain reserves with respect to liabilities or assets consisting of
or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional costs on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual
costs of such reserves allocated to such Term Loan by such Lender (as determined by such Lender in
good faith, which determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Term Loan; provided the Borrower shall have received at least
15 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from
such Lender. If a Lender fails to give notice 15 days prior to the relevant Interest Payment Date,
such additional interest shall be due and payable 15 days from receipt of such notice.

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

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

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     (a) any continuation, conversion, payment or prepayment of any Term Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Term Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Term Loan) to prepay, borrow, continue or convert any Term Loan other than a Base Rate Loan on the
date or in the amount notified by the Borrower; including any loss of anticipated profits and any
loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain
such Term Loan or from fees payable to terminate the deposits from which such funds were obtained.
The Borrower shall also pay any customary administrative fees charged by such Lender in connection
with the foregoing.

     For purposes of calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Term Loan by a matching deposit or other borrowing in the applicable
offshore Dollar interbank market for a comparable amount and for a comparable period, whether or
not such Eurodollar Rate Loan was in fact so funded.

     3.06 Matters Applicable to all Requests for Compensation. A certificate of the Administrative
Agent or any Lender claiming compensation under this Article III and setting forth the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error.
In determining such amount, the Administrative Agent or such Lender may use any reasonable
averaging and attribution methods.

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive payment in
full of all the Obligations.

     3.08 Mitigation Obligations. If any Lender requests compensation under Section 3.04, or if the
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 3.01, then such Lender shall use reasonable efforts
to designate a different lending office for funding or booking its Term Loans or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 3.01 or Section 3.04, as the case may be, in the future and (ii) would
not subject such Lender to any un-reimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

ARTICLE IV.

CONDITIONS PRECEDENT TO BORROWING

     4.01 Conditions Precedent. The obligation of each Lender to fund its Term Loan hereunder is
subject to satisfaction of the following conditions precedent:

     (a) The Acquisition will contemporaneously close with the funding of the Term Loans hereunder.

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     (b) The Arranger and the Administrative Agent shall have satisfactorily completed their due
diligence relating to the Acquisition.

     (c) The Administrative Agent’s receipt of the following, each of which shall be originals or
facsimiles (followed promptly by originals) and unless otherwise specified, each properly executed
by a Responsible Officer of the signing Loan Party or other Person party thereto, each dated the
Closing Date (or, in the case of certificates of governmental officials, a recent date before the
Closing Date), and each in form and substance reasonably satisfactory to the Administrative Agent
and its legal counsel:

     (i) a Borrowing Notice and executed counterparts dated as of the Closing Date of this
Agreement, the MLP Guaranty, and the other Collateral Documents including, without
limitation, the Collateral Documents covering all assets of each Loan Party including,
without limitation, the Oil and Gas Properties and related Collateral, and all other Loan
Documents sufficient in number for distribution to the Administrative Agent each Lender and
Borrower;

     (ii) Term Notes executed by the Borrower in favor of each Lender requesting a Term
Note, each Term Note in a principal amount equal to such Lender’s Term Loan Commitment, and
each Term Note dated as of the Closing Date;

     (iii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of officers of each Loan Party as the Administrative Agent may require to
establish the identities of and verify the authority and capacity of each officer thereof
authorized to act in connection with this Agreement and the other Loan Documents to which
such Loan Party is a party;

     (iv) such evidence as the Administrative Agent may reasonably require to verify that
each Loan Party is duly organized or formed, validly existing, and in good standing in the
jurisdiction of its organization and is qualified to engage in business in each jurisdiction
where its ownership, lease or operation of properties or the conduct of its business
requires such qualification;

     (v) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the representations and warranties contained in Article V are true and correct in all
respects on and as of the Closing Date, (B) as of the Closing Date a waiver has been
received from the requisite lenders party to the First Lien Credit Agreement to permit the
borrowings, guarantees and security contemplated under this Agreement and that the borrowing
base under the First Lien Credit Agreement has been increased as of the Closing Date to no
less than $190,000,000, (C) no Default or Event of Default will exist immediately after
closing and the initial Borrowing under this Agreement, (D) since December 31, 2007 there
has occurred no material adverse change in (x) the business, assets, liabilities (actual or
contingent), operations or financial condition of the Borrower and Guarantors, taken as a
whole, or (y) any of the businesses, assets or liabilities acquired or assumed or being
acquired or assumed by the Borrower, (E) that as of the Closing Date there are no
environmental or legal issues affecting any Loan Party or any of the Collateral which could
reasonably be expected to have a Material Adverse Effect, (F) all material governmental and
third party approvals necessary or, in the discretion of the Administrative Agent, advisable
in connection with the financing contemplated by this Agreement and the

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continuing operation
of the Borrower and its Subsidiaries have been obtained and are in full force and effect,
and (G) no action, suit, investigation or proceeding is pending or, to the knowledge of such
Responsible Officer, threatened in any court or before any arbitrator or governmental
authority by or against the Borrower, any Guarantor, the General Partner, or any of their
respective properties, that (x) could reasonably be expected to materially and adversely
affect the Borrower and the Guarantors, taken as a whole, or (z) seeks to affect or pertains
to any transaction contemplated hereby or the ability of the Borrower or any Guarantor to
perform its obligations under the Loan Documents;

     (vi) a Compliance Certificate of a Responsible Officer of the Borrower using a
calculation methodology approved by the Arranger demonstrating compliance with all financial
covenants specified in Section 7.16 on a pro forma rolling four quarter basis for the period
ending June 30, 2008 (or if unavailable for that period, for the period ending March 31,
2008) giving pro forma effect to the Acquisition;

     (vii) a certificate of a Responsible Officer of the Borrower (a) as to the satisfaction
of all conditions specified in this Section 4.01, (b) providing a five-year financial
forecast for the Borrower and its Subsidiaries on a consolidated basis, (c) certifying that
the Borrower has entered into Swap Contracts covering at least 80% of estimated net
production from Proved Developed Producing Reserves of the Acquisition Properties for the
calendars years 2009, 2010 and 2011 and attaching copies of such Swap Contracts, and (d)
providing such other financial information as the Administrative Agent may reasonably
request;

     (viii) a certificate of a Responsible Officer of the Borrower certifying that to the
Responsible Officer’s knowledge neither the Borrower and its Subsidiaries on a consolidated
basis nor the MLP and its Subsidiaries on a consolidated basis are “insolvent” as such term
is used and defined in (i) the United States Bankruptcy Code or (ii) the New York Uniform
Fraudulent Transfer Act;

     (ix) the Intercreditor Agreement executed by all parties thereto; and

     (x) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent reasonably may require.

     (d) The Arranger’s receipt of a satisfactory reserve report dated as of May 1, 2008 prepared
by DeGolyer & MacNaughton covering the Acquisition Properties.

     (e) An opinion from counsel to each Loan Party and the General Partner, in form and substance
satisfactory to the Administrative Agent and its counsel, including where advisable local counsel.

     (f) Any fees due and payable at the Closing Date shall have been paid including, without
limitation, payment of fees and expenses pursuant to the Agent/Arranger Fee Letter.

     (g) The Borrower shall have paid Attorney Costs of the Administrative Agent to the extent
invoiced prior to, or on, the Closing Date.

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     (h) The Administrative Agent’s receipt of Collateral Documents, executed by each Company that
has assets or conducts business, in appropriate form for recording, where necessary, together with:

     (i) such Lien searches as the Administrative Agent shall have reasonably requested, and
such termination statements or other documents as may be necessary to confirm that the
Collateral is subject to no other Liens (other than Permitted Liens) in favor of any
Persons;

     (ii) funds sufficient to pay any filing or recording tax or fee in connection with any
and all UCC-1 financing statements and fees associated with the filing of the Mortgages,
including any mortgage tax;

     (iii) evidence that the Administrative Agent has been named as mortgagee or additional
insured under all policies of casualty insurance pertaining to the Collateral and all
general liability policies;

     (iv) certificates evidencing all of the issued and outstanding shares of capital stock,
partnership interests, or membership interests pledged pursuant thereto, which certificates
shall in each case be accompanied by undated stock powers duly executed in blank, or, if any
securities pledged pursuant thereto are uncertificated securities, confirmation and evidence
satisfactory to the Administrative Agent that the security interest in such uncertificated
securities has been transferred to and perfected (on a second-priority basis) by the
Administrative Agent for the benefit of the Lenders in accordance with the Uniform
Commercial Code; provided, however, the Administrative Agent’s security interest may be
perfected via a bailment arrangement with the First Lien Agent pursuant to the provisions of
the Intercreditor Agreement; and

     (v) evidence that all other actions reasonably necessary or, in the opinion of the
Administrative Agent or the Lenders, desirable to perfect and protect the second-priority
Lien created by the Collateral Documents (except to the extent otherwise permitted
hereunder), and to enhance the Administrative Agent’s ability to preserve and protect its
interests in and access to the Collateral, have been taken.

     (i) The Administrative Agent’s receipt (with sufficient copies for all Lenders) of the
certificate of formation of the Borrower, together with all amendments, certified by an appropriate
governmental officer in its jurisdiction of organization, as well as any other information required
by Section 326 of the USA Patriot Act or necessary for the Administrative Agent or any Lender to
verify the identity of Borrower as required by Section 326 of the USA Patriot Act.

     The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and
such notice shall be conclusive and binding.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     Each of the Borrower and the MLP represents and warrants to the Administrative Agent and the
Lenders that:

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     5.01 Existence; Qualification and Power; Compliance with Laws. As of the Closing Date, the
Borrower is a direct wholly-owned subsidiary of the MLP and Quest Parent owns at least 51% of the
General Partner. The General Partner and each Loan Party (a) is a corporation, partnership or
limited liability company duly organized or formed, validly existing and in good standing under the
Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and
authority and all governmental licenses, authorizations, consents and approvals to own its assets,
carry on its business and to execute, deliver, and perform its obligations under the Loan Documents
to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws
of each jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification or license, except in each case referred to in clause (a), (b)
or (c), to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect, (d) is not a Person (I) whose property or interest in property is blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (66 Fed. Reg. 49079 (2001)), or (II) who engages in any dealings or transactions
prohibited by Section 2 of such executive order, or is otherwise associated with
any such Person in any manner violative of Section 2, or (III) on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S.
Department of Treasury’s Office of Foreign Assets Control regulation or executive order, and (f) is
in compliance, in all material respects, with (A) the Trading with the Enemy Act, as amended, and
each of the foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating
thereto, and (B) the Uniting And Strengthening America By Providing Appropriate Tools Required To
Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Term
Loans will be used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party, have been duly authorized by all necessary
corporate or other organizational action, and do not and will not: (a) contravene the terms of any
of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention
of, or the creation of any Lien under, any material Contractual Obligation (other than the Liens
created under the Loan Documents) to which such Person is a party or any order, injunction, writ or
decree of any Governmental Authority to which such Person or its property is subject; or (c)
violate any Law except in each case referred to in clause (b) or (c), to the extent that any such
conflict, breach, contravention, creation or violation could not reasonably be expected to have a
Material Adverse Effect.

     5.03 Governmental Authorization. No approval, consent, exemption, authorization, or other action
by, or notice to, or filing with, any Governmental Authority, except for the filings in connection
with the granting or continuation of security interests pursuant to the Collateral Documents or
filings to maintain the existence, foreign qualification and good standing of the General Partner
and the Loan Parties, is necessary or required in connection with the execution, delivery or
performance by any Loan Party of this Agreement or any other Loan Document.

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     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its 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.

     5.05 Financial Statements; No Material Adverse Effect.

     (a) The financial statements delivered to the Lenders pursuant to Sections 6.01(a) and (b)
were prepared in accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein. Such financial statements will: (i) fairly
present in all material respects the financial condition of the MLP and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby in accordance in all
material respects with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein, subject in the case of quarterly financial statements delivered
pursuant to Section 6.01(b) to year-end audit adjustments and the absence of footnotes; and (ii)
show all material indebtedness and other liabilities of the MLP and its Subsidiaries as of the date
thereof required to be reflected therein in accordance with GAAP consistently applied throughout
the period covered thereby.

     (b) Since December 31, 2007, there has been no event or circumstance that has or could
reasonably be expected to have a Material Adverse Effect.

     5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the
knowledge of the MLP or the Borrower, threatened or contemplated in writing, at law, in equity, in
arbitration or before any Governmental Authority, by or against the Borrower or any Borrower
Affiliate or against any of their properties or revenues which (a) seek to affect or pertain to
this Agreement or any other Loan Document, the borrowing of Term Loans or the use of the proceeds
thereof, or (b) could reasonably be expected to have a Material Adverse Effect.

     5.07 No Default. Neither the Borrower nor any Borrower Affiliate is in default under or with
respect to any Contractual Obligation which could be reasonably expected to have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing or would result from the
consummation of the transactions contemplated by this Agreement or any other Loan Document. There
is no default under any Material Agreement, which could reasonably be expected to have a Material
Adverse Effect.

     5.08 Title; Liens; Priority of Liens. Each Loan Party (a) has Marketable Title in fee simple to,
or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its
business, except for such defects in title as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect and that such ownership includes record
title to an undivided net revenue interest in the production from each such Oil and Gas Property
that is not less than, as well as an undivided working interest in each Oil and Gas Property that
is not greater than (unless there is a corresponding increase in the net revenue interest
attributed to such party therein), the net revenue interest therein and the working interest
therein, respectively, reflected on the Mortgage encumbering such Oil

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and Gas Property, subject to
the limitations and qualifications set forth in such Mortgage (or on any supplement, amendment or
modification thereof) or new Mortgage executed in connection with any Oil and Gas Property that
becomes Collateral after the Closing Date, and (b) owns the personal property granted by it as
Collateral under the Collateral Documents, free and clear of any and all Liens in favor of third
parties other than Permitted Liens. Except as reflected on the Mortgage encumbering such Oil and
Gas Properties, all such shares of production which the Borrower and each other applicable Loan
Party is entitled to receive, and shares of expenses which the Borrower and each other applicable
Loan Party is obligated to bear, are not subject to change, except for changes attributable to
future elections by the Borrower and each other applicable Loan Party not to participate in
operations proposed pursuant to customary forms of applicable joint operating agreements, and
except for changes attributable to changes in participating areas under any
federal units wherein participating areas may be formed, enlarged or contracted in accordance with
the rules and regulations of the applicable Governmental Authority. Upon the proper filing of UCC
financing statements, the recording of the Mortgages, and the taking of the other actions required
by the Administrative Agent, the Liens granted in property pursuant to the Collateral Documents
will constitute valid and enforceable first, prior and perfected Liens on the Collateral in favor
of the Administrative Agent, for the ratable benefit of the Lenders, subject to Permitted Liens.
The property of the Loan Parties is subject to no Liens, other than Permitted Liens.

     5.09 Environmental Compliance. The MLP and the Borrower have reasonably concluded that (a) there
are no claims alleging potential liability under or responsibility for violation of any
Environmental Law except any such claims that could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (b) there is no environmental condition
or circumstance, such as the presence or Release of any Hazardous Substance, on any property owned,
operated or used by the Borrower or any Borrower Affiliate that could reasonably be expected to
have a Material Adverse Effect, and (c) there is no violation by the Borrower or any Borrower
Affiliate of any Environmental Law, except for such violations as could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of the Borrower and the Borrower Affiliates are insured with
financially sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts, with such deductibles and covering such risks as are consistent with past practice.

     5.11 Taxes. The Borrower and the Borrower Affiliates have filed all federal, state and other
material tax returns and reports required to be filed, and have paid all federal, state and other
material taxes, assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those which are being
contested in good faith by appropriate proceedings and for which adequate reserves have been
provided in accordance with GAAP or to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Effect. To the knowledge of the Borrower, there is no
proposed tax assessment against any Borrower Affiliate or any of their respective Subsidiaries that
would, if made, have a Material Adverse Effect.

     5.12 ERISA Compliance. The representations and warranties set forth in this Section 5.12 shall
apply only if the Borrower or an ERISA Affiliate establishes a Plan.

     (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other federal or state Laws except to the extent that noncompliance could not

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reasonably be expected to have a Material Adverse Effect. Each Plan that is intended to qualify
under Section 401(a) of the Code has received a favorable determination letter from the IRS, an
application for such a letter is currently being processed by the IRS with respect thereto or the
Plan utilizes a prototype form plan document and the prototype plan’s sponsor has received a
favorable opinion or advisory letter from the IRS upon which the Company may rely, and, to the
knowledge of the MLP and the Borrower, nothing has occurred which would prevent, or cause the loss
of, such qualification, except to the extent that nonqualification could not reasonably be expected
to have a Material Adverse Effect. The Borrower
and each ERISA Affiliate have made all required contributions to each Plan subject to Section
412 of the Code, and no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan, except to the extent
that nonpayment could not reasonably be expected to have a Material Adverse Effect.

     (b) There are no pending or, to the knowledge of the MLP or the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. Neither the MLP nor the Borrower nor any
ERISA Affiliate has engaged in or knowingly permitted to occur and, to the Borrower’s and the MLP’s
knowledge, no other party has engaged in or permitted to occur any prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur that could reasonably
be expected to have a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension
Liability that (when aggregated with any other Unfunded Pension Liability) has resulted or could
reasonably be expected to result in a Material Adverse Effect; and (iii) neither the Borrower nor
any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c)
of ERISA that could reasonably be expected to have a Material Adverse Effect.

     5.13 Subsidiaries and other Investments. Except as set forth on Schedule 5.13, as of the Closing
Date, the Borrower will have no Subsidiaries and will have no equity Investment in any other
Person. From and after the Closing Date, the MLP has no Subsidiaries other than the Borrower and
the Borrower’s Subsidiaries and entities acquired or formed as permitted under Section 7.02.

     5.14 Margin Regulations; Investment Company Act; Use of Proceeds.

     (a) Neither the Borrower nor any Borrower Affiliate is engaged nor will it engage, principally
or as one of its important activities, in the business of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the Board), or extending credit for the purpose of
purchasing or carrying margin stock.

     (b) Neither the Borrower nor any Borrower Affiliate, no Person controlling the Borrower or any
Borrower Affiliate, or any Subsidiary thereof is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

     (c) The Borrower will use all proceeds of Borrowing in the manner set forth in Section 6.12.

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     5.15 Disclosure; No Material Misstatements. All material factual information hereto furnished by
or on behalf of the MLP and Borrower in writing to the Administrative Agent or any Lender for
purposes of or in connection with this Agreement or any transaction contemplated hereby, as
modified or supplemented by other information so furnished, is true and accurate in all material
respects, and such information is not, or shall not be, as the case may be,
incomplete by omitting to state any material fact necessary to make such information, in light of
the circumstances under which it was made, not misleading. All estimates and projections delivered
to the Administrative Agent or any Lender were based upon information that was available at the
time such estimates or projections were prepared and believed to be correct and upon assumptions
believed to be reasonable at that time; however, the Borrower does not warrant that such estimates
and projections will ultimately prove to have been accurate.

     5.16 Location of Business and Offices. Each Loan Party’s (i) jurisdiction of organization, (ii)
organizational identification number, (iii) correct legal name, and (iv) principal place of
business and chief executive offices are as set froth in the Security Agreement from such Loan
Party.

     5.17 Compliance with Laws. Except with respect to Environmental Laws and Laws relating to taxes
and employee benefits (which are covered by Sections 5.09, 5.11 and 5.12, respectively), neither
the Borrower nor any Borrower Affiliate is in violation of any Laws, other than such violations
which could not, individually or collectively, reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Borrower Affiliate has received notice alleging any
noncompliance with any Laws, except for such noncompliance which no longer exists, or which
non-compliance could not reasonably be expected to have a Material Adverse Effect.

     5.18 Third Party Approvals. No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any party that is not a party to this Agreement is necessary or required
in connection with the execution, delivery or performance by any Loan Party of this Agreement or
any other Loan Document except where obtained or where the failure to receive such approval,
consent, exemption, authorization, or the failure to do such other action by, or provide such
notice could not reasonably be expected to have a Material Adverse Effect; and provided, however,
that the transfer of rights in certain Collateral consisting of rights under contracts to a
foreclosure purchaser may, in some instances, require the consent of third parties who have rights
in such Collateral.

     5.19 Solvency. Neither the Borrower and its Subsidiaries on a consolidated basis nor the MLP and
its Subsidiaries on a consolidated basis are “insolvent” as such term is used and defined in (i)
the United States Bankruptcy Code or (ii) the New York Uniform Fraudulent Transfer Act.

     5.20 Oil and Gas Leases. The Leases which constitute any part of the Oil and Gas Properties
are in full force and effect as to those portions thereof that comprise the Oil and Gas Properties,
except to the extent the failure to be in full force and effect could not reasonably be expected to
have a Material Adverse Effect.

     5.21 Oil and Gas Contracts. Except (a) as set out on Schedule 5.21 attached hereto, and (b)
as may subsequently occur and be disclosed by Borrower in the next Compliance Certificate delivered
by Borrower after such occurrence, neither Borrower nor any other Loan Party is obligated, by
virtue of any prepayment under any contract providing for the sale by Borrower or any other Loan
Party of

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Hydrocarbons which contains a “take-or-pay” clause or under any similar prepayment agreement or arrangement, including,
“gas balancing agreements”, to deliver a material amount of Hydrocarbons produced from the Oil and
Gas Properties at some future time without then or thereafter receiving full payment therefor
(i.e., in the case of oil, not in excess of sixty days, and in the case of gas, not in excess of
ninety days). Except (a) as set out on Schedule 5.21 attached hereto, and (b) as may subsequently
occur and be disclosed by Borrower in the next Compliance Certificate delivered by Borrower after
such occurrence, the Oil and Gas Properties are not subject to any contractual or other arrangement
for the sale of crude oil which cannot be canceled on ninety days’ (or less) notice, unless the
price provided for therein is equal to or greater than the prevailing market price in the vicinity.
To the best of the Borrower’s knowledge, the Oil and Gas Properties are not subject to any
regulatory refund obligation and no facts exist which might cause the same to be imposed.

     5.22 Producing Wells. All producing wells that constitute part of the Oil and Gas Properties
(a) have been, during all times that any such wells were operated by Borrower or its Affiliates,
and (b) to the knowledge of Borrower, have been at all other times, drilled, operated and produced
in conformity with all applicable Laws, are subject to no penalties on account of past production,
and are bottomed under and are producing from, and the well bores are wholly within, the Oil and
Gas Properties, or on Oil and Gas Properties which have been pooled, unitized or communitized with
the Oil and Gas Properties, except to the extent that any noncompliance with the representations
set out in this Section 5.22 would not have a Material Adverse Effect.

     5.23 Purchasers of Production. The names and business addresses of the Persons who (a) have
purchased any of Borrower’s or any other Loan Party’s interests in oil and gas produced from the
Oil and Gas Properties during the six calendar months preceding the Closing Date, and (b) as of the
Closing Date, are considered by Borrower or other Loan Party to be potential future purchasers of
Borrower’s interest in oil and gas produced from the Oil and Gas Properties, are identified on
Schedule 5.23 attached hereto.

     5.24 Swap Contracts. Schedule 5.24, as of the date hereof, and after the date hereof, each
supplemental Schedule 5.24 sets forth, a true and complete list of all Swap Contracts of each Loan
Party, the material terms thereof (including the type, term, effective date, termination date and
notional amounts or volumes), the net mark to market value thereof, all credit support agreements
relating thereto (including any margin required or supplied) and the counterparty to each such
agreement.

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Term Loan or other Obligation (other than contingent indemnity obligations and
obligations under Lender Hedging Agreements) shall remain unpaid or unsatisfied, each of the
Borrower and the MLP shall, and shall cause each of their Subsidiaries to:

     6.01 Financial Statements. Deliver to the Administrative Agent, in form and detail reasonably
satisfactory to the Administrative Agent and the Required Lenders (and the Administrative Agent
shall deliver to the Lenders):

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     (a) as soon as available, but in any event within 90 days after the end of each fiscal year of
the MLP (beginning with the 2008 fiscal year), consolidated balance sheets of the MLP and its
Subsidiaries as at the end of such fiscal year, and the related statements of income and cash flows
for such fiscal year (provided, that if the MLP is a public company, such financial statements
shall be required to be furnished no later than the date that the MLP is required to timely file
its annual report on Form 10-K or Form 10-KSB with the Securities Exchange Commission (taking into
account any extension of time available under Rule 12b-25 under the Securities Exchange Act of
1934)), setting forth in each case in comparative form the figures for the previous fiscal year of
the MLP, if any, all in reasonable detail, audited and accompanied by a report and opinion of
Murrell, Hall, McIntosh & Co., PLLP, or other independent certified public accountants reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared in accordance with
GAAP (except as otherwise noted herein) and shall not be subject to any qualifications or
exceptions as to the scope of the audit nor to any qualifications and exceptions not reasonably
acceptable to the Required Lenders; and

     (b) as soon as available, but in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the MLP, an unaudited consolidated balance sheet of
the MLP and its Subsidiaries as at the end of such fiscal quarter, and the related statements of
income and cash flows for such fiscal quarter and for the portion of the MLP’s fiscal year then
ended (provided, that if the MLP is a public company, such financial statements shall be required
to be furnished no later than the date that the MLP is required to timely file its quarterly report
on Form 10-Q or Form 10-QSB with the Securities Exchange Commission (taking into account any
extension of time available under Rule 12b-25 under the Securities Exchange Act of 1934)), setting
forth in each case in comparative form the figures for the corresponding fiscal quarter of the
previous fiscal year of the MLP and the corresponding portion of the previous fiscal year of the
MLP, if any, all in reasonable detail and certified by a Responsible Officer of the Borrower, as
fairly presenting in all material respects the financial condition, results of operations and cash
flows of the MLP and its Subsidiaries in accordance with GAAP (except as otherwise noted herein),
subject only to normal year-end audit adjustments and the absence of footnotes.

     6.02 Certificates; Other Information. Deliver to the Administrative Agent, in form and detail
reasonably satisfactory to the Administrative Agent and the Required Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Sections 6.01(a)
and (b), a duly completed Compliance Certificate in form of Exhibit C signed by a Responsible
Officer of the Borrower and a Responsible Officer of the MLP;

     (b) promptly upon request, copies of each annual report, proxy or financial statement or other
report or written communication sent to the equity owners of the MLP, and copies of all annual,
regular, periodic and special reports and registration statements which the MLP may file or be
required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the
Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative
Agent pursuant hereto;

     (c) copies of Material Agreements and any material amendment thereto; and

     (d) promptly, such additional information (that is in the possession of the Borrower or that
may be readily produced by the Borrower without undue effort or expense) regarding the business,
financial or corporate affairs of any Loan Party as the Administrative Agent, at the request
of any Lender,

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may from time to time reasonably request, which information may include copies of
any detailed audit reports, if any, management letters or recommendations submitted to the board of
directors or managers (or the audit committee of the board of directors or managers) of the MLP by
independent accountants in connection with the accounts or books of the MLP or any of its
Subsidiaries, or any audit of any of them.

     6.03 Notices. Promptly notify the Administrative Agent:

     (a) of the occurrence of any Default or Event of Default, as soon as possible but in any event
within ten (10) days after Borrower has knowledge thereof;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including any of the following events if such has resulted or could reasonably be
expected to result in a Material Adverse Effect: (i) breach or non-performance of, or any default
under, a Contractual Obligation of any Loan Party (including specifically of the Borrower under the
First Lien Credit Agreement); (ii) any litigation, investigation by or required by a Governmental
Authority, proceeding or suspension of licenses or permits between any Loan Party and any
Governmental Authority; and (iii) any dispute, litigation, investigation or proceeding involving
any Loan Party related to any Environmental Law;

     (c) of any litigation, investigation or proceeding known to and affecting the Borrower or any
Borrower Affiliate in which (i) the amount involved exceeds (individually or collectively)
$1,000,000, or (ii) injunctive relief or other relief is sought, which could be reasonably expected
to have a Material Adverse Effect;

     (d) of any material change in accounting policies or financial reporting practices by the
Borrower or the MLP; and

     (e) written notice at least ten (10) days before any proposed (A) relocation of any Loan
Party’s principal place of business or chief executive office, (B) change of any Loan Party’s name,
identity, or corporate, partnership or limited liability company structure, (C) relocation of the
place where the books and records concerning a Loan Party’s accounts are kept, (D) relocation of
any Loan Party’s Collateral (other than delivery of inventory in the ordinary course of business to
third party contractors for processing and sales of inventory in the ordinary course of business or
as permitted by any Loan Document) to a location not described on Annex A to the Security Agreement
to which such Loan Party is a party, and (E) change of any Loan Party’s jurisdiction of
organization or organizational identification number, as applicable.

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to therein and stating
what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant
to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement or
other Loan Document that have been breached.

     6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable (a) the Obligations, (b) all tax
liabilities, assessments and governmental charges or levies upon it or its properties or assets and
(c) all lawful claims which, if unpaid, would by law become a Lien upon its

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property; except, in
the case of clause (b) or (c), where (x) the validity thereof are being contested in good faith by
appropriate proceedings and (y) adequate reserves in accordance with GAAP are being maintained by
the appropriate Loan Party.

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its
legal existence and good standing under the Laws of the jurisdiction of its organization, except in
a transaction permitted by Sections 7.06 and 7.07, and (b) take all reasonable action to maintain
all rights, privileges, permits, licenses and franchises material to the conduct of its business,
except in a transaction permitted by Sections 7.06 and 7.07, except where the failure to do so in
each case could not reasonably be expected to have a Material Adverse Effect.

     6.06 Maintenance of Assets and Business. (a) Keep all property material to the conduct of its
business in good working order and condition (ordinary wear and tear excepted) and make all
necessary repairs thereto and replacements thereof; provided that no item of operating equipment
need be repaired or replaced if the Borrower shall determine in good faith that such action is not
necessary or desirable for the continued efficient and profitable operation of the business of the
Borrower and its Subsidiaries; (b) do all things necessary to obtain, renew, extend, and continue
in effect all Authorizations which may at any time and from time to time be necessary for the
operation of its business in compliance with applicable Law, except where the failure to so
maintain, renew, extend, or continue in effect could not reasonably be expected to have a Material
Adverse Effect; and (c) use the standard of care typical in the industry in the operation and
maintenance of its facilities.

     6.07 Maintenance of Insurance. (a) Maintain with responsible insurance companies insurance with
respect to its properties and business (including business interruption insurance) against such
casualties and contingencies and of such types and in such amounts as is customary in the case of
similar businesses and which is reasonably acceptable to the Administrative Agent and will (i)
furnish to the Administrative Agent on each anniversary of the Closing Date a certificate or
certificates of insurance from the applicable insurance company evidencing the existence of
insurance required to be maintained by this Agreement and the other Loan Documents and evidencing
that Administrative Agent is listed as mortgagee on property insurance (except as to properties
owned by Quest Parent or a Subsidiary of Quest Parent (other than the MLP and its Subsidiaries) and
the Administrative Agent and Lenders are additional insureds on liability insurance, and (ii) upon
request of the Administrative Agent, furnish to each Lender at reasonable intervals a certificate
of an Authorized Officer of the Borrower setting forth the nature and extent of all insurance
maintained in accordance with this Section.

     (b) (i) Except as the Administrative Agent may otherwise consent to in writing and except as
subject to the first-priority Lien rights granted to the First Lien Agent in connection with the
First Lien Credit Agreement, Borrower will, and will cause each of its Subsidiaries to, forthwith
upon receipt, transmit and deliver to the Administrative Agent, in the form received, all cash,
checks, drafts, chattel paper and other instruments or writings for the payment of money (properly
endorsed, where required, so that such items may be collected by the Administrative Agent) which
may be received by the Borrower at any time in full or partial payment of amounts due under any insurance policy in an amount in
excess of $1,000,000. Except as the Administrative Agent may otherwise consent in writing and
except as subject to the first-priority Lien rights granted to the First Lien Agent in connection
with the First Lien Credit Agreement, any such items which may be received by the Borrower in
excess of $1,000,000 will not be commingled with any other of its
funds or property, but will be
held separate and apart from its own

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funds or property and upon express trust for the
Administrative Agent until delivery is made to the Administrative Agent.

     6.08 Compliance with Laws and Contractual Obligations. (a) Comply in all material respects with
the requirements of all Laws (including Environmental Laws) applicable to it or to its business or
property, except in such instances in which (i) such requirement of Law is being contested in good
faith or a bona fide dispute exists with respect thereto, or (ii) the failure to comply therewith
could not be reasonably expected to have a Material Adverse Effect; and (b) comply with all
Contractual Obligations, except if the failure to comply therewith could not be reasonably expected
to have a Material Adverse Effect.

     6.09 Books and Records. Maintain (a) proper books of record and account, in which full, true and
correct entries in conformity with GAAP consistently applied (except as otherwise noted herein)
shall be made of all financial transactions and matters involving its assets and business, and (b)
maintain such books of record and account in material conformity with all applicable requirements
of any Governmental Authority having regulatory jurisdiction over it.

     6.10 Inspection Rights. Permit representatives and independent contractors of the Administrative
Agent and each Lender to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its officers and independent public accountants, and make all
financial records and other records relating to the Oil and Gas Properties available for inspection
at such reasonable times during normal business hours and as often as may be reasonably desired,
upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default
exists the Administrative Agent or any Lender (or any of their respective representatives or
independent contractors) may do any of the foregoing at the expense of the Borrower at any time
during normal business hours and without advance notice. Additionally, Administrative Agent may,
at the request of the Required Lenders, conduct or cause to be conducted a commercial field
examination of the Borrower’s and its Subsidiaries’ financial and accounting records and Borrower
shall pay the cost of such commercial field examination; provided so long as no Event of Default
shall exist and be continuing, no more than one such commercial field examination shall be
undertaken at the Borrower’s expense during any period of twelve consecutive months and the
Borrower shall not be obligated to pay more than $20,000 for any such annual commercial field
examination.

     6.11 Compliance with ERISA. With respect to each Plan maintained by a Company, do each of the
following: (a) maintain each Plan in compliance in all material respects with the applicable
provisions of ERISA, the Code and other federal or state Laws, (b) cause each Plan which is
qualified under Section 401(a) of the Code to maintain such qualification; and (c) make all
required contributions to any Plan subject to Section 412 of the Code,
except to the extent that noncompliance, with respect to each event listed above, could not be
reasonably expected to have a Material Adverse Effect

     6.12 Use of Proceeds. Use proceeds of the Term Loan to partially fund the Acquisition and to pay
associated costs related thereto.

     6.13 Material Agreements. Enforce the obligations of parties to the Material Agreements, except
where such failure could not reasonably be expected to have a Material Adverse Effect.

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     6.14 Guaranties. As an inducement to the Administrative Agent and Lenders to enter into this
Agreement, cause each Subsidiary and the MLP and its Subsidiaries to execute and deliver to
Administrative Agent a Guaranty executed by the Borrower’s Subsidiaries and the MLP’s Subsidiaries
(other than the Borrower), and a Guaranty executed by the MLP, each in form and substance
reasonably satisfactory to the Administrative Agent, providing for the guaranty of payment and
performance of the Obligations. In addition, within thirty (30) days after the formation or
acquisition of any Subsidiary of the Borrower or MLP, cause such Subsidiary to execute and deliver
to the Administrative Agent (a) a Guaranty in form and substance reasonably satisfactory to the
Administrative Agent, providing for the guaranty of payment and performance of the Obligations;
provided, that such Subsidiary shall also have guaranteed payment and performance of the
Obligations (as defined in the First Lien Credit Agreement) in favor of the First Lien Agent for
the benefit of the First Lien Revolving Lenders, (b) Collateral Documents in form and substance
reasonably satisfactory to the Administrative Agent creating second-priority Liens in all Oil and
Gas Properties and substantially all of the personal property of such Subsidiary and in the equity
interests in such Subsidiary, subject to Permitted Liens and subject to first-priority Liens
granted to the First Lien Agent in connection with the First Lien Credit Agreement, and (c)
certified copies of such Subsidiary’s Organization Documents and opinions of counsel with respect
to such Subsidiary and such Guaranty, and (d) such other documents and instruments as may be
required with respect to such Subsidiary pursuant to Section 6.15.

     6.15 Further Assurances; Additional Collateral; In Lieu Letters. (a) The Borrower and the MLP
shall cause the MLP and each Subsidiary of the Borrower or the MLP to take such actions and to
execute and deliver such documents and instruments as the Administrative Agent shall require to
ensure that the Administrative Agent or Collateral Agent on behalf of the Secured Parties shall, at
all times, have received currently effective duly executed Loan Documents granting second-priority
Liens in the Collateral.

     (b) In connection with the actions required pursuant to the foregoing subsection (a), the
Borrower and the MLP shall cause the MLP and each Subsidiary of the Borrower and the MLP to execute
and deliver such stock certificates, blank stock powers, evidence of corporate authorization,
opinions of counsel, current valuations, evidence of title, and other documents, and shall use
commercially reasonable efforts to obtain third party consents, as shall be reasonably requested by
the Administrative Agent, in each case in form and substance reasonably satisfactory to the
Administrative Agent.

     (c) The Liens required by this Section 6.15 shall be second-priority Liens in favor of the
Administrative Agent or Collateral Agent for the benefit of the Secured Parties, subject to no
other Liens except Permitted Liens of the type described in Section 7.01 and except as subject to
the first-priority Lien rights granted to the First Lien Agent in connection with the First Lien
Credit Agreement. The Liens required by this Section 6.15 shall be perfected Liens in favor of the
Administrative Agent or Collateral Agent for the benefit of the Secured Parties in all collateral
to the extent perfection has or will occur by (i) the filing of a Uniform Commercial Code financing
statement in the relevant jurisdiction, (ii) filing or recording a mortgage in real property
records of the county in which such real property or fixtures is located, (iii) possession or
control; provided, that possession or control may be effected through the First Lien Agent acting
as bailee for the Administrative Agent and/or Collateral Agent pursuant to the Intercreditor
Agreement or (iv) the notation on a certificate of title. If the Administrative Agent shall
determine that, as of any date, the Borrower or the MLP shall have failed to comply with this
Section 6.15, the Administrative Agent may (and at the direction of the Required Lenders, shall)
notify the

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Borrower in writing of such failure and, within 30 days from and after receipt of such
written notice by the Borrower, the Borrower shall execute and deliver to the Administrative Agent
supplemental or additional Loan Documents, in form and substance satisfactory to the Administrative
Agent and its counsel, securing payment of the Term Notes and the other Obligations and covering
additional assets and properties not then encumbered by any Loan Documents (together with such
other information, as may be requested by the Administrative Agent, each of which shall be in form
and substance reasonably satisfactory to the Administrative Agent) such that the Administrative
Agent shall have received currently effective duly executed and perfected Collateral Documents
encumbering the Collateral as required by Section 6.15(a) which supplemental or additional Loan
Documents shall grant a second-priority Lien on the Collateral subject to a first-priority Lien on
the Collateral in favor of the First Lien Agent to secure the Obligations (as defined in the First
Lien Credit Agreement).

     (d) If an Event of Default exists and is continuing, Borrower agrees to deliver and to cause
each other Loan Party to deliver, whenever requested by Administrative Agent, in its sole and
absolute discretion, transfer orders or letters in lieu thereof with respect to the production and
proceeds of production from the Oil and Gas Properties, in form and substance satisfactory to
Administrative Agent, subject to the first-priority Lien rights granted to the First Lien Agent in
connection with the First Lien Credit Agreement.

     (e) The Borrower shall review the Reserve Report and the list of current Mortgaged Properties
to ascertain whether the Mortgaged Properties represent at least 80% of the total value of the Oil
and Gas Properties evaluated in the most recently completed Reserve Report after giving effect to
exploration and production activities, acquisitions, dispositions and production. In the event
that the Mortgaged Properties do not represent at least 80% of such total value, then the Borrower
shall, and shall cause its Subsidiaries to, grant to the First Lien Agent on behalf of the First
Lien Revolving Lenders a first-priority Lien and to the Administrative Agent or Collateral Agent as
security for the Obligations a second-priority Lien, junior and subordinate to the Lien securing
the Senior Indebtedness (as defined in the Intercreditor Agreement) such that after giving effect
thereto, the Mortgaged Properties will represent at least 80% of such total value. All such Liens
will be created and perfected by and in accordance with the provisions of the Collateral Documents,
all in form and substance reasonably satisfactory to the Administrative Agent or Collateral Agent
and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for
recording purposes.

     6.16 Title Defects. Cure any title defects to the Oil and Gas Properties material in value,
in the reasonable opinion of the Administrative Agent, within ninety days after receipt of written
notice thereof from Administrative Agent and, in the event any title defects are not cured in a
timely manner, pay all related costs and fees reasonably incurred by the Administrative Agent for
the account of the Lenders to do so. In the event that the Borrower is unable to cure a title
defect, Borrower shall have the ability to substitute additional collateral; provided that
Borrower’s ability to substitute such collateral is subject to the full satisfaction of the
Administrative Agent and any substitute collateral shall be subject to a first-priority Lien in
favor of the First Lien Agent to secure the Obligations (as defined in the First Lien Credit
Agreement).

     6.17 Leases. Keep and continue all material Leases comprising the Oil and Gas Properties and
related contracts and agreements relating thereto in full force and effect in accordance with the
terms thereof and not permit the same to lapse or otherwise become impaired for failure to comply
with the

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obligations thereof, whether express or implied; provided, however, that this provision
shall not prevent the Borrower or any other Loan Party from abandoning and releasing any such
Leases upon their termination as the result of cessation of production in paying quantities that
did not result from the Borrower’s or any other Loan Party’s failure to maintain such production as
a reasonably prudent operator. Subject to approval by the Administrative Agent, Borrower and each
Loan Party shall have the right to replace Leases that lapse or become impaired.

     6.18 Operation of Oil and Gas Properties. Operate or, to the extent that the right of
operation is vested in others, exercise all reasonable efforts to require the operator to operate
the Oil and Gas Properties and all wells drilled thereon and that may hereafter be drilled thereon,
continuously and in a prudent and workmanlike manner and in accordance with all Laws of the state
in which the Oil and Gas Properties are situated and the United States, as well as all rules,
regulations, and Laws of any Governmental Authority having jurisdiction to regulate the manner in
which the operation of the Oil and Gas Properties shall be carried on, and comply with all terms
and conditions of the Leases it now holds, and any assignment or contract obligating the Borrower
or any other Loan Party in any way with respect to the Oil and Gas Properties, except for any such
non-compliance that would not have a Material Adverse Effect; but nothing herein shall be construed
to empower the Borrower to bind the Administrative Agent or any Lender to any contract obligation,
or render the Administrative Agent or any Lender in any way responsible or liable for bills or
obligations incurred by the Borrower or any other Loan Party.

     6.19 Change of Purchasers of Production. Concurrently with the delivery of (and as part of)
the annual Compliance Certificate, and at any other time that the Administrative Agent may
reasonably request in writing, the Borrower shall notify the Administrative Agent in writing of the
identity and address of each Person who: (a) has purchased any of the Borrower’s or any other Loan
Party’s interests in oil and gas produced from the Oil and Gas Properties during the six calendar
months preceding such anniversary of the Closing Date, and (b) are considered by Borrower or
another Loan Party to be potential future purchasers of Borrower’s or any other Loan Party’s
interest in oil and gas produced from the Oil and Gas Properties.

     6.20 Fiscal Year. The MLP shall maintain its December 31 fiscal year end.

     6.21 Repayment/Refinance Covenant. (a) Unless by October 13, 2008, the Borrower advises the
Administrative Agent in writing that it is engaging the Arranger to arrange the Take-Out Financing,
the MLP will by October 13, 2008 either (i) complete a private placement of the MLP’s equity
securities or debt, or (ii) engage one or more investment banks reasonably satisfactory to the
Arranger to publicly sell or privately place common equity securities or debt of the MLP (either of
the foregoing, a “Securities Offering”). Such Securities Offering will be in an amount sufficient
to pay, net of all costs and expenses associated with the Securities Offering, the Term Loans in
full and such Securities Offering will close and fund prior to November 25, 2008; provided that as
long as the Securities Offering is being pursued in good faith and in a diligent manner, the
deadline for closing and funding the Securities Offering will be extended but in no event will the
deadline be extended beyond the Maturity Date.

     (b) If by October 13, 2008 Borrower does not pursue a Securities Offering in accordance with
the terms of Section 6.21(a), then Borrower will engage the Arranger to arrange the Take-Out
Financing.

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ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Term Loan or other Obligations (other than contingent indemnity obligations and
obligations under Lender Hedging Agreements) shall remain unpaid or unsatisfied, each of the MLP
and the Borrower agree that they shall not, nor shall they permit any of their respective
Subsidiaries to, directly or indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist, any Lien upon any of its Oil and Gas
Properties, or any of its property, assets or revenues, whether now owned or hereafter acquired,
other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the Closing Date and listed on Schedule 7.01 to this Agreement and any
renewals or extensions thereof; provided that the property covered thereby is not increased, the
amount of the Indebtedness secured thereby is not increased, and any renewal or extension of the
obligations secured or benefited thereby is permitted under this Agreement;

     (c) Liens for taxes, assessments, or other governmental charges or levies not yet due or which
are being contested in good faith and by appropriate proceedings, if adequate reserves with respect
thereto are maintained on the books of the applicable Person in accordance with GAAP;

     (d) landlord’s, royalty owner’s, supplier’s, constructor’s, operator’s, vendor’s, carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary
course of business or which are incident to the exploration, development, operation and maintenance
of the Oil and Gas Properties not overdue for a period of more than 30 days or which are being
contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained
on the books of the applicable Person;

     (e) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation;

     (f) deposits to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature, in each case incurred in the ordinary course of business;

     (g) easements, rights-of-way, restrictions, servitudes, permits, conditions, covenants,
exceptions or reservations and other similar encumbrances, defects, irregularities and deficiencies
in title affecting real property which, in the aggregate, are not substantial in amount, and which
do not in any case materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable Person;

     (h) judgment Liens not giving rise to an Event of Default;

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     (i) any Lien existing on any asset (other than stock of a Subsidiary) prior to acquisition
thereof by the MLP, the Borrower or any of their respective Subsidiaries; provided that (i) no such
Lien shall be extended to cover property other than the asset being acquired, and (ii) such Lien
was not created in contemplation of or in connection with such acquisition;

     (j) Liens securing Capital Lease obligations; provided that the Indebtedness in respect of
such Capital Lease obligations is permitted under Section 7.04(f);

     (k) purchase money Liens upon or in any property acquired, constructed or improved by Borrower
or any of its Subsidiaries (placed on such property at the time of such acquisition or the
completion of the construction or improvement or within 90 days thereafter) to secure the deferred
portion of the purchase price of such property or to secure Indebtedness incurred to finance the
acquisition, construction or improvement of such property; provided that (i) no such Lien shall be
extended to cover property other than the property being acquired, constructed or improved and (ii)
the Indebtedness thereby secured is permitted by Section 7.04(e);

     (l) Liens reserved in or exercisable under any lease or sublease to which the Borrower or a
Subsidiary is a lessee which secure the payment of rent or compliance with the terms of such lease
or sublease; provided, that the rent under such lease or sublease is not then overdue and the
Borrower or Subsidiary is in material compliance with the terms and conditions thereof;

     (m) any interest or title of a lessor under any lease entered into by the Borrower or any
Subsidiary in the ordinary course of its business and covering only the assets so leased, and any
interest of a landowner in the case of easements entered into by the Borrower or any of its
Subsidiaries in the ordinary course of its business and covering only the property subject to the
easement;

     (n) Liens securing obligations (other than obligations representing Indebtedness for borrowed
money) under operating, reciprocal easement or similar agreements entered into in the ordinary
course of business of the Borrower and its Subsidiaries;

     (o) licenses of patents, trademarks and other intellectual property rights granted by the
Borrower or any of its Subsidiaries in the ordinary course of business and not interfering in any
material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries;

     (p) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit
accounts or other funds maintained with a creditor depository institution;

     (q) Liens on any additions, improvements, replacements, repairs, fixtures, appurtenances or
component parts thereof attaching to or required to be attached to property or assets pursuant to
the terms of any mortgage, pledge agreement, security agreement or other similar instrument,
creating a Lien upon such property or asset otherwise permitted under this Section;

     (r) Liens securing an obligation of a third party neither created, assumed nor Guaranteed by
the Borrower or any Subsidiary upon lands over which easements or similar rights are acquired by
the Borrower or any Subsidiary in the ordinary course of business of the Borrower or any
Subsidiary;

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     (s) intentionally deleted;

     (t) Liens securing the Obligations (as defined in the First Lien Credit Agreement);

     (u) any Liens arising out of the refinancing, extension, renewal or refunding of any
Indebtedness secured by any Lien permitted by any of the foregoing clauses of this Section,
provided that such Indebtedness is not increased except for increases in an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such extension, renewal, refinancing, or replacement and in an amount equal to any
existing commitments unutilized thereunder, and is not secured by any additional assets;

     (v) Liens arising solely by virtue of cash collateralizing that certain $1,000,000 letter of
credit No. NZS564784 issued for the account of Borrower by Wells Fargo Bank, N.A. dated February
15, 2006 for the benefit of Devon Energy Production Company and Tall Grass Services, LLC; Borrower
agreeing that it will use reasonable efforts to induce each of Devon Energy Production Company and
Tall Grass Services, LLC to accept a replacement Letter of Credit issued under this Agreement and
thereby eliminate the requirement for Borrower to cash collateralize such letters of credit and the
Borrower will advise the Administrative Agent every 30 days on the status of effecting such
replacement until such letter of credit is replaced, terminated or expires;

     (w) contractual Liens which arise in the ordinary course of business under operating
agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases,
farm-out agreements, division orders, contracts for sale, purchase, transportation or exchange of
oil or natural gas, unitization and pooling declarations and agreements, area of mutual interest
agreements, royalty and overriding royalty agreements, marketing agreements, processing agreements,
net profits agreements, development agreements, gas balancing or deferred production agreements,
injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic
or other geophysical permits or agreements, and other agreements which are usual and customary in
the oil and gas business and are for claims which are not delinquent;

     (x) Rights reserved to or vested in a Governmental Authority having jurisdiction to control or
regulate any Oil and Gas Property in any manner whatsoever and all laws of such Governmental
Authorities, so long as the Borrower and its Subsidiaries are in compliance with all such laws,
except for any non-compliance that would not result in a Material Adverse Effect;

     (y) consents to assignment and similar contractual provisions affecting an Oil and Gas
Property to the extent, and only to the extent, such consents are not affected by or required for
the execution, delivery, performance and enforcement of any Loan Document;

     (z) preferential rights to purchase and similar contractual provisions affecting an Oil and
Gas Property to the extent, and only to the extent, such consents are not affected by delivery of
any Loan Document or, if affected, have been waived; and

     (aa) all defects and irregularities affecting title to an Oil and Gas Property that could not
operate to reduce the net revenue interest of the Borrower and its Subsidiaries for such Oil and
Gas Property (if any), increase the working interest of the Borrower and its Subsidiaries for such
Oil and Gas Property (if any) without a corresponding increase in the corresponding net revenue
interest, or otherwise

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interfere materially with the operation, value or use of such Oil and Gas
Property or cause a Material Adverse Effect.

     7.02 Investments. Make or own any Investments, except:

     (a) Investments existing on the Closing Date and listed in Section (b) of Schedule 5.13;

     (b) Cash Equivalents;

     (c) Investments constituting Indebtedness permitted under Section 7.04(b);

     (d) Investments (i) by the MLP in the Borrower, (ii) by the Borrower or any other Loan Party
in Subsidiaries formed to acquire Oil and Gas Properties from Quest Parent or any of its
Subsidiaries, and (iii) resulting from the Borrower’s or any other Loan Party’s acquisition of
equity interests in a Person primarily engaged in the ownership of Oil and Gas Properties;

     (e) Investments by the Borrower and its Subsidiaries in any Subsidiary of the Borrower that,
prior to such Investment, is a Guarantor and Investments by Subsidiaries in the Borrower;

     (f) acquisitions by the Borrower or its Subsidiaries of Oil and Gas Properties;

     (g) Guarantees of Indebtedness permitted under Section 7.04;

     (h) Swap Contracts permitted under Section 7.03;

     (i) Investments consisting of extensions of credit, including without limitation, in the
nature of accounts receivable, arising from the grant of trade credit or prepayments or similar
transactions entered into in the ordinary course of business and investments by the Borrower or any
Subsidiary in satisfaction or partial satisfaction thereof from financially troubled account
debtors to prevent or limit financial loss;

     (j) endorsements for collection or deposit in the ordinary course of business; and

     (k) Investments not otherwise permitted by this Section 7.02 in an aggregate amount not to
exceed $5,000,000 at anytime outstanding.

     7.03 Hedging Agreements.

     (a) Enter into any Swap Contracts other than in the ordinary course of business for the
purpose of protecting against fluctuations in interest rates, commodity prices, or foreign exchange
rates and not for purposes of speculation; provided:

          (i) that the Swap Contract shall not contain any provision (a) exonerating the non-defaulting
party from its obligation to make payments on outstanding transactions to the defaulting party and
(b) requiring any Company at any time or under any circumstance to post any cash collateral or
letter of credit or grant a Lien on any collateral to secure any Company’s obligations under such
Swap Contract (except for (y) Lender Hedging Agreements to protect against fluctuations in interest
rates in

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connection with the Term Loan hereunder which shall be secured by a pari passu
second-priority Lien on the Collateral as provided in Section 2.11 but which shall not be secured
by any other or additional collateral and (z) Swap Contracts that constitute Lender Hedging
Agreements (as defined in the First Lien Credit Agreement) which shall be secured by a pari passu
first-priority Lien on the Collateral as provided in Section 2.13 of the First Lien Credit
Agreement but which shall not be secured by any other or additional collateral);

          (ii) if the Swap Contract relates to Hydrocarbons, Borrower enters into such Swap Contract
with or through a counterparty that has a credit rating of at least “A-” by S&P and “A3” by
Moody’s;

          (iii) such Swap Contracts relating to Hydrocarbons cover monthly notional volumes of
Hydrocarbons that do not exceed the greater of (i) ninety percent (90%) of Borrower’s forecasted
oil and gas production for the calendar years 2009, 2010 and 2011 for each of Borrower’s crude oil
and natural gas properties calculated separately, from Proved Developed Producing Reserves, and
(ii) eighty-five percent (85%) of forecasted production for the calendar years 2009, 2010 and 2011
from total Proved Reserves and seventy-five percent (75%) of forecasted production from total
Proved Reserves thereafter (such amounts computed on an annual basis and applied to crude oil and
natural gas properties calculated separately); provided that the aggregate amount of all such Swap
Contracts shall not exceed one hundred percent (100%) of actual oil or gas production, calculated
separately, in any given month (or if as a result of a force majeure event the foregoing
limitations are breached, then in any given three consecutive month period); and

          (iv) that where only annual volumes are presented in the Reserve Report, monthly volumes will
be calculated by dividing the applicable volumes by the number of months covered by the Reserve
Report for the applicable year.

     7.04 Indebtedness.

     Create, incur, or assume any Indebtedness except:

     (a) Indebtedness incurred pursuant to the Loan Documents;

     (b) Indebtedness owed by a Subsidiary to the Borrower or to a Wholly-Owned Subsidiary or by
the Borrower to a Wholly-Owned Subsidiary of the Borrower; provided, that, in each such case such
Indebtedness is evidenced by a promissory note which has been pledged to secure the Obligations and
is in the possession of the Administrative Agent or Collateral Agent (or is being held by the First
Lien Agent as bailee pursuant to the Intercreditor Agreement);

     (c) the Obligations (as defined in the First Lien Credit Agreement);

     (d) obligations (contingent or otherwise) of the Borrower, the MLP or any Subsidiary existing
or arising under any Swap Contract to the extent permitted by Section 7.03;

     (e) Indebtedness of the MLP, the Borrower and their respective Subsidiaries in respect of
purchase money obligations for fixed or capital assets within the limitations set forth in Section
7.01(k);

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provided, however, that the aggregate amount of such Indebtedness at any one time
outstanding shall not exceed $5,000,000;

     (f) Indebtedness of the MLP, the Borrower or any of their respective Subsidiaries in respect
of Capital Lease obligations; provided that, such Capital Lease obligations will not require the
payment of an aggregate amount in excess of $4,000,000 annually;

     (g) Indebtedness consisting of surety bonds that the Borrower or any Subsidiary is required to
obtain in order to comply with applicable Law or the requirements of any Governmental Authority;

     (h) Indebtedness secured by any Lien permitted under Section 7.01(i); provided, however, that
the aggregate amount of such Indebtedness at any one time outstanding shall not exceed $5,000,000;

     (i) other Indebtedness of the MLP, the Borrower and their respective Subsidiaries not to
exceed $5,000,000 in the aggregate principal amount outstanding at any time;

     (j) Indebtedness associated with bonds, surety obligations or sinking funds required by any
Governmental Authority or operators in connection with the operation of Oil and Gas Properties; and

     (k) Indebtedness existing on the date hereof and listed on Schedule 7.04;

provided, that if any Indebtedness is incurred pursuant to this Section 7.04, immediately after
such Indebtedness is created, incurred or assumed, no Default or Event of Default shall exist.

     7.05 Lease Obligations. Create or suffer to exist any obligations for the payment of rent for any
property under operating leases or agreements to lease, except for operating leases (or Capital
Lease Obligations) entered into or assumed by the MLP, the Borrower or any of their respective
Subsidiaries prior to the date hereof or after the date hereof in the ordinary course of business;
provided that, such other operating leases (or Capital Lease Obligations) will not require the
payment of an aggregate amount of payments in excess of (excluding escalations resulting from a
rise in the consumer price or similar index) $2,000,000 annually, exclusive of expenses for
maintenance, repairs, insurance, taxes, assessments and similar changes.

     7.06 Fundamental Changes. Merge, dissolve, liquidate or consolidate with or into, or convey,
transfer, lease or otherwise Dispose of (whether in one transaction or in a series of related
transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to
or in favor of any Person; except that, so long as no Default or Event of Default exists or would
result therefrom:

     (a) any Person may dissolve or liquidate or merge into the Borrower; provided that in the case
of a merger the Borrower is the surviving entity;

     (b) any Subsidiary may dissolve or liquidate or merge with (i) the Borrower; provided that the
Borrower shall be the continuing or surviving Person, or (ii) any one or more Subsidiaries;
provided that when any Wholly-Owned Subsidiary is merging with another Subsidiary, a Wholly-Owned
Subsidiary shall be the continuing or surviving Person;

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     (c) any Subsidiary may sell all or substantially all of its assets (upon voluntary liquidation
or otherwise), to the Borrower or to another Subsidiary; provided that if the seller in such a
transaction is a Wholly-Owned Subsidiary, then the purchaser must also be a Wholly-Owned
Subsidiary; and

     (d) any Person (other than the Borrower or a Subsidiary of the Borrower) may merge into any
Subsidiary; provided that such Subsidiary is the surviving entity.

     7.07 Dispositions.

     Make any Disposition or enter into any agreement to make any Disposition, except:

     (a) Dispositions by the MLP, the Borrower or any of their respective Subsidiaries of
Hydrocarbons in the ordinary course of business for fair market value;

     (b) Dispositions of property by any Subsidiary to the Borrower, or by any Subsidiary or by the
Borrower, to a Wholly-Owned Subsidiary that is a Guarantor;

     (c) Dispositions of equipment or real property for fair market value to the extent that (i)
such property is exchanged for credit against the purchase price of similar replacement property,
or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such
replacement property;

     (d) other Dispositions for fair market value; provided no Default or Event of Default then
exists or arises as a result thereof; and provided that if the Disposition is for cash and a
prepayment is required by Section 2.03(b), the Borrower shall make such prepayment in accordance
with such Section;

     (e) Dispositions of property that is no longer commercially viable to maintain or is obsolete,
surplus or worn-out property; or

     (f) Dispositions permitted under Section 7.06.

     7.08 Restricted Payments; Distributions and Redemptions. Declare or make, directly or indirectly,
any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:

     (a) each Subsidiary may make Restricted Payments to the Borrower and to Wholly-Owned
Subsidiaries of the Borrower;

     (b) the Borrower may declare, make or incur a liability to make Quarterly Borrower
Distributions to the MLP and payments of Distribution Equivalent Amounts; provided, that at the
time each such Quarterly Borrower Distribution is made no Event of Default exists or would result
therefrom; and

     (c) the MLP may declare, make or incur a liability to make payments of Distribution Equivalent
Amounts and Quarterly MLP Distributions of Available Cash (as defined in the Partnership Agreement
(MLP)) to the extent such Quarterly MLP Distributions in any fiscal quarter do not exceed, in the
aggregate, the Available Cash (as defined in the Partnership Agreement (MLP)) for the immediately
preceding fiscal quarter and are made in accordance with the Partnership Agreement (MLP); provided,

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that at the time each such Quarterly MLP Distribution is made no Default or Event of Default exists
or would result therefrom.

     7.09 ERISA. At any time engage in a transaction which could be subject to Section 4069 or 4212(c)
of ERISA, or knowingly permit any Plan maintained by a Company to: (a) engage in any non-exempt
“prohibited transaction” (as defined in Section 4975 of the Code); (b) fail to comply with ERISA or
any other applicable Laws; or (c) incur any material “accumulated funding deficiency” (as defined
in Section 302 of ERISA), which, with respect to each event listed above, could be reasonably
expected to have a Material Adverse Effect.

     7.10 Nature of Business; Risk Management. Engage in any line of business other than exploration,
production and marketing of Hydrocarbons and related activities. In addition to the foregoing, the
MLP may not engage in any business other than the ownership of the Borrower and the operation of
the MLP. Without the written approval of the Administrative Agent, neither the Borrower nor the
MLP may materially change its risk management policy.

     7.11 Transactions with Affiliates. Sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (i) transactions between or among the MLP, the
Borrower and its Wholly-Owned Subsidiaries not involving any other Affiliate, (ii) any Restricted
Payment permitted by Section 7.08, (iii) the transactions under the agreements listed on Schedule
7.11, and (iv) in the ordinary course of business at prices and on terms and conditions not less
favorable to the MLP, the Borrower or such Subsidiary, as applicable, than could be obtained on an
arm’s length basis from unrelated third parties.

     7.12 Burdensome Agreements. Enter into any Contractual Obligation that limits the ability of any
Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer property to the
Borrower; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
applicable Law or by this Agreement, (ii) the foregoing shall not apply to customary restrictions
and conditions contained in agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such
sale is permitted hereunder, and (iii) the foregoing shall not apply to restrictions and conditions
contained in the documentation evidencing any Indebtedness permitted hereunder. Notwithstanding the
foregoing, (i) documents governing a Capitalized Lease or a purchase money Lien permitted by
Sections 7.01(j) and (k) may prohibit other Liens on the asset encumbered by such Lien.

     7.13 Use of Proceeds. Use the proceeds of any Term Loan for purposes other than those permitted by
Section 6.12, or use the proceeds of any Term Loan, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of
Regulation U of the Board) or to extend credit to others for the purpose of purchasing or carrying
margin stock or to refund indebtedness originally incurred for such purpose.

     7.14 Material Agreements. Permit (a) any amendment to any Borrower Organization Document or any
Material Agreement, if such amendment could reasonably be expected to (y) have a Material Adverse
Effect on the ability of the Borrower or any Guarantor to perform its obligations under the Loan
Documents to which it is a party or (z) otherwise materially adversely affect the Lenders, or (b)

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any assignment of any Material Agreement if such assignment could reasonably be expected to
materially adversely affect the Lenders or have a Material Adverse Effect on the ability of the
Borrower or any other Loan Party to perform its obligations under the Loan Documents to which it is
a party.

     7.15 Pooling or Unitization. Voluntarily pool or unitize all or any part of the Oil and Gas
Properties where the pooling or unitization would result in any material diminution of the
Borrower’s or any other Loan Party’s net revenue interest in production from the pooled or unitized
lands, without the Required Lenders’ prior consent, which will not be unreasonably withheld. Any
unitization, pooling or communitization or other action or instrument in violation of this Section
7.15 shall be of no force or effect against any Lender.

     7.16 Financial Covenants.

     (a) Current Ratio. Permit the ratio (calculated based on the Compliance Certificate most
recently delivered pursuant to Section 6.02(a)) of the MLP’s consolidated current assets (including
the unused availability under the First Lien Credit Agreement, but excluding non-cash assets under
FAS 133) to consolidated current liabilities (excluding non-cash obligations under FAS 133, asset
and asset retirement obligations and current maturities of Indebtedness under this Agreement and
the First Lien Credit Agreement) at any fiscal quarter-end, commencing with the quarter-ended
September 30 2008, to be less than 1.0 to 1.0; provided, however, that for purposes of this
covenant, current assets and current liabilities shall exclude mark-to-market values of Swap
Contracts, to the extent such values are included in current assets and current liabilities.

     (b) Interest Coverage Ratio. Permit the Interest Coverage Ratio at any fiscal quarter-end,
commencing with the quarter-ended September 30 2008, to be less than 2.5 to 1.0 measured on a
rolling four quarter basis; provided that for the period ending September 30, 2008, such
calculation shall be done on a pro forma basis.

     (c) Leverage Ratio. Permit the Leverage Ratio at any fiscal quarter-end, commencing with the
quarter-ended September 30 2008, to be greater than 3.5 to 1.0 measured on a rolling four quarter
basis; provided that for the period ending September 30, 2008, such calculation shall be done on a
pro forma basis.

     (d) Total Reserve Leverage Ratio. Permit the Total Reserve Leverage Ratio at any fiscal
quarter-end, commencing with the quarter-ended September 30 2008, to be less than 1.5 to 1.0.

     For the purposes of calculating Adjusted Consolidated EBITDA for any period of four
consecutive fiscal quarters (each, a “Reference Period”) pursuant to any determination of the
covenants set forth in this Section 7.16 (which calculation shall, in all respects, be acceptable
to, and approved by the Administrative Agent), (i) if at any time after the first day of such
Reference Period the MLP or any Subsidiary shall have made any Material Disposition, the Adjusted
Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the Adjusted
Consolidated EBITDA (if positive) attributable to the Oil and Gas Property that is the subject of
such Material Disposition for such Reference Period and (ii) if at any time after the first day of
such Reference Period the MLP or any Subsidiary shall have made a Material Acquisition, Adjusted
Consolidated EBITDA for such Reference Period shall be calculated after giving pro forma effect
thereto as if such Material Acquisition occurred on the first day of

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such Reference Period. For
the avoidance of doubt, the Acquisition shall be considered a Material Acquisition for purposes of
the prior sentence.

     Except as otherwise indicated, the ratios set out above shall be calculated at the end of each
reporting period for which this Agreement requires Borrower to deliver financial statements
pursuant to Sections 6.01(a) and 6.01(b), using the results of the twelve-month period ending with
that reporting period.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment . The Borrower fails to pay (i) when and as required to be paid
herein, any amount of principal of any Term Loan or (ii) within three Business Days after the same
becomes due, any interest on any Term Loan, any fee due hereunder, or any other amount payable
hereunder or under any other Loan Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 2.03(b), 2.03(c), 6.03(a), 6.05 (with respect to the
Borrower’s existence), 6.10, 6.12, 6.21(a), 6.21(b) or Article VII; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for 30 days after the date notice has been
given to the Borrower by the Administrative Agent or a Lender; or

     (d) Representations and Warranties. Any representation or warranty made or deemed
made by the Borrower or any other Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith proves to have been incorrect in any material respect
when made or deemed made; or

     (e) Cross-Default. (i) The Borrower or any Borrower Affiliate (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of the First Lien Credit Agreement or any Indebtedness or Guaranty Obligation
in respect of Indebtedness (other than Indebtedness under Swap Contracts) having an aggregate
principal amount (or, in the case of a Capitalized Lease or a Synthetic Lease Obligation,
Attributable Indebtedness) (including undrawn or available amounts and including amounts owing to
all creditors under any combined or syndicated credit arrangement) of more than (individually or
collectively) $5,000,000, or (B) fails to observe or perform any other agreement or condition
relating to any such Indebtedness or Guaranty Obligation in respect of Indebtedness or contained in
any instrument or agreement evidencing, securing or relating thereto, or any other event occurs,
the effect of which default or other event is to cause, or to permit the holder or holders of such
Indebtedness, the lessor under such Synthetic Lease Obligation or the beneficiary or beneficiaries
of such Guaranty Obligation (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to
be demanded or to become due or to be repurchased or redeemed (automatically or

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otherwise) prior to
its stated maturity, or such Guaranty Obligation to become payable or cash collateral in respect
thereof to be demanded; provided that this clause (e)(i)(B) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness; or (ii) (A) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from any event of default under such
Swap Contract as to which the Borrower or any Borrower Affiliate is the Defaulting Party (as
defined in such Swap Contract) and the Swap Termination Value owed by the Borrower or any Borrower
Affiliate as a result thereof is greater than (individually or collectively) $5,000,000, or (B)
there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from any Termination Event (as so defined) under such Swap Contract as to which the
Borrower or any Borrower Affiliate is an Affected
Party (as so defined) and the Early Termination Amount owed by the Borrower and Borrower
Affiliate as a result thereof is greater than (individually or collectively) $5,000,000 and such
amount is not paid when due under such Swap Contract; or

     (f) Insolvency Proceedings, Etc. (i) The Borrower or any Borrower Affiliate
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes
an assignment for the benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any material part of its property or takes any action to effect any of the foregoing; or
(ii) any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is
appointed without the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or (iii) any proceeding under any Debtor Relief Law
relating to any such Person or to all or any part of its property is instituted without the consent
of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief
is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Borrower Affiliate
becomes unable or admits in writing its inability or fails generally to pay its debts as they
become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or
levied against property which is a material part of the property of the Borrower and its
Subsidiaries taken as a whole, and is not released, vacated or fully bonded within 45 days after
its issue or levy; or

     (h) Judgments. There is entered against the Borrower or any Borrower Affiliate (i) a
final non-appealable judgment or order for the payment of money in an aggregate amount exceeding
(individually or collectively) $5,000,000 (to the extent not covered by third-party insurance as to
which the insurer does not dispute coverage), or (ii) any non-monetary final non-appealable
judgment that has or could reasonably be expected to have a Material Adverse Effect and, in either
case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order and is
not released, vacated or fully bonded within 60 days after its attachment or levy; or (B) there is
a period of 60 consecutive days during which a stay of enforcement of such judgment, by reason of a
pending appeal or otherwise, is not in effect; or

     (i) ERISA. (i) If the Borrower, any Borrower Affiliate or any of their ERISA
Affiliates maintains any Pension Plan or any Multiemployer Plan, an ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to
result in liability of the Borrower or any Borrower Affiliate under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $1,000,000, or
(ii) if there is any Multiemployer Plan, the

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Borrower, any Borrower Affiliate or any ERISA
Affiliate thereof fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of $1,000,000; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution
and delivery and for any reason other than the agreement of all the Lenders or satisfaction in full
of all the Obligations, ceases to be in full force and effect, or is declared by a court of
competent jurisdiction to be null and void, invalid or unenforceable in any material respect; or
any Loan Party denies that it has any or further liability or obligation under any Loan Document,
or purports to revoke, terminate or rescind any
Loan Document; provided, however, that the foregoing shall not apply to the Guaranty and other
Collateral Documents of any Subsidiary that is Disposed of by the Borrower in accordance with the
provisions of this Agreement; or

     (k) Change of Control. There occurs any Change of Control; or

     (l) Dissolution. The Borrower or any Borrower Affiliate shall dissolve, liquidate, or
otherwise terminate its existence, except as permitted in Section 7.06; or

     (m) Material Agreements. (i) Termination of any Material Agreement, or any material
provision of any of the foregoing if such termination could reasonably be expected to have a
Material Adverse Effect and such agreement or provision is not replaced (prior to such cessation)
in a manner satisfactory to the Administrative Agent; or (ii) default by any Person in the
performance or observance of any material term of any Material Agreement which is not cured within
the applicable cure period specified in such Material Agreement, if such default could reasonably
be expected to have a Material Adverse Effect; or

     (n) Collateral; Impairment of Security, etc. (i) Any provision of any Loan Document
shall for any reason cease to be valid and binding on or enforceable against a Loan Party or any
Loan Party shall so state in writing or bring an action to limit its obligations or liabilities
thereunder; or (ii) any Collateral Document shall for any reason (other than pursuant to the terms
thereof) cease to create a valid security interest in the Collateral purported to be covered
thereby or such security interest shall for any reason (other than as permitted herein or in any
Collateral Document) cease to be a perfected and second-priority security interest subject to
Permitted Liens; provided, however, that the foregoing shall not apply to the Guaranty and other
Collateral Documents of any Subsidiary that is Disposed of by the Borrower in accordance with the
provisions of this Agreement.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders:

     (a) declare the unpaid principal amount of all outstanding Term Loans, all interest accrued
and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan
Document to be immediately due and payable, without presentment, demand, protest, notice of intent
to accelerate, notice of acceleration or other notice of any kind, all of which are hereby
expressly waived by the Borrower; and

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     (b) exercise on behalf of itself and the Lenders all rights and remedies available to it and
the Lenders under the Loan Documents or applicable Law;

provided, however, that upon the occurrence of any event specified in subsection (f) of Section
8.01, the unpaid principal amount of all outstanding Term Loans and all interest and other amounts
as aforesaid shall automatically become due and payable.

     8.03 Application of Funds.

     After the exercise of remedies provided for in Section 8.02 (or after the Term Loans have
automatically become immediately due and payable), any amounts received on account of the
Obligations shall be applied by the Administrative Agent as set forth in Section 2.09(d).

ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01 Appointment and Authorization of Agents; Lender Hedging Agreements. (a) Each Lender hereby
irrevocably (subject to Section 9.10) appoints, designates and authorizes the Administrative Agent
to take such action on its behalf under the provisions of this Agreement and each other Loan
Document and to exercise such powers and perform such duties as are expressly delegated to it by
the terms of this Agreement or any other Loan Document, together with such powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in
any other Loan Document, the Administrative Agent shall not have any duties or responsibilities,
except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to
have any fiduciary relationship with any Lender or Participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement
or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan
Documents with reference to the Administrative Agent or Collateral Agent is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency doctrine of any
applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent contracting parties.

     (b) To the extent any Lender or any Affiliate of a Lender is a party to a Lender Hedging
Agreement and accepts the benefits of the Liens in the Collateral arising pursuant to the
Collateral Documents, such Lender (for itself and on behalf of any such Affiliates) shall be deemed
(i) to appoint the Administrative Agent and Collateral Agent, as its nominee and agent, to act for
and on behalf of such Lender or Affiliate thereof in connection with the Collateral Documents and
(ii) to be bound by the terms of this Article IX.

     9.02 Delegation of Duties. The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents (including the Collateral Agent),
employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or
experts concerning all matters pertaining to such duties. Neither the Administrative Agent nor
Collateral Agent shall be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

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     9.03 Default; Collateral. (a) Upon the occurrence and continuance of a Default or Event of
Default, the Lenders agree to promptly confer in order that Required Lenders or the Lenders, as the
case may be, may agree upon a course of action for the enforcement of the rights of the Lenders;
and the Administrative Agent shall be entitled to refrain from taking any action (without incurring
any liability to any Person for so refraining) unless and until the Administrative Agent shall have
received instructions from Required Lenders. All rights of action under the Loan Documents and all
right to the Collateral, if any, hereunder may be
enforced by the Administrative Agent (or Collateral Agent) and any suit or proceeding instituted by
the Administrative Agent (or Collateral Agent) in furtherance of such enforcement shall be brought
in its name as the Administrative Agent (or Collateral Agent) without the necessity of joining as
plaintiffs or defendants any other Lender, and the recovery of any judgment shall be for the
benefit of the Lenders (and, with respect to Lender Hedging Agreements, Affiliates, if applicable)
subject to the expenses of the Administrative Agent and Collateral Agent. In actions with respect
to any property of the Borrower or any other Obligor, the Administrative Agent (and the Collateral
Agent) is acting for the ratable benefit of each Lender (and, with respect to Lender Hedging
Agreement, Affiliates, if applicable). Any and all agreements to subordinate (whether made
heretofore or hereafter) other indebtedness or obligations of Borrower to the Obligations shall be
construed as being for the ratable benefit of each Lender (and, with respect to Lender Hedging
Agreement, Affiliates, if applicable).

     (b) Each Lender authorizes and directs the Administrative Agent and the Collateral Agent to
enter into the Collateral Documents on behalf of and for the benefit of the Lenders (and, with
respect to Lender Hedging Agreements, Affiliates, if applicable)(or if previously entered into,
hereby ratifies the Administrative Agent’s and Collateral Agent’s previously entering into such
agreements and Collateral Documents).

     (c) Except to the extent unanimity (or other percentage set forth in Section 10.01) is
required hereunder, each Lender agrees that any action taken by the Required Lenders in accordance
with the provisions of the Loan Documents, and the exercise by the Required Lenders of the power
set forth herein or therein, together with such other powers as are reasonably incidental thereto,
shall be authorized and binding upon all of the Lenders.

     (d) The Administrative Agent and Collateral Agent are each hereby authorized on behalf of the
Lenders, without the necessity of any notice to or further consent from any Lender, from time to
time to take any action with respect to any Collateral or Collateral Documents which may be
necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to the
Collateral Documents.

     (e) Neither the Administrative Agent nor the Collateral Agent shall have any obligation
whatsoever to any Lender or to any other Person to assure that the Collateral exists or is owned by
any Obligor or is cared for, protected, or insured or has been encumbered or that the Liens granted
to the Administrative Agent and/or Collateral Agent herein or pursuant thereto have been properly
or sufficiently or lawfully created, perfected, protected, or enforced, or are entitled to any
particular priority, or to exercise at all or in any particular manner or under any duty of care,
disclosure, or fidelity, or to continue exercising, any of the Rights granted or available to the
Administrative Agent or Collateral Agent in this Section 9.03 or in any of the Collateral
Documents; it being understood and agreed that in respect of the Collateral, or any act, omission,
or event related thereto, the Administrative Agent may act

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in any manner it may deem appropriate,
in its sole discretion, given the Administrative Agent’s own interest in the Collateral as one of
the Lenders and that the Administrative Agent shall have no duty or liability whatsoever to any
Lender, other than to act without gross negligence or willful misconduct and the same shall apply
to the Collateral Agent so long as the Administrative Agent is also the Collateral Agent.

     (f) The Lenders hereby irrevocably authorize the Administrative Agent and/or Collateral Agent,
at its option and in its discretion, to release any Lien granted to or held by the Administrative
Agent or Collateral Agent upon any Collateral: (i) constituting property in which no Obligor owned
an interest at the time the Lien was granted or at any time thereafter; (ii) constituting property
leased or granted to an Obligor under a lease, easement or right-of-way which has expired or been
terminated in a transaction permitted under the Loan Document or is about to expire and which has
not been, and is not intended by such Obligor to be, renewed; and (iii) consisting of an instrument
evidencing Indebtedness pledged to the Administrative Agent or Collateral Agent (for the benefit of
the Lenders), if the Indebtedness evidenced thereby has been paid in full. In addition, the
Lenders irrevocably authorize the Administrative Agent and Collateral Agent to release Liens upon
Collateral as contemplated in Section 10.01(c) or (d), or if approved, authorized, or ratified in
writing by the requisite Lenders. Upon request by the Administrative Agent (or Collateral Agent)
at any time, the Lenders will confirm in writing the Administrative Agent’s (or Collateral Agent’s)
authority to release particular types or items of Collateral pursuant to this Section 9.03.

     (g) In furtherance of the authorizations set forth in this Section 9.03, each Lender hereby
irrevocably appoints the Administrative Agent and Collateral Agent its attorney-in-fact, with full
power of substitution, for and on behalf of and in the name of each such Lender (i) to enter into
Collateral Documents (including, without limitation, any appointments of substitute trustees under
any Collateral Documents), (ii) to take action with respect to the Collateral and Collateral
Documents to perfect, maintain, and preserve Lenders’ Liens, and (iii) to execute instruments of
release or to take other action necessary to release Liens upon any Collateral to the extent
authorized in paragraph (f) hereof. This power of attorney shall be liberally, not restrictively,
construed so as to give the greatest latitude to the Administrative Agent’s and the Collateral
Agent’s power, as attorney, relative to the Collateral matters described in this Section 9.03. The
powers and authorities herein conferred on the Administrative Agent and Collateral Agent may be
exercised by the Administrative Agent or Collateral Agent through any Person who, at the time of
the execution of a particular instrument, is an officer of the Administrative Agent or Collateral
Agent (or any Person acting on behalf of the Administrative Agent or Collateral Agent pursuant to a
valid power of attorney). The power of attorney conferred by this Section 9.03(g) to the
Administrative Agent and Collateral Agent is granted for valuable consideration and is coupled with
an interest and is irrevocable so long as the Obligations, or any part thereof, shall remain
unpaid.

     9.04 Liability of Agents. No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or any other Loan
Document or the transactions contemplated hereby (except for its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any
manner to any Lender or Participant for any recital, statement, representation or warranty made by
any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in, or received by
Administrative Agent or Collateral Agent under or in connection with, this Agreement or any other
Loan Document, or the

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validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document, or for the creation, perfection or priority of any Liens
purported to be created by any of the Loan Documents, or the validity, genuineness, enforceability,
existence, value or sufficiency of any collateral security, or to make any inquiry respecting the
performance by the Borrower of its obligations hereunder or under any other Loan Document, or for
any failure of any Loan Party or any other party to any Loan Document to perform its obligations
hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender or
Participant to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party or any Affiliate thereof.

     9.05 Reliance by Administrative Agent. (a) The Administrative Agent shall be entitled to rely, and
shall be fully protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, facsimile, electronic mail message
or telephone message, statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and
statements of legal counsel (including counsel to any Loan Party), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent shall be fully
justified in failing or refusing to take any action under any Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so
requests, it shall first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or continuing to take any
such action. The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Required Lenders or all the Lenders, if required hereunder, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and Participants. Where this Agreement expressly permits or prohibits an action unless the
Required Lenders otherwise determine, the Administrative Agent shall, and in all other instances,
the Administrative Agent may, but shall not be required to, initiate any solicitation for the
consent or a vote of the Lenders.

     (b) For purposes of determining compliance with the conditions specified in Section 4.01, each
Lender that has funded its Pro Rata Share of the Borrowing on the Closing Date (or, if there is no
Borrowing made on such date, each Lender other than Lenders who gave written objection to the
Administrative Agent prior to such date) shall be deemed to have consented to, approved or accepted
or to be satisfied with, each document or other matter either sent by the Administrative Agent to
such Lender for consent, approval, acceptance or satisfaction, or required hereunder to be
consented to or approved by or acceptable or satisfactory to a Lender.

     9.06 Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice
of the occurrence of any Default or Event of Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the Administrative Agent for the
account of the Lenders, unless the Administrative Agent shall have received written notice from a
Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default.” The Administrative Agent will notify the Lenders
of its receipt of any such notice. The Administrative Agent shall take such action with respect to
such Default or Event of Default as may be directed by the Required Lenders in accordance with
Article VIII; provided, however, that unless and until the Administrative Agent has received any
such direction, the Administrative Agent may

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(but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interest of the Lenders.

     9.07 Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to
it, and that no act by the Administrative Agent hereinafter taken, including any consent to and
acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate thereof,
shall be deemed to constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed material
information in their possession. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon any Agent-Related Person and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of
the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory
Laws relating to the transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower hereunder. Each Lender also represents that it
will, independently and without reliance upon any Agent-Related Person and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and creditworthiness of
the Borrower and the other Loan Parties. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent herein, the Administrative
Agent shall not have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial and other condition
or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come
into the possession of any Agent Related Person.

     9.08 Indemnification of Agents. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party
to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all
Indemnified Liabilities incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent
determined in a final, nonappealable judgment by a court of competent jurisdiction to have been
caused primarily by such Agent-Related Person’s own gross negligence or willful misconduct;
provided, however, it being agreed by all Lenders that no action taken in accordance with the
directions of the Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. Without limitation of the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket
expenses (including Attorney Costs and costs and expenses in connection with the use of Intralinks,
Inc. or other similar information transmission systems in connection with this Agreement) incurred
by the Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The

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undertaking in this Section shall survive the payment of all Obligations hereunder
and the resignation or replacement of the Administrative Agent.

     9.09 Administrative Agent in its Individual Capacity. Royal Bank of Canada and its Affiliates may make loans to, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Loan Parties and their respective Affiliates as though Royal
Bank of Canada were not the Administrative Agent, or Collateral Agent hereunder and without notice
to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Royal
Bank of Canada or its Affiliates may receive information regarding any Loan Party or its Affiliates
(including information that may be subject to confidentiality obligations in favor of such Loan
Party or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation
to provide such information to them. With respect to its Term Loans, Royal Bank of Canada shall
have the same rights and powers under this Agreement as any other Lender and may exercise such
rights and powers as though it were not the Administrative Agent or Collateral Agent, and the terms
“Lender” and “Lenders” include Royal Bank of Canada in its individual capacity.

     9.10 Successor Administrative Agent and Collateral Agent.

     (a) The Administrative Agent may resign as Administrative Agent and Collateral Agent upon 30
days’ notice to the Lenders with a copy of such notice to the Borrower. If the Administrative
Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent and collateral agent for the Lenders which successor administrative
agent shall be consented to by the Borrower at all times other than during the existence of an
Event of Default (which consent of the Borrower shall not be unreasonably withheld, conditioned or
delayed). If no successor administrative agent is appointed prior to the effective date of the
resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting
with the Lenders and the Borrower, a successor administrative agent from among the Lenders who
shall also succeed to the role of successor collateral agent. Upon the acceptance of its
appointment as successor administrative agent hereunder, such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative Agent and the term
“Administrative Agent” shall mean such successor administrative agent and the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated.
After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article IX and Sections 10.04 and 10.13 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement.
If no successor administrative agent has accepted appointment as Administrative Agent by the date
which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders
shall perform all of the duties of the Administrative Agent and Collateral Agent hereunder until
such time, if any, as the Required Lenders appoint a successor agent as provided for above.

     (b) The Collateral Agent may resign as Collateral Agent upon 30 days’ notice to the
Administrative Agent with a copy of such notice to the Borrower. If the Collateral Agent resigns
under this Agreement, the Administrative Agent shall designate a successor collateral agent. Upon
the acceptance of its appointment as successor collateral agent hereunder, such successor
collateral agent shall succeed to all the rights, powers and duties of the retiring Collateral
Agent and the term “Collateral

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Agent” shall mean such successor collateral agent and the retiring
Collateral Agent’s appointment, powers and duties as Collateral Agent shall be terminated. After
any retiring Collateral Agent’s resignation hereunder as Collateral Agent, the provisions of this
Article IX and Sections 10.04 and 10.13 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent
under this Agreement.

     9.11 Other Agents; Arrangers. None of the Lenders or other Persons identified on the facing page
or signature pages of this Agreement as a “syndication agent,” as a “documentation agent,” any
other type of agent (other than the Administrative Agent and Collateral Agent), “arranger,” or
“bookrunner” shall have any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such. Without limiting the foregoing, none
of the Lenders so identified shall have or be deemed to have any fiduciary relationship with any
Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders
so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

     9.12 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Term Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall
have made any demand on the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise

     (i) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Term Loans and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the claims of the Lenders
and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents
and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.06
10.04 and 10.05) allowed in such judicial proceeding; and

     (ii) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 2.06, 10.04
and 10.05.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

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     9.13 Hedging Agreements. To the extent any Affiliate of a Lender is a party to a Swap Contract
with the Borrower or any Loan Party and thereby becomes a beneficiary of the Liens pursuant to the
Collateral Document, such Affiliate of a Lender shall be deemed to appoint the Administrative Agent
and Collateral Agent its nominee and agent to act for and on behalf of such Affiliate in connection
with the Collateral Documents and to be bound by the terms of this Article IX, Section 10.01(e) and
the last sentence of Section 2.11.

ARTICLE X.

MISCELLANEOUS

     10.01 Amendments, Release of Collateral, Etc. (a) No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other
Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the
Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative
Agent, and each such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such amendment, waiver or consent
shall, unless in writing and signed by each of the Lenders directly affected thereby and by the
Borrower, and acknowledged by the Administrative Agent, do any of the following:

     (i) extend or increase the Term Loan Commitment of any Lender;

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

     (iii) reduce the principal of, or the rate of interest specified herein on, any Term
Loan or (subject to clause (ii) of the proviso below) any fees or other amounts payable
hereunder or under any other Loan Document; provided, however, that only the consent of the
Required Lenders shall be necessary to (A) amend the definition of “Default Rate” or to
waive any obligation of the Borrower to pay interest at the Default Rate or (B) to amend any
financial covenant hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Term Loan or to reduce any fee
payable hereunder;

     (iv) change the percentage of the aggregate unpaid principal amount of the Term Loans
which is set forth in the definition of “Required Lenders”;

     (v) change the Pro Rata Share of any Lender;

     (vi) release a material amount of Collateral or release any Guarantor from a Guaranty
(except in connection with a Disposition permitted under Section 7.07 or as otherwise
permitted under this Section 10.01); or

     (vii) amend this Section, or Section 2.03(b), 2.03(c) or 2.10, or any provision herein
providing for unanimous consent or other action by all the Lenders;

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and, provided further: (i) no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent in addition to the Required Lenders or all the Lenders, as the case may
be, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document; and (ii) the Agent/Arranger Fee Letter may be amended, or rights or privileges thereunder
waived, in a writing
executed only by the parties thereto. Notwithstanding anything to the contrary herein, any Lender
that has failed to fund any portion of the Term Loans required to be funded by it hereunder shall
not have any right to approve or disapprove any amendment, waiver or consent hereunder, except that
the Pro Rata Share of such Lender may not be increased without the consent of such Lender.

     (b) Any amendment to any Loan Document which purports to change this Section 10.01(b), must be
by an instrument in writing executed by Borrower, the Administrative Agent, and the Required
Lenders.

     (c) Upon any sale, transfer, or Disposition of Collateral which is permitted pursuant to the
Loan Documents, and upon 5 Business Days’ prior written request by the Borrower (which request must
be accompanied by (i) true and correct copies of all material documents of transfer or Disposition,
including any contract of sale, (ii) a preliminary closing statement and instructions to the title
company, if any, (iii) all requested release instruments in form and substance satisfactory to the
Administrative Agent and (iv) if required, written consent of the requisite Lenders), the
Administrative Agent and/or Collateral Agent shall (and is hereby irrevocably authorized by the
Lenders to) execute such documents as may be necessary to evidence the release of Liens granted to
the Administrative Agent and/or Collateral Agent for the benefit of the Secured Parties pursuant
hereto in such Collateral. Neither the Administrative Agent nor the Collateral Agent shall be
required to execute any release instruments on terms which, in the Administrative Agent’s (or
Collateral Agent’s) opinion, would expose the Administrative Agent or Collateral Agent to liability
or create any obligation or entail any consequence other than the release of Liens without recourse
or warranty. No such release shall impair the Administrative Agent’s and/or Collateral Agent’s
Lien on the proceeds of sale of such Collateral.

     (d) If all outstanding Term Loans and other Obligations (other than contingent indemnity
obligations) have been indefeasibly paid in full and, subject to Section 10.01(e) all Lender
Hedging Agreement have terminated, the Administrative Agent agrees to, and the Lenders hereby
instruct the Administrative Agent and Collateral Agent to, at the Borrower’s expense, execute and
authorize such releases of the Collateral Documents as the Borrower shall reasonably request and
this Agreement shall be deemed terminated except that such termination shall not relieve the
Borrower of any obligation to make any payments to the Administrative Agent or any Lender required
by any Loan Document to the extent accruing, or relating to an event occurring, prior to such
termination.

     (e) Notwithstanding any provision herein to the contrary, if the only outstanding Obligations
(other than contingent indemnity obligations) are amounts owed pursuant to one or more Lender
Hedging Agreements, the Administrative Agent and/or Collateral Agent will, and is hereby authorized
to, (A) release the Liens created under the Loan Documents and (B) release all Guaranties of the
Guarantors; provided, that contemporaneously with such release, (i) the Borrower (and, if
applicable, any Loan Party that is a party to such Lender Hedging Agreements) (A) executes a margin
agreement in form and substance acceptable to such Lender(s) (or its Affiliates) that are parties
to such Lender Hedging Agreements (the “Lender Counterparties”) and (B), if required, provides
collateral in the form of cash or a letter of credit having an aggregate value acceptable to such
Lender Counterparties, and (ii) if such

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Lender Hedging Agreement is executed by a Subsidiary of the
Borrower and the Borrower and the MLP are not parties thereto, the Borrower and the MLP execute a
guaranty covering such Subsidiary’s obligations thereunder, such guaranty to be in form and
substance satisfactory to the Lender
Counterparties. Any release under this Section 10.01(e) must be in writing and signed by the
Administrative Agent.

     10.02 Notices and Other Communications; Facsimile Copies.

     (a) General. Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder and under the other Loan Documents shall be in writing
(including by facsimile transmission) and mailed, faxed or delivered, to the address, facsimile
number or (subject to subsection (c) below) electronic mail address specified for notices on
Schedule 10.02 (for the Borrower, any Guarantor and the Administrative Agent) or on the
Administrative Details Form (for the other Lenders); or, in the case of the Borrower, the
Guarantors, or the Administrative Agent, to such other address as shall be designated by such party
in a notice to the other parties, and in the case of any other party, to such other address as
shall be designated by such party in a notice to the Borrower and the Administrative Agent. All
such notices and other communications shall be deemed to be given or made upon the earlier to occur
of (i) actual receipt by the intended recipient and (ii) (A) if delivered by hand or by courier,
when signed for by the intended recipient; (B) if delivered by mail, four Business Days after
deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has
been confirmed by telephone; and (D) if delivered by electronic mail (which form of delivery is
subject to the provisions of subsection (c) below), when delivered; provided, however, that notices
and other communications to the Administrative Agent pursuant to Article II shall not be effective
until actually received by such Person. Any notice or other communication permitted to be given,
made or confirmed by telephone hereunder shall be given, made or confirmed by means of a telephone
call to the intended recipient at the number specified in accordance with this Section, it being
understood and agreed that a voicemail message shall in no event be effective as a notice,
communication or confirmation hereunder.

     (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures
shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative
Agent may also require that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver the same shall not
limit the effectiveness of any facsimile document or signature.

     (c) Limited Use of Electronic Mail. Electronic mail and internet and intranet
websites may be used only to distribute routine communications, such as financial statements and
other information, and to distribute Loan Documents for execution by the parties thereto, and shall
not be recognized hereunder for any other purpose.

     (d) Reliance by Administrative Agent and Lenders. The Administrative Agent and the
Lenders shall be entitled to rely and act upon any notices (including telephonic Borrowing Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The

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Borrower shall indemnify each Agent-Related Person and each Lender from
all losses, costs, expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf
of the Borrower. All telephonic notices to and other communications with the Administrative
Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents
to such recording.

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender or the Administrative Agent to
exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
or therein provided are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

     10.04 Attorney Costs; Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
Administrative Agent and Arranger for all reasonable costs and expenses incurred in connection with
the development, preparation, negotiation, syndication, administration and execution of this
Agreement and the other Loan Documents, including the filing, recording, refiling or rerecording of
any Mortgage, any pledge agreement and any Security Agreement and/or any Uniform Commercial Code
financing statements relating thereto and all amendments, supplements and modifications to any
thereof and any and all other documents or instruments of further assurance required to be filed or
recorded or refiled or rerecorded by the terms hereof or of any mortgage, any pledge agreement or
any security agreement, and any amendment, waiver, consent or other modification of the provisions
hereof and thereof (whether or not the transactions contemplated hereby or thereby are
consummated), and the consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs and reasonable costs and expenses in connection with the use
of Intralinks, Inc. or other similar information transmission systems in connection with this
Agreement, and (b) to pay or reimburse the Administrative Agent and each Lender for all costs and
expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including all such costs and
expenses incurred during any workout or restructuring in respect of the Obligations and during any
legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney
Costs. The foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other out-of-pocket
expenses incurred by the Administrative Agent and the cost of independent public accountants and
other outside experts retained by the Administrative Agent or any Lender. The agreements in this
Section shall survive the repayment of all the Obligations.

     10.05 Indemnification. Whether or not the transactions contemplated hereby are consummated, each
of the Borrower, the MLP and each other Guarantor (by execution of a Guaranty), jointly and
severally, agrees to indemnify, save and hold harmless each Agent-Related Person, the
Administrative Agent, the Collateral Agent, the Arranger, each Lender and their respective
Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact (collectively the
“Indemnitees”) from and against: (a) any and all claims, demands, actions or causes of action that
are asserted against any Indemnitee by any Person (other than the Administrative Agent or any
Lender) relating directly or indirectly to a claim, demand, action or cause of action that such
Person asserts or may assert against any Loan Party, any Affiliate of any Loan Party or any of
their respective officers or directors, arising out of or relating to, the Loan Documents, the use
or contemplated use of the proceeds of any Term Loans, or

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the relationship of any Loan Party, the
Administrative Agent, the Collateral Agent and the Lenders under this Agreement or any other Loan
Document; (b) any and all claims, demands, actions or causes of action that may at any time
(including at any time following repayment of the Obligations and the resignation of the
Administrative Agent or the replacement of any Lender) be asserted or imposed against any
Indemnitee by any Person or by the Borrower or any other Loan Party, arising out of or relating to,
the Loan Documents, the Term Loan Commitments, the use or contemplated use of the proceeds of any
Term Loans, or the relationship of any Loan Party, the Administrative Agent, the Collateral Agent
and the Lenders under this Agreement or any other Loan Document; (c) without limiting the
foregoing, any and all claims, demands, actions or causes of action, judgments and orders,
penalties and fines that are asserted or imposed against any Indemnitee, (i) under the application
of any Environmental Law applicable to the MLP, the Borrower or any of their respective
Subsidiaries or any of their properties or assets, including the treatment or disposal of Hazardous
Substances on any of their properties or assets, (ii) as a result of the breach or non-compliance
by the MLP, the Borrower or any of their respective Subsidiaries with any Environmental Law
applicable to the MLP, the Borrower or any of their respective Subsidiaries, (iii) due to past
ownership by the MLP, the Borrower or any of their respective Subsidiaries of any of their
properties or assets or past activity on any of their properties or assets which, though lawful and
fully permissible at the time, could result in present liability, (iv) due to the presence, use,
storage, treatment or disposal of Hazardous Substances on or under, or the escape, seepage,
leakage, spillage, discharge, emission or Release from, any of the properties owned or operated by
the MLP, the Borrower or any of their respective Subsidiaries (including any liability asserted or
arising under any Environmental Law), regardless of whether caused by, or within the control of,
the MLP, the Borrower or any of their respective Subsidiaries, or (v) due to any other
environmental, health or safety condition in connection with the Loan Documents; (d) any
administrative or investigative proceeding by any Governmental Authority arising out of or related
to a claim, demand, action or cause of action described in subsection (a), (b) or (c) above; and
(e) any and all liabilities (including liabilities under indemnities), losses, costs, damages or
expenses (including Attorney Costs and settlement costs) that any Indemnitee suffers or incurs as a
result of the assertion of any foregoing claim, demand, action, cause of action or proceeding, or
as a result of the preparation of any defense in connection with any foregoing claim, demand,
action, cause of action or proceeding, in all cases, WHETHER OR NOT ARISING OUT OF THE STRICT
LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and whether or not an Indemnitee is a party to such
claim, demand, action, cause of action or proceeding (all the foregoing, collectively, the
“Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitees, be
available to the extent that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee. The agreements in this Section shall survive
and continue for the benefit of the Indemnitees at all times after the Borrower’s acceptance of the
Lenders’ Term Loan Commitments under this Agreement, whether or not the Closing Date shall occur
and shall survive the repayment of all
the Obligations.

     10.06 Payments Set Aside. To the extent that the Borrower makes a payment to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and
such payment or the proceeds of such set-off or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid
to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise,

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then (a) to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of
any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the
date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds
Rate from time to time in effect.

     10.07 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that neither
the Borrower nor the MLP may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in
accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or
assignment of a security interest subject to the restrictions of paragraph (f) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

     (b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Term Loans at
the time owing to it); provided that:

     except in the case of an assignment of the entire remaining amount of the assigning Lender’s
Term Loan at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a
Lender or an Approved Fund with respect to a Lender, the outstanding principal balance of the Term
Loan of the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent
or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not
be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consent (Borrower’s consent not to
be unreasonably withheld, conditioned or delayed);

     (i) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with respect to the
Term Loan or the Term Loan Commitment assigned; and

     (ii) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Details Form.

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to
paragraph (c) of this Section, from and after the effective date specified in each
Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption,
be released from its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled
to the benefits of Sections 3.07, 10.04 and 10.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with this
paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (d) of this
Section.

     (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the principal amounts
of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

     (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to any Person (other than a natural person or the
Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion
of its Term Loans owing to it); provided that (i) such Lender’s obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment, modification or
waiver that would (i) postpone any date upon which any payment of money is scheduled to be paid to
such Participant, (ii) reduce the principal, interest, fees or other amounts payable to such
Participant, or (iii) release the MLP from its Guaranty. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section; provided said Participant agrees to be
subject to Sections 3.08 and 10.15 as though it were a Lender. To the extent permitted by Law, each Participant also shall be
entitled to the benefits of Section 10.09 as though it were a Lender; provided such Participant
agrees to be subject to Section 2.10 as though it were a Lender.

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     (e) A Participant shall not be entitled to receive any greater payment under Section 3.01 or
3.04 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.01 as though it were a Lender.

     (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including under its Term Notes, if any) to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     (g) If the consent of the Borrower to an assignment or to an Eligible Assignee is required
hereunder (including a consent to an assignment which does not meet the minimum assignment
threshold specified in clause (i) of the proviso to the first sentence of Section 10.07(b)), the
Borrower shall be deemed to have given its consent five Business Days after the date notice thereof
has been delivered by the assigning Lender (through the Administrative Agent) unless such consent
is expressly refused by the Borrower prior to such fifth Business Day.

     10.08 Confidentiality. Each Lender agrees that it will not disclose without the prior consent of
the Borrower (other than to directors, officers, employees, auditors, accountants, counsel or other
professional advisors of the Administrative Agent or any Lender) any confidential information with
respect to the MLP, the Borrower or any of their respective Subsidiaries, which is furnished
pursuant to this Agreement; provided that any Lender may disclose any such information (a) as has
become generally available to the public, (b) as may be required or appropriate in any report,
statement or testimony submitted to or required by any municipal, state or federal regulatory body
having or claiming to have jurisdiction over such Lender or submitted to or required by the Board
or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States
or elsewhere) or their successors, (c) as may be required or appropriate in response to any summons
or subpoena in connection with any litigation, (d) in order to comply with any law, order,
regulation or ruling applicable to such Lender, (e) to any Eligible Assignee of or Participant in,
or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under
this Agreement; provided that such Eligible Assignee or Participant or prospective Eligible
Assignee or Participant executes an agreement containing provisions substantially similar to those
contained in this Section 10.08, (f) in connection with the exercise of any remedy by such Lender
if an Event of Default pertaining to the Loan Documents has occurred and is continuing, (g) in
connection with any litigation involving such Lender pertaining to the Loan Documents, (h) to any
Lender or the Administrative Agent, or (i) to any Affiliate of any Lender (it being understood that
the Persons to whom such disclosure is made will be informed of the confidential nature of such
information and obligated to keep such information confidential).

     10.09 Set-off. In addition to any rights and remedies of the Lenders provided by Law, upon the
occurrence and during the continuance of any Event of Default, each Lender is authorized at any
time and from time to time, without prior notice to the MLP, the Borrower or any other Loan Party,
any such notice being waived by the MLP, the Borrower (on its own behalf and on behalf of each Loan
Party) to

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the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held by, and other indebtedness at
any time owing by, such Lender to or for the credit or the account of the respective Loan Parties
against any and all Obligations owing to the Administrative Agent and the Lenders, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such Lender shall have made
demand under this Agreement or any other Loan Document and although such Obligations may be
contingent or unmatured. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such set-off and application made by such Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and application.

     10.10 Interest Rate Limitation. Regardless of any provision contained in any Loan Document,
neither the Administrative Agent nor any Lender shall ever be entitled to contract for, charge,
take, reserve, receive, or apply, as interest on all or any part of the Obligations, any amount in
excess of the Maximum Rate, and, if any Lender ever does so, then such excess shall be deemed a
partial prepayment of principal and treated hereunder as such and any remaining excess shall be
refunded to the Borrower. In determining if the interest paid or payable exceeds the Maximum
Rate, the Borrower and the Lenders shall, to the maximum extent permitted under applicable Law, (a)
treat all Borrowings as but a single extension of credit (and the Lenders and the Borrower agree
that such is the case and that provision herein for multiple Borrowings is for convenience only),
(b) characterize any nonprincipal payment as an expense, fee, or premium rather than as interest,
(c) exclude voluntary prepayments and the effects thereof, and (d) amortize, prorate, allocate, and
spread the total amount of interest throughout the entire contemplated term of the Obligations.
However, if the Obligations are paid and performed in full prior to the end of the full
contemplated term thereof, and if the interest received for the actual period of existence thereof
exceeds the Maximum Amount, the Lenders shall refund such excess, and, in such event, the Lenders
shall not, to the extent permitted by Law, be subject to any penalties provided by any Laws for
contracting for, charging, taking, reserving or receiving interest in excess of the Maximum Amount.

     10.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     10.12 Integration. This Agreement, together with the other Loan Documents, comprises the complete
and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all
prior agreements, written or oral, on such subject matter. In the event of any conflict between
the provisions of this Agreement and those of any other Loan Document, the provisions of this
Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of
the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict
with this Agreement. Each Loan Document was drafted with the joint participation of the respective
parties thereto and shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

     10.13 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their

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behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default or Event of Default at the time of any Borrowing, and shall continue in
full force and effect as long as any Term Loan or any other Obligation shall remain unpaid or
unsatisfied.

     10.14 Severability. Any provision of this Agreement and the other Loan Documents to which the
Borrower is a party that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions thereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

     10.15 Replacement of Lenders. If (i) any Lender fails or refuses to consent to any requested
amendment or waiver pursuant to Section 10.01, (ii) any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, (iii) any Lender is a Defaulting
Lender, or (iv) any other circumstance exists hereunder that gives the Borrower the right to
replace a Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in, and consents
required by, Section 10.07), all of its interests, rights and obligations under this Agreement and
the related Loan Documents to an Eligible Assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.07(b)(ii);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Term Loans, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts) such payment being at par, with no premium or discount;

     (c) in the case of any such assignment resulting from a claim for compensation under Section
3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a
reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable Laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

10.16 Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;

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PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING
UNDER UNITED STATES FEDERAL LAW.

     (b) EACH COMPANY AND OTHER PARTY HERETO, AND EACH GUARANTOR, BY EXECUTION OF A GUARANTY,
AGREES TO THIS SECTION 10.16(b). ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE
COURTS FROM ANY THEREOF, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, AND BY EXECUTION OF A GUARANTY, EACH GUARANTOR
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS. THE BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER (1) IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO,
AND (2) IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED HEREIN. THE BORROWER, EACH
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE.

     10.17 Waiver of Right to Trial by Jury, Etc. EACH PARTY TO THIS AGREEMENT AND EACH GUARANTOR, BY
EXECUTION OF A GUARANTY, HEREBY (a) EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR ANY
OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE;
AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
EACH PARTY TO THIS AGREEMENT AND EACH GUARANTOR TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY
RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH ACTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT THE
WAIVER CONTAINED IN THIS SECTION 10.17(b) SHALL NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM
DAMAGES ARE SOUGHT HAS ENGAGED IN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

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     10.18 No General Partner’s Liability. The Administrative Agent and the Lenders agree for
themselves and their respective successors and assigns, including any subsequent holder of any Term
Note, that no claim under this Agreement, under the Guaranty executed on behalf of the MLP, or
under any other Loan Document shall be made against the General Partner, and that no judgment,
order or execution entered in any suit, action or proceeding, whether legal or equitable,
hereunder, on such Guaranty, or on any other Loan Document shall be obtained or enforced, against
the General Partner or its assets for the purpose of obtaining satisfaction and payment of amounts
owed under this Agreement, such Guaranty or any other Loan Document. Nothing in this Section
10.18, however, shall be construed so as to prevent the Administrative Agent, any Lender or any
other holder of any Term Note from commencing any action, suit or proceeding with respect to or
causing legal papers to be served upon the General Partner for the sole purpose of obtaining
jurisdiction over the MLP.

     10.19 Time of the Essence. Time is of the essence of the Loan Documents.

     10.20 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.

SIGNATURE PAGES FOLLOW.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC, as Borrower

 	 
	 	By:  	/s/ Jerry D. Cash	 
	 	 	Jerry D. Cash, President and 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	QUEST ENERGY PARTNERS, L.P., as a Guarantor

 	 
	 	By:  	QUEST ENERGY GP, LLC,
 	 
	 	 	its General Partner 	 

	 	 	 	 	 
	 	 	
By:  	/s/ Jerry D. Cash	 
	 	 	 	Jerry D. Cash, Chairman and 	 
	 	 	 	Chief Executive Officer 	 
	 

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Signature Page 1

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Susan Khokher	 
	 	 	Name:  	Susan Khokher	 
	 	 	Title:  	Manager, Agency	 
	 

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Signature Page 2

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as Lender

 	 
	 	By:  	/s/ Jason York 	 
	 	 	Jason York 	 
	 	 	Authorized Signatory 	 
	 

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Signature Page 3

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as Syndication Agent and a Lender

 	 
	 	By:  	/s/ Lawrence
Mack	 
	 	 	Name:  	Lawrence
Mack	 
	 	 	Title:  	Executive
Vice President 	 
	 

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Signature Page 4

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE,

as Documentation Agent and a Lender

 	 
	 	By:  	/s/ Elena
Robciuc	 
	 	 	Name:  	Elena
Robciuc 	 
	 	 	Title:  	Director 	 
	 

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Signature Page 5

 

 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Grant
Maples	 
	 	 	Name:  	Grant
Maples 	 
	 	 	Title:  	Senior
Vice President 	 
	 

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Signature Page 6

 

 

SCHEDULE 2.01

TERM LOAN COMMITMENTS

	 	 	 	 	 
	Lender	 	Term Loan Commitment
	Royal Bank of Canada
	 	$	13,333,333.34	 
	KeyBank National Association
	 	$	13,333,333.33	 
	Société Générale
	 	$	13,333,333.33	 
	Amegy Bank National Association
	 	$	5,000,000.00	 
	TOTAL:
	 	$	45,000,000.00	 

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Credit Agreement

Schedule 2.01

 

 

SCHEDULE 5.13

SUBSIDIARIES AND EQUITY INVESTMENTS

The Borrower owns 100% of the outstanding membership interests in Quest Cherokee Oilfield Service,
LLC, a Delaware limited liability company. The Borrower has no other Subsidiaries or equity
Investments in any other Person.

Quest Cherokee

Credit Agreement

Schedule 5.13

 

 

SCHEDULE 5.21

TAKE-OR PAY AND GAS BALANCING OBLIGATIONS

None.

Quest Cherokee

Credit Agreement

Schedule 5.21

 

 

SCHEDULE 5.23

PURCHASERS OF PRODUCTION

	•	 	Coffeyville Resources (Oil). P.O. Box 1404, McPherson, KS 67460-1404
	 
	•	 	Oneok Energy Services Company LP. P.O Box 2405, Tulsa, OK 74102-2405
	 
	•	 	Sunoco, P.O. Box 5090, Sugar Land, TX 77487-5090
	 
	•	 	Cherokee Basin Pipeline, 600 Dart Rd., Mason, MI 48854
	 
	•	 	Conoco Phillips, 1130 Plaza Office Building, Barlesville, OK 74004
	 
	•	 	Dominion (Petroedge properties).

Quest Cherokee

Credit Agreement

Schedule 5.23

 

 

SCHEDULE 5.24

SWAP CONTRACTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hedge Summary — Quest Cherokee LLC	 	Net Mark	 	 
	 	 	 	 	 	 	Type of	 	Effective	 	Termination	 	Hedged Price	 	Vol.	 	to Market	 	 
	 	 	 	 	 	 	Contract	 	Date	 	Date	 	Floor	 	Ceiling	 	(Mmcf)	 	Value	 	Counterparty
	2008
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Southern Star Swap
	 	 	166246	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2008	 	 	 	12/31/2008	 	 	$	7.35	 	 	$	7.35	 	 	 	2,332	 	 	 	(5,762,586	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	538411	 	 	Gas Financial Fixed-Float Swap	 	 	4/1/2008	 	 	 	12/31/2008	 	 	$	8.87	 	 	$	8.87	 	 	 	2,000	 	 	 	(3,593,218	)	 	Quest Cherokee, LLC
	Southern Star Collar
	 	 	166272/166275	 	 	Gas Financial Point Option	 	 	1/1/2008	 	 	 	12/31/2008	 	 	$	8.00	 	 	$	8.93	 	 	 	2,137	 	 	 	(3,624,013	)	 	Quest Cherokee, LLC
	NYMEX Collar (2)
	 	 	various	 	 	 Gas Financial OTC Option	 	 	1/1/2008	 	 	 	12/31/2008	 	 	$	4.50	 	 	$	5.52	 	 	 	2,928	 	 	 	(11,636,585	)	 	Quest Cherokee, LLC
	Southern Star Collar
	 	 	166276/166278	 	 	Gas Financial Point Option	 	 	1/1/2008	 	 	 	12/31/2008	 	 	$	8.00	 	 	$	9.02	 	 	 	1,963	 	 	 	(3,245,439	)	 	Quest Cherokee, LLC
	NYMEX Swap
	 	 	166257	 	 	Gas Financial Swap	 	 	1/1/2008	 	 	 	12/31/2008	 	 	$	7.88	 	 	$	7.88	 	 	 	4,800	 	 	 	(13,558,014	)	 	Quest Cherokee, LLC
	Basis Swap
	 	 	166351	 	 	Gas Basis Swap	 	 	1/1/2008	 	 	 	12/31/2008	 	NYMEX less 	$	1.03	 	 	 	1,464	 	 	 	150,958	 	 	Quest Cherokee, LLC
	2008 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16,160	 	 	 	(41,268,897	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2009
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Southern Star Swap
	 	 	166247	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	7.82	 	 	$	7.82	 	 	 	4,500	 	 	 	(16,026,175	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	166248	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	7.87	 	 	$	7.87	 	 	 	4,500	 	 	 	(15,806,856	)	 	Quest Cherokee, LLC

Quest Cherokee

Credit Agreement

Schedule 5.24

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Hedge Summary — Quest Cherokee LLC	 	Net Mark	 	 
	 	 	 	 	 	 	Type of	 	Effective	 	Termination	 	Hedged Price	 	Vol.	 	to Market	 	 
	 	 	 	 	 	 	Contract	 	Date	 	Date	 	Floor	 	Ceiling	 	(Mmcf)	 	Value	 	Counterparty
	Southern Star Swap
	 	 	166249	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	7.85	 	 	$	7.85	 	 	 	1,000	 	 	 	(3,531,298	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	538412	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	8.33	 	 	$	8.33	 	 	 	2,000	 	 	 	(5,576,284	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	166253	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	7.13	 	 	$	7.13	 	 	 	2,630	 	 	 	(11,124,001	)	 	Quest Cherokee, LLC
	2009 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14,630	 	 	 	(52,064,614	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2010
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Southern Star Swap
	 	 	166250	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	7.50	 	 	$	7.50	 	 	 	4,000	 	 	 	(10,664,825	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	166251	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	7.62	 	 	$	7.62	 	 	 	2,000	 	 	 	(5,117,581	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	538834	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	8.00	 	 	$	8.00	 	 	 	2,000	 	 	 	(4,387,075	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	166252	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	7.01	 	 	$	7.01	 	 	 	4,000	 	 	 	(12,490,445	)	 	Quest Cherokee, LLC
	Southern Star Swap
	 	 	166254	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	7.01	 	 	$	7.01	 	 	 	500	 	 	 	(1,560,451	)	 	Quest Cherokee, LLC
	2010 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12,500	 	 	 	(34,220,377	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2011
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Southern Star Swap
	 	 	210964	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2011	 	 	 	12/31/2011	 	 	$	8.00	 	 	$	8.00	 	 	 	2,000	 	 	 	(4,563,763	)	 	Quest Cherokee, LLC
	Southern Star Collar
	 	 	544230	 	 	Gas Financial Point Option	 	 	1/1/2011	 	 	 	12/31/2011	 	 	$	7.00	 	 	$	9.40	 	 	 	3,000	 	 	 	(3,781,329	)	 	Quest Cherokee, LLC
	2011 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,000	 	 	 	(8,345,092	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2012
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Southern Star Swap
	 	 	209728	 	 	Gas Financial Fixed-Float Swap	 	 	1/1/2012	 	 	 	12/31/2012	 	 	$	8.11	 	 	$	8.11	 	 	 	2,000	 	 	 	(3,485,072	)	 	Quest Cherokee, LLC
	Southern Star Collar
	 	 	544427	 	 	Gas Financial Point Option	 	 	1/1/2012	 	 	 	12/31/2012	 	 	$	7.00	 	 	$	9.60	 	 	 	3,000	 	 	 	(4,352,890	)	 	Quest Cherokee, LLC
	2012 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,000	 	 	 	(7,837,962	)	 	 

Quest Cherokee

Credit Agreement

Schedule 5.24

 

 

 

			
	(1)	 	1,825 Bcf with basis lock @ $1.15 per mcf
	 
	(2)	 	1,464 Bcf with basis lock @ $1.03 per mcf

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Vol.	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(bbls)	 	 	 	 	 	 	 
	2008
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NYMEX WTI
	 	 	203994	 	 	Oil Financial Swap	 	 	2/1/2008	 	 	 	12/31/2008	 	 	$	95.92	 	 	$	95.92	 	 	 	33,000	 	 	 	(917,904	)	 	Quest Cherokee, LLC
	2008 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	33,000	 	 	 	(917,904	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2009
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NYMEX WTI
	 	 	203996	 	 	Gas Financial Swap	 	 	1/1/2009	 	 	 	12/31/2009	 	 	$	90.07	 	 	$	90.07	 	 	 	36,000	 	 	 	(1,757,545	)	 	Quest Cherokee, LLC
	2009 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	36,000	 	 	 	(1,757,545	)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2010
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NYMEX WTI
	 	 	203998	 	 	Gas Financial Swap	 	 	1/1/2010	 	 	 	12/31/2010	 	 	$	87.50	 	 	$	87.50	 	 	 	30,000	 	 	 	(1,412,706	)	 	Quest Cherokee, LLC
	2010 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30,000	 	 	 	(1,412,706	)	 	 

Dominion Contracts 90,000 dth thru 3/31/09 — 50,000 dth 4/1/09 — 10/31/09 — 10,000 dth thereafter

April 1, 2007 — March 31, 2009 70,000 dth $8.28/dth

April 1, 2007 — March 31, 2009 10,000 dth $8.20/dth

July 1, 2007 — October 31, 2007 10,000 dth $8.50/dth

November 1, 2007 — October 31, 2008 $9.32/dth

November 1, 2008 — March 31, 2009 $9.08/dth

April 1, 2009 — March 31, 2010 40,000 dth $8.76/dth

Amerada Hess Contract — 5,000 dth 

April 1, 2008 — March 31, 2009 5,000 dth $9.30/dth

Quest Cherokee

Credit Agreement

Schedule 5.24

 

 

SCHEDULE 7.01

EXISTING LIENS

	•	 	Liens securing Obligations (as defined in the First Priority Credit Agreement).
	 
	•	 	Cash collateral securing reimbursement obligations under on the following Letters of
Credit:

	 	•	 	$10,100 letter of credit issued by Bank of Oklahoma for the benefit of the State of
New Mexico, Energy, Minerals & Natural Resources Department, Oil Conservation Division
(L/C #BOK07SDP01725) expiring on August 17, 2012.
	 
	 	•	 	$10,000 letter of credit issued by Bank of Oklahoma for the benefit of the Railroad
Commission of Texas (L/C #BOK07SDP01724) expiring on November 1, 2008.
	 
	 	•	 	$30,000 letter of credit issued by Bank of Oklahoma for the benefit of the Kansas
Corporation Commission, Oil & Gas Conservation Division expiring (L/C #BOK06SDP01531)
on February 22, 2008.
	 
	 	•	 	$25,000 letter of credit issued by Bank of Oklahoma for the benefit of the Oklahoma
Conservation Commission, Oil & Gas Conservation Division (L/C #BOK06SDP01530) expiring
on February 22, 2008.

	 	 	 	 	 	 	 
	 	 	 	 	ORIGINAL	 	 
	 	 	 	 	PRINCIPAL	 	 
	BORROWER	 	LENDER	 	AMOUNT	 	COLLATERAL
	Quest Cherokee
Oilfield Service,
LLC (Lessee)

	 	Total Leasing (Lessor)
	 	$19,393.65 (36
month term ($2,000
residual value at
end of 36 months)
	 	2005 Ford F-150 Truck
(leased vehicle)
	Quest Cherokee
Oilfield Service,
LLC. (Lessee)

	 	Total Leasing (Lessor)
	 	$19,393.65
(original value)
	 	2005 Ford F-150 Truck
	Quest Cherokee, LLC

	 	Commercial Bank
	 	$17,790.52
	 	2001 Ford Sport Trac
XLT and all proceeds
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$25,485
	 	2005 Ford F150 and
proceeds
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$38,683.46
	 	2005 Ford F250 and all
proceeds

Quest Cherokee

Credit Agreement

Schedule 7.01

 

 

	 	 	 	 	 	 	 
	 	 	 	 	ORIGINAL	 	 
	 	 	 	 	PRINCIPAL	 	 
	BORROWER	 	LENDER	 	AMOUNT	 	COLLATERAL
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$37,699.59
	 	2005 Ford F250 and all
proceeds
	Quest Cherokee, LLC

	 	Bank of Commerce
	 	$65,000.00
	 	Building — Chanute 125
& 127 W. Main
	Quest Cherokee, LLC

	 	Ford Motor Credit
	 	$40,000.00
	 	2004 Ford F250 and all
proceeds
	Quest Cherokee, LLC

	 	Toyota Financial
Services
	 	$26,358.88
	 	2004 Toyota Tacoma
XCAB and all proceeds
	Quest Cherokee, LLC

	 	Ford Motor Credit
	 	$27,402.52
	 	2003 Ford F350 and all
proceeds
	Quest Cherokee, LLC

	 	Challenger Finance
	 	$25,485.50
	 	Challenger MT295
Tractor & Loader
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$56,214.76
	 	Backhoe Loader 420D
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$18,611.20
	 	Telescopic Handler Th83
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$40,260.03
	 	Telescopic Handler
TH460B
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$15,565.26
	 	Backhoe Loader 420D

Quest Cherokee

Credit Agreement

Schedule 7.01

 

 

SCHEDULE 7.04

INDEBTEDNESS

	•	 	The Obligations (as defined in the First Priority Credit Agreement).
	 
	•	 	Reimbursement Obligations on the following Letters of Credit:

	 	•	 	$10,100 letter of credit issued by Bank of Oklahoma for the benefit of the State of
New Mexico, Energy, Minerals & Natural Resources Department, Oil Conservation Division
(L/C #BOK07SDP01725) expiring on August 17, 2012.
	 
	 	•	 	$10,000 letter of credit issued by Bank of Oklahoma for the benefit of the Railroad
Commission of Texas (L/C #BOK07SDP01724) expiring on November 1, 2008.
	 
	 	•	 	$30,000 letter of credit issued by Bank of Oklahoma for the benefit of the Kansas
Corporation Commission, Oil & Gas Conservation Division expiring (L/C #BOK06SDP01531) on
February 22, 2008.
	 
	 	•	 	$25,000 letter of credit issued by Bank of Oklahoma for the benefit of the Oklahoma
Conservation Commission, Oil & Gas Conservation Division (L/C #BOK06SDP01530) expiring on
February 22, 2008.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	ORIGINAL PRINCIPAL	 	 
	BORROWER	 	LENDER	 	AMOUNT	 	COLLATERAL
	Quest Cherokee
Oilfield Service,
LLC (Lessee)

	 	Total Leasing (Lessor)
	 	$19,393.65 (36
month term ($2,000
residual value at
end of 36 months)
	 	2005 Ford F-150 Truck

(leased vehicle)
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC. (Lessee)

	 	Total Leasing (Lessor)
	 	$19,393.65
(original value)
	 	2005 Ford F-150 Truck
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Commercial Bank
	 	$17,790.52	 	2001 Ford Sport Trac
XLT and all proceeds

Quest Cherokee

Credit Agreement

Schedule 7.04

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	ORIGINAL PRINCIPAL	 	 
	BORROWER	 	LENDER	 	AMOUNT	 	COLLATERAL
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$25,485	 	2005 Ford F150 and
proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$38,683.46	 	2005 Ford F250 and all
proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC

	 	Ford Motor Credit
	 	$37,699.59	 	2005 Ford F250 and all
proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Bank of Commerce
	 	$65,000.00	 	Building — Chanute 125
& 127 W. Main
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Ford Motor Credit
	 	$40,000.00	 	2004 Ford F250 and all
proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Toyota Financial
Services
	 	$26,358.88	 	2004 Toyota Tacoma
XCAB and all proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Ford Motor Credit
	 	$27,402.52	 	2003 Ford F350 and all
proceeds
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee, LLC

	 	Challenger Finance
	 	$25,485.50	 	Challenger MT295
Tractor & Loader
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$56,214.76	 	Backhoe Loader 420D
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$18,611.20	 	Telescopic Handler Th83

Quest Cherokee

Credit Agreement

Schedule 7.04

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	ORIGINAL PRINCIPAL	 	 
	BORROWER	 	LENDER	 	AMOUNT	 	COLLATERAL
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$40,260.03	 	Telescopic Handler
TH460B
	 
	 	 	 	 	 	 	 	 
	Quest Cherokee
Oilfield Service,
LLC

	 	Caterpillar Financial
Services Corporation
	 	$15,565.26	 	Backhoe Loader 420D
	 
	 	 	 	 	 	 	 	 

Quest Cherokee

Credit Agreement

Schedule 7.04

 

 

Section 7.11

TRANSACTIONS WITH AFFILIATES

	•	 	Agreement for Purchase and Sale among Quest Resource Corporation, Quest Eastern Resource
LLC f/k/a PetroEdge Resources (WV), LLC and Quest Cherokee, LLC dated July 11, 2008 relating
to the sale of the Acquisition Properties.
	 
	•	 	Assignment and Assumption Agreement, dated as of November 15, 2007, among Quest Resource
Corporation, Bluestem Pipeline, LLC and Quest Energy Partners, L.P. (whereby Quest Resource
Corporation will assign the Midstream Services and Gas Dedication Agreement to Quest Energy
Partners, L.P., and Quest Energy Partners, L.P. will assume all of Quest Resource
Corporation’s rights and obligations).
	 
	•	 	Underwriting Agreement, dated as of November 8, 2007, among Quest Energy Partners, L.P.,
Quest Energy GP, LLC, Quest Cherokee, LLC, Quest Resource Corporation, and Wachovia Capital
Markets, LLC.
	 
	•	 	Contribution, Conveyance and Assumption Agreement, dated as of November 15, 2007, among
Quest Resource Corporation, Quest Energy Partners, L.P., Quest Energy GP, LLC, Quest Cherokee,
LLC, Quest Oil & Gas, LLC, and Quest Energy Service, LLC.
	 
	•	 	Management Services Agreement, dated as of November 15, 2007, among Quest Energy GP, LLC,
Quest Energy Partners, L.P., and Quest Energy Service, LLC.
	 
	•	 	Acknowledgment and Consent dated November 15, 2007, by Quest Energy Partners, L.P. whereby
Quest Energy Partners consented to be bound by the terms of the Omnibus Agreement dated
December 22, 2006 among Quest Resource Corporation, Quest Midstream GP, LLC, Quest Midstream
Partners, L.P. and Bluestem Pipeline, LLC.
	 
	•	 	Omnibus Agreement, dated as of November 15, 2007 among Quest Energy Partners, L.P., Quest
Energy GP, LLC and Quest Resource Corporation.

					
	 	 	 	 	 
	 
	 	 	 	Quest Cherokee

Credit Agreement
	 
	 
	 	 	Schedule 7.11	 	 
	 

 

 

SCHEDULE 10.02

ADDRESSES FOR NOTICES TO BORROWER,

GUARANTORS AND ADMINISTRATIVE AGENT

ADDRESS FOR NOTICES TO BORROWER

QUEST CHEROKEE, LLC.

c/o Quest Energy Partners, L.P.

210 Park Avenue, Suite 2750

Oklahoma City, Oklahoma 73102

Attn: Chief Executive Officer

Telephone: (405) 600-7704

Facsimile: (405) 600-7722

ADDRESS FOR NOTICES TO GUARANTORS

Quest Energy Partners, L.P.

210 Park Avenue, Suite 2750

Oklahoma City, Oklahoma 73102

Attn: Chief Executive Officer

Telephone: (405) 600-7704

Facsimile: (405) 600-7722

ADDRESSES FOR ROYAL BANK OF CANADA

Royal Bank of Canada’s Lending Office:

Royal Bank of Canada

New York Branch

One Liberty Plaza, 3rd Floor

New York, New York 10006-1404

Attention: Manager, Loans Administration

Telephone: (212) 428-6332

Facsimile: (212) 428-2372

in each case with a copy to:

Royal Bank of Canada

2800 Post Oak Boulevard

3900 Williams Tower

Houston, Texas 77056

Attention: Jason York

Telephone: (713) 403-5679

Facsimile: (713) 403-5624

Electronic Mail: Jason.York@rbccm.com

Administrative Agent’s Office:

Royal Bank of Canada

Agency Services Group

					
	 	 	 	 	 
	 
	 	 	 	Quest Cherokee

Credit Agreement
	 
	 
	 
	 	Schedule 10.2 Page 1	 	 

 

 

Royal Bank Plaza

P. O. Box 50, 200 Bay Street

12th Floor, South Tower

Toronto, Ontario M5J 2W7

Attention: Manager Agency

Facsimile: (416) 842-4023

Wiring Instructions:

JPMorgan Chase Bank, New York, New York

ABA 021-000021

For account Royal Bank of Canada, New York

Swift Code: ROYCUS3X

A/C 920-1033363

For further credit to A/C 293-746-4, Transit 1269

Ref: Quest Cherokee

Attn: Agency Services

					
	 	 	 	 	 
	 
	 	 	 	Quest Cherokee

Credit Agreement
	 
	 
	 
	 	Schedule 10.2 Page 2	 	 

 

 

EXHIBIT A-1

FORM OF BORROWING NOTICE

Date:                     ,      

To:      Royal Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Lien Senior Term Loan Agreement, dated as of July 11,
2008 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among Quest
Cherokee, LLC, a Delaware limited liability company (the “Borrower”), Quest Energy Partners, L.P.,
a Delaware limited partnership (the “MLP”), Royal Bank of Canada, as Administrative Agent and
Collateral Agent, KeyBank National Association, as Syndication Agent, Société Générale, as
Documentation Agent, and the Lenders from time to time party thereto.

     The undersigned hereby requests:

	I.	 	TERM LOAN FACILITY

	 	1.	 	Status Information for the Term Loan Facility

	 	(a)	 	Amount of Term Loan Facility: $45,000,000

	 	2.	 	Amount of Borrowing: $45,000,000
	 
	 	3.	 	Requested date of Borrowing: July 11, 2008; must be Closing
Date.
	 
	 	5.	 	Requested Type of Term Loan and applicable Dollar amount:

	 	(a)	 	Base Rate Term Loan for $                    
	 
	 	(b)	 	Eurodollar Rate Term Loan with Interest Period
of:

	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month for
	 	$                    
	 

	 	(ii)
	 	two months for
	 	$                    
	 

	 	(iii)
	 	three months for
	 	$                    

     The undersigned hereby certifies that the following statements will be true on the date of the
proposed Borrowing(s) after giving effect thereto and to the application of the proceeds therefrom:

          (a) the representations and warranties of the Borrower and the MLP contained in Article V of
the Agreement are true and correct in all material respects as though made on and as of such date
(except such representations and warranties which expressly refer to an earlier date, which are
true and correct in all material respects as of such earlier date);

          (b) the amount of the requested Borrowing will not exceed the Term Loan Commitment.

Exhibit A-1 Page 1

Form of Borrowing Notice

 

 

          (c) no Default or Event of Default has occurred and is continuing, or would result from such
proposed Borrowing.

     The Borrowing requested herein complies with Sections 2.01 and 2.02 of the Agreement, as
applicable.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC,

a Delaware limited liability company, as Borrower	 
	 	
By  	
QUEST ENERGY PARTNERS, L.P.,

its Sole Member	 
	 	
By  	
QUEST ENERGY GP, LLC, its

General Partner	 
	 	
By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A-1 Page 2

Form of Borrowing Notice

 

 

EXHIBIT A-2

FORM OF CONVERSION/CONTINUATION NOTICE

Date:                     ,      

TO:      Royal Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Lien Senior Term Loan Agreement, dated as of July 11,
2008 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among Quest
Cherokee, LLC, a Delaware limited liability company (the “Borrower”), Quest Energy Partners, L.P.,
a Delaware limited partnership (the “MLP”), Royal Bank of Canada, as Administrative Agent and
Collateral Agent, KeyBank National Association, as Syndication Agent, Société Générale, as
Documentation Agent, and the Lenders from time to time party thereto.

     The undersigned hereby requests:

	I.	 	TERM LOAN FACILITY

	 	1.	 	Amount of [conversion] [continuation]: $                    

	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Existing rate:
	 	Check applicable blank

	 	 	 	 	 	 	 
	 

	 	(a)
	 	Base Rate
	 	                    
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Eurodollar Rate Loan with

Interest Period of:	 	 

	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month
	 	                    
	 

	 	(ii)
	 	two months
	 	                    
	 

	 	(iii)
	 	three months
	 	                    

	 	3.	 	If a Eurodollar Rate Loan, date of the last day of the Interest
Period for such Loan:         
                
    , 200     .

The Term Loan described above is to be [converted] [continued] as follows:

	 	4.	 	Requested date of [conversion] [continuation]:                     , 200     .
	 
	 	5.	 	Requested Type of Loan and applicable Dollar amount:

	 	(a)	 	Base Rate Loan for $        
           
         
	 
	 	(b)	 	Eurodollar Rate Loan with Interest Period of:

	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month for
	 	$                    
	 

	 	(ii)
	 	two months for
	 	$                    

Exhibit A-2 Page 1

Form of Conversion/Continuation Notice

 

 

	 	 	 	 	 	 	 
	 

	 	(iii)
	 	three months for
	 	$                    

     The [conversion] [continuation] requested herein complies with Section 2.02 of the Agreement.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC,

a Delaware limited liability
company, as Borrower	 
	 	
By  	
QUEST ENERGY PARTNERS, L.P.,

its Sole Member	 
	 	
By  	
QUEST ENERGY GP, LLC, its

General Partner	 
	 	
By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A-2 Page 2

Form of Conversion/Continuation Notice

 

 

EXHIBIT A-3

FORM OF REPAYMENT NOTICE

Date: ______________, _____

To: Royal Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Lien Senior Term Loan Agreement, dated as of July 11,
2008 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among Quest
Cherokee, LLC, a Delaware limited liability company (the “Borrower”), Quest Energy Partners, L.P.,
a Delaware limited partnership (the “MLP”), Royal Bank of Canada, as Administrative Agent and
Collateral Agent, KeyBank National Association, as Syndication Agent, Société Générale, as
Documentation Agent, and the Lenders from time to time party thereto.

     The undersigned hereby is repaying the Term Loan Facility as follows:

I. TERM LOAN FACILITY

	 	1.	 	Term Loans outstanding prior to the repayment referred to
herein: $_______________
	 
	 	2.	 	Amount of repayment: $____________
	 
	 	3.	 	Date of repayment: _______________, 200___.
	 
	 	4.	 	Type of Loan and amount to which repayment applies:

	 	(a)	 	Base Rate Loan for $____________
	 
	 	(b)	 	Eurodollar Rate Loan with Interest Period of:

	 	(i)	 	one month          $__________________
	 
	 	(ii)	 	two months        $__________________
	 
	 	(iii)	 	three months      $__________________

     The repayment referred to herein complies with Section 2.03 of the Agreement.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC,

a Delaware limited liability company, as Borrower

 	 
	 	By  	   QUEST ENERGY PARTNERS, L.P.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By  	      QUEST ENERGY GP, LLC, its
 	 

Exhibit A-3 Page 1

Form of Repayment Notice

 

 

	 	 	 	 	 
	 	General Partner

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A-3 Page 2

Form of Repayment Notice

 

 

EXHIBIT B

FORM OF TERM NOTE

			
	$_____________________
	 	July ___, 2008

     FOR VALUE RECEIVED,
the undersigned (the “Borrower”), hereby promises to pay to the order of
__________________ (the “Lender”), on the Maturity Date (as defined in the Credit Agreement
referred to below) the principal amount of _________ Dollars ($____________), or such lesser
principal amount of Term Loans (as defined in such Credit Agreement) made by Lender under the
Credit Agreement due and payable by the Borrower to the Lender on the Maturity Date under that
certain Second Lien Senior Term Loan Agreement, dated as of even date herewith (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined), among the Borrower,
Quest Energy Partners, L.P., a Delaware limited partnership, the Lenders from time to time party
thereto, and Royal Bank of Canada, as Administrative Agent and Collateral Agent and KeyBank
National Association, as Syndication Agent and Société Générale, as Documentation Agent.

     The Borrower promises to pay interest on the unpaid principal amount of each Term Loan from
the date of such Term Loan until such principal amount is paid in full, at such interest rates, and
at such times as are specified in the Credit Agreement. All payments of principal and interest
shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately
available funds to the account designated by the Administrative Agent in the Credit Agreement. If
any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be
paid upon demand, from the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Credit Agreement.

     This Term Note is one of the Term Notes referred to in the Credit Agreement, is entitled to
the benefits thereof and is subject to optional and mandatory prepayment in whole or in part as
provided therein. This Term Note is also entitled to the benefits of each Guaranty and the
Collateral Documents. Upon the occurrence and continuation of one or more of the Events of Default
specified in the Credit Agreement, all amounts then remaining unpaid on this Term Note shall
become, or may be declared to be, immediately due and payable all as provided in the Credit
Agreement. Term Loans made by the Lender shall be evidenced by one or more loan accounts or
records maintained by the Lender in the ordinary course of business. The Lender may also attach
schedules to this Term Note and endorse thereon the date, amount and maturity of its Term Loans and
payments with respect thereto.

     This Term Note is a Loan Document and is subject to Section 10.10 of the Credit Agreement,
which is incorporated herein by reference the same as if set forth herein verbatim.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, notice of intent to accelerate, notice of acceleration,
demand, dishonor and non-payment of this Term Note.

Exhibit B-1 Page 1

Form of Term Note

 

 

     THIS TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC, a Delaware limited liability

company, as Borrower

 	 
	 	By  	 QUEST ENERGY PARTNERS, L.P.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By  	QUEST ENERGY GP, LLC, its
 	 
	 	 	General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B-1 Page 2

Form of Term Note

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

(Pursuant to Section 6.02 of the Agreement)

Financial Statement Date: ___________, ____

To: Royal Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Second Lien Senior Term Loan Agreement, dated as of July 11,
2008 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among Quest
Cherokee, LLC, a Delaware limited liability company (the “Borrower”), Quest Energy Partners, L.P.,
a Delaware limited partnership, the Lenders from time to time party thereto, and Royal Bank of
Canada, as Administrative Agent and Collateral Agent, KeyBank National Association, as Syndication
Agent, and Société Générale, as Documentation Agent. Capitalized terms used herein but not defined
herein shall have the meaning set forth in the Agreement.

     The undersigned
Responsible Officers hereby certify as of the date hereof that they are the
________________________ of the General Partner of the MLP and the ________________________ of the
Borrower, and that, as such, they are authorized to execute and deliver this Certificate to the
Administrative Agent on the behalf of the MLP and the Borrower, and that:

     [Use the following for fiscal year-end financial statements]

     Attached hereto as Schedule 1 are the year-end audited consolidated financial statements of
the MLP and its Subsidiaries required by Section 6.01(a) of the Agreement for the fiscal year of
the MLP ended as of the above date, together with the report and opinion of an independent
certified public accountant required by such section; and

     [Use the following for fiscal quarter-end financial statements]

     Attached hereto as Schedule 1 are, the unaudited consolidated financial statements of the MLP
and its Subsidiaries required by Section 6.01(b) of the Agreement for the fiscal quarter of the MLP
ended as of the above date and the portion of the MLP’s fiscal year then ended, together with a
certificate of a Responsible Officer of the MLP or the Borrower, as applicable, stating that such
financial statements fairly present the financial condition, results of operations and cash flows
of the MLP and the Borrower, as applicable, and their respective Subsidiaries in accordance with
GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the
absence of footnotes.

     [Use the following for both fiscal year-end and quarter-end financial statements]

     1. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and
condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements.

Exhibit C Page 1

Form of Compliance Certificate

 

 

     2. A review of the activities of the MLP and the Borrower during such fiscal period has been
made under the supervision of the undersigned with a view to determining whether during such fiscal
period the MLP and the Borrower performed and observed all their respective Obligations under the
Loan Documents, and no Default or Event of Default has occurred and is continuing except as follows
(list of each such Default or Event of Default and include the information required by Section 6.03
of the Credit Agreement):

     3. The covenant analyses and information set forth on Schedule 2 attached hereto are true and
accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned
has executed this Certificate as of ____________, ______.

	 	 	 	 	 
	 	QUEST CHEROKEE, LLC,

a Delaware limited liability

company, as Borrower

 	 
	 	By  	               QUEST ENERGY PARTNERS, L.P.,
 	 
	 	 	its Sole Member 	 
	 	 	 
	 	By  	                 QUEST ENERGY GP, LLC,
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit C Page 2

Form of Compliance Certificate

 

 

SCHEDULE 1

“Financial Statements”

Exhibit C Page 3

Form of Compliance Certificate

 

 

For the Quarter/Year ended

                                         (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 
	I. Section 7.16(a) — Current Ratio
	 	 	 	 
	A. Consolidated current assets (plus unused availability under the
First Lien Credit Agreement) as at most recent Financial Statement
Date:
	 	$	                    	 
	B. Consolidated current liabilities as at most recent Financial
Statement Date:
	 	$	                    	 
	C. Is ratio of I.A. to I.B at least 1.0 to 1.0
	 	Yes/No
	 
	 	 	 	 
	II. Section 7.16(b) — Interest Coverage Ratio.
	 	 	 	 
	 
	 	 	 	 
	A. Adjusted Consolidated EBITDA for four consecutive fiscal quarters ending on the Statement Date, except that for the period
ending September 30, 2008, such calculation shall be done on a pro forma basis (“Subject Period”) (see Credit Agreement
definition of “Consolidated EBITDA” and “Adjusted Consolidated EBITDA”):
	 	 	 	 
	1. Consolidated EBITDA for Subject Period:
	 	$	                    	 
	2. Distribution Equivalent Amount for Subject Period
	 	$	                    	 
	3. Adjusted Consolidated EBITDA (Lines II.A.1 + II.A.2)
	 	$	                    	 
	 
	 	 	 	 
	B. Consolidated Interest Charges for the Subject Period

	 	 	 	 
	1. Consolidated Interest Charges for the four consecutive fiscal quarters ending on the Statement Date):
	 	$	                    	 
	2. Pro forma adjustment for Consolidated Interest Charges during the
four consecutive fiscal quarters ending on the Statement Date (Section 7.16(c)):
	 	$	                    	 
	3. Consolidated Interest Charges (Lines II.B.1 + II.B.2):
	 	$	                    	 
	 
	 	 	 	 
	C. Interest Coverage Ratio
	 	 	 	 
	1. Adjusted Consolidated EBITDA (Line II.A.3):
	 	$	                    	 
	2. Consolidated Interest Charges (Line II.B.3):
	 	$	                    	 
	3. Imputed interest charges on Synthetic Lease Obligations of the MLP
and its Subsidiaries for the Subject Period:
	 	$	                    	 
	4. Interest Coverage Ratio: (Line II.C.1) divided by (Lines II.C.2 +
II.C.3):
	 	____ to 1.0
	Is the Interest Coverage Ratio less than 2.5 to 1.0?
	 	Yes/No

Exhibit C Page 4

Form of Compliance Certificate

 

 

	 	 	 	 	 
	 
	 	 	 	 
	III. Section 7.16(c) — Leverage Ratio
	 	 	 	 
	 
	 	 	 	 
	A. Consolidated Funded Debt
	 	 	 	 
	1. Consolidated Funded Debt on Statement Date (borrowed money
Indebtedness, letter of credit reimbursement obligations, Capital
Leases, Synthetic Leases, Guaranty Obligations)
	 	$	                    	 
	 
	 	 	 	 
	B. Adjusted Consolidated EBITDA
	 	 	 	 
	1. Adjusted Consolidated EBITDA (Line II.A.3 above)
	 	 	 	 
	2 Total Leverage Ratio: (Line III.A.1) divided by (Line III.B.1):
	 	____ to 1.0
	3. Is the Leverage Ratio less than 3.5 to 1.0?
	 	Yes/No
	 
	 	 	 	 
	IV. Section 7.16(d) — Total Reserve Leverage Ratio
	 	 	 	 
	 
	 	 	 	 
	A. Total Reserves
	 	 	 	 
	1. Value on Reserve Report most recently delivered to the
Administrative Agent pursuant to Section 2.02 of the First Lien
Credit Agreement (based on PV10 strip prices in effect at the end
of period) of Proved Developed Producing Reserves
	 	$	                    	 
	2. Value on Reserve Report most recently delivered to the
Administrative Agent pursuant to Section 2.02 of the First Lien
Credit Agreement (based on PV10 strip prices in effect at the end
of period) of Proved Developed Non-Producing Reserves
	 	$	                    	 
	3. Value on Reserve Report most recently delivered to the
Administrative Agent pursuant to Section 2.02 of the First Lien
Credit Agreement (based on PV10 strip prices in effect at the end
of period) of Undeveloped Reserves
	 	$	                    	 
	4. Total Reserve Value (Line IV.A.1 + Line IV.A. 2 + Line IV.A. 3)
	 	$	                    	 
	 
	 	 	 	 
	B. Consolidated Funded Debt
	 	 	 	 
	1. Consolidated Funded Debt from Line III.A.1
	 	$	                    	 
	2. Total Reserve Leverage Ratio: (Line IV.A.4) divided by (Line IV.B.1)
	 	___ to 1.0
	3. Is the Total Reserve Leverage Ratio less than 1.5 to 1.0?
	 	Yes/No

 Exhibit C Page 5

Form of Compliance Certificate

 

 

EXHIBIT D

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below (as may be amended,
the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The
Standard Terms and Conditions set forth in Annex I attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:	 	 
	 
	 	 	 	 
	2.

	 	Assignee:	 	 
	 

	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]
	 
	 	 	 	 
	3.

	 	Borrower(s):
	 	Quest Cherokee, LLC
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	Royal Bank of Canada, as the administrative agent under
the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The $45,000,000 Second Lien Senior Term Loan Agreement dated
as of July 11, 2008 among Quest Cherokee, LLC, as borrower, Quest Energy Partners,
L.P., the Lenders parties thereto, and Royal Bank of Canada, as Administrative Agent
and Collateral Agent, KeyBank National Association, as Syndication
Agent and Société Générale, as Documentation Agent.

Exhibit D Page 1

Form of Assignment and Assumption

 

 

	 	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	Amount of	 	 	 	 
	 	 	Term Loans for	 	 	Term Loans	 	 	Percentage Assigned of	 
	 	 	all Lenders*	 	 	Assigned*	 	 	Term Loans	 
	Term Loans:
	 	$	 	 	 	$	 	 	 	 	%	 

[7. Trade Date: ________________ ]

Effective
Date: _________ ___, 20___[ TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR 

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSIGNEE 

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

*Amount to be adjusted by the counterparties to take into account any payments or prepayments made
between the Trade Date and the Effective Date.

	 	 	 	 	 
	 	Consented to and Accepted:

[NAME OF ADMINISTRATIVE AGENT], 

as Administrative Agent

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

[Consented to:]

 
Exhibit D Page 2

Form of Assignment and Assumption

 

 

	 	 	 	 	 
	QUEST CHEROKEE, LLC, a Delaware limited liability
company

By:  QUEST ENERGY PARTNERS, L.P.,

        its Sole Member

By:  QUEST ENERGY GP, LLC,

        its General Partner

 	 
	By  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

 
Exhibit D Page 3

Form of Assignment and Assumption

 

 

	 	 	 	 	 

ANNEX 1

TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

          1.1 Assignor. The Assignor: (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

          1.2. Assignee. The Assignee: (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the
Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms
of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it
will, independently and without reliance on the Administrative Agent, the Assignor or any other
Lender, and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms
of the Loan Documents are required to be performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to
the benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one

Exhibit D Page 4

Form of Assignment and Assumption

 

 

instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment
and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance
with, the law of the State of New York.

Exhibit D Page 5

Form of Assignment and Assumptionexv10w8

EXECUTION

GUARANTY

(Subsidiary)

     THIS GUARANTY (this “Guaranty”), dated as of July 11, 2008, is made by QUEST CHEROKEE OILFIELD
SERVICE, LLC, a Delaware limited liability company (the “Guarantor”), in favor of ROYAL BANK OF
CANADA, as administrative agent for the “Secured Parties” as defined in the Credit Agreement
(hereinafter defined).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Second Lien Senior Term Loan Agreement dated July 11, 2008
(as the same may hereafter be amended, supplemented and restated, the “Credit Agreement”), among
QUEST ENERGY PARTNERS, L.P., a Delaware limited partnership (the “MLP”) and QUEST CHEROKEE, LLC, a
Delaware limited liability company (“Borrower”), the various financial institutions that are, or
may from time to time become, parties thereto (individually a “Lender” and collectively the
“Lenders”) and Royal Bank of Canada, as administrative agent and collateral agent (in its capacity
as administrative agent, the “Administrative Agent”), the Lenders have agreed to make Credit
Extensions for the account of the Borrower; and

     WHEREAS, as a condition precedent to the making of Credit Extensions under and as defined in
the Credit Agreement, the Guarantor is required to execute and deliver this Guaranty; and

     WHEREAS, the Guarantor has duly authorized the execution, delivery and performance of this
Guaranty; and

     WHEREAS, the Guarantor is a wholly owned subsidiary of the Borrower; and

     WHEREAS, it is in the best interests of the Guarantor to execute this Guaranty inasmuch as the
Guarantor will derive substantial direct and indirect benefits from the extensions of credit made
from time to time to or for the account of the Borrower.

     NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, and in order to induce the Lenders to make Credit Extensions to the Borrower pursuant
to the Credit Agreement by fulfilling the requirements of the Credit Agreement, the Guarantor
agrees, for the benefit of each Lender, as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Certain Terms. The following capitalized terms when used in this Guaranty,
including its preamble and recitals, shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

     “Administrative Agent” is defined in the first recital.

     “Borrower” is defined in the first recital.

     “Commitments” means each Term Loan Commitment as defined in the Credit Agreement.

Subsidiary Guaranty

Page 1

 

     “Credit Extensions” means each Credit Extension as defined in the Credit Agreement.

     “Guarantor” is defined in the preamble.

     “Guaranty” is defined in the preamble.

     “Lenders” is defined in the first recital.

     “Loan Documents” means the Loan Documents as defined in the Credit Agreement.

     “Note” means each Term Note as defined in the Credit Agreement.

     “Obligations” means the Obligations as defined in the Credit Agreement.

     “Obligor” means the Borrower or any other Person (other than the Administrative Agent or any
Lender) obligated under any Loan Document.

     “Required Lenders” means the Required Lenders as defined in the Credit Agreement.

     “Taxes” is defined in clause (a) of Section 2.7.

     “UCC” means the Uniform Commercial Code as in effect in the State of New York.

     SECTION 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, capitalized terms used in this Guaranty, including its preamble and
recitals, have the meanings provided in the Credit Agreement,

     SECTION 1.3 UCC Definitions. Unless otherwise defined herein or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this Guaranty, including its
preamble and recitals, with such meanings.

ARTICLE II

GUARANTY PROVISIONS

     SECTION 2.1 Guaranty. The Guarantor hereby absolutely, unconditionally, and
irrevocably (1) guarantees the full and punctual payment when due, whether at stated maturity, by
required prepayment, declaration, acceleration, demand or otherwise, of all Obligations of the
Borrower and each other Obligor now or hereafter existing under each of the Credit Agreement, the
Notes and each other Loan Document to which the Borrower or such other Obligor is or may become a
party, whether for principal, interest, fees, expenses or otherwise (including all such amounts
which would become due but for the operation of the automatic stay under Section 362(a) of the
United States Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b)
of the United States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)), and (2) indemnifies and holds
harmless each Lender and each holder of a Note for any and all costs and expenses (including
reasonable attorney’s fees and expenses) incurred by such Lender or such holder, as the case may
be, in enforcing any rights under this Guaranty; provided however, that the Guarantor shall be
liable under this Guaranty for the maximum amount of such liability that can be hereby incurred
without rendering this Guaranty, as it relates to the Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount. This
Guaranty constitutes a guaranty of payment when due and not of collection, and the Guarantor
specifically agrees that it shall not be necessary or required that any Lender or any holder of any
Note

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exercise any right, assert any claim or demand or enforce any remedy whatsoever against the
Borrower or any other Obligor (or any other Person) before or as a condition to the obligations of
the Guarantor hereunder.

     SECTION 2.2 Acceleration of Guaranty. The Guarantor agrees that, in the event of the
occurrence of any event of the type described in Section 8.01(f) of the Credit Agreement, with
respect to the Borrower, any other Obligor or the Guarantor, and if such event shall occur at a
time when any of the Obligations may not then be due and payable, the Guarantor will pay to the
Lenders forthwith the full amount which would be payable hereunder by the Guarantor if all such
Obligations were then due and payable.

     SECTION 2.3 Guaranty Absolute, etc. This Guaranty shall in all respects be a
continuing, absolute, unconditional and irrevocable guaranty of payment, and shall remain in full
force and effect until all Obligations (other than contingent indemnity obligations) of the
Borrower and each other Obligor have been paid in full (or, in the case of L/C Obligations, Cash
Collateralized), all obligations of the Guarantor hereunder shall have been paid in full, all
Commitments shall have terminated and, except as provided in Section 10.01(e) of the Credit
Agreement, all Lender Hedging Agreements have terminated. The Guarantor may not rescind or revoke
its obligations hereunder. The Guarantor guarantees that the Obligations of the Borrower and each
other Obligor will be paid strictly in accordance with the terms of the Credit Agreement and each
other Loan Document under which they arise, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Lender or
any holder of any Note with respect thereto. The liability of the Guarantor under this Guaranty
shall be absolute, unconditional and irrevocable irrespective of: (1) any lack of validity,
legality or enforceability of the Credit Agreement, any Note or any other Loan Document; (2) the
failure of any Lender or any holder of any Note (a) to assert any claim or demand or to enforce any
right or remedy against the Borrower, any other Obligor or any other Person (including any other
guarantor) under the provisions of the Credit Agreement, any Note, any other Loan Document or
otherwise, or (b) to exercise any right or remedy against any other guarantor of, or collateral
securing, any Obligations of the Borrower or any other Obligor; (3) any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations of the Borrower or
any other Obligor, or any other extension, compromise or renewal of any Obligations of the Borrower
or any other Obligor; (4) any reduction, limitation, impairment or termination of any Obligations
of the Borrower or any other Obligor for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to (and the Guarantor hereby waives
any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever
by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability
of, or any other event or occurrence affecting, any Obligations of the Borrower, any other Obligor
or otherwise; (5) any amendment to, rescission, waiver, or other modification of, or any consent to
departure from, any of the terms of the Credit Agreement, any Note or any other Loan Document; (6)
any addition, exchange, release, surrender or non-perfection of any collateral, or any amendment to
or waiver or release or addition of, or consent to departure from, any other guaranty, held by any
Lender or any holder of any Note securing any of the Obligations of the Borrower or any other
Obligor; (7) the insolvency or bankruptcy of, or similar event affecting, the Borrower or any other
Obligor; or (8) any other circumstance which might otherwise constitute a defense available to, or
a legal or equitable discharge of, the Borrower, any other Obligor, any surety or any guarantor.
The Guarantor waives all rights and defenses which may arise with respect to any of the foregoing,
and the Guarantor waives any right to revoke this Guaranty with respect to future indebtedness.

     SECTION 2.4 Reinstatement. The Guarantor agrees that this Guaranty shall continue to
be effective or be reinstated, as the case may be, if at any time any payment (in whole or in part)
of any of

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the Obligations is rescinded or must otherwise be restored by any Lender or any holder of any
Note, upon the insolvency, bankruptcy or reorganization of the Borrower, any other Obligor or
otherwise, all as though such payment had not been made.

     SECTION 2.5 Waiver, etc. The Guarantor hereby waives promptness, diligence, notice
of acceptance and any other notice with respect to any of the Obligations of the Borrower or any
other Obligor and this Guaranty and any requirement that the Administrative Agent, any other Lender
or any holder of any Note protect, secure, perfect or insure any security interest or Lien, or any
property subject thereto, or exhaust any right or take any action against the Borrower, any other
Obligor or any other Person (including any other guarantor) or entity or any collateral securing
the Obligations of the Borrower or any other Obligor, as the case may be.

     SECTION 2.6 Waiver of Subrogation. Until the Obligations are paid in full, all
Commitments have terminated and all Lender Hedging Agreements have terminated (except as provided
in Section 10.01(e) of the Credit Agreement), the Guarantor shall not enforce or exercise any claim
or other rights which it may now or hereafter acquire against the Borrower or any other Obligor
that arise from the existence, payment, performance or enforcement of the Guarantor’s obligations
under this Guaranty or any other Loan Document, including any right of subrogation, reimbursement,
exoneration, or indemnification, any right to participate in any claim or remedy of the Lenders
against the Borrower or any other Obligor or any collateral which the Administrative Agent now has
or hereafter acquires, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including the right to take or receive from the Borrower or any
other Obligor, directly or indirectly, in cash or other property or by set-off or in any manner,
payment or security on account of such claim or other rights. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, such amount shall be deemed to have been paid to
the Guarantor for the benefit of, and held in trust for, the Lenders, and shall forthwith be paid
to the Administrative Agent for the benefit of the Lenders by the Guarantor receiving such payment
to be credited and applied upon the Obligations, whether matured or unmatured. The Guarantor
acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by the Credit Agreement and that the waiver set forth in this Section is knowingly
made in contemplation of such benefits.

     SECTION 2.7 Payments Free and Clear of Taxes, etc. The Guarantor hereby agrees that:

     (a) All payments by the Guarantor hereunder shall be made in accordance with Section 3.01 of
the Credit Agreement free and clear of and without deduction for any and all present or future
taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and
all liabilities with respect thereto; excluding, in the case of the Administrative Agent and each
Lender, taxes imposed on or measured by its net income (including any franchise taxes imposed on or
measured by its net income), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is organized or
maintains its Lending Office (all such non-excluded taxes, duties, levies, imposts, deductions,
assessments, fees, withholdings or similar charges, and liabilities being hereinafter referred to
as “Taxes”). In the event that any withholding or deduction from any payment to be made by the
Guarantor hereunder is required in respect of any Taxes pursuant to any applicable law, rule or
regulation, then the Guarantor will (i) pay directly to the relevant authority the full amount
required to be so withheld or deducted; (ii) promptly forward to such Lender an official receipt or
other documentation satisfactory to such Lender evidencing such payment to such authority; and
(iii) pay to such Lender such additional amount or amounts as is necessary to ensure that the net
amount actually received by such Lender will equal the full amount such Lender would have received
had no such withholding or deduction been required. Moreover, if any Taxes are directly asserted
against any Lender with respect to any payment received by such Lender hereunder, such Lender

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may pay such Taxes and the Guarantor will promptly pay such additional amounts (including, if
incurred as a result of the Guarantor’s or the Borrower’s action, omission or delay, any penalties,
interest or expenses) as is necessary in order that the net amount received by such Lender after
the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount
such Lender would have received had such Taxes not been asserted.

     (b) If the Guarantor fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to any Lender the required receipts or other required documentary evidence, the
Guarantor shall indemnify such Lender for any incremental Taxes, interest or penalties that may
become payable by such Lender as a result of any such failure.

     (c) Without prejudice to the survival of any other agreement of the Guarantor hereunder, the
agreements and obligations of the Guarantor contained in this Section 2.7 shall survive the payment
in full of the principal of and interest on the Term Loan.

     SECTION 2.8 Contribution Agreement. Upon full and final payment of the Obligations,
the Guarantor together with all other guarantors which have made payments upon all or any part of
the Obligations shall be entitled to contribution from all of the other guarantors, to the end that
all such payments upon the Obligations shall be shared among all guarantors who guaranteed such
Obligations in proportion to their respective Net Worths (defined below); provided that the
contribution obligations of each of the guarantors shall be limited to the maximum amount that it
can pay at such time without rendering its contribution obligations voidable under applicable law
relating to fraudulent conveyances or fraudulent transfers. As used in this subsection, the “Net
Worth” of each of the guarantors, means at any time, the remainder of (i) the fair value of such
guarantor’s assets (other than such right of contribution), minus (ii) the fair value of such
guarantor’s liabilities (other than its liabilities under its guaranty of the Obligations).

     SECTION 2.9 Subordination. The Guarantor hereby subordinates and makes inferior to the
Obligations any and all indebtedness now or at any time hereafter owed by the Borrower or other
Obligor to the Guarantor. The Guarantor agrees that if any Event of Default has occurred and is
continuing under the Credit Agreement, it will not permit the Borrower to repay such indebtedness
or any part thereof and it will not accept payment from the Borrower of such indebtedness or any
part thereof without the prior written consent of the Required Lenders. If the Guarantor receives
any such payment without the prior required written consent, the amount so paid shall be held in
trust for the benefit of the Lenders, shall be segregated from the other funds of the Guarantor,
and shall forthwith be paid over to the Administrative Agent to be held by the Administrative Agent
as collateral for, or then or at any time thereafter applied in whole or in part by the
Administrative Agent against, all or any portions of the Obligations, whether matured or unmatured,
in such order as the Administrative Agent shall elect.

ARTICLE III

MISCELLANEOUS PROVISIONS

     SECTION 3.1 Loan Document. This Guaranty is a Loan Document executed pursuant to the
Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms and provisions thereof.

     SECTION 3.2 Releases. At such time as the Term Loan shall have been paid in full
(other than contingent indemnity obligations), the Commitments have been terminated, and, subject
to Section 10.01(e) of the Credit Agreement, no Lender Hedging Agreements are outstanding, the
Administrative

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Agent shall, at the request and expense of the Guarantor following such termination, promptly
execute and deliver to the Guarantor such documents and instruments as the Guarantor shall
reasonably request to evidence termination and release of this Guaranty.

     SECTION 3.3 Administrative Agent and Lenders; Successors and Assigns.

     (a) The Administrative Agent is Administrative Agent for each Lender under the Credit
Agreement. All rights granted to Administrative Agent under or in connection with this Guaranty are
for each Lender’s ratable benefit. The Administrative Agent may, without the joinder of any Lender,
exercise any rights in Administrative Agent’s or Lenders’ favor under or in connection with this
Guaranty. The Administrative Agent’s and each Lender’s rights and obligations vis-a-vis each other
may be subject to one or more separate agreements between those parties. However, the Guarantor is
not required to inquire about any such agreement and is not subject to any terms of it unless the
Guarantor specifically enters into such agreement. Therefore, neither the Guarantor nor its
successors or assigns are entitled to any benefits or provisions of any such separate agreement nor
are they entitled to rely upon or raise as a defense any party’s failure or refusal to comply with
the provisions of any such agreement.

     (b) This Guaranty benefits the Administrative Agent, the Lenders, and their respective
successors and assigns and binds the Guarantor and its successors and assigns. Upon appointment of
any successor Administrative Agent under the Credit Agreement, all of the rights of Administrative
Agent under this Guaranty automatically vest in that new Administrative Agent as successor
Administrative Agent on behalf of Lenders without any further act, deed, conveyance, or other
formality other than that appointment. The rights of the Administrative Agent and the Lenders under
this Guaranty may be transferred with any assignment of the obligations hereby guaranteed pursuant
to and in accordance with the terms of the Credit Agreement. The Credit Agreement contains
provisions governing assignments of the obligations guaranteed under this Guaranty.

     SECTION 3.4 Amendments, etc. No amendment to or waiver of any provision of this
Guaranty, nor consent to any departure by the Guarantor herefrom, shall in any event be effective
unless the same shall be in writing and signed by or on behalf of the party against whom it is
sought to be enforced and is in conformity with the requirements of Section 10.01 of the Credit
Agreement. Each such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

     SECTION 3.5 Addresses for Notices to the Guarantor. All notices and other
communications hereunder to the Guarantor shall be in writing and mailed or delivered to it,
addressed to it at the address set forth below or at such other address as shall be designated by
the Guarantor in a written notice to the Administrative Agent at the address specified in the
Credit Agreement complying as to delivery with the terms of this Section. All such notices and
other communications shall, when mailed, be effective when deposited in the mail, addressed as
aforesaid. Address for notices:

210 Park Avenue, Suite 2750

Oklahoma City, Oklahoma 73102

Facsimile: (405) 600-7704

Telephone: (405) 600-7722

     SECTION 3.6 No Waiver; Remedies. In addition to, and not in limitation of, Section 2.3
and Section 2.5, no failure on the part of any Lender or any holder of a Note to exercise, and no
delay in

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exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

     SECTION 3.7 Section Captions. Section captions used in this Guaranty are for
convenience of reference only, and shall not affect the construction of this Guaranty.

     SECTION 3.8 Setoff. In addition to, and not in limitation of, any rights of any
Lender or any holder of a Note under applicable law, upon the occurrence and during the continuance
of an Event of Default under or as defined in the Credit Agreement, each Lender and each such
holder shall be entitled to exercise (for the benefit of all Lenders pursuant to Section 10.09 of
the Credit Agreement) any right of offset or banker’s lien against each and every account and other
property or interest that the Guarantor may now or hereafter have with, or which is now or
hereafter in the possession of, any such Lender, to the extent of the full amount of the
Obligations.

     SECTION 3.9 Severability. Wherever possible, each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Guaranty shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Guaranty.

     SECTION 3.10 Governing Law.

     (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE;
PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING
UNDER UNITED STATES FEDERAL LAW.

     (b) THE GUARANTOR AGREES ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS FROM
ANY THEREOF, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY, THE GUARANTOR CONSENTS, FOR ITSELF AND
IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE GUARANTOR (1)
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION
OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED
THERETO, AND (2) IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED HEREIN. THE GUARANTOR
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY THE LAW OF SUCH STATE.

     SECTION 3.11 Waiver of Jury Trial, Etc. THE GUARANTOR HEREBY (a) EXPRESSLY AND
IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,

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ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR ANY OF THEM WITH
RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND THE
GUARANTOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL
BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE GUARANTOR TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN
ANY SUCH ACTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN,
OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT THE WAIVER CONTAINED IN THIS SECTION 3.11 SHALL
NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS ENGAGED IN GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT.

     SECTION 3.12 Entire Agreement. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

SIGNATRUES BEGIN ON NEXT PAGE.]

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     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered
by an officer duly authorized as of the date first above written.

	 	 	 	 	 
	 	QUEST CHEROKEE OILFIELD SERVICE, LLC,

a Delaware limited liability company, as Guarantor

 	 
	 	By:  	Quest Cherokee, LLC, its sole member
 	 
	 	 	 	 
	 	 	By:  	/s/ Jerry D. Cash
	 	 	 	Jerry D. Cash, President and Chief Executive Officer	 
	 

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Signature Page- 1

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