Document:

Exhibit
10.2

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered
into by and between Gregg Winiarski (“Executive”) and IAC/InterActiveCorp, a
Delaware corporation (the “Company”), and is effective February 26, 2010 (the
“Effective Date”).

 

WHEREAS, the Company desires to establish its right to
the services of Executive, in the capacity described below, on the terms and
conditions hereinafter set forth, and Executive is willing to accept such
employment on such terms and conditions.

 

NOW, THEREFORE, in consideration of the mutual
agreements hereinafter set forth, Executive and the Company have agreed and do
hereby agree as follows:

 

1A.                             EMPLOYMENT.  During the
Term (as defined below), the Company shall employ Executive, and Executive shall
be employed, as Senior Vice President, General Counsel and Secretary; provided
that Executive’s designation as Secretary shall be effective upon his
appointment to such office by the Company’s Board of Directors.  During Executive’s employment with the Company,
Executive shall do and perform all services and acts necessary or advisable to
fulfill the duties and responsibilities as are commensurate and consistent with
Executive’s position and shall render such services on the terms set forth
herein.  During Executive’s employment
with the Company, Executive shall report directly to such officer(s) of the
Company with a title of Executive Vice President or higher as from time to time
may be designated by the Company; provided that any such Executive Vice President
reports to the Chairman and CEO or Vice Chairman of the Company (hereinafter
referred to as the “Reporting Officer”). 
Executive shall have such powers and duties with respect to the Company
as may reasonably be assigned to Executive by the Reporting Officer, to the
extent consistent with Executive’s position. 
Executive agrees to devote all of Executive’s working time, attention
and efforts to the Company and to perform the duties of Executive’s position in
accordance with the Company’s policies as in effect from time to time.

 

2A.                             TERM.  This
Agreement shall commence on the Effective Date and shall continue for a period
of one (1) year.  This Agreement shall
automatically be renewed for successive one-year periods in perpetuity unless
one party hereto provides written notice to the other, at least ninety (90)
days prior to the end of the then current one-year employment period, that it
elects not to extend this Agreement, which notice shall be irrevocable (any
such notice, a “Non-Renewal Notice”).  The
period beginning on the date hereof and ending on the first anniversary hereof
or, if the Agreement is renewed pursuant to the prior sentence, the last day of
the last one-year renewal period, shall be referred to hereinafter as the
“Term”.

 

Notwithstanding
anything to the contrary in this Section 2A, Executive’s employment hereunder
may be terminated in accordance with the provisions of Section 1 of the
Standard Terms and Conditions attached hereto.

 

 

3A.                             COMPENSATION.

 

(a)                                  BASE SALARY. 
During the period that Executive is employed with the Company hereunder,
the Company shall pay Executive an annual base salary of $375,000 (the “Base
Salary”), payable in equal biweekly installments (or, if different, in
accordance with the Company’s payroll practice as in effect from time to
time).  The Base Salary may be increased
from time to time in the discretion of the Company.  For all purposes under this Agreement, the
term “Base Salary” shall refer to the Base Salary as in effect from time to
time.

 

(b)                                 DISCRETIONARY BONUS AND EQUITY AWARDS. 
During the period that Executive is employed with the Company hereunder,
Executive shall be eligible to receive discretionary annual bonuses and equity
awards.

 

(c)                                  BENEFITS.  From the
Effective Date through the date of termination of Executive’s employment with
the Company for any reason, Executive shall be entitled to participate in any
welfare, health and life insurance and pension benefit programs as may be
adopted from time to time by the Company on the same basis as that provided to
similarly situated employees of the Company. 
Without limiting the generality of the foregoing, Executive shall be
entitled to the following benefits:

 

(i)                                     Reimbursement for Business Expenses. 
During the period that Executive is employed with the Company hereunder,
the Company shall reimburse Executive for all reasonable, necessary and
documented expenses incurred by Executive in performing Executive’s duties for
the Company, on the same basis as similarly situated employees and in accordance
with the Company’s policies as in effect from time to time.

 

(ii)                                  Vacation.  During the
period that Executive is employed with the Company hereunder, Executive shall
be entitled to paid vacation each year, in accordance with the plans, policies,
programs and practices of the Company applicable to similarly situated
employees of the Company generally.

 

4A.                             NOTICES.  All notices
and other communications under this Agreement shall be in writing and shall be
given by first-class mail, certified or registered with return receipt
requested, or by hand delivery, or by overnight delivery by a nationally
recognized carrier, in each case to the applicable address set forth below, and
any such notice is deemed effectively given when received by the recipient (or
if receipt is refused by the recipient, when so refused):

 

	
  If to the Company:

  	
   

  	
  IAC/InterActiveCorp

  
	
   

  	
   

  	
  555 West 18th Street

  
	
   

  	
   

  	
  New York, New York 10011

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  At the most
  recent address of file for Executive at IAC

  

 

Either party may change such party’s address for
notices by notice duly given pursuant hereto.

 

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5A.                             GOVERNING LAW; JURISDICTION. 
This Agreement and the legal relations thus created between the parties
hereto (including, without limitation, any dispute arising out of or related to
this Agreement) shall be governed by and construed under and in accordance with
the internal laws of the State of New York without reference to its principles
of conflicts of laws.  Any such dispute
will be heard and determined before an appropriate federal court located in the
State of New York in New York County, or, if not maintainable therein, then in
an appropriate New York state court located in New York County, and each party
hereto submits itself and its property to the non-exclusive jurisdiction of the
foregoing courts with respect to such disputes. 
The parties hereto acknowledge and agree that this Agreement was executed
and delivered in the State of New York, that the Company is headquartered in
New York City and that, in the course of performing duties hereunder for the
Company, Executive shall have multiple contacts with the business and
operations of the Company, as well as other businesses and operations in the
State of New York, and that for those and other reasons this Agreement and the
undertakings of the parties hereunder bear a reasonable relation to the State
of New York.  Each party hereto (i)
agrees that service of process may be made by mailing a copy of any relevant
document to the address of the party set forth above, (ii) waives to the
fullest extent permitted by law any objection which it may now or hereafter
have to the courts referred to above on the grounds of inconvenient forum or
otherwise as regards any dispute between the parties hereto arising out of or
related to this Agreement, (iii) waives to the fullest extent permitted by law
any objection which it may now or hereafter have to the laying of venue in the
courts referred to above as regards any dispute between the parties hereto
arising out of or related to this Agreement and (iv) agrees that a judgment or
order of any court referred to above in connection with any dispute between the
parties hereto arising out of or related to this Agreement is conclusive and
binding on it and may be enforced against it in the courts of any other
jurisdiction.

 

6A.                             COUNTERPARTS. 
This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one
and the same instrument.

 

7A.                             STANDARD TERMS AND CONDITIONS. 
Executive expressly understands and acknowledges that the Standard Terms
and Conditions attached hereto are incorporated herein by reference, deemed a
part of this Agreement and are binding and enforceable provisions of this
Agreement.  References to “this
Agreement” or the use of the term “hereof” shall refer to this Agreement and
the Standard Terms and Conditions attached hereto, taken as a whole.

 

8A.                             SECTION 409A OF THE INTERNAL REVENUE CODE.

 

(a)                                  This Agreement is not intended to
constitute a “nonqualified deferred compensation plan” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended, and the rules
and regulations issued thereunder (“Section 409A”).  It is intended that any amounts payable under
this Agreement and the Company’s and Executive’s exercise of authority or
discretion hereunder shall comply with and avoid the imputation of any tax, penalty
or interest under Section 409A of the Code. 
This Agreement shall be construed and interpreted consistent with that
intent.

 

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(b)                                 To the extent that any reimbursement
pursuant to this Agreement is taxable to Executive, Executive shall provide the
Company with documentation of the related expenses promptly so as to facilitate
the timing of the reimbursement payment contemplated by this Section 8(b), and
any reimbursement payment due to Executive pursuant to such provision shall be
paid to Executive on or before the last day of Executive’s taxable year
following the taxable year in which the related expense was incurred.  Such reimbursement obligations pursuant to
this Agreement are not subject to liquidation or exchange for another benefit
and the amount of such benefits that Executive receives in one taxable year
shall not affect the amount of such benefits that Executive receives in any
other taxable year.

 

[The Signature Page
Follows]

 

4

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed and delivered by its duly
authorized officer and Executive has executed and delivered this Agreement on
February 26, 2010.

 

 

	
   

  	
  IAC/InterActiveCorp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Victor Kaufman

  
	
   

  	
  By:

  	
  Victor Kaufman

  
	
   

  	
  Title:

  	
  Vice Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gregg Winiarski

  
	
   

  	
  Gregg Winiarski

  

 

 

STANDARD TERMS AND CONDITIONS

 

1.                                       TERMINATION
OF EXECUTIVE’S EMPLOYMENT.

 

(a)                                  DEATH.  In the event Executive’s employment hereunder
is terminated by reason of Executive’s death, the Company shall pay Executive’s
designated beneficiary or beneficiaries, within thirty (30) days of Executive’s
death in a lump sum in cash, (i) Executive’s Base Salary through the end of the
month in which death occurs and (ii) any other Accrued Obligations (as defined
in Section 1(f) below).

 

(b)                                 DISABILITY.  If, as a result of Executive’s incapacity due
to physical or mental illness (“Disability”), Executive shall have been absent
from the full-time performance of Executive’s duties with the Company for a
period of four (4) consecutive months and, within thirty (30) days after written
notice is provided to Executive by the Company (in accordance with Section 4A
hereof), Executive shall not have returned to the full-time performance of
Executive’s duties, Executive’s employment under this Agreement may be
terminated by the Company for Disability. 
During any period prior to such termination during which Executive is
absent from the full-time performance of Executive’s duties with the Company
due to Disability, the Company shall continue to pay Executive’s Base Salary at
the rate in effect at the commencement of such period of Disability, offset by
any amounts payable to Executive under any disability insurance plan or policy
provided by the Company.  Upon
termination of Executive’s employment due to Disability, the Company shall pay
Executive within thirty (30) days of such termination (i) Executive’s Base
Salary through the end of the month in which termination occurs in a lump sum
in cash, offset by any amounts payable to Executive under any disability
insurance plan or policy provided by the Company; and (ii) any other Accrued
Obligations (as defined in Section 1(f) below).

 

(c)                                  TERMINATION FOR
CAUSE OR RESIGNATION WITHOUT GOOD REASON. 
Executive may voluntarily terminate his employment hereunder other than
for Good Reason (as defined below) at any time prior to the expiration of the
Term.  Upon the termination of Executive’s
employment by the Company for Cause (as defined below), or by Executive other
than for Good Reason, the Company shall have no further obligation hereunder,
except for the payment of any Accrued Obligations (as defined in Section 1(f) below).  As used herein, “Cause” shall mean:  (i) the plea of guilty or nolo contendere to,
or conviction for, the commission of a felony offense by Executive; provided,
however, that after indictment, the Company may suspend Executive from
the rendition of services, but without limiting or modifying in any other way
the Company’s obligations under this Agreement; provided, further,
that Executive’s employment shall be immediately reinstated if the indictment
is dismissed or otherwise dropped and there is not otherwise grounds to
terminate Executive’s employment for Cause; (ii) a material breach by Executive
of a fiduciary duty owed to the Company; (iii) a material breach by Executive
of any of the covenants made by Executive in Section 2 hereof; (iv) Executive’s
continued willful or gross neglect of the material duties required by this
Agreement; or (v) a material violation by Executive of any Company policy
pertaining to ethics, wrongdoing or conflicts of interest, which policy had
been disseminated to Executive or otherwise made generally available prior to
such violation; provided, that in the case of conduct described in 

 

 

clauses (iii), (iv) or (v) above which is
capable of being cured, Executive shall have a period of ten (10) days after
Executive is provided with written notice in which to cure, which notice
specifically identifies the breach, the nature of the willful or gross neglect,
or the violation that the Company believe constitutes Cause.

 

(d)                                 TERMINATION BY THE
COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE OR RESIGNATION BY EXECUTIVE
FOR GOOD REASON.  If Executive’s
employment hereunder is terminated prior to the expiration of the Term by the
Company for any reason other than Executive’s death or Disability or for Cause,
or if Executive terminates his employment hereunder prior to the expiration of
the Term for Good Reason, then

 

(i)                                     the
Company shall pay to Executive an amount equal to the Base Salary that would be
paid for twelve (12) months from the date of such termination (the “Severance
Period”);

 

(ii)                                  the
Company shall pay Executive within thirty (30) days of the date of such
termination in a lump sum in cash any Accrued Obligations (as defined in Section
1(f) below);

 

(iii)                               any
compensation awards of Executive based on, or in the form of, Company equity
(e.g. restricted stock, restricted stock units, stock options or similar
instruments) that are outstanding and unvested at the time of such termination
but which would, but for a termination of employment, have vested during the
Severance Period shall vest as of the date of such termination of employment; provided
that any outstanding award with a vesting schedule that would, but for a
termination of employment, have resulted in a smaller percentage (or none) of
the award being vested through the end of the Severance Period than if it
vested annually pro rata over its vesting period shall, for purposes of this
provision, be treated as though it vested annually pro rata over its vesting
period (e.g., if 100 RSUs were granted 2.7 years prior to the date of
termination and vested pro rata on the first five anniversaries of the grant
date and 100 RSUs were granted 1.7 years prior to the date of termination and
vested on the fifth anniversary of the grant date, then on the date of
termination 20 RSUs from the first award and 40 RSUs from the second award
would vest); and provided further that any amounts that would vest under
this provision but for the fact that outstanding performance conditions have
not been satisfied shall vest only if, and at such point as, such performance
conditions are satisfied; and

 

(iv)                              any
then vested options of Executive (including options vesting as a result of (iii)
above) to purchase Company equity, shall remain exercisable through the date
that is eighteen months following the date of such termination or, if earlier,
through the scheduled expiration date of such options.

 

The payment to Executive of the severance
benefits described in Section 1(d)(i) shall be subject to Executive’s execution
and non-revocation of a general release of the Company and its affiliates, in a
form substantially similar to that used for similarly situated executives of
the Company and its affiliates, such general release to be executed and
promptly delivered to the Company (and in no event later than 21 days following
Executive’s termination of employment, 

 

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or such longer period as may be required by
applicable law) and Executive’s compliance with the restrictive covenants set
forth in Section 2 hereof.  Any severance
benefits due to Executive pursuant to Section 1(d)(i) shall be paid in equal
biweekly installments (or, if different, in accordance with the Company’s
payroll practice as in effect from time to time) over the course of a period of
twelve (12) months beginning in the second month following the month in which
Employee’s Separation from Service (as such term is defined below) took place.

 

For purposes of this Agreement, “Good Reason”
shall mean the occurrence of any of the following without Executive’s prior
written consent:  (A) the material diminution in Executive’s Base Salary, (B)
a material adverse change in reporting structure such that Executive is no
longer reporting to the Reporting Officer, (C) a material adverse change in
Executive’s title, duties or level of responsibilities as compared to those
existing as of the Effective Date, excluding for this purpose any such change
that is an isolated and inadvertent action not taken in bad faith but including
any circumstance under which the Company is no longer publicly traded and is
controlled by another company, or (D) the material relocation of
Executive’s principal place of employment from the location in effect as of the
Effective Date (e.g., outside of the greater New
York City metropolitan area); provided,
that in no event shall Executive’s resignation be for “Good Reason” unless
(x) an event or circumstance set forth in clauses (A), (B), (C) or (D) shall
have occurred and Executive provides the Company with written notice thereof
within thirty (30) days after Executive has initial knowledge of the occurrence
or existence of such event or circumstance, which notice specifically
identifies the event or circumstance that Executive believes constitutes Good
Reason, (y) the Company fails to correct the circumstance or event so
identified within thirty (30) days after the receipt of such notice, and (z) Executive
resigns within ninety (90) days after the date of delivery of the notice
referred to in clause (x) above.

 

(e)                                  OFFSET.  If Executive obtains other employment during
the period of time in which the Company is required to make payments to
Executive pursuant to Section 1(d)(i) above, the amount of any such remaining
payments to be provided to Executive shall be reduced by the amount of
compensation earned by Executive from such other employment through the end of
such period (provided that for purposes of calculating which portion of the
payments made under Section 1(d)(i) are subject to reduction, any delay in the
Company making payments by virtue of Sections 1(d) or 6 shall not be taken into
account).  For purposes of this Section 1(e),
Executive shall have an obligation to inform the Company regarding Executive’s
employment status following termination and during the period of time in which
the Company is making payments to Executive under Section 1(d)(i) above.

 

(f)                                    ACCRUED
OBLIGATIONS.  As used in this
Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of
Executive’s accrued but unpaid Base Salary through the date of death or
termination of employment for any reason, as the case may be; (ii) any
compensation previously earned but deferred by Executive (together with any
interest or earnings thereon) that has not yet been paid and that is not
otherwise to be paid at a later date pursuant to the executive deferred
compensation plan of the Company, if any, and (iii) any reimbursements that
Executive is entitled to receive under Section 3A(c)(i) of the Agreement.

 

(g)                                 NOTICE OF
NON-RENEWAL.  If the Company delivers
a Non-Renewal Notice to Executive then, provided Executive’s employment
hereunder continues through the expiration date then in effect, effective as of
such expiration date the Company and Executive shall have the 

 

3

 

same rights and obligations hereunder as they
would if the Company had terminated Executive’s employment hereunder prior to
the end of the Term for any reason other than Executive’s death, Disability or
Cause.

 

2.                                       CONFIDENTIAL
INFORMATION; NON-SOLICITATION; AND PROPRIETARY RIGHTS.

 

(a)                                  CONFIDENTIALITY.  Executive acknowledges that, while employed
by the Company, Executive will occupy a position of trust and confidence.  The Company, its subsidiaries and/or
affiliates shall provide Executive with “Confidential Information” as referred
to below.  Executive shall not, except as
may be required to perform Executive’s duties hereunder or as required by
applicable law, without limitation in time, communicate, divulge, disseminate,
disclose to others or otherwise use, whether directly or indirectly, any
Confidential Information regarding the Company and/or any of its subsidiaries
and/or affiliates.

 

“Confidential Information” shall mean information about the Company or
any of its subsidiaries or affiliates, and their respective businesses,
employees, consultants, contractors, clients and customers that is not
disclosed by the Company or any of its subsidiaries or affiliates for financial
reporting purposes or otherwise generally made available to the public (other
than by Executive’s breach of the terms hereof) and that was learned or
developed by Executive in the course of employment by the Company or any of its
subsidiaries or affiliates, including (without limitation) any proprietary
knowledge, trade secrets, data, formulae, information and client and customer
lists and all papers, resumes, and records (including computer records) of the
documents containing such Confidential Information.  Executive acknowledges that such Confidential
Information is specialized, unique in nature and of great value to the Company
and its subsidiaries or affiliates, and that such information gives the Company
and its subsidiaries or affiliates a competitive advantage.  Executive agrees to deliver or return to the
Company, at the Company’s request at any time or upon termination or expiration
of Executive’s employment or as soon thereafter as possible, all documents,
computer tapes and disks, records, lists, data, drawings, prints, notes and
written information (and all copies thereof) furnished by the Company and its
subsidiaries or affiliates or prepared by Executive in the course of Executive’s
employment by the Company and its subsidiaries or affiliates.  As used in this Agreement, “subsidiaries” and
“affiliates” shall mean any company controlled by, controlling or under common
control with the Company.

 

(b)                                 NON-COMPETITION.  In consideration of this Agreement, and for
other good and valuable consideration provided hereunder, the receipt and
sufficiency of which are hereby acknowledged by Executive, Executive hereby
agrees and covenants that, during Executive’s employment with the Company and
for a period of (12) twelve months thereafter, Executive shall not, without the
prior written consent of the Company, directly or indirectly, engage in or
become associated with a Competitive Activity. 
For purposes of this Section 2(b), (i) a “Competitive Activity” means
any business or other endeavor involving products or services that are the same
or similar to products or services (the “Company Products or Services”) that
any business of the Company is engaged in providing as of the date hereof or at
any time during the Term, provided such business or endeavor is in the United
States, or in any foreign jurisdiction in which the Company provides, or has
provided during the Term, the relevant 

 

4

 

Company
Products or Services, and (ii) Executive shall be considered to have become “associated
with a Competitive Activity” if Executive becomes directly or indirectly
involved as an owner, principal, employee, officer, director, independent
contractor, representative, stockholder, financial backer, agent, partner,
member, advisor, lender, consultant or in any other individual or
representative capacity with any individual, partnership, corporation or other
organization that is engaged in a Competitive Activity.  Notwithstanding anything else in this Section
2(b), (i) Executive may become employed by a partnership, corporation or other
organization that is engaged in a Competitive Activity so long as Executive has
no direct or indirect responsibilities or involvement in the Competitive
Activity, (ii) Executive may own, for investment purposes only, up to five
percent (5%) of the outstanding capital stock of any publicly-traded
corporation engaged in a Competitive Activity if the stock of such corporation
is either listed on a national stock exchange or on the NASDAQ National Market
System and if Executive is not otherwise affiliated with such corporation, (iii)
if Executive’s employment hereunder is terminated by the Company for any reason
other than Executive’s death, Disability or Cause, or by Executive for Good Reason,
then the restrictions contained in this Section 2(b) shall lapse, and (iv) Executive
shall only be subject to the restrictions contained in this Section 2(b) to the
extent the activity that would otherwise be prohibited by this section poses a
reasonable competitive threat to the Company, which determination shall be made
by the Company in good faith.

 

(c)                                  NON-SOLICITATION
OF EMPLOYEES.  Executive recognizes
that he will possess Confidential Information about other employees,
consultants and contractors of the Company and its subsidiaries or affiliates
relating to their education, experience, skills, abilities, compensation and
benefits, and inter-personal relationships with suppliers to and customers of
the Company and its subsidiaries or affiliates.  Executive recognizes that the information he
will possess about these other employees, consultants and contractors is not
generally known, is of substantial value to the Company and its subsidiaries or
affiliates in developing their respective businesses and in securing and
retaining customers, and will be acquired by Executive because of Executive’s
business position with the Company. 
Executive agrees that, during Executive’s employment hereunder and for a
period of eighteen (18) months thereafter, Executive will not, directly or
indirectly, hire or solicit or recruit any employee of (i) the Company and/or (ii)
its subsidiaries and/or affiliates with whom Executive has had direct contact
during his employment hereunder, in each case, for the purpose of being
employed by Executive or by any business, individual, partnership, firm,
corporation or other entity on whose behalf Executive is acting as an agent,
representative or employee and that Executive will not convey any such
Confidential Information or trade secrets about employees of the Company or any
of its subsidiaries or affiliates to any other person except within the scope
of Executive’s duties hereunder. 
Notwithstanding the foregoing, Executive is not precluded from
soliciting any individual who (i) responds to any public advertisement or
general solicitation or (ii) has resigned or been terminated by the Company
prior to the solicitation.

 

(d)                                 NON-SOLICITATION OF
BUSINESS PARTNERS.  During Executive’s
employment hereunder, and for a period of eighteen (18) months thereafter,
Executive shall not, without the prior written consent of the Company, persuade
or encourage any business partners or business affiliates of (i) the Company
and/or (ii) any of its subsidiaries and/or affiliates with whom Executive has
direct contact during his employment hereunder, in each case, to cease 

 

5

 

doing business with the Company and/or any of
its subsidiaries and/or affiliates or to engage in any business competitive with
the Company and/or its subsidiaries and/or affiliates.

 

(e)                                  PROPRIETARY
RIGHTS; ASSIGNMENT.  All Employee
Developments (defined below) shall be considered works made for hire by
Executive for the Company or, as applicable, its subsidiaries or affiliates,
and Executive agrees that all rights of any kind in any Employee Developments
belong exclusively to the Company.  In
order to permit the Company to exploit such Employee Developments, Executive
shall promptly and fully report all such Employee Developments to the
Company.  Except in furtherance of his
obligations as an employee of the Company, Executive shall not use or reproduce
any portion of any record associated with any Employee Development without
prior written consent of the Company or, as applicable, its subsidiaries or
affiliates.  Executive agrees that in the
event actions of Executive are required to ensure that such rights belong to
the Company under applicable laws, Executive will cooperate and take whatever
such actions are reasonably requested by the Company, whether during or after
the Term, and without the need for separate or additional compensation.  “Employee Developments” means any idea,
know-how, discovery, invention, design, method, technique, improvement,
enhancement, development, computer program, machine, algorithm or other work of
authorship, whether developed, conceived or reduced to practice during or
following the period of employment, that (i) concerns or relates to the actual
or anticipated business, research or development activities, or operations of
the Company or any of its subsidiaries or affiliates, or (ii) results from or
is suggested by any undertaking assigned to Executive or work performed by
Executive for or on behalf of the Company or any of its subsidiaries or affiliates,
whether created alone or with others, during or after working hours, or (iii) uses,
incorporates or is based on Company equipment, supplies, facilities, trade
secrets or inventions of any form or type. 
All Confidential Information and all Employee Developments are and shall
remain the sole property of the Company or any of its subsidiaries or
affiliates.  Executive shall acquire no
proprietary interest in any Confidential Information or Employee Developments developed
or acquired during the Term.  To the
extent Executive may, by operation of law or otherwise, acquire any right,
title or interest in or to any Confidential Information or Employee
Development, Executive hereby assigns and covenants to assign to the Company
all such proprietary rights without the need for a separate writing or
additional compensation.  Executive
shall, both during and after the Term, upon the Company’s request, promptly
execute, acknowledge, and deliver to the Company all such assignments,
confirmations of assignment, certificates, and instruments, and shall promptly
perform such other acts, as the Company may from time to time in its discretion
deem necessary or desirable to evidence, establish, maintain, perfect, enforce
or defend the Company’s rights in Confidential Information and Employee
Developments.

 

(f)                                    COMPLIANCE WITH
POLICIES AND PROCEDURES.  During the
period that Executive is employed with the Company hereunder, Executive shall
adhere to the policies and standards of professionalism set forth in the
Company’s Policies and Procedures as they may exist from time to time.

 

(g)                                 SURVIVAL OF
PROVISIONS.  The obligations
contained in this Section 2 shall, to the extent provided in this Section 2,
survive the termination or expiration of Executive’s employment with the Company
and, as applicable, shall be fully enforceable thereafter in 

 

6

 

accordance with the terms of this
Agreement.  If it is determined by a
court of competent jurisdiction that any restriction in this Section 2 is
excessive in duration or scope or is unreasonable or unenforceable under
applicable law, it is the intention of the parties that such restriction may be
modified or amended by the court to render it enforceable to the maximum extent
permitted by applicable law.

 

3.                                       TERMINATION
OF PRIOR AGREEMENTS.  Except for any
agreements between Executive and the Company relating to currently outstanding
equity awards as of the date of this Agreement (which remain outstanding), this
Agreement constitutes the entire agreement between the parties and, as of the
Effective Date, terminates and supersedes any and all prior agreements and
understandings (whether written or oral) between the parties with respect to
the subject matter of this Agreement. 
Executive acknowledges and agrees that neither the Company nor anyone
acting on its behalf has made, and is not making, and in executing this
Agreement, Executive has not relied upon, any representations, promises or
inducements except to the extent the same is expressly set forth in this
Agreement.

 

4.                                       ASSIGNMENT;
SUCCESSORS.  This Agreement is
personal in its nature and none of the parties hereto shall, without the
consent of the others, assign or transfer this Agreement or any rights or
obligations hereunder; provided, that the Company may assign this Agreement to,
or allow any of its obligations to be fulfilled by, or take actions through,
any affiliate of the Company (which affiliate clearly has sufficient assets to
satisfy the Company’s obligations under this Agreement) and, in the event of
the merger, consolidation, transfer, or sale of all or substantially all of the
assets of the Company (a “Transaction”) with or to any other individual or
entity, this Agreement shall, subject to the provisions hereof, be binding upon
and inure to the benefit of such successor and such successor shall discharge
and perform all the promises, covenants, duties, and obligations of the Company
hereunder, and in the event of any such assignment or Transaction, all
references herein to the “Company” shall refer to the Company’s assignee or
successor hereunder.

 

5.                                       WITHHOLDING.  The Company shall make such deductions and
withhold such amounts from each payment and benefit made or provided to
Executive hereunder, as may be required from time to time by applicable law,
governmental regulation or order.

 

6.                                       SECTION 409A.

 

(a)                                  For purposes of this
Agreement, a “Separation from Service” occurs when Executive dies, retires or
otherwise has a termination of employment with the Company that constitutes a “separation
from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1),
without regard to the optional alternative definitions available thereunder.

 

(b)                                 If Executive is a “specified
employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of
the date of Executive’s Separation from Service, Executive shall not be
entitled to any payment or benefit pursuant to clause (i) of Section 1(d) until
the earlier of (i) the date which is six (6) months after his Separation from
Service for any reason other than death, or (ii) the date of Executive’s
death.  The provisions of this Section 6(b)
shall only apply if, and to the extent, required to avoid the imputation of any
tax, penalty or interest pursuant to Section 

 

7

 

409A. 
Any amounts otherwise payable to Executive upon or in the six (6) month
period following Executive’s Separation from Service that are not so paid by
reason of this Section 6(b) shall be paid (without interest) as soon as
practicable (and in all events within thirty (30) days) after the date that is
six (6) months after Executive’s Separation from Service (or, if earlier, as
soon as practicable, and in all events within thirty (30) days, after the date
of Executive’s death).

 

(c)                                  It is intended that
any amounts payable under this Agreement and the Company’s and Executive’s
exercise of authority or discretion hereunder shall comply with and avoid the
imputation of any tax, penalty or interest under Section 409A of the Code.  This Agreement shall be construed and
interpreted consistent with that intent.

 

7.                                       HEADING
REFERENCES.  Section headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.  References to “this Agreement” or the use of
the term “hereof” shall refer to these Standard Terms and Conditions and the
Employment Agreement attached hereto, taken as a whole.

 

8.                                       REMEDIES FOR
BREACH.  Executive expressly agrees
and understands that Executive will notify the Company in writing of any
alleged breach of this Agreement by the Company, and the Company will have
thirty (30) days from receipt of Executive’s notice to cure any such
breach.  Executive expressly agrees and
understands that in the event of any termination of Executive’s employment by
the Company during the Term, the Company’s contractual obligations to Executive
shall be fulfilled through compliance with its obligations under Section 1 of
the Standard Terms and Conditions.

 

Executive expressly agrees and understands
that the remedy at law for any breach by Executive of Section 2 of the Standard
Terms and Conditions will be inadequate and that damages flowing from such
breach are not usually susceptible to being measured in monetary terms.  Accordingly, it is acknowledged that, upon
Executive’s violation of any provision of such Section 2, the Company shall be
entitled to obtain from any court of competent jurisdiction immediate
injunctive relief and obtain a temporary order restraining any threatened or
further breach as well as an equitable accounting of all profits or benefits
arising out of such violation.  Nothing
shall be deemed to limit the Company’s remedies at law or in equity for any
breach by Executive of any of the provisions of this Agreement, including Section
2, which may be pursued by or available to the Company.

 

9.                                       WAIVER;
MODIFICATION.  Failure to insist upon
strict compliance with any of the terms, covenants, or conditions hereof shall
not be deemed a waiver of such term, covenant, or condition, nor shall any
waiver or relinquishment of, or failure to insist upon strict compliance with,
any right or power hereunder at any one or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.  This Agreement shall not be modified in any
respect except by a writing executed by each party hereto.

 

10.                                 SEVERABILITY.  In the event that a court of competent
jurisdiction determines that any portion of this Agreement is in violation of
any law or public policy, only the portions of this Agreement that violate such
law or public policy shall be stricken. 
All portions of this Agreement 

 

8

 

that do not violate any statute or public
policy shall continue in full force and effect. 
Further, any court order striking any portion of this Agreement shall
modify the stricken terms as narrowly as possible to give as much effect as
possible to the intentions of the parties under this Agreement.

 

11.                                 INDEMNIFICATION.  The Company shall indemnify and hold
Executive harmless for acts and omissions in Executive’s capacity as an
officer, director or employee of the Company to the maximum extent permitted
under applicable law; provided, however, that neither the
Company, nor any of its subsidiaries or affiliates shall indemnify Executive
for any losses incurred by Executive as a result of acts described in Section 1(c)
of this Agreement.

 

[The Signature Page Follows]

 

9

 

	
  ACKNOWLEDGED AND AGREED:

  	
   

  
	
   

  	
   

  
	
  Date:   February 26, 2010

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IAC/InterActiveCorp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Victor Kaufman

  
	
   

  	
  By:

  	
  Victor Kaufman

  
	
   

  	
  Title: 

  	
  Vice Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Gregg Winiarski

  
	
   

  	
  Gregg
  WiniarskiQuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.1    
    

THIRD
AMENDED AND RESTATED CREDIT AGREEMENT 

dated
as of

January 14, 2009 

among 

ANTERO
RESOURCES CORPORATION,

ANTERO RESOURCES MIDSTREAM CORPORATION,

ANTERO RESOURCES PICEANCE CORPORATION,

ANTERO RESOURCES PIPELINE CORPORATION and

ANTERO RESOURCES APPALACHIAN CORPORATION,

as Borrowers, 

CERTAIN
SUBSIDIARIES OF BORROWERS,

as Guarantors, 

THE
LENDERS PARTY HERETO, 

JPMORGAN
CHASE BANK, N.A.,

as Administrative Agent, 

BNP
PARIBAS and BANK OF SCOTLAND plc,

as Co-Syndication Agents 

UNION
BANK OF CALIFORNIA, N.A.,

as Documentation Agent 

and

J.P.
MORGAN SECURITIES INC.,

as Sole Lead Arranger and Sole Bookrunner 

Senior
Secured Credit Facility 

  

 

 
 

  TABLE OF CONTENTS    
    

 

 

									
	 
	 	 
	 	Page 	 
	  Article I        Definitions
	 	 	1	 
	 	 	 Section 1.01.
	 	 Defined Terms
	 	 	1	 
	 	 	 Section 1.02.
	 	 Types of Loans and Borrowings
	 	 	22	 
	 	 	 Section 1.03.
	 	 Terms Generally
	 	 	22	 
	 	 	 Section 1.04.
	 	 Accounting Terms; GAAP
	 	 	22	 
	 	 	 Section 1.05.
	 	 Oil and Gas Definitions
	 	 	22	 
	 	 	 Section 1.06.
	 	 Time of Day
	 	 	22	 
	  Article II        The Credits
	 	 	

22	 
	 	 	 Section 2.01.
	 	 Commitments
	 	 	22	 
	 	 	 Section 2.02.
	 	 Termination of the Aggregate Commitment and Reduction of the Maximum Facility Amount
	 	 	23	 
	 	 	 Section 2.03.
	 	 [Reserved]
	 	 	23	 
	 	 	 Section 2.04.
	 	 Loans and Borrowings
	 	 	23	 
	 	 	 Section 2.05.
	 	 Requests for Borrowings
	 	 	24	 
	 	 	 Section 2.06.
	 	 Letters of Credit
	 	 	24	 
	 	 	 Section 2.07.
	 	 Funding of Borrowings
	 	 	28	 
	 	 	 Section 2.08.
	 	 Interest Elections
	 	 	29	 
	 	 	 Section 2.09.
	 	 Repayment of Loans; Evidence of Debt
	 	 	30	 
	 	 	 Section 2.10.
	 	 Optional Prepayment of Loans
	 	 	30	 
	 	 	 Section 2.11.
	 	 Mandatory Prepayment of Loans
	 	 	31	 
	 	 	 Section 2.12.
	 	 Fees
	 	 	32	 
	 	 	 Section 2.13.
	 	 Interest
	 	 	33	 
	 	 	 Section 2.14.
	 	 Alternate Rate of Interest
	 	 	34	 
	 	 	 Section 2.15.
	 	 Increased Costs
	 	 	34	 
	 	 	 Section 2.16.
	 	 Break Funding Payments
	 	 	35	 
	 	 	 Section 2.17.
	 	 Taxes
	 	 	35	 
	 	 	 Section 2.18.
	 	 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	36	 
	 	 	 Section 2.19.
	 	 Mitigation Obligations; Replacement of Lenders
	 	 	38	 
	 	 	 Section 2.20.
	 	 Borrower Representative
	 	 	39	 
	 	 	 Section 2.21.
	 	 Joint and Several Liability
	 	 	39	 
	  Article III        Borrowing Base
	 	 	

39	 
	 	 	 Section 3.01.
	 	 Initial Borrowing Base
	 	 	39	 
	 	 	 Section 3.02.
	 	 Reserve Report
	 	 	40	 
	 	 	 Section 3.03.
	 	 Scheduled Redeterminations of the Borrowing Base; Procedures and Standards
	 	 	40	 
	 	 	 Section 3.04.
	 	 Special Redeterminations
	 	 	41	 
	 	 	 Section 3.05.
	 	 Notice of Redetermination
	 	 	41	 
	  Article IV        Representations and Warranties
	 	 	

41	 
	 	 	 Section 4.01.
	 	 Organization; Powers
	 	 	41	 
	 	 	 Section 4.02.
	 	 Authorization; Enforceability
	 	 	42	 
	 	 	 Section 4.03.
	 	 Governmental Approvals; No Conflicts
	 	 	42	 
	 	 	 Section 4.04.
	 	 Financial Condition; No Material Adverse Change
	 	 	42	 
	 	 	 Section 4.05.
	 	 Intellectual Property
	 	 	42	 
	 	 	 Section 4.06.
	 	 Litigation and Environmental Matters
	 	 	42	 
	 	 	 Section 4.07.
	 	 Compliance with Laws and Agreements
	 	 	43	 
	 	 	 Section 4.08.
	 	 Investment Company Status
	 	 	43	 
	 	 	 Section 4.09.
	 	 Taxes
	 	 	43	 

 

 i

 
 

 

									
	 
	 	 
	 	Page 	 
	 	 	 Section 4.10.
	 	 ERISA                                       
                                          
                                  
	 	 	43	 
	 	 	 Section 4.11.
	 	 Disclosure
	 	 	43	 
	 	 	 Section 4.12.
	 	 Labor Matters
	 	 	44	 
	 	 	 Section 4.13.
	 	 Capitalization
	 	 	44	 
	 	 	 Section 4.14.
	 	 Margin Stock
	 	 	44	 
	 	 	 Section 4.15.
	 	 Title to Properties; Licenses
	 	 	44	 
	 	 	 Section 4.16.
	 	 Insurance
	 	 	44	 
	 	 	 Section 4.17.
	 	 Solvency
	 	 	44	 
	 	 	 Section 4.18.
	 	 Leases and Contracts; Performance of Obligations
	 	 	45	 
	 	 	 Section 4.19.
	 	 Sale of Production
	 	 	45	 
	 	 	 Section 4.20.
	 	 Operation of Oil and Gas Interests
	 	 	46	 
	 	 	 Section 4.21.
	 	 Ad Valorem and Severance Taxes; Title Litigation
	 	 	46	 
	  Article V        Conditions
	 	 	

47	 
	 	 	 Section 5.01.
	 	 Effective Date
	 	 	47	 
	 	 	 Section 5.02.
	 	 Each Credit Event
	 	 	48	 
	  Article VI        Affirmative Covenants
	 	 	

49	 
	 	 	 Section 6.01.
	 	 Financial Statements; Other Information
	 	 	49	 
	 	 	 Section 6.02.
	 	 Notices of Material Events
	 	 	51	 
	 	 	 Section 6.03.
	 	 Existence; Conduct of Business
	 	 	52	 
	 	 	 Section 6.04.
	 	 Payment of Obligations
	 	 	52	 
	 	 	 Section 6.05.
	 	 Maintenance of Properties; Insurance
	 	 	52	 
	 	 	 Section 6.06.
	 	 Books and Records; Inspection Rights
	 	 	53	 
	 	 	 Section 6.07.
	 	 Compliance with Laws
	 	 	53	 
	 	 	 Section 6.08.
	 	 Use of Proceeds and Letters of Credit
	 	 	53	 
	 	 	 Section 6.09.
	 	 Security
	 	 	53	 
	 	 	 Section 6.10.
	 	 Title Data
	 	 	53	 
	 	 	 Section 6.11.
	 	 Operation of Oil and Gas Interests
	 	 	54	 
	 	 	 Section 6.12.
	 	 Restricted Subsidiaries
	 	 	54	 
	 	 	 Section 6.13.
	 	 Pledged Equity Interests
	 	 	54	 
	 	 	 Section 6.14.
	 	 Bank Accounts; Offset
	 	 	55	 
	 	 	 Section 6.15.
	 	 Further Assurances
	 	 	55	 
	 	 	 Section 6.16.
	 	 Production Proceeds
	 	 	55	 
	 	 	 Section 6.17.
	 	 Leases and Contracts; Performance of Obligations
	 	 	55	 
	 	 	 Section 6.18.
	 	 Representations to Continue to be True
	 	 	56	 
	  Article VII        Negative Covenants
	 	 	

56	 
	 	 	 Section 7.01.
	 	 Limitation on Indebtedness
	 	 	56	 
	 	 	 Section 7.02.
	 	 Limitation on Liens
	 	 	57	 
	 	 	 Section 7.03.
	 	 Hedging Contracts
	 	 	57	 
	 	 	 Section 7.04.
	 	 Limitation on Mergers, Issuances of Securities
	 	 	59	 
	 	 	 Section 7.05.
	 	 Limitation on Dispositions of Property
	 	 	59	 
	 	 	 Section 7.06.
	 	 Limitation on Dividends and Redemptions
	 	 	60	 
	 	 	 Section 7.07.
	 	 Limitation on Investments and New Businesses
	 	 	60	 
	 	 	 Section 7.08.
	 	 Limitation on Credit Extensions
	 	 	61	 
	 	 	 Section 7.09.
	 	 Transactions with Affiliates
	 	 	61	 
	 	 	 Section 7.10.
	 	 Prohibited Contracts; Negative Pledge
	 	 	61	 
	 	 	 Section 7.11.
	 	 Current Ratio
	 	 	61	 
	 	 	 Section 7.12.
	 	 Leverage Ratio
	 	 	61	 
	 	 	 Section 7.13.
	 	 Limitation on Amendments to Related Documents
	 	 	61	 
	 	 	 Section 7.14.
	 	 Term Facility Restrictions
	 	 	62	 

 

 ii

 
 

 

									
	 
	 	 
	 	Page 	 
	  Article VIII        Guarantee of Obligations
	 	 	62	 
	 	 	 Section 8.01.
	 	 Guarantee of
Payment                                        
                                          
                                 
	 	 	62	 
	 	 	 Section 8.02.
	 	 Guarantee Absolute
	 	 	62	 
	 	 	 Section 8.03.
	 	 Guarantee Irrevocable
	 	 	63	 
	 	 	 Section 8.04.
	 	 Reinstatement
	 	 	63	 
	 	 	 Section 8.05.
	 	 Subrogation
	 	 	63	 
	 	 	 Section 8.06.
	 	 Subordination
	 	 	63	 
	 	 	 Section 8.07.
	 	 Payments Generally
	 	 	64	 
	 	 	 Section 8.08.
	 	 Setoff
	 	 	64	 
	 	 	 Section 8.09.
	 	 Formalities
	 	 	64	 
	 	 	 Section 8.10.
	 	 Limitations on Guarantee
	 	 	64	 
	 	 	 Section 8.11.
	 	 Existing Guarantees
	 	 	64	 
	  Article IX        Events of Default
	 	 	

65	 
	  Article X        The Administrative Agent
	 	 	

67	 
	  Article XI        Miscellaneous
	 	 	

69	 
	 	 	 Section 11.01.
	 	 Notices
	 	 	69	 
	 	 	 Section 11.02.
	 	 Waivers; Amendments
	 	 	69	 
	 	 	 Section 11.03.
	 	 Expenses; Indemnity; Damage Waiver
	 	 	70	 
	 	 	 Section 11.04.
	 	 Successors and Assigns
	 	 	72	 
	 	 	 Section 11.05.
	 	 Survival
	 	 	75	 
	 	 	 Section 11.06.
	 	 Counterparts; Integration; Effectiveness
	 	 	75	 
	 	 	 Section 11.07.
	 	 Severability
	 	 	75	 
	 	 	 Section 11.08.
	 	 Right of Setoff
	 	 	75	 
	 	 	 Section 11.09.
	 	 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS
	 	 	76	 
	 	 	 Section 11.10.
	 	 WAIVER OF JURY TRIAL
	 	 	76	 
	 	 	 Section 11.11.
	 	 Headings
	 	 	76	 
	 	 	 Section 11.12.
	 	 Confidentiality
	 	 	77	 
	 	 	 Section 11.13.
	 	 Interest Rate Limitation
	 	 	77	 
	 	 	 Section 11.14.
	 	 USA PATRIOT Act
	 	 	77	 
	 	 	 Section 11.15.
	 	 Original Credit Agreement
	 	 	78	 
	 	 	 Section 11.16.
	 	 Reaffirmation and Grant of Security Interest
	 	 	78	 
	 	 	 Section 11.17.
	 	 Reallocation of Aggregate Commitment
	 	 	78	 
	 	 	 Section 11.18.
	 	 Intercreditor Agreement
	 	 	79	 

 

  EXHIBITS: 

Exhibit A—Form
of Assignment and Assumption

Exhibit B—Form of Opinion of Borrowers' Counsel

Exhibit C—Form of Counterpart Agreement

Exhibit D—Form of Revolving Note 

 SCHEDULES: 

Schedule 1.01—Applicable
Percentages, Commitments and Maximum Facility Amount

Schedule 4.06—Disclosed Matters

Schedule 4.13—Capitalization

Schedule 4.19—Sale of Production 

iii

 

        THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT dated as of January 14, 2009, among ANTERO RESOURCES CORPORATION, a Delaware
corporation ("Antero"), ANTERO RESOURCES MIDSTREAM CORPORATION, a Delaware corporation ("Antero
Midstream"), ANTERO RESOURCES PICEANCE CORPORATION, a Delaware corporation ("Antero Piceance"), ANTERO RESOURCES PIPELINE
CORPORATION, a Delaware corporation ("Antero Pipeline"), and ANTERO RESOURCES APPALACHIAN CORPORATION, a Delaware corporation
("Antero Appalachian" and, together with Antero, Antero Midstream, Antero Piceance and Antero Pipeline, each a
"Borrower" and collectively, the "Borrowers"), CERTAIN SUBSIDIARIES OF BORROWERS, as Guarantors, the
LENDERS party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, BNP PARIBAS and BANK OF SCOTLAND plc, as Co-Syndication Agents and UNION BANK OF CALIFORNIA, N.A., as
Documentation Agent. 

        The
parties hereto agree as follows: 

 
 

  Article I    
    

 
  Definitions    
    

        Section 1.01.    Defined Terms.    As used in this Agreement, the following terms have the meanings specified
below: 

        "ABR", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. 

        "Acquisition" means, the acquisition by any Credit Party or any Restricted Subsidiary, whether by purchase, merger (and, in the case of a
merger with any such Person, with such Person being the surviving corporation) or otherwise, of all or substantially all of the Equity Interest of, or the business, property or fixed assets of or
business line or unit or a division of, any other Person primarily engaged in the business of exploring for, producing, transporting, processing and storing Crude Oil or Natural Gas or the acquisition
by any Credit Party or any Restricted Subsidiary of property or assets consisting of Oil and Gas Interests. 

        "Act" has the meaning assigned to such term in Section 11.14. 

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

        "Administrative Agent" means JPMorgan Chase Bank, N.A., in its capacity as contractual representative of the Lenders hereunder pursuant to
Article X and not in its individual capacity as a Lender, and any successor agent appointed pursuant to Article X. 

        "Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent. 

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

        "Aggregate Commitment" means the amount equal to the lesser of (a) the Maximum Facility Amount and (b) the Borrowing Base
then in effect, as such amount may be (i) reduced or increased from time to time as a result of changes in the Borrowing Base pursuant to Article III, and (ii) reduced from time
to time as a result of changes in the Maximum Facility Amount pursuant to Section 2.02. 

Page 1

 

        "Aggregate Credit Exposure" means, as of any date of determination, the sum of the outstanding principal amount of the Loans of all
Lenders as of such date, plus the aggregate LC Exposure of all Lenders as of such date. 

        "Aggregate Unused Commitment" at any time shall equal the sum of the Unused Commitments of all the Lenders at such time. 

        "Agreement" means this Third Amended and Restated Credit Agreement, dated as of January 14, 2009 as it may be amended, supplemented
or otherwise modified from time to time. 

        "Alternate Base Rate" means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day,
(b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, and (c) the LMIR on such day plus 1.125%. Any change in the Alternate Base Rate due to a change
in the Prime Rate, the Federal Funds Effective Rate or the LMIR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the LMIR,
respectively. 

        "Antero" has the meaning assigned to such term in the preamble to this Agreement. 

        "Antero Appalachian" has the meaning assigned to such term in the preamble to this Agreement. 

        "Antero Midstream" has the meaning assigned to such term in the preamble to this Agreement. 

        "Antero Piceance" has the meaning assigned to such term in the preamble to this Agreement. 

        "Antero Pipeline" has the meaning assigned to such term in the preamble to this Agreement. 

        "Applicable Percentage" means, with respect to any Lender at any time, the percentage of the Aggregate Commitment represented by such
Lender's Commitment at such time. The initial amount of each Lender's Applicable Percentage is as set forth on Schedule 1.01 or in the Assignment and Assumption pursuant to which such Lender
shall have assumed or agreed to provide its Commitment, as applicable. If the Aggregate Commitment has terminated or expired, the Applicable Percentages shall be determined based upon the Aggregate
Commitment most recently in effect, giving effect to any assignments. 

        "Applicable Rate" means, for any day, with respect to any ABR Loan or Eurodollar Loan, as the case may be, the applicable rate per annum
set forth below under the caption "ABR Spread" or "Eurodollar Spread", as the case may be, based upon the Borrowing Base Usage applicable on such date: 

 

 

								
	Borrowing Base Usage:

 
	 	ABR

Spread 	 	Eurodollar

Spread 	 
	Equal to or greater than 90%	 	 	2.00	%	 	3.00	%
	Equal to or greater than 75% and less than 90%	 	 	1.50	%	 	2.50	%
	Equal to or greater than 50% and less than 75%	 	 	1.25	%	 	2.25	%
	Less than 50%	 	 	1.00	%	 	2.00	%

 

 
Each
change in the Applicable Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next change. 

        "Approved Counterparty" means, at any time and from time to time, (i) any Person engaged in the business of writing Hedging
Contracts for commodity, interest rate or currency risk that has (or the credit support provider of such Person has), at the time any Borrower or any Restricted Subsidiary enters into a Hedging
Contract with such Person, a long term senior unsecured debt 

Page 2

 

credit
rating of A or better from S&P or A2 or better from Moody's and (ii) any Lender Counterparty. 

        "Approved Fund" has the meaning assigned to such term in Section 11.04. 

        "Approved Petroleum Engineer" means Ryder Scott Company, L.P., DeGolyer & MacNaughton or any other reputable firm of
independent petroleum engineers selected by the Borrower Representative and reasonably acceptable to the Administrative Agent and the Required Lenders. 

        "Arranger" means J.P. Morgan Securities Inc., in its capacities as the sole lead arranger and bookrunner with respect to the
transactions contemplated hereby. 

        "Assigned Value" means, with respect to any Borrowing Base Properties, the value assigned to such Borrowing Base Properties (a) in
the Initial Borrowing Base for any date of determination during the period from the Effective Date until the first Redetermination after the Effective Date and (b) in the most recent
Redetermination of the Borrowing Base for any date of determination during any period thereafter. 

        "Assignment and Assumption" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any
party whose consent is required by Section 11.04), in the form of Exhibit A or any other form approved by the Administrative Agent. 

        "Availability Period" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the
date of termination of the Aggregate Commitment. 

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

        "Borrower" and "Borrowers" have the meanings assigned to such terms in the preamble to
this Agreement, together with their respective successors and permitted assigns. 

        "Borrower Representative" means, initially, Antero and from time to time after the Effective Date, any other Borrower that the Borrowers
may designate as its replacement upon written notice to the Administrative Agent. 

        "Borrowing" means Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which
a single Interest Period is in effect. 

        "Borrowing Base" means, (a) for the period from the Effective Date until the first Redetermination after the Effective Date, the
Initial Borrowing Base and (b) at any time thereafter, an amount equal to the amount determined in accordance with Section 3.02, as the same may be redetermined, adjusted or reduced from
time to time pursuant to Section 3.03 and Section 3.04. 

        "Borrowing Base Deficiency" means, as of any date, the amount, if any, by which the Aggregate Credit Exposure on such date exceeds the
Borrowing Base in effect on such date; provided, that, for purposes
of determining the existence and amount of any Borrowing Base Deficiency, obligations under any Letter of Credit will not be deemed to be outstanding to the extent such obligations are secured by cash
in the manner contemplated by Section 2.06(j). 

        "Borrowing Base Period" has the meaning assigned to such term in Section 7.05(f). 

        "Borrowing Base Properties" means the Oil and Gas Interests and Midstream Assets which have been evaluated by the Lenders and to which
Lenders have given value for purposes of establishing the Borrowing Base; provided that any value assigned to Midstream Assets owned by any Subsidiary
that is not a wholly-owned Subsidiary of the Borrowers shall be adjusted to reflect the Borrowers' percentage ownership of the common Equity Interests of such Subsidiary. 

Page 3

 

        "Borrowing Base Usage" means, as of any date and for all purposes, the quotient, expressed as a percentage, of (i) the Aggregate
Credit Exposure as of such date, divided by (ii) the Borrowing Base as of such date. 

        "Borrowing Request" means a request by the Borrower Representative for a Borrowing in accordance with Section 2.05. 

        "Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banks in Chicago, Illinois or the State of
Colorado are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan or to determine LMIR, the
term "Business Day" shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 

        "Capital Call Amount" means, as of the end of any fiscal quarter, the aggregate amount of unsatisfied calls by Borrower for equity capital
outstanding as of such date or otherwise made by Borrower within fifteen (15) Business Days after such date, to the extent such capital calls are satisfied and paid in cash, by wire transfer or
otherwise, within thirty (30) days after the end of such fiscal quarter. 

        "Capital Lease Obligations" of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

        "Cash Collateral Account" has the meaning assigned to such term in Section 2.06(j). 

        "Cash Management Obligations" means, with respect to any Borrower or Restricted Subsidiary, any obligations of such Person owed to U.S
Bank National Association or any other Lender or Affiliate of any Lender in respect of treasury management arrangements, depositary or other cash management services, including any treasury management
line of credit, in each case, to the extent permitted under Section 7.01(e). 

        "Centrahoma" means Centrahoma Processing LLC, a Delaware limited liability company. 

        "Centrahoma Indebtedness" means Indebtedness of Centrahoma not to exceed $5,000,000 in the aggregate at any one time outstanding. 

        "Centrahoma Partner" has the meaning assigned to such term in Section 7.05(e). 

        "Centrahoma Reports" has the meaning assigned to such term in Section 6.01(k). 

        "Change in Law" means (a) the adoption of any law, rule or regulation on 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 the Issuing Bank (or,
for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender's or the Issuing Bank's holding company, if any) with any request, guideline or directive (whether or not
having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 

        "Change of Control" means the occurrence of any of the following events: (a) any Person or two or more Persons acting as a group
shall acquire beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Act of 1934, as amended, and including holding
proxies to vote for the election of directors other than proxies held by any Borrower's management or their designees to be voted in favor of Persons nominated by such Borrower's Board of Directors)
of thirty percent (30%) or more of the outstanding voting securities of any Borrower, measured by voting power (including both common stock and any 

Page 4

 

preferred
stock or other equity securities entitling the holders thereof to vote with the holders of common stock in elections for directors of such Borrower), (b) one-third or more
of the directors of any Borrower shall consist of Persons not nominated by such Borrower's Board of Directors (not including as Board nominees any directors which the Board is obligated to nominate
pursuant to shareholders agreements, voting trust arrangements or similar arrangements), (c) Paul Rady ceases to be Chairman of the Board and Chief Executive Officer of any Borrower and if such
cessation is due to his death or disability, he is not replaced by a successor approved by Required Lenders within 90 days after such death or disability occurs, such approval not to be
unreasonably withheld, or (d) Glen Warren ceases to be President and Chief Financial Officer of any Borrower and if such cessation is due to his death or disability, he is not replaced by a
successor approved by Required Lenders within 90 days after such death or disability occurs, such approval not to be unreasonably withheld. 

        "Charges" has the meaning assigned to such term in Section 11.13. 

        "Co-Syndication Agent" means, so long as it is a Lender, each of BNP Paribas and Bank of Scotland, plc, in its capacity
as a Co-Syndication Agent. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        "Collateral" means all assets, whether now owned or hereafter acquired by any Credit Party, in which a Lien is granted or purported to be
granted to any Secured Party as security for any Obligation. 

        "Commitment" means, at any time with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in
Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Credit Exposure hereunder at such time, as such commitment may be (a) reduced or
increased from time to time as a result of changes in the Borrowing Base pursuant to Article III, (b) reduced from time to time as a result of changes in the Maximum Facility Amount
pursuant to Section 2.02 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 11.04. The initial amount of each Lender's
Commitment (which amount is such Lender's Applicable Percentage of the Aggregate Commitment) is set forth on Schedule 1.01, or in the Assignment and Assumption pursuant to which such Lender
shall have assumed or agreed to provide its Commitment, as applicable. 

        "Consolidated" refers to the consolidation of any Person, in accordance with GAAP, with its properly consolidated Subsidiaries. References
herein to a Person's consolidated financial statements, financial position, financial condition, liabilities, etc. refer to the consolidated financial statements, financial position, financial
condition, liabilities, etc. of such Person and its properly consolidated Subsidiaries. 

        "Consolidated Current Assets" means, as of any date of determination, the total of (i) the Consolidated current assets of each
Borrower and its Restricted Subsidiaries, determined in accordance with GAAP as of such date and calculated on a combined basis, plus, the Aggregate
Unused Commitment as of such date, plus the Capital Call Amount and (ii) less any
non-cash assets required to be included in Consolidated current assets of any Borrower and the Restricted Subsidiaries as a result of the application of FASB Statement 123R, 133 or 143 as
of such date. For purposes of this definition, the calculation of the Aggregate Unused Commitment as of such date shall be made after giving effect to any changes in the Borrowing Base approved by the
Lenders (or at least the required percentage thereof) within fifteen (15) days after the end of such fiscal quarter and still in effect at the end of such fifteen (15) day period. 

        "Consolidated Current Liabilities" means, as of any date of determination, the total of (i) Consolidated current liabilities of
each Borrower and its Restricted Subsidiaries, as determined 

Page 5

 

in
accordance with GAAP as of such date and calculated on a combined basis, (ii) less payments of principal on the Loans required to be repaid
within one year from the time of calculation, (iii) less any non-cash obligations required to be included in Consolidated current
liabilities of any as a result of the application of FASB Statement 123R, 133 or 143 as of such date. 

        "Consolidated Current Ratio" means, as of any date of determination, the ratio of Consolidated Current Assets to Consolidated Current
Liabilities as of such date. 

        "Consolidated EBITDAX" means, with respect to any Borrower for any period, the sum of (without duplication) (a) EBITDAX for such
Borrower and its Restricted Subsidiaries (other than Centrahoma) on a Consolidated basis for such period plus (b) the product of (i) a
percent equal to the applicable Borrower's direct or indirect percentage ownership of the common Equity Interests of Centrahoma as of the last day of such period  multiplied by (ii) the EBITDAX of
Centrahoma for such period. 

        "Consolidated Funded Indebtedness" means with respect to any Borrower as of any date, the sum of the following (without duplication):
(a) all Indebtedness which is classified as "long-term indebtedness" on a Consolidated balance sheet of such Borrower and its Consolidated Subsidiaries that are Restricted
Subsidiaries prepared as of such date in accordance with GAAP and any current maturities and other principal amount in respect of such Indebtedness due within one year but which
was classified as "long-term indebtedness" at the creation thereof, (b) Indebtedness for borrowed money of such Borrower and its Consolidated Subsidiaries that are Restricted
Subsidiaries outstanding under a revolving credit or similar agreement providing for borrowings (and renewals and extensions thereof) over a period of more than one year, notwithstanding the fact that
any such borrowing is made within one year of the expiration of such agreement, (c) all Indebtedness in respect of Capital Lease Obligations of Borrower and its Consolidated Subsidiaries that
are Restricted Subsidiaries, and (d) other Indebtedness of such Borrower and its Consolidated Subsidiaries that are Restricted Subsidiaries on which interest accrues (but excluding preferred
stock (other than Disqualified Stock)). 

        "Consolidated Net Income" means for any period, the Consolidated net income (or loss) of any Borrower and its Consolidated Subsidiaries
that are Restricted Subsidiaries, as applicable, determined in accordance with GAAP; provided that there shall be excluded (a) any gain or loss
from the sale of assets other than in the ordinary course of business, (b) any non-cash income, gains, losses or charges resulting from the application of FASB Statement 123R,133 or
143, (c) the income (or deficit) of any Person accrued prior to the date it becomes a Restricted Subsidiary of such Borrower, or is merged into or consolidated with such Borrower or any of its
Restricted Subsidiaries, as applicable and (d) the undistributed earnings of any Restricted Subsidiary of such Borrower which is not a Guarantor, to the extent that the declaration or payment
of dividends or similar distributions by such Restricted Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or by any law
applicable to such Restricted Subsidiary. 

        "Consolidated Subsidiaries" means, for any Person, any Subsidiary or other entity the accounts of which would be Consolidated with those
of such Person in its Consolidated financial statements in accordance with GAAP. 

        "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and
"Controlled" have meanings correlative thereto. 

        "Counterpart Agreement" means a Counterpart Agreement substantially in the form of Exhibit C delivered by a Guarantor pursuant to
Section 6.12. 

Page 6

 

        "Credit Exposure" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Loans and
its LC Exposure at such time. 

        "Credit Parties" means collectively, each Borrower and each Guarantor and each individually, a "Credit
Party". 

        "Crude Oil" means all crude oil and condensate. 

        "Default" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless
cured or waived, become an Event of Default. 

        "Defaulting Lender" means any Lender, as reasonably determined by the Administrative Agent, that has (a) failed to fund any portion
of the Loans or participations in LC Disbursements required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) notified the Borrowers,
the Administrative Agent, the Issuing Bank or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the
effect that it does not intend to comply with its funding obligations under this Agreement, (c) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute, or (d) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment. 

        "Disclosed Matters" means the actions, suits and proceedings and the environmental matters disclosed in Schedule 4.06. 

        "Disposition" means, the disposition by any Borrower or any Restricted Subsidiary, whether by sale, merger, assignment, transfer or
otherwise, of all or substantially all of the Equity Interest of any Restricted Subsidiary or of any property or assets consisting of Oil and Gas Interests or Midstream Assets. 

        "Disqualified Stock" means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified
Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute
Disqualified Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the earlier of (a) the Maturity Date and (b) the date on
which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the
Commitments are terminated. For the avoidance of doubt, any such Equity Interest redeemable solely by (a) the sale of assets or (b) a Change of Control does not constitute Disqualified
Stock. 

        "Documentation Agent" means, so long as it is a Lender, Union Bank of California, N.A., in its capacity as a Documentation Agent. 

        "Dollars" or "$" refers to lawful money of the United States of America. 

        "Domestic Subsidiary" means, with respect to any Person, a subsidiary of such Person that is incorporated or formed under the laws of the
United States of America, any state thereof or the District of Columbia. 

Page 7

 

        "EBITDAX" means, with respect to any Person for any period, Consolidated Net Income for such period;  plus without duplication and to the extent deducted in the
calculation of Consolidated Net Income for such period, the sum of (a) any provision
from (or less any benefit from) income or franchise Taxes; (b) Consolidated interest expense (as determined in accordance with GAAP and including the interest component of Capital Lease
Obligations) deducted in determining Consolidated Net Income; (c) amortization, depletion, depreciation and exploration expense; (d) any non-cash losses, expenses,
impairments or charges (including losses arising from ceiling test writedowns and excluding accruals of or reserves for cash charges for any future period);  provided that cash payments made during such
period or in any future period in respect of non-cash charges, expenses or losses, other than
any such excluded charge, expense or loss described in the parenthetical to this clause (d) shall be subtracted from Consolidated Net Income in calculating EBITDAX for the period in which such
payments are made; minus, to the extent included in the calculation of Consolidated Net Income, (e) the sum of (i) interest income,
(ii) any extraordinary income or gains; and (iii) any other non-cash income or gain (excluding any items that represent the reversal of any accrual of, or cash reserve for,
anticipated cash charges in any prior period that are described in clause (d) above); provided that, with respect to the
determination of any Borrower's compliance with the leverage ratio set forth in Section 7.12 for any period, EBITDAX for such period shall be adjusted to give effect, on a pro forma basis and
consistent with GAAP, to any Acquisitions or Dispositions made during such period as if such Acquisition or Disposition, as the case may be, was made at the beginning of such period. 

        "Effective Date" means the date on which the conditions specified in Section 5.01 are satisfied (or waived in accordance with
Section 11.02). 

        "Election Date" has the meaning assigned to such term in Section 2.11(a). 

        "Eligible Assignee" means any Person that qualifies as an assignee pursuant to Section 11.04(b)(i);  provided that, notwithstanding the foregoing, "Eligible
Assignee" shall not include (i) any Borrower or any of the Borrowers' Affiliates or
Subsidiaries or (ii) any Person organized outside the United States if any Borrower would be required to pay withholding taxes on interest or principal owed to such Person. 

        "Engineered Value" means, the value attributed to the Borrowing Base Properties for purposes of the most recent Redetermination of the
Borrowing Base pursuant to Article III (or for purposes of determining the Initial Borrowing Base in the event no such Redetermination has occurred), based upon the discounted present value of
the estimated net cash flow to be realized from the production of Hydrocarbons from the Borrowing Base Properties as set forth in the Reserve Report. 

        "Environmental Laws" means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, legally enforceable
directives or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to human health and safety matters. 

        "Environmental Liability" means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines or penalties), of any Credit Party directly or indirectly resulting from or arising out of (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any written contract or agreement pursuant to which liability is assumed or imposed with respect to any of the foregoing in clauses (a) through (d) above. 

Page 8

 

 

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

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

        "ERISA Affiliate" means any trade or business (whether or not incorporated) that, together with any Credit Party, is treated as a single
employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code. 

        "ERISA Event" means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder
with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the failure of any Plan to meet the minimum funding standards under Section 412
of the Code or Section 302 of ERISA; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (d) the incurrence by any Credit Party or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by any Credit Party or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by any Credit Party or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (g) the receipt by any Credit Party or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Credit Party or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan to which any Credit Party or ERISA Affiliate is obligated to contribute is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of ERISA. 

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

        "Event of Default" has the meaning assigned to such term in Article IX. 

        "Excluded Taxes" means, with respect to the Administrative Agent, any Lender, the Issuing Bank or any other recipient of any payment to be
made by or on account of any obligation of the Borrowers hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located,
(b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which any Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower Representative under Section 2.19(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender's failure to comply with Section 2.17(e), except
to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrowers with
respect to such withholding tax pursuant to Section 2.17(a). 

        "Existing Hedging Contracts" means any Hedging Contracts entered into between any Credit Party and any Lender Counterparty prior to the
Effective Date and in effect on the Effective Date. 

        "FASB" means Financial Accounting Standards Board. 

Page 9

 

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

        "Fee Letter" means that certain fee letter agreement, dated December 2, 2008, among the Borrowers, the Administrative Agent and the
Arranger. 

        "Financial Officer" means the chief financial officer, principal accounting officer, treasurer or controller of any Credit Party. 

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

        "GAAP" means generally accepted accounting principles in the United States of America. 

        "Gas Balancing Agreement" means any agreement or arrangement whereby any Borrower or any Restricted Subsidiary has a right to take more
than its proportionate share of production from Oil and Gas Interests in which any Borrower or any Restricted Subsidiary owns an interest. 

        "Governmental Authority" means the government of the United States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity properly exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government. 

        "Guarantee" of or by any Person (in this definition, the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other Person (the "primary
obligor") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) 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 obligation or (d) as an account
party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course of business. 

        "Guaranteed Liabilities" has the meaning assigned to such term in Section 8.01. 

        "Guarantor" means each Borrower (with respect to the Obligations of the other Borrowers), and each Restricted Subsidiary (other than
Centrahoma) that is a party hereto or hereafter executes and delivers
to the Administrative Agent and the Lenders, a Counterpart Agreement pursuant to Section 6.12 or otherwise. 

        "Hazardous Materials" means any substances regulated under any Environmental Law, whether as pollutants, contaminants, chemicals,
industrial, toxic or hazardous substances or otherwise. 

        "Hedge Modification" has the meaning assigned to such term in Section 7.03(d). 

Page 10

 

        "Hedging Contract" means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan
providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Credit Parties shall be a Hedging Contract. Notwithstanding
anything to the contrary contained in this Agreement, a Purchase and Transportation Contract shall not constitute a Hedging Contract for purposes of this Agreement. 

        "Hydrocarbons" means all Crude Oil and Natural Gas produced from or attributable to the Oil and Gas Interests of the Credit Parties. 

        "Indebtedness" of any Person means, without duplication, (a) all obligations for borrowed money or evidenced by a bond, debenture,
note or similar instrument, (b) all accounts payable and all accrued expenses, liabilities or other obligations to pay the deferred purchase price of property or services, (c) all
obligations or liabilities which (i) would under GAAP be shown on such Person's balance sheet as a liability, and (ii) are payable more than one year from the date of creation or
incurrence thereof (other than reserves for taxes and reserves for contingent obligations); (d) all obligations or liabilities arising under Hedging Contracts (on a net basis to the extent
netting is provided for in the applicable Hedging Contract), including any deferred premium obligations with respect to floors; (e) all Capital Lease Obligations; (f) all obligations or
liabilities arising under conditional sales or other title retention agreements; (g) all obligations or liabilities owing under direct or indirect guaranties of obligations of any other Person
or otherwise constituting obligations to purchase or acquire or to otherwise protect or insure a creditor against loss in respect of obligations of any other Person (such as obligations under working
capital maintenance agreements, agreements to keep-well, or agreements to purchase liabilities, assets, goods, securities or services), but excluding endorsements in the ordinary course of
business of negotiable instruments in the course of collection; (h) all obligations (for example, repurchase agreements, mandatorily redeemable preferred stock (but not accrued dividends on
preferred stock), and sale/leaseback agreements) consisting of an obligation to purchase or redeem securities or other property, if such obligations arise out of or in connection with the sale or
issuance of the same or similar securities or property; (i) all obligations or liabilities with respect to letters of credit or applications or reimbursement agreements therefore;
(j) all obligations or liabilities with respect to banker's acceptances; (k) all obligations or liabilities with respect to payments received in consideration of oil, gas or other
minerals yet to be acquired or produced at the time of payment (including obligations under "take-or-pay" contracts to deliver gas in return for payments already received and
the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment) or (l) all obligations or liabilities
with respect to other obligations to deliver goods or services in consideration of advance payments therefore; provided, however, that the
"Indebtedness" of any Person shall not include obligations or liabilities that were incurred by such Person on ordinary trade terms to vendors, suppliers, or other Persons providing goods and services
for use by such Person in the ordinary course of its business, unless and until such obligations or liabilities are outstanding more than ninety (90) days past the original invoice or billing
date therefor. 

        "Indemnified Taxes" means Taxes other than Excluded Taxes. 

        "Indemnitee" has the meaning assigned to such term in Section 11.03(b). 

        "Information" has the meaning assigned to such term in Section 11.12. 

        "Initial Borrowing Base" has the meaning assigned to such term in Section 3.01. 

Page 11

 

        "Intercreditor Agreement" means that certain Intercreditor Agreement dated April 12, 2007, among the Administrative Agent, the Term
Agent, the Borrowers (other than Antero Appalachian) and each Guarantor evidencing the subordination of the Liens securing the Term Facility to the Liens securing the Obligations, as amended,
supplemented or otherwise modified from time to time. 

        "Interest Election Request" means a request by the Borrower Representative to convert or continue a Borrowing in accordance with
Section 2.08. 

        "Interest Payment Date" means (a) with respect to any ABR Loan, the last day of each calendar quarter, and (b) with respect
to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than
three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period. 

        "Interest Period" means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three, six or, if available, twelve months thereafter, as the Borrowers may elect;  provided, that (i) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date
on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 

        "Issuing Bank" means JPMorgan Chase Bank, N.A., in its capacity as the issuer of Letters of Credit hereunder, and its successors in such
capacity as provided in Section 2.06(i). The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the
term "Issuing Bank" shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. 

        "Law" means any statute, law, regulation, ordinance, rule, treaty, judgment, order, decree, permit, concession, franchise, license,
agreement or other governmental restriction of the United States or any state or political subdivision thereof or of any foreign country or any department, province or other political subdivision
thereof. Any reference to a Law includes any amendment or modification to such Law, and all regulations, rulings, and other Laws promulgated under such Law. 

        "LC Disbursement" means a payment made by the Issuing Bank pursuant to a Letter of Credit. 

        "LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time
plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time. 

        "Lender Counterparty" means any Lender or any Affiliate of a Lender counterparty to a Hedging Contract with any Credit Party including any
Person that was, but thereafter ceased to be, a Lender or Affiliate of a Lender but only to the extent of the obligations of any Credit Party to 

Page 12

 

such
Person pursuant to a Hedge Contract entered into at the time such Person was a Lender or Affiliate of a Lender. 

        "Lender Hedging Obligations" means all obligations arising from time to time under Hedging Contracts entered into from time to time
between any Credit Party and a Lender Counterparty (including any such obligations under any Existing Hedging Contracts); provided that if such Lender
Counterparty ceases to be a Lender hereunder or an Affiliate of a Lender hereunder, Lender Hedging Obligations shall only include such obligations to the extent arising from transactions entered into
at the time such Lender Counterparty was a Lender hereunder or an Affiliate of a Lender hereunder. 

        "Lenders" means the Persons listed on Schedule 1.01 and any other Person that shall have become a party hereto pursuant to an
Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 

        "Letter of Credit" means any letter of credit issued pursuant to this Agreement and, to the extent outstanding on the Effective Date, any
letter of credit issued under the Original Credit Agreement and any renewals thereof after the Effective Date. 

        "Leverage Ratio" has the meaning assigned to such term in Section 7.12. 

        "LIBO Rate" means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Reuters BBA Libor Rates
Page 3750 (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such
page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market)
at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such
Interest Period. In the event that such rate is not available at such time for any reason, then the "LIBO Rate" with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such
Interest Period. 

        "Lien" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or
security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with
respect to such securities. 

        "LMIR" means, for any day, a rate per annum equal to the rate for one month U.S. dollar deposits as reported on Reuters BBA Libor Rates
Page 3750 as of 11:00 a.m., London time, on such day, or if such day is not a Business Day, then the immediately preceding Business Day (or if not so reported, then any successor to or
substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the London interbank market). 

        "Loan Documents" means this Agreement, any promissory notes executed in connection herewith, the Security Documents, the Letters of Credit
(and any applications therefore and reimbursement agreements related thereto), the Fee Letter, the Intercreditor Agreement and any other agreements executed in connection with this Agreement. 

Page 13

 

        "Loans" means the loans made by the Lenders to the Borrowers pursuant to this Agreement. 

        "Material Adverse Effect" means a material adverse effect on (a) the Borrowers' combined financial condition, (b) the
Borrowers' combined business, assets, operations, or prospects, considered as a whole, (c) the Borrowers' ability to timely pay the Obligations, or (d) the enforceability of the material
terms of any Loan Documents. 

        "Material Domestic Subsidiary" means any Domestic Subsidiary that owns or holds assets, properties or interests (including Oil and Gas
Interests) with an aggregate fair market value, on a combined basis, greater than five percent (5%) of the aggregate fair market value of all of the assets, properties and interests (including Oil and
Gas Interests) of the Borrowers and the Restricted Subsidiaries, on a combined basis. 

        "Material Gas Imbalance" means, with respect to all Gas Balancing Agreements to which any Borrower or any Restricted Subsidiary is a party
or by which any Oil and Gas Interests owned by a Borrower or a
Restricted Subsidiary is bound, a net overproduced gas imbalance to Borrowers and the Restricted Subsidiaries, taken as a whole, in excess of $1,000,000. 

        "Material Indebtedness" means Term Loans and any other Indebtedness (other than the Loans and Letters of Credit), or obligations in
respect of one or more Hedging Contracts, of any Borrower or any one or more of the Restricted Subsidiaries in an aggregate principal amount exceeding $3,000,000. For purposes of determining Material
Indebtedness, the "principal amount" of the obligations of any Credit Party in respect of any Hedging Contract at any time shall be the maximum aggregate amount (giving effect to any netting
agreements) that such Credit Party would be required to pay if such Hedging Contract were terminated at such time. 

        "Maturity Date" means March 15, 2012. 

        "Maximum Facility Amount" means the amount of $400,000,000, as such amount may be reduced from time to time pursuant to
Section 2.02. 

        "Maximum Liability" has the meaning assigned to such term in Section 8.10. 

        "Maximum Rate" has the meaning assigned to such term in Section 11.13. 

        "Measurement Date" has the meaning assigned in Section 7.03. 

        "Midstream Assets" means, at any time, the gathering, compression, treating, processing and pipeline assets owned by the Borrowers or any
Restricted Subsidiary. 

        "Midstream Pledge Agreement" means that certain Amended and Restated Pledge Agreement, dated as of the Effective Date, made by Antero
Midstream in favor of the Administrative Agent for the benefit of the Secured Parties covering, among other things, the rights and interests of Antero Midstream in the Equity Interest of Centrahoma,
as amended, restated, supplemented or otherwise modified from time to time. 

        "Midstream Report" means each Midstream Report delivered pursuant to Section 6.01(l). Such report shall calculate the net present
value of the relevant Midstream Asset by setting forth for each calendar year during the assumed remaining life of such asset by (a) multiplying the projected average daily throughput (based
upon Reserve Reports and, to the extent available with respect to Midstream Assets owned by Centrahoma, Centrahoma Reports) and the projected revenue associated with gathering fees,
processing fees, compression fees and other revenue generating activities, if any, for such throughput, and (b) deducting therefrom any cash expenditures and taxes (after accounting for
depreciation and attributable interest expense). 

        "Minimum Collateral Amount" means ninety percent (90%) of the Engineered Value of the Borrowing Base Properties included in (a) for
the period from the Effective Date until the first 

Page 14

 

Redetermination
after the Effective Date, the Initial Borrowing Base and (b) at anytime thereafter, the most recent Borrowing Base determined pursuant to Section 3.02. 

        "Moody's" means Moody's Investors Service, Inc. 

        "Mortgaged Properties" means the Oil and Gas Interests described in one or more duly executed, delivered and filed Mortgages evidencing a
first and prior Lien in favor of the Administrative Agent for the benefit of the Secured Parties and subject only to the Permitted Liens. 

        "Mortgages" means all mortgages, deeds of trust, amendments to mortgages, security agreements, assignments of production, pledge
agreements, collateral assignments, financing statements and other documents, instruments and agreements evidencing, creating, perfecting or otherwise establishing the Liens required by
Section 6.09. All Mortgages shall be in form and substance reasonably satisfactory to Administrative Agent. 

        "Multiemployer Plan" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 

        "Natural Gas" means all natural gas, distillate or sulphur, natural gas liquids and all products recovered in the processing of natural
gas (other than condensate) including, without limitation, natural gasoline, coalbed methane gas, casinghead gas, iso-butane, normal butane, propane and ethane (including such methane
allowable in commercial ethane). 

        "Non-Consenting Lender" has the meaning assigned to such term in Section 2.19(c). 

        "Obligations" means (a) any and all obligations of every nature, contingent or otherwise, whether now existing or hereafter
arising, of any Credit Party from time to time owed to the Administrative Agent, the Issuing Bank, the Lenders or any of them under any Loan Document, whether for principal,
interest, reimbursement of amounts drawn under any Letter of Credit, funding indemnification amounts, fees, expenses, indemnification or otherwise, (b) Lender Hedging Obligations and
(c) Cash Management Obligations. 

        "Oil and Gas Interest(s)" means: (a) direct and indirect interests in and rights with respect to oil, gas, mineral and related
properties and assets of any kind and nature, direct or indirect, including, without limitation, working, royalty and overriding royalty interests, mineral interests, leasehold interests, production
payments, operating rights, net profits interests, other non-working interests, contractual interests, non-operating interests and rights in any pooled, unitized or
communitized acreage by virtue of such interest being a part thereof; (b) interests in and rights with respect to Hydrocarbons and other minerals or revenues therefrom and contracts and
agreements in connection therewith and claims and rights thereto (including oil and gas leases, operating agreements, unitization, communitization and pooling agreements and orders, division orders,
transfer orders, mineral deeds, royalty deeds, oil and gas sales, exchange and processing contracts and agreements and, in each case, interests thereunder), and surface interests, fee interests,
reversionary interests, reservations and concessions related to any of the foregoing; (c) easements, rights-of-way, licenses, permits, leases, and other interests
associated with, appurtenant to, or necessary for the operation of any of the foregoing; (d) interests in oil, gas, water, disposal and injection wells, equipment and machinery (including well
equipment and machinery), oil and gas production, gathering, transmission, compression, treating, processing and storage facilities (including tanks, tank batteries, pipelines and gathering systems),
pumps, water plants, electric plants, gasoline and gas processing plants, refineries and other tangible or intangible, movable or immovable, real or personal property and fixtures located on,
associated with, appurtenant to, or necessary for the operation of any of the foregoing; and (e) all seismic, geological, geophysical and engineering records, data, information, maps, licenses
and interpretations. 

Page 15

 

 

        "Organizational Documents" means (a) with respect to any corporation, its certificate or articles of incorporation or organization,
as amended, and its by-laws, as amended, (b) with respect to any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended,
(c) with respect to any general partnership, its partnership agreement, as amended, and (d) with respect to any limited liability company, its certificate of formation or articles of
organization, as amended, and its limited liability company agreement or operating agreement, as amended. 

        "Original Credit Agreement" means that certain Second Amended and Restated Credit Agreement dated June 30, 2006, by and among the
Borrowers, the lenders a party thereto and the Administrative Agent, as amended, supplemented or modified prior to the Effective Date. 

        "Original Loans" means the loans and other extensions of credit outstanding under the Original Credit Agreement as of the Effective Date. 

        "Other Taxes" means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement. 

        "Participant" has the meaning assigned to such term in Section 11.04. 

        "Payment Currency" has the meaning assigned to such term in Section 8.07. 

        "PBGC" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar
functions. 

        "Permitted Investments" means: 

        (a)   U.S.
Government Securities; 

        (b)   investments
in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody's; 

        (c)   investments
in certificates of deposit, banker's acceptances and time deposits maturing within twelve (12) months from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000 and whose long term certificates of deposit are rated at lest Aa3 by Moody's or AA- by
S&P; 

        (d)   fully
collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in paragraph (a) above and entered into
with a financial institution satisfying the criteria described in paragraph (c) above; and 

        (e)   money
market or other mutual funds substantially all of whose assets comprise securities of the type described in paragraph (a) through (d) above and that
(i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by
Moody's and (iii) have portfolio assets of at least $5,000,000,000. 

        "Permitted Liens" means: 

        (a)   statutory
Liens for taxes, assessments or other governmental charges or levies which are not yet delinquent or which are being contested in good faith by appropriate
action and for which adequate reserves have been maintained in accordance with GAAP; 

Page 16

 

        (b)   landlords',
operators', carriers', warehousemen's, repairmen's, mechanics', materialmen's or other like Liens which do not secure Indebtedness, in each case only to the
extent arising in the ordinary course of business and only to the extent securing obligations which are not delinquent or which are being contested in good faith by appropriate proceedings and for
which adequate reserves have been maintained in accordance with GAAP; 

        (c)   minor
defects and irregularities in title to any property, so long as such defects and irregularities neither secure Indebtedness nor materially impair the value of such
property or the use of such property for the purposes for which such property is held; 

        (d)   deposits
of cash or securities to secure the performance of bids, trade contracts, leases, statutory obligations and other obligations of a like nature (excluding appeal
bonds) incurred in the ordinary course of business; 

        (e)   Liens
under the Security Documents; 

        (f)    with
respect only to property subject to any particular Security Document, Liens burdening such property which are expressly allowed by such Security Document; 

        (g)   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 the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual
interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, service agreements, gas balancing or deferred
production agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are
usual and customary in the oil and gas business and are for claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been
maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair the use of the Property covered by
such Lien for the purposes for which such Property is held by any Borrowers or any Restricted Subsidiary or materially impair the value of such Property subject thereto; 

        (h)   Liens
securing the obligation of any Credit Party with respect to Indebtedness incurred pursuant to Section 7.01(g),  provided such Liens are subordinate to the Liens under the Security Documents pursuant
to the Intercreditor Agreement; 

        (i)    Liens
on any property or asset acquired, constructed or improved by any Credit Party, securing Indebtedness permitted under Section 7.01(h), which (a) are
in favor of the seller of such property or assets, in favor of the Person developing, constructing, or improving such asset or property, or in favor of the Person that provided the funding for the
acquisition, development, construction, repair or improvement cost, as the case may be, of such asset or property, (b) except for any Sale and Leaseback Transaction permitted under
Section 7.05(i), are created within 90 days after the acquisition, development, construction, repair or improvement, (c) secure the purchase price or development, construction,
repair or improvement cost, as the case may be, of such asset or property in an amount up to 100% of the fair market value of such acquisition, construction or improvement of such asset or property,
and (d) are limited to the asset or property so acquired, constructed or improved (including the proceeds thereof, accessions thereto, upgrades thereof and improvements thereto); 

        (j)    Liens
reserved in oil and gas mineral leases for bonus or rental payments and for compliance with the terms of such leases; 

Page 17

 

        (k)   Liens
arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by the Borrowers and the Restricted Subsidiaries in the
ordinary course of business; 

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

        (m)  easements,
restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any property of any Borrowers or any Restricted Subsidiary for the
purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or
common use of real estate, rights of way, facilities and equipment, that do not secure any monetary obligations and which in the aggregate do not materially impair the use of such property for the
purposes of which such property is held by any Borrowers or any Restricted Subsidiary or materially impair the value of such property subject thereto; 

        (n)   judgment
and attachment Liens not giving rise to an Event of Default, provided that any appropriate legal proceedings
which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no
action to enforce such Lien has been commenced; and 

        (o)   Liens
on properties or assets of Centrahoma securing Indebtedness permitted by Section 7.01(i); provided such
Liens do not extend to or encumber any of the Collateral. 

        "Permitted Subordinated Debt" means the unsecured Indebtedness permitted under Section 7.01(d). 

        "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 

        "Plan" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA, and in respect of which any Credit Party or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA. 

        "Prime Rate" means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in
effect at its principal office in Chicago, Illinois, each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. THE PRIME RATE
IS A REFERENCE RATE AND MAY NOT BE JPMORGAN CHASE BANK, N.A.'S LOWEST RATE. 

        "Projected Oil and Gas Production" means the projected production of oil or gas (measured by volume unit or BTU equivalent, not sales
price) for the term of the contracts or a particular month, as applicable, from Oil and Gas Interests owned by the Credit Parties that are located in or offshore, if any, of the United States and that
have attributable to them proved (and for purposes of Section 7.03(b) only, possible and probable) Oil and Gas Interests, as such production is projected in the Reserve Report most recently
delivered, after deducting projected production from any Oil and Gas Interests sold or under contract for sale that had been included in such report and after adding projected production from any Oil
and Gas Interests that had not been 

Page 18

 

reflected
in such report but that are reflected in a separate or supplemental reports meeting the requirements of such Section 6.01(e) or (g) and otherwise are reasonably satisfactory to
Administrative Agent. 

        "Purchase and Transportation Contract" means any contract for the purchase of Natural Gas settled based on a floating price for delivery
of Natural Gas for the purpose of fixing transportation costs. 

        "Redetermination" means any Scheduled Redetermination or Special Redetermination. 

        "Redetermination Date" means (a) with respect to any Scheduled Redetermination (i) on or about the
15th day of April, July and October of the calendar year ending December 31, 2009, (ii) on or about January 15, 2010 and (iii) on or about the
15th day of each April and October thereafter beginning April 15, 2010, and (b) with respect to any Special Redetermination made at the request of the Borrowers or
the Required Lenders, the first day of the first month which is not less than twenty (20) Business Days following the date of a request for a Special Redetermination and otherwise on the date
set forth in the notice of such Redetermination delivered pursuant to Section 3.05. 

        "Register" has the meaning assigned to such term in Section 11.04. 

        "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 Affiliates. 

        "Required Lenders" means, at any time, Lenders having Credit Exposures and Unused Commitments representing at least sixty-six
and two-thirds percent (662/3%) of the sum of the Aggregate Credit Exposure and the Aggregate Unused Commitment at such time or, if the Aggregate Commitment has been
terminated, Lenders having Credit Exposures representing at least sixty-six and two-thirds percent (662/3%) of the sum of the Aggregate Credit Exposure of all
Lenders at such time; provided that the Unused Commitment and the Credit Exposures held or deemed held by any Defaulting Lender shall be excluded for
purposes of making a determination of the Required Lenders. 

        "Reserve Report" means an unsuperseded engineering analysis of the Borrowing Base Properties, in form and substance reasonably acceptable
to the Administrative Agent, prepared in accordance with customary and prudent practices in the petroleum engineering industry. 

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

        "Restricted Subsidiary" means any Subsidiary that is not an Unrestricted Subsidiary. 

        "S&P" means Standard & Poor's Ratings Group, a division of The McGraw Hill Corporation. 

        "Sale and Leaseback Transaction" means any sale or other transfer of any property by any Person with the intent to lease such property as
lessee. 

        "Scheduled Redetermination" means any redetermination of the Borrowing Base pursuant to Section 3.03. 

        "Secured Party" means the Administrative Agent, any Lender and any Lender Counterparty and any other holder of Obligations including any
Cash Management Obligations and Lender 

Page 19

 

Hedging
Obligations, to the extent that such Lender Hedging Obligations were incurred when such Person was a Lender Counterparty. 

        "Security Agreement" means that certain Amended and Restated Security Agreement, dated as of the Effective Date, made by the Borrowers in
favor of the Administrative Agent for the benefit of the Secured Parties covering, among other things, the rights and interests of the Borrowers in certain personal property, as amended, restated,
supplemented or otherwise modified from time to time. 

        "Security Documents" means collectively, all Guarantees of the Obligations evidenced by the Loan Documents and all Mortgages, security
agreements (including the Security Agreement), pledge agreements (including the Midstream Pledge Agreement), collateral assignments and other collateral documents covering the Oil and Gas Interests
and the Equity Interests of the Restricted Subsidiaries and other personal property, equipment, oil and gas inventory and proceeds of the foregoing, all such documents to be in form and substance
reasonably satisfactory to the Administrative Agent. 

        "Special Redetermination" means any redetermination of the Borrowing Base made pursuant to Section 3.04. 

        "Statutory Reserve Rate" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to
the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in any reserve percentage. 

        "Subsidiary" means, with respect to any Person (the "parent") at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of which would be Consolidated with those of the parent in the parent's Consolidated financial statements
if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of
which securities or other ownership interests representing more than fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power or, in the case of a partnership,
more than fifty percent (50%) of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one
or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless the context otherwise clearly requires, references herein to a "Subsidiary" refer to a Subsidiary
of any Borrower. 

        "Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any
Governmental Authority. 

        "Term Agent" means the Person designated as the administrative agent and collateral agent under the Term Facility in its capacity as
contractual representative of the lenders and other Persons from time to time a party to the Term Facility and any successor agent appointed pursuant to the terms of the Term Facility Documents. 

        "Term Facility" means the second lien term loan facility evidenced by the Term Facility Documents. 

Page 20

 

 

        "Term Facility Documents" means the Term Loan Agreement and any promissory notes executed in connection therewith, the Term Facility
Security Documents and any other agreements executed in connection with the Term Loan Agreement, in each case, as the same may be amended, modified, supplemented, replaced or restated from time to
time to the extent permitted under this Agreement and the Intercreditor Agreement. 

        "Term Facility Security Documents" means the instruments, security agreements, deeds of trust, mortgages, pledges, guaranties, financing
statements, continuation statements, extension agreements and other agreements or instruments now, heretofore, or hereafter delivered by any Credit Party to the Term Agent in connection with the Term
Facility or any transaction contemplated hereby or thereby to secure or guarantee the payment of any part of the obligations under the Term Facility or the performance of any Credit Party's other
duties and obligations under the Term Facility Documents. 

        "Term Loans" means the term loans made under the Term Facility. 

        "Term Loan Agreement" means that certain Second Lien Term Loan Agreement, dated April 12, 2007, among certain of the Borrowers, the
Term Agent and Collateral Agent, certain financial institutions as Lenders and Credit Suisse, as Syndication Agent, as amended, supplemented or otherwise modified or replaced from time to time in
accordance with this Agreement and the Intercreditor Agreement. 

        "Texas Finance Code" has the meaning assigned to such term in Section 11.13. 

        "Transactions" means the execution, delivery and performance by the Credit Parties of this Agreement and the Loan Documents, the borrowing
of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. 

        "Type", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate. 

        "Unrestricted Subsidiary" means (a) any Subsidiary that at the time of determination shall be designated an Unrestricted Subsidiary
by the Board of Directors of any Borrower in the manner provided below and (b) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of any Borrower may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries is (i) a Material Domestic Subsidiary or
(ii) a Subsidiary owning Oil and Gas Interests or Midstream Assets included in the Borrowing Base Properties. 

        "Unused Commitment" means, with respect to each Lender at any time, such Lender's Commitment at such time minus such Lender's Credit
Exposure at such time. 

        "Unused Commitment Fee" has the meaning assigned to such term in Section 2.12(a). 

        "U.S. Government Securities" means direct obligations of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency or instrumentality thereof to the extent such obligations are entitled to the full faith and credit of the United States of America), in
each case maturing within one year from the date of acquisition thereof. 

        "Withdrawal Liability" means the liability of any Credit Party or ERISA Affiliate to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 

Page 21

 

        Section 1.02.    Types of Loans and Borrowings.    For purposes of this Agreement, Loans may be classified and
referred to by Type (e.g., a "Eurodollar Loan" or an "ABR Loan. Borrowings also may be classified and referred to by Type
(e.g., a "Eurodollar Borrowing" or an "ABR Borrowing"). 

        Section 1.03.    Terms Generally.    The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein",
"hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words "asset" and "property" shall
be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

        Section 1.04.    Accounting Terms; GAAP.    Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if any Borrower notifies the
Administrative Agent that such Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Borrowers that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such
change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 

        Section 1.05.    Oil and Gas Definitions.    For purposes of this Agreement, the terms "proved reserves,"
"proved developed reserves," "proved undeveloped reserves," "proved developed nonproducing reserves" and "proved developed producing reserves," have the meaning given such terms from time to time and
at the time in question by the Society of Petroleum Engineers of the American Institute of Mining Engineers. 

        Section 1.06.    Time of Day.    Unless otherwise specified, all references to times of day shall be references
to Central time (daylight or standard, as applicable). 

 
 

  Article II
  
    The Credits    
    

        Section 2.01.    Commitments.    Subject to the terms and conditions set forth herein, each Lender that was a
Lender under and as defined in the Original Credit Agreement agrees to continue the Original Loans and each Lender agrees to make one or more Loans to the Borrowers from time to time on any Business
Day during the Availability Period in an aggregate principal amount that will not result in (a) such Lender's Credit Exposure exceeding such Lender's Applicable Percentage of the Aggregate
Commitment or (b) the Aggregate Credit Exposure exceeding the Aggregate Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may
borrow, prepay and reborrow Loans. 

Page 22

 

        Section 2.02.    Termination of the Aggregate Commitment and Reduction of the Maximum Facility Amount.    

        (a)   Unless
previously terminated, the Aggregate Commitment shall terminate on the Maturity Date. 

        (b)   The
Borrowers may at any time terminate the Aggregate Commitment, or from time to time reduce, the Maximum Facility Amount;  provided that (i) each reduction of the Maximum Facility Amount shall be in
an amount that is an integral multiple of $1,000,000 and not less
than $5,000,000 and (ii) the Borrowers shall not terminate the Aggregate Commitment or reduce the Maximum Facility Amount if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 2.10 and Section 2.11, the Aggregate Credit Exposure would exceed the Aggregate Commitment. 

        (c)   The
Borrowers shall notify the Administrative Agent of any election to terminate the Aggregate Commitment or reduce the Maximum Facility Amount under
paragraph (b) of this Section at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.
Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrowers pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Aggregate Commitments delivered by the Borrowers may state that such notice is conditioned
upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrowers (by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination of the Aggregate Commitment shall be permanent. Any reduction of the Aggregate Commitment as a result of a reduction in the Maximum Facility Amount shall be
made ratably among the Lenders in accordance with each Lender's Applicable Percentage. 

        Section 2.03.    [Reserved].    

        Section 2.04.    Loans and Borrowings.    

        (a)   Each
Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender
to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders
are several and no Lender shall be responsible for any other Lender's failure to make Loans as required. 

        (b)   Subject
to Section 2.14, each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrowers may request in accordance herewith. Each
Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that
any exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in accordance with the terms of this Agreement. 

        (c)   At
the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not
less than $1,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $1,000,000;  provided that an
ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate Commitment or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e). Borrowings of more than one Type may be outstanding at the same time;  provided that there shall not at any
time be more than a total of twelve (12) Eurodollar Borrowings outstanding. 

Page 23

 

        (d)   Notwithstanding
any other provision of this Agreement, the Borrowers shall not be entitled to request, or to elect to convert or continue, any Eurodollar Borrowing if
the Interest Period requested with respect thereto would end after the Maturity Date. 

        Section 2.05.    Requests for Borrowings.    To request a Borrowing, the Borrower Representative shall notify
the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 12:00 noon three (3) Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 noon on the date of the proposed Borrowing (so long as such date is a Business Day). Each such telephonic Borrowing
Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and
signed by the Borrower
Representative. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.04: 

          (i)  the
aggregate amount of the requested Borrowing; 

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

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

        (iv)  in
the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term
"Interest Period"; and 

         (v)  the
location and number of the Borrowers' account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07. 

        If
no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Borrowing, then the Borrowers shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section,
the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing. 

        Section 2.06.    Letters of Credit.    

        (a)    General.    Subject to the terms and conditions set forth herein, any Borrower may request the issuance of
Letters of Credit for its own or the account of any Restricted Subsidiary in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the
Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement
submitted by any Borrower to, or entered into by any Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 

        (b)    Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.    To request the issuance of a Letter
of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower Representative shall hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or
extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the Borrower
Representative also shall submit a letter of credit 

Page 24

 

application
on the Issuing Bank's standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension
(i) the LC Exposure shall not exceed $30,000,000 and (ii) the Aggregate Credit Exposure shall not exceed the Aggregate Commitment. Notwithstanding the foregoing, the Issuing Bank
shall not at any time be obligated to issue, amend, renew or extend any Letter of Credit if any Lender is at such time a Defaulting Lender hereunder, unless the Borrowers cash collateralize such
Defaulting Lender's portion of the total LC Exposure (calculated after giving effect to the issuance, amendment, renewal or extension of such Letter of Credit) in accordance with the procedures set
forth in Section 2.06(j). 

        (c)    Expiration Date.    Each Letter of Credit shall expire at or prior to the close of business on the earlier of
(i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the
date that is thirty (30) days prior to the Maturity Date. 

        (d)    Participations.    By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the
amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a
participation in such Letter of Credit equal to such Lender's Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of
the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender's Applicable Percentage of each LC
Disbursement made by the Issuing Bank and not reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded
to the Borrowers for any reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Aggregate Commitment, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 

        (e)    Reimbursement.    If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the
Borrowers shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon on the date that such LC Disbursement is
made, if the Borrowers shall have received notice of such LC Disbursement prior to 10:00 a.m. on such date, or, if such notice has not been received by the Borrowers prior to such time on such
date, then not later than 12:00 noon on (i) the Business Day that the Borrowers receive such notice, if such notice is received prior to 10:00 a.m. on the day of receipt, or
(ii) the Business Day immediately following the day that the Borrowers receive such notice, if such notice is not received prior to such time on the day of receipt;  provided that the Borrowers may,
subject to the conditions to borrowing set forth herein, request in accordance with Section 2.05 that such
payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the Borrowers' obligation to make such payment shall be discharged and replaced by the resulting ABR
Borrowing. If the Borrowers fail to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrowers in respect
thereof and such Lender's Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due
from the Borrowers, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall 

Page 25

 

apply,
mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrowers pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may
appear. Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a
Loan and shall not relieve the Borrowers of their obligation to reimburse such LC Disbursement. 

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

        (g)    Disbursement Procedures.    The Issuing Bank shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrowers by telephone (confirmed by telecopy)
of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay
in giving such notice shall not relieve the Borrowers of their obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement. 

Page 26

 

 

        (h)    Interim Interest.    If the Issuing Bank shall make any LC Disbursement, then, unless the Borrowers shall
reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to
but excluding the date that the Borrowers reimburse such LC Disbursement, at the rate per annum then applicable to ABR Loans; provided that, if the
Borrowers fail to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall
be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall
be for the account of such Lender to the extent of such payment. 

        (i)    Replacement of the Issuing Bank.    The Issuing Bank may be replaced at any time by written agreement among the
Borrowers, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the
time any such replacement shall become effective, the Borrowers shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the
effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be
issued thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 

        (j)    Cash Collateralization.    

          (i)  If
at any time the Borrowers elect to cash collateralize the LC Exposure of any Defaulting Lender pursuant to Section 2.06(b), the Borrowers shall deposit in an
account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders (the "Cash Collateral
Account"), an amount in cash equal to such Defaulting Lender's portion of the total LC Exposure at such time as calculated pursuant to Section 2.06(b) (less any amounts
already on deposit in such Cash Collateral Account representing cash collateral for any portion of such Defaulting Lender's portion of the total LC Exposure). 

         (ii)  If
any Letter of Credit is outstanding at the time any Lender is a Defaulting Lender, upon the written request of the Issuing Bank demanding the deposit of cash
collateral pursuant to this paragraph, the Borrowers shall promptly, and in any event within one Business Day after receipt of such written request, cash collateralize such Defaulting Lender's portion
of the total LC Exposure at such time by depositing in the Cash Collateral Account an amount in cash equal to such Defaulting Lender's portion of the total LC Exposure (less any amounts already on
deposit in such Cash Collateral Account representing cash collateral for any portion of such Defaulting Lender's portion of the total LC Exposure). 

        (iii)  If
any Event of Default shall occur and be continuing, on the Business Day that the Borrowers receive notice from the Administrative Agent or the Required Lenders (or,
if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than sixty-six and two-thirds percent (662/3%) of the total LC
Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrowers shall deposit in the Cash Collateral Account an amount in cash equal to the total LC Exposure as of such
date plus any accrued and unpaid interest thereon, if any; provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due 

Page 27

 

and
payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described in paragraph (h) or (i) of Article IX. 

        (iv)  Deposits
in the Cash Collateral Account made pursuant to the foregoing paragraphs (i), (ii) and (iii) shall be held by the Administrative Agent as
collateral for the payment and performance of the obligations of the Borrowers under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over the Cash Collateral Account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrowers' risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC
Exposure representing sixty-six and two-thirds percent (662/3%) or more of the total LC Exposure), be applied to satisfy other Obligations of the Borrowers under
this Agreement and to the extent any excess remains after payment in full in cash of all Obligations and the termination of all Commitments, such excess shall be released to the Borrowers. 

         (v)  If
the Borrowers are required to provide an amount of cash collateral pursuant to paragraphs (i), (ii) or (iii) above, such amount (to the extent
not applied as aforesaid) shall be returned to the Borrowers within one Business Day after (x) in the case of cash collateral provided pursuant to paragraphs (i) or (ii) above,
the applicable Defaulting Lender is no longer a Defaulting Lender and (y) in the case of cash collateral provided pursuant to paragraph (iii) above, all Events of Default have been cured
or waived. 

        Section 2.07.    Funding of Borrowings.    

        (a)   Each
Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:00 p.m. to the
account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrowers by promptly
crediting the amounts so received, in like funds, to a deposit account of the Borrowers designated by the Borrower Representative in the applicable Borrowing Request;  provided that ABR Loans made to
finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the
Administrative Agent to the Issuing Bank. 

        (b)   Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of
this Section and may, in reliance upon such assumption, make available to the Borrowers a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the Borrowers to but excluding the date of payment to the Administrative Agent, at (i) in the case of such
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case
of the Borrowers, the interest rate applicable to ABR Loans. If 

Page 28

 

such
Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender's Loan included in such Borrowing. 

        Section 2.08.    Interest Elections.    

        (a)   Each
Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest
Period as specified in such Borrowing Request. Thereafter, the Borrowers may elect to convert such Borrowing to a different Type or to
continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrowers may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each
such portion shall be considered a separate Borrowing. 

        (b)   To
make an election pursuant to this Section, the Borrower Representative shall notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.05 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.
Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a
form approved by the Administration Agent and signed by the Borrower Representative. 

        (c)   Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.04: 

          (i)  the
Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions
thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to paragraphs (iii) and (iv) below shall be specified for each resulting
Borrowing); 

         (ii)  the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 

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

        (iv)  if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term "Interest Period". 

If
any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one month's
duration. 

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

        (e)   If
the Borrower Representative fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so long as
an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a 

Page 29

 

Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 

        Section 2.09.    Repayment of Loans; Evidence of Debt.    

        (a)   Each
Borrower hereby jointly and severally and unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal
amount of each Loan on the Maturity Date. 

        (b)   Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to such Lender resulting from each
Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 

        (c)   The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum
received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof. 

        (d)   The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima
facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the terms of this Agreement. 

        (e)   Any
Lender or Participant may request that Loans made by it be evidenced by a promissory note. In such event, the Borrowers shall prepare, execute and deliver to such
Lender or Participant a promissory note payable to the order of such Lender or Participant (or, if requested by such Lender or Participant,
to such Lender or Participant and its registered assigns) and in the form attached hereto as Exhibit D. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all
times (including after assignment pursuant to Section 11.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory
note is a registered note, to such payee and its registered assigns). 

        (f)    Each
Borrower and each surety, endorser, guarantor and other party ever liable for payment of any sums of money payable under this Agreement, jointly and severally waive
presentment and demand for payment, notice of intention to accelerate the maturity, protest, notice of protest and nonpayment, as to the payments due under this Agreement or any other Loan Document
and as to each and all installments hereunder and thereunder, and agree that their liability under this Agreement or any other Loan Document shall not be affected by any renewal or extension in the
time of payment hereof, or in any indulgences, or by any release or change in any security for the payment of the Obligations, and hereby consent to any and all such renewals, extensions, indulgences,
releases or changes. 

        Section 2.10.    Optional Prepayment of Loans.    

        (a)   The
Borrowers shall have the right at any time and from time to time to prepay, without premium or penalty, any Borrowing in whole and or in part, in a minimum amount of
$1,000,000 and integral multiples of $1,000,000 subject to prior notice in accordance with paragraph (b) of this Section 2.10. 

        (b)   The
Borrower Representative shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment
of a Eurodollar Borrowing, not later than 11:00 a.m. three (3) Business Days before the date of 

Page 30

 

prepayment,
or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m. one Business Day before the date of prepayment. Each such notice shall be irrevocable and
shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment
is given in connection with a conditional notice of termination or reduction of the Aggregate Commitment as contemplated by Section 2.02, then such notice of prepayment may be revoked if such
notice of termination or reduction is revoked in accordance with Section 2.02. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in
Section 2.04. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required
by Section 2.13. 

        Section 2.11.    Mandatory Prepayment of Loans.    

        (a)   Except
as otherwise provided in Section 7.03(d), in the event a Borrowing Base Deficiency exists, the Borrowers shall, within thirty (30) days after
written notice from the Administrative Agent to the Borrowers of such Borrowing Base Deficiency, give notice to the Administrative Agent of the election to do any of the following or a combination
thereof to eliminate the Borrowing Base Deficiency (the date such notice of election is given by Borrower to the Administrative Agent is herein called the "Election
Date"): 

          (i)  prepay,
without premium or penalty, the principal amount of the Loans (and after all Loans are repaid in full, provide cash collateral in accordance with
Section 2.06(j)) in an amount sufficient to eliminate such Borrowing Base Deficiency, such prepayment to be made in full on or before the 30th day after the Election Date; 

         (ii)  prepay,
without premium or penalty (but subject to any funding indemnification amounts required by Section 2.16), the principal amount of such Borrowing Base
Deficiency in not more than three (3) equal monthly installments plus accrued interest thereon and make the first such monthly payment on the 60th day after the Election Date and the
subsequent installments to be due and payable at one month intervals thereafter until such Borrowing Base Deficiency has been eliminated; provided,
however, Borrowers shall have demonstrated to the satisfaction of Administrative Agent on or before the date of the first such payment that Borrowers have sufficient available monthly cash from their
Projected Oil and Gas Production to make such payments; or 

        (iii)  give
notice to Administrative Agent that Borrowers desire to provide Administrative Agent with deeds of trust, mortgages, security agreements, financing statements and
other security documents in form and substance satisfactory to Administrative Agent, granting, confirming, and perfecting first and prior Liens or security interests in collateral acceptable to
Required Lenders, to the extent needed to cover the Minimum Collateral Amount (as they in their reasonable discretion deem consistent with prudent oil and gas banking industry lending standards at the
time) to an amount which eliminates such Borrowing Base Deficiency, and then provide such security documents within thirty days after the Election Date. If, prior to any such specification by
Administrative Agent, Required Lenders determine that the giving of such security documents will not serve to eliminate such Borrowing Base Deficiency, then, within five (5) Business Days after
receiving notice of such determination from Administrative Agent, Borrowers will elect to make, and thereafter make, the prepayments specified in either of the preceding paragraphs (i) or
(ii) of this paragraph (a). 

        (b)   Each
prepayment of principal under this section shall be accompanied by all interest then accrued and unpaid on the principal so prepaid. Any principal or interest
prepaid pursuant to this 

Page 31

 

section
shall be in addition to, and not in lieu of, all payments otherwise required to be paid under the Loan Documents at the time of such prepayment. 

        Section 2.12.    Fees.    

        (a)   The
Borrowers agree to pay to the Administrative Agent, for the account of each Lender, an unused commitment fee (the "Unused Commitment
Fee") equal to 0.50% of the daily average of the Aggregate Unused Commitment. Such Unused Commitment Fee shall be calculated on the basis of a year consisting of
360 days. The Unused Commitment Fee shall be payable in arrears on the last day of March, June, September and December of each year, commencing with the first such date to occur after the
Effective Date, and on the Maturity Date for any period then ending for which the Unused Commitment Fee shall not have been theretofore paid. In the event the Aggregate Commitment terminates on any
date other than the last day of March, June, September or December of any year, the Borrowers agree to pay to the Administrative Agent, for the account of each Lender, on the date of such termination,
the pro rata portion of the Unused Commitment Fee due for the period from the last day of the immediately preceding March, June, September or December, as the case may be, to the date such termination
occurs. Notwithstanding anything to the contrary contained herein, for so long as any Lender is a Defaulting Lender hereunder, the portion of the Unused Commitment Fee attributable to such Defaulting
Lender shall cease to accrue pursuant to the terms of this Section 2.12(a) and the Borrowers shall have no obligation to pay any Unused Commitment Fee for the account of such Defaulting Lender
for the period of time such Lender is a Defaulting Lender. 

        (b)   The
Borrowers agree to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in Letters of
Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Loans on the average daily amount of each Lender's LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender's Commitment
terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate equal to one-eighth percent
(0.125%) per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date
to but excluding the later of the date of termination of the Aggregate Commitment and the date on which there ceases to be any LC Exposure (but in no event less than $150 per annum), as well as the
Issuing Bank's standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder;  provided that no such individual fee shall exceed
$500. Participation fees and fronting fees accrued through and including the last day of March, June,
September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date;  provided that all such fees
shall be payable on the date on which the Aggregate Commitment terminates and any such fees accruing after the date on which
the Aggregate Commitment terminates shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within ten (10) days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the
last day). Notwithstanding anything to the contrary contained herein, for so long as any Lender is a Defaulting Lender hereunder and to the extent required, the Borrowers have cash collateralized such
Defaulting Lender's portion of the total LC Exposure pursuant to Section 2.06(j), the portion of the participation fees attributable to such Defaulting Lender pursuant to paragraph (i)
of this Section 2.12(b) shall cease to accrue pursuant to the terms of this Section 2.12(b) and the Borrowers shall have no obligation to pay any participation fees to the Administrative
Agent for 

Page 32

 

the
account of such Defaulting Lender for the period of time such Lender is a Defaulting Lender and, to the extent required, such Defaulting Lender's portion of the total LC Exposure is cash
collateralized pursuant to Section 2.06(j); provided, however, that in the event the Borrowers have not cash collateralized any Defaulting
Lender's portion of the total LC Exposure pursuant to, and as required under, Section 2.06(j), then, without prejudice to any rights or remedies of the Issuing Bank or any Lender hereunder, all
participation fees accruing during the period of time such Lender is a Defaulting Lender that otherwise would have been payable for the account of such Defaulting Lender pursuant to
paragraph (i) of this Section 2.12(b) shall be payable to the Issuing Bank for the account of the Issuing Bank until such Defaulting Lender's LC Exposure is cash collateralized pursuant
to, and as required under, Section 2.06(j). 

        (c)   The
Borrowers agree to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrowers
and the Administrative Agent. 

        (d)   All
fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees
payable to it) for distribution, in the
case of Unused Commitment Fees and participation fees, to the Lenders. Fees paid shall not be refundable under any circumstances. 

        Section 2.13.    Interest.    

        (a)   The
Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate. 

        (b)   The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable
Rate. 

        (c)   Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrowers hereunder is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, two percent (2%) plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, two percent (2%) plus
the rate applicable to ABR Loans as provided in paragraph (a) of this Section. 

        (d)   Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the Aggregate Commitment and on the
Maturity Date; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the
event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period at a time when no Borrowing Base Deficiency exists), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end
of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

        (e)   All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when
the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and
such determination shall be conclusive absent manifest error. 

Page 33

 

        Section 2.14.    Alternate Rate of Interest.    If prior to the commencement of any Interest Period for a
Eurodollar Borrowing: 

        (a)   the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or 

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

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

        Section 2.15.    Increased Costs.    

        (a)   If
any Change in Law shall: 

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

         (ii)  impose
on any Lender or the Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender or any
Letter of Credit or participation therein; 

and
the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase
the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Issuing
Bank hereunder (whether of principal, interest or otherwise), then the Borrowers will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 

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

Page 34

 

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

        (d)   Failure
or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or the
Issuing Bank's right to demand
such compensation; provided that the Borrowers shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower Representative of the Change in Law
giving rise to such increased costs or reductions and of such Lender's or the Issuing Bank's intention to claim compensation therefor; provided further
that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of
retroactive effect thereof. 

        Section 2.16.    Break Funding Payments.    In the event of (a) the payment of any principal of any
Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.10(b) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower Representative pursuant to Section 2.19, then, in any such event, the Borrowers shall compensate each Lender for
the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be
the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such
Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the Eurodollar market. A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower Representative and shall be conclusive absent manifest error.
The Borrowers shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof. 

        Section 2.17.    Taxes.    

        (a)   Any
and all payments by or on account of any obligation of the Borrowers hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or
Other Taxes; provided that if any Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or
Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower shall make such deductions and
(iii) such Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 

Page 35

 

        (b)   In
addition, the Borrowers shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 

        (c)   The
Borrowers shall indemnify the Administrative Agent, each Lender and the Issuing Bank, within ten (10) days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of
the Borrowers hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as
to the amount of such payment or liability delivered to the Borrower Representative by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the
Issuing Bank, shall be conclusive absent manifest error. 

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

        (e)   Any
Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which any Borrower is located, or any
treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower Representative (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrowers as will permit such payments to be made without
withholding or at a reduced rate. 

        (f)    If
the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified
by the Borrowers or with respect to which the Borrowers have paid additional amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrowers (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrowers under this Section 2.17 with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrowers, upon the request of the Administrative Agent or such Lender, agree to repay the amount paid over to the Borrowers
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This Section shall not be construed to require
the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrowers or any other Person. 

        Section 2.18.    Payments Generally; Pro Rata Treatment; Sharing of Set-offs.    

        (a)   The
Borrowers shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts
payable under Section 2.15, Section 2.16 or Section 2.17, or otherwise) prior to 12:00 noon on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at Mail Code IL1-0634, 21 South 

Page 36

 

Clark
Street, Chicago, Illinois, except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to Section 2.15, Section 2.16,
Section 2.17 and Section 11.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in Dollars. 

        (b)   If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements,
interest, fees and other Obligations then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties; provided
that, notwithstanding anything to the contrary contained in this Agreement or in any other Loan Document, in the event such funds are received by and available to the Administrative Agent as a result
of the exercise of any rights and remedies with respect to any collateral under the Security Documents or as a result of any distribution made pursuant to a bankruptcy proceeding of any Credit Party
or any plan of reorganization confirmed in any such proceeding, such funds shall be applied (i) first to any fees and reimbursements due Administrative Agent hereunder or under any other Loan
Document, (ii) then ratably to the payment of the Obligations (other than Cash Management Obligations), including LC Obligations (in the manner set forth above) and the Lender Hedging
Obligations until such Obligations are paid in full, (iii) then from proceeds of the Security Documents ratably to the payment of any other indebtedness and Obligations (other than, in each
case, Cash Management Obligations) secured by the Security Documents, and (iv) then to the payment of Cash Management Obligations. The Administrative Agent shall have no responsibility to
determine the existence or amount of Lender Hedging Obligations or Cash Management Obligations and may reserve from the application of
amounts under this Section amounts distributable in respect of Lender Hedging Obligations or Cash Management Obligations until it has received evidence satisfactory to it of the existence and amount
of such Lender Hedging Obligations or Cash Management Obligations. 

        (c)   If
any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its
Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued
interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and
participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other
than to any Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, 

Page 37

 

to
the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower rights of
set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation. 

        (d)   Unless
the Administrative Agent shall have received notice from the Borrower Representative prior to the date on which any payment is due to the Administrative Agent for
the account of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such payment, the Administrative Agent may assume that the Borrowers have made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrowers have not in fact made
such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or
Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. 

        (e)   Notwithstanding
anything to the contrary herein, if any Lender shall be a Defaulting Lender or shall fail to make any payment required to be made by it pursuant to
Section 2.06(d) or Section 2.06(e), Section 2.07(b), Section 2.18(d) or Section 11.03(c), then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's obligations under such Sections until all such unsatisfied obligations are fully paid. 

        Section 2.19.    Mitigation Obligations; Replacement of Lenders.    

        (a)   If
any Lender requests compensation under Section 2.15, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.15 or Section 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 

        (b)   If
any Lender requests compensation under Section 2.15, or if the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 2.17, or if any Lender is a Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 11.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment);  provided that (i) the Borrowers shall
have received the prior written consent of the Administrative Agent (and if a Commitment is being assigned,
the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations
in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees)
or the Borrowers (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be 

Page 38

 

made
pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 

        (c)   If
in connection with any proposed amendment, modification, termination, waiver or consent with respect to any of the provisions of this Agreement or any other Loan
Document as contemplated by Section 11.02, the consent of Required Lenders shall have been obtained but the consent of one or more of such other Lenders (each a
"Non-Consenting Lender") whose consent is required has not been obtained or if Lender is a Defaulting Lender; then, the Borrowers may elect
to
replace such Non-Consenting Lender or Defaulting Lender, as the case may be, as a Lender party to this Agreement in accordance with and subject to the restrictions contained in, and
consents required by Section 11.04; provided that (i) the Borrowers shall have received the prior written consent of the Administrative
Agent (and if a Commitment is being assigned, the Issuing Bank), which consent shall not unreasonably be withheld, and (ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts). A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply or, in the case of a Defaulting Lender,
such Lender is no longer a Defaulting Lender. 

        Section 2.20.    Borrower Representative.    Each Borrower hereby appoints Antero as its representative,
hereunder, for all purposes, including requesting borrowings and receiving account statements and other notices and communications to the Borrowers (or any of them) from the Administrative Agent or
any Lender. The Administrative Agent and the Lenders may rely, and shall be fully protected in relying, on any request for borrowing, disbursement instruction, report, information or any other notice
or communication made or given by such Person, whether in its own name, on behalf of any other Borrower or on behalf of "the Borrowers," and neither the Administrative Agent nor any Lender shall have
any obligation to make any inquiry or request any confirmation from or on behalf of any other Borrower as to the binding effect on it of any such request, instruction, report, information, notice or
communication, nor shall the joint and several character of the Borrowers' liability for the Obligations be affected. 

        Section 2.21.    Joint and Several Liability.    The Obligations shall constitute one joint and several direct
and general obligation of the Borrowers. Notwithstanding anything to the contrary contained herein, each of the Borrowers shall be jointly and severally, with each other Borrower, directly and
unconditionally liable to the Administrative Agent and the Lenders for all Obligations and shall have the obligations of co-maker with respect to the Loans, any promissory notes issued
pursuant to Section 2.09(e), and the other Obligations, it being agreed that the advances to each Borrower inure to the benefit of all Borrowers, and that the Administrative Agent and the
Lenders are relying on such joint and several liability of the Borrowers as co-makers in extending the Loans hereunder. 

 
 

  Article III    
    
    Borrowing Base    
    

        Section 3.01.    Initial Borrowing Base.    During the period from the Effective Date until the first
Redetermination after the Effective Date, the Borrowing Base shall be $375,000,000 (the "Initial Borrowing Base"). Notwithstanding the foregoing, the
Borrowing Base may be subject to further adjustments from time to time pursuant to Section 7.05. 

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        Section 3.02.    Reserve Report.    As soon as available and in any event (i) by April 1,
July 1 and October 1 of the calendar year ending on December 31, 2009, (ii) by January 1, 2010 and (iii) thereafter by April 1 and October 1 of
each year, the Borrowers shall deliver to the Administrative Agent and each Lender a Reserve Report, prepared as of the first day of the month immediately preceding the date such report is due, in
form and substance reasonably satisfactory to the Administrative Agent and prepared by an Approved Petroleum Engineer (or, in the case of any Reserve Report due on any date other than April 1
of each year, by petroleum engineers employed by the Borrowers or an Approved Petroleum Engineer), said Reserve Report to utilize economic and pricing parameters established from time to time by the
Administrative Agent, together with such other information, reports and data concerning the value of the Borrowing Base Properties as the Administrative Agent shall deem reasonably necessary to
determine the value of such Borrowing Base Properties. Simultaneously with the delivery to the Administrative Agent and the Lenders of each Reserve Report, the Borrowers shall submit to the
Administrative Agent and each Lender the Borrowers' requested amount of the Borrowing Base as of the next Redetermination Date. Promptly after the receipt by the Administrative Agent of such Reserve
Report and the Borrowers' requested amount for the Borrowing Base, the Administrative Agent shall submit to the Lenders a recommended amount of the Borrowing Base to become effective for the period
commencing on the next Redetermination Date. 

        Section 3.03.    Scheduled Redeterminations of the Borrowing Base; Procedures and Standards.    Based in part
on the Reserve Reports made available to the Administrative Agent and the Lenders pursuant to Section 3.02 and the Midstream Reports delivered to the Administrative Agent and each Lender
pursuant to Section 6.01(l), the Lenders shall redetermine the Borrowing Base on or prior to the next Redetermination Date (or such date promptly thereafter as reasonably possible based on the
engineering and other information available to the Lenders). Any Borrowing Base which becomes effective as a result of any Redetermination of the Borrowing Base shall be subject to the following
restrictions: (a) such Borrowing Base shall not exceed the amount of the Borrowing Base requested by the Borrowers, (b) to the extent such Borrowing Base represents an increase in the
Borrowing Base in effect prior to such Redetermination, such Borrowing Base must be approved by all Lenders, and (c) to the extent such Borrowing Base represents a decrease in the Borrowing
Base in effect prior to such Redetermination or a reaffirmation of such prior Borrowing Base, such Borrowing Base must be approved by the Administrative Agent and Required Lenders. If a redetermined
Borrowing Base is not approved by the Administrative Agent and Required Lenders within fifteen (15) days after the submission to the Lenders by the Administrative Agent of its recommended
Borrowing Base pursuant to Section 3.02, or by all Lenders within such fifteen (15) day period in the case of any increase in the Borrowing Base, the Administrative Agent shall notify
each Lender that the recommended Borrowing Base has not been approved and request that each Lender submit to the Administrative Agent within ten (10) days thereafter its proposed Borrowing
Base. Promptly following the tenth day after the Administrative Agent's request for each Lender's proposed Borrowing Base, the Administrative Agent shall determine the Borrowing Base for such
Redetermination by calculating the highest Borrowing Base then acceptable to the Administrative Agent and a number of Lenders sufficient to constitute Required Lenders (or all Lenders in the case of
an increase in the Borrowing Base). Each Redetermination shall be made by the Lenders in their sole discretion, but based on the Administrative Agent's and such Lender's usual and customary procedures
for evaluating Oil and Gas Interests as such exist at the time of such Redetermination, and including adjustments to reflect the effect of any Hedging Contracts of the Borrowers and the Restricted
Subsidiaries as such exist at the time of such Redetermination. The Borrowers acknowledge and agree that each Redetermination shall be based upon the loan collateral value which the Administrative
Agent and each Lender in its sole discretion (using such methodology, assumptions and discount rates as the Administrative Agent and such Lender customarily uses in assigning collateral value to Oil
and Gas Interests) assigns to the Borrowing Base Properties at the time in question and based upon such other credit factors consistently applied 

Page 40

 

(including,
without limitation, the assets, liabilities, cash flow, business, properties, prospects, management and ownership of the Credit Parties) as the Administrative Agent and such Lender
customarily considers in evaluating similar oil and gas credits. If the Borrowers do not furnish all information, reports and data required to be delivered by any date specified in this
Article III, unless such failure is not the fault of the Borrowers, the Administrative Agent and Lenders may nonetheless designate the Borrowing Base at any amounts which the Administrative
Agent and Lenders in their reasonable discretion determine and may redesignate the Borrowing Base from time to time thereafter until the Administrative Agent and Lenders receive all such information,
reports and data, whereupon the Administrative Agent and Lenders shall designate a new Borrowing Base, as described above. IT IS EXPRESSLY UNDERSTOOD THAT THE ADMINISTRATIVE
AGENT AND LENDERS HAVE NO OBLIGATION TO DESIGNATE THE BORROWING BASE AT ANY PARTICULAR AMOUNTS, EXCEPT IN THE EXERCISE OF THEIR DISCRETION, WHETHER IN RELATION TO THE MAXIMUM FACILITY AMOUNT OR
OTHERWISE.

        Section 3.04.    Special Redeterminations.    In addition to Scheduled Redeterminations and Special
Redeterminations pursuant to Section 7.03(d), (a) the Borrowers may request a Special Redetermination of the Borrowing Base (i) once in any calendar year ending on or before
December 31, 2009 and (ii) twice in any calendar year thereafter and (b) the Required Lenders may request a Special Redetermination (i) in connection with any incurrence
of, or any increase in, Permitted Subordinated Debt, (ii) in connection with the incurrence of Indebtedness described in Section 7.01(g) on or after the Effective Date, and
(iii) once in any calendar year for any other reason. Any request by Borrowers pursuant to this Section 3.04 shall be submitted to the Administrative Agent and each Lender and at the
time of such request (or within fifteen (15) days thereafter in the case of the Reserve Report and the Midstream Report) Borrowers shall (1) deliver to the Administrative Agent and each
Lender a Reserve Report and Midstream Report prepared as of a date prior to the date of such request that is reasonably acceptable to the Administrative Agent and such other information which the
Administrative Agent shall reasonably request, and (2) notify the Administrative Agent and each Lender of the Borrowing Base requested by Borrowers in connection with such Special
Redetermination. Any request by Required Lenders pursuant to this Section 3.04 shall be submitted to the Administrative Agent and the Borrowers. Any Special Redetermination shall be made by the
Administrative Agent and Lenders in accordance with the procedures and standards set forth in Section 3.03; provided that no Reserve Report or
Midstream Report is required to be delivered to the Administrative Agent or the Lenders in connection with any Special Redetermination requested by the Required Lenders pursuant to this
Section 3.04. 

        Section 3.05.    Notice of Redetermination.    Promptly following any Redetermination of the Borrowing Base,
the Administrative Agent shall notify the Borrowers of the amount of the redetermined Borrowing Base, which Borrowing Base shall be effective as of the date specified in such notice, and such
Borrowing Base shall remain in effect for all purposes of this Agreement until the next Redetermination. 

 
 

  Article IV    
    
    Representations and Warranties    
    

        Each Borrower represents and warrants to the Lenders that: 

        Section 4.01.    Organization; Powers.    Each Credit Party and each Restricted Subsidiary is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and is qualified to do
business in, and is in good standing in, every jurisdiction where the character of the properties owned or held by it or the nature of the business transacted by it makes such qualification necessary. 

Page 41

 

        Section 4.02.    Authorization; Enforceability.    The Transactions are within each Credit Party's corporate,
limited liability company or partnership powers and have been duly authorized by all necessary corporate, limited liability company or partnership and, if required, stockholder action. This Agreement
has been duly executed and delivered by each Credit Party and this Agreement and the other Loan Documents, when duly executed are delivered, constitute the legal, valid and binding obligations of each
Credit Party, enforceable in accordance with their 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. 

        Section 4.03.    Governmental Approvals; No Conflicts.    The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect or have been made or
to be made in connection with the filing of the Security Documents to secure the Obligations, (b) will not violate any applicable law or regulation or the charter, by-laws or other
Organizational Documents of any Borrower or any Restricted Subsidiary or any order of any Governmental Authority, (c) will not violate or result in a default under any material indenture,
agreement, instrument, license, order or permit binding upon any Borrower or any Restricted Subsidiary or any of their respective assets, or give rise to a right thereunder to require any payment to
be made by any Borrower or any Restricted Subsidiary, and (d) will not result in the creation or imposition of any Lien on any asset of any Borrower or, any Restricted Subsidiary other than
Permitted Liens. 

        Section 4.04.    Financial Condition; No Material Adverse Change.    

        (a)   Each
Borrower has heretofore furnished to the Lenders its audited (and in the case of paragraph (ii) below, unaudited) Consolidated balance sheet and related
statements of income, stockholders' equity and cash flows of such Borrower and its Consolidated Subsidiaries (i) as of and for the fiscal year ended December 31, 2007, reported on by
KMPG, LLP, independent public accountants, and (ii) as of and for each of the fiscal quarters ended March 31, June 30 and September 30, 2008, certified by its
Financial Officer to the effect that such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of such Borrower and its
Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP after applying FASB 123R, 133 and 143 as of such date, subject to year-end audit adjustments
and the absence of footnotes in the case of the statements referred to in paragraph (ii) above. 

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

        Section 4.05.    Intellectual Property.    Each Borrower and each Restricted Subsidiary owns, or is licensed to
use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by such Borrower and such Restricted Subsidiaries, as the case may
be, does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect. 

        Section 4.06.    Litigation and Environmental Matters.    

        (a)   There
are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrowers,
threatened against or affecting any Borrower or any Restricted Subsidiary, (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this Agreement or the Transactions. 

Page 42

 

        (b)   Except
for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect, no Borrower nor any Restricted Subsidiary, to any Borrower's knowledge, (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with
respect to any Environmental Liability or (iv) knows of any basis for any claim with respect to any Environmental Liability. 

        (c)   Since
the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect. 

        Section 4.07.    Compliance with Laws and Agreements.    Each Borrower and each Restricted Subsidiary is in
compliance with all Laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

        Section 4.08.    Investment Company Status.    No Borrower and no Restricted Subsidiary is an "investment
company" as defined in, or subject to regulation under, the Investment Company Act of 1940. 

        Section 4.09.    Taxes.    Each Borrower and each Restricted Subsidiary has timely filed or caused to be filed
all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which such Borrower or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so
could not reasonably be expected to result in a Material Adverse Effect. 

        Section 4.10.    ERISA.    No ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $500,000 the fair market value of the assets of such
Plan, and the present value of all accumulated benefit obligations of all underfunded Plans did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than
$500,000 the fair market value of the assets of all such underfunded Plans. 

        Section 4.11.    Disclosure.    Each Borrower has disclosed to the Lenders all agreements, instruments and
corporate or other restrictions to which it or any Restricted Subsidiary is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. None of the other reports, financial statements, certificates or other information furnished by or on behalf of any Borrower or any Restricted Subsidiary to the
Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) when taken as a whole
contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading as
of the date made or deemed made; provided that, with respect to projected financial information, each Borrower represents only that such information was
prepared in good faith based on assumptions believed to be reasonable at the time. 

Page 43

 

        Section 4.12.    Labor Matters.    There are no strikes, lockouts or slowdowns against any Borrower or any of
its Restricted Subsidiaries pending or, to the knowledge of any Borrower, threatened that could reasonably be expected to have a Material Adverse Effect. The hours worked by and payments made to
employees of each Borrower and its Restricted Subsidiaries have not been in violation of the Fair Labor Standards Act or any other Law dealing with such matters to the extent that such violation could
reasonably be expected to have a Material Adverse Effect. 

        Section 4.13.    Capitalization.    Schedule 4.13 lists, as of the Effective Date, (a) each
Subsidiary that is an Unrestricted Subsidiary, (b) for each Borrower, its full legal name, its jurisdiction of organization and its federal tax identification number and (c) for each
Restricted Subsidiary, its full legal name, its jurisdiction of organization, its federal tax identification number and the number of shares of capital stock or other Equity Interests outstanding and
the owner(s) of such shares or Equity Interests. 

        Section 4.14.    Margin Stock.    No Borrower and no Restricted Subsidiary is engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the Board), and no part of the proceeds of any Loan will be used to purchase or carry any margin stock or to extend credit to others
for the purpose of purchasing or carrying margin stock. 

        Section 4.15.    Title to Properties; Licenses.    Each Credit Party and each Restricted Subsidiary has good
and defensible title to, or valid leasehold interests in or rights to exploit under farmout agreements, all of the Collateral owned or leased by such Person. All of each Credit Party and each
Restricted Subsidiary's other material properties and assets necessary or used in the ordinary conduct of its business, are free and clear of all Liens, encumbrances, or adverse claims other than
Permitted Liens and free of all impediments to the use of such properties and assets in the ordinary course of such Person's business, except that no representation or warranty, express, implied or
statutory, is made with respect to any oil, gas or mineral property which is not a Borrowing Base Property. Each Credit Party and each Restricted Subsidiary owns the net revenue interests in
production attributable to the wells and units evaluated in the most recently delivered Reserve Report. The ownership of such properties does not in the aggregate in any material respect obligate such
Credit Party or such Restricted Subsidiary to bear the costs and expenses relating to the maintenance, development and operations of such properties in an amount materially in excess of the working
interest of such properties set forth in the most recently delivered Reserve Report. Upon delivery of each Reserve Report and Midstream Report furnished to the Lenders pursuant to
Section 6.01(g) and Section 6.01(l), respectively, the statements made in the preceding sentences of this section and in Section 4.19 shall be true in all material respects with
respect to such Reserve Report and Midstream Report. 

        Section 4.16.    Insurance.    The certificate signed by the Financial Officer that attests to the existence
and adequacy of, and summarizes, the property and casualty insurance program maintained by the Credit Parties that has been furnished by the Borrower to the Administrative Agent and the Lenders as of
the Effective Date, is complete and accurate in all material respects as of the Effective Date and demonstrates the Borrowers' and the Restricted Subsidiaries' compliance with Section 6.05. 

        Section 4.17.    Solvency.    

        (a)   Immediately
after the consummation of the Transactions and immediately following the making of the initial Borrowing, if any, made on the Effective Date and after giving
effect to the application of the proceeds thereof, (1) the fair value of the assets of the Credit Parties on a combined basis, at a fair valuation, will exceed the debts and liabilities,
subordinated, contingent or otherwise, of the Credit Parties on a combined basis; (2) the present fair saleable value of the real and personal property of the Credit Parties on a combined basis
will be greater than the amount that will be required to pay the probable liability of the Credit Parties on a combined basis on 

Page 44

 

their
debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (3) the Credit Parties on a combined basis will be
able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (4) the Credit Parties on a combined basis will
not have unreasonably small
capital with which to conduct the businesses in which they are engaged as such businesses are now conducted and are proposed to be conducted after the date hereof. 

        (b)   The
Credit Parties do not intend to, and do not believe that they will, incur debts beyond their ability to pay such debts as they mature, taking into account the timing
of and amounts of cash to be received by it and the timing of the amounts of cash to be payable on or in respect of its Indebtedness. 

        Section 4.18.    Leases and Contracts; Performance of Obligations.    To the best of each Borrower's knowledge,
the leases, contracts, servitudes and other agreements forming a part of the Borrowing Base Properties are in full force and effect. No Borrower has received a written notice of default under any such
contracts or agreements that remains uncured that could reasonably be expected to result in a Material Adverse Effect. All rents, royalties and other payments due and payable under such leases,
contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any Oil and Gas Interests, have been properly and timely paid. No
Credit Party has received written notice of a default that remains uncured with respect to its obligations (and no Credit Party has received written notice of any default by any third party with
respect to such third party's obligations) under any such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any
part of the Oil and Gas Interests or the Midstream Assets, where such default could materially and adversely affect the ownership or operation of such Borrowing Base Properties. No Credit Party is
currently accounting for any royalties, or overriding royalties or other payments out of production, on a basis (other than delivery in kind) less favorable to such Credit Party than proceeds received
by such Credit Party (calculated at the well) from sale of production, and no Credit Party has any liability (or alleged liability) to account for the same on any such less favorable basis that could
reasonably be expected to result in a Material Adverse Effect. 

        Section 4.19.    Sale of Production.    Except (a) as required by law, (b) offsetting, netting
and other similar arrangements entered into in the ordinary course of business and (c) as set forth in Schedule 4.19, (i) no Oil and Gas Interest is subject to any contractual or
other arrangement whereby payment for production is or can be deferred for a substantial period after the month in which such production is delivered (in the case of Crude Oil, not in excess of sixty
(60) days, and in the case of Natural Gas, not in excess of ninety (90) days) and (ii) no Oil and Gas Interest or Midstream Asset is subject to any contractual or other
arrangement whereby payments are made to a Credit Party or Restricted Subsidiary other than by checks, drafts, wire transfer advises or other similar writings, instruments or communications for the
immediate payment of money. Except for (x) production sales contracts, processing agreements, transportation agreements and other agreements relating to the marketing of production that are
listed on Schedule 4.19 in connection with the Oil and Gas Interests or Midstream Assets to which such contract or agreement relates and (y) in the case of clause (2) below,
transactions with Affiliates permitted under Section 7.09: (1) no Oil and Gas Interest or Midstream Asset is subject to any long-term firm transportation arrangement or
contract or any other contractual or other arrangement for the sale or processing of production (or otherwise related to the marketing of production) which cannot be canceled on 120 days' (or
less) notice without material penalty and (2) all long-term firm transportation arrangements or contracts and all contractual or other arrangements for the sale or processing of
production (or otherwise related to the marketing of production) are bona fide arm's length transactions made on the best terms available with third parties not affiliated with any Credit Party or
Restricted Subsidiary. Each Credit Party and each Restricted Subsidiary is presently receiving a price for all production from (or attributable to) its Oil and Gas 

Page 45

 

Interests
and Midstream Assets covered by a production sales contract or marketing contract listed on Schedule 4.19 that is computed in accordance with the terms of such contract, and no Credit
Party is having deliveries of production from such Oil and Gas Interest curtailed substantially below such property's delivery capacity. Except as set forth in Schedule 4.19, no Credit Party,
has received prepayments (including payments for gas not taken pursuant to "take or pay" or other similar arrangements) for any Hydrocarbons produced or to be produced from any Oil and Gas Interests
after the date hereof. Except as set forth in Schedule 4.19, no Oil and Gas Interest is subject to any "take or pay" or other similar arrangement (A) which can be satisfied in whole or
in part by the production or transportation of gas from other properties or (B) as a result of which production from any Oil and Gas Interest may be required to be delivered to one or more
third parties without payment (or without full payment) therefor as a result of payments made, or other actions taken, with respect to other properties. Except as set forth in Schedule 4.19,
there is no material underproduction or material overproduction from the Borrowing Base Properties. No Oil and Gas Interest is subject to a gas balancing arrangement under which one or more third
parties may take a portion of the production attributable to such Oil and Gas Interest without payment (or without full payment) therefor as a result of production having been taken from, or as a
result of other actions or inactions with respect to, other properties. No Oil and Gas Interest is subject at the present time to any regulatory refund obligation and, to the best of each Credit
Party's knowledge, no facts exist which might cause the same to be imposed. Except as set forth in Schedule 4.19, no Credit Party nor any of its Restricted Subsidiaries is a party to a Purchase
and Transportation Contract. 

        Section 4.20.    Operation of Oil and Gas Interests.    The Oil and Gas Interests (and all properties unitized
therewith) and all Midstream Assets are being (and, to the extent the same could adversely affect the ownership or operation of the Oil and Gas Interests and Midstream Assets after the date hereof,
have in the past been) maintained, operated and developed in a good and workmanlike manner, in accordance with prudent industry standards and in compliance with (a) all applicable Laws,
(b) all oil,
gas or other mineral leases and other material contracts and agreements forming a part of the Oil and Gas Interests and (c) the Permitted Liens, except with respect to clauses (a),
(b) and (c) above, where the failure to so comply, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. To the best of each
Borrower's knowledge, no Oil and Gas Interest is subject to having allowable production after the date hereof reduced below the full and regular allowable (including the maximum permissible tolerance)
because of any overproduction (whether or not the same was permissible at the time) prior to the date hereof. There are no dry holes, or otherwise inactive wells, located on the Borrowing Base
Properties, except for wells that have been or are in the process of being properly plugged and abandoned. Each Credit Party and each Restricted Subsidiary has all governmental licenses and permits
necessary or appropriate to own and operate its Oil and Gas Interests and its Midstream Assets. No Credit Party nor any Restricted Subsidiary has received written notice of any violations in respect
of any such licenses or permits that could reasonably be expected to result in a Material Adverse Effect. 

        Section 4.21.    Ad Valorem and Severance Taxes; Title Litigation.    No Credit Party has received a written
notice of a material default with respect to any ad valorem taxes assessed against its Oil and Gas Interests or any part thereof and all production, severance and other taxes assessed against, or
measured by, the production or the value, or proceeds, of the production therefrom. There are no suits, actions, written claims, investigations, written inquiries, proceedings or demands pending (or,
to any Credit Party's knowledge, threatened in writing) which might affect the Oil and Gas Interests, including any which challenge or otherwise pertain to any Credit Party's title to any Borrowing
Base Property or rights to produce and sell Crude Oil and Natural Gas therefrom that could reasonably be expected to result in a Material Adverse Effect. 

Page 46

 
 
 

  Article V    
    

 
  Conditions

        Section 5.01.    Effective Date.    The obligations of the Lenders and Lender Counterparties to continue the
Original Loans and the Existing Hedging Contracts and the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the
date on which each of the following conditions is satisfied (or waived in accordance with Section 11.02): 

        (a)   The
Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or
(ii) written evidence reasonably satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement. 

        (b)   The
Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of
Vinson & Elkins LLP, counsel for the Credit Parties, substantially in the form of Exhibit B, and covering such other matters relating to the Credit Parties, this Agreement or the
Transactions as the Required Lenders shall reasonably request. The Credit Parties hereby request such counsel to deliver such opinion. 

        (c)   The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the
organization, existence and good standing of each Credit Party, the authorization of the Transactions and any other legal matters relating to the Credit Parties, this Agreement or the Transactions,
all in form and substance satisfactory to the Administrative Agent and its counsel. 

        (d)   The
Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of each
Borrower, confirming that the Credit Parties have (i) complied with the conditions set forth in paragraphs (a) and (b) of Section 5.02, (ii) complied with the
conditions set forth in clause (k) of this Section 5.01, and (iii) complied with the covenants set forth in Section 6.05 (and demonstrating such compliance by the
attachment of an insurance summary and insurance certificates evidencing the coverage described in such summary). 

        (e)   The
Administrative Agent shall have received the Security Agreement and Midstream Pledge Agreement duly executed by all parties thereto and in form and substance
satisfactory to the Administrative Agent. 

        (f)    The
Administrative Agent, the Lenders and the Arranger shall have received all fees and other amounts due and payable on or prior to the Effective Date under this
Agreement and the Fee Letter, and, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder,
including all reasonable fees, expenses and disbursements of counsel for the Administrative Agent to the extent invoiced on or prior to the Effective Date, together with such additional amounts as
shall constitute such counsel's reasonable estimate of expenses and disbursements to be incurred by such counsel in connection with the recording and filing of Mortgages
and financing statements; provided, that, such estimate shall not thereafter preclude further settling of accounts between the Borrowers and the
Administrative Agent. 

        (g)   The
Administrative Agent shall have received promissory notes duly executed by Borrowers for each Lender that has requested the delivery of a promissory note pursuant to
and in accordance with Section 2.09(e). 

Page 47

 

        (h)   At
least three (3) days prior to the Effective Date, the Administrative Agent shall have received a Borrowing Request acceptable to the Administrative Agent
setting forth the Loans requested by the Borrowers on the Effective Date, the Type and amount of each Loan and the accounts to which such Loans are to be funded. 

        (i)    If
the initial Borrowing includes the issuance of a Letter of Credit, the Administrative Agent shall have received a written request in accordance with
Section 2.06 of this Agreement. 

        (j)    The
Administrative Agent and the Lenders shall have received the financial statements described in Section 4.04(a). 

        (k)   The
Administrative Agent shall have received evidence reasonably satisfactory to the Administrative Agent, that effective upon the consummation of the Transactions,
Aggregate Credit Exposure will not exceed the Aggregate Commitment. 

        (l)    The
Administrative Agent shall have received satisfactory evidence that the existing $7,500,000.00 line of credit with JPMorgan Chase Bank, N.A. evidenced by a certain
Stand-Alone Promissory Note, dated October 31, 2007, made by each of the Borrowers (other than Antero Appalachian) will be terminated and all obligations owing to JPMorgan Chase Bank, N.A.
thereunder shall have been paid in full and all commitments of JPMorgan Chase Bank, N.A. to make any future loans or advances shall have been terminated. 

        (m)  The
Administrative Agent shall have received Mortgages and title information, in each case, reasonably satisfactory to the Administrative Agent with respect to the
Borrowing Base Properties, or the portion thereof, as required by Section 6.09 and 6.10. 

        (n)   The
Administrative Agent shall have received such other instruments and documents incidental and appropriate to the transaction provided for herein as the Administrative
Agent or its special counsel may reasonably request prior to the Effective Date, and all such documents shall be in form and substance satisfactory to the Administrative Agent. 

The
Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 11.02) at or prior to 3:00 p.m. on January 15, 2009 (and, in the event such conditions are not so satisfied or waived, the Aggregate Commitment shall terminate at such
time). 

        Section 5.02.    Each Credit Event.    The obligation of each Lender to make a Loan on the occasion of any
Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions: 

        (a)   The
representations and warranties of each Credit Party set forth in this Agreement and the other Loan Documents shall be true and correct in all material respects
(without duplication of any materiality qualifier contained therein) on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as
applicable except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date. 

        (b)   At
the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default
shall have occurred and be continuing. 

        (c)   At
the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Borrowing Base Deficiency exists or would be caused thereby. 

Page 48

 

        (d)   At
the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no event
or circumstance which could reasonably be expected to have a Material Adverse Effect shall have occurred. 

Each
Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the
matters specified in paragraphs (a), (b), (c) and (d) of this Section. 

 
 

  Article VI    
    

 
  Affirmative Covenants

        Until
the Aggregate Commitment has expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been
paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, each Credit Party covenants and agrees with the Lenders that: 

        Section 6.01.    Financial Statements; Other Information.    The Borrower Representative will furnish to the
Administrative Agent and each Lender: 

        (a)   within
ninety (90) days after the end of each fiscal year of each Borrower, (i) the audited Consolidated balance sheet and related statements of
operations, stockholders' equity and cash flows of each Borrower and its Consolidated Subsidiaries as of the end of and for such year, setting forth in each case in comparative form the figures for
the previous fiscal year, all reported on by a "Big Four" public accounting firm or another firm of independent public accountants reasonably acceptable to Administrative Agent (without a "going
concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such Consolidated financial statements present fairly in all
material respects the financial condition and results of operations of each Borrower and its Consolidated Subsidiaries on a Consolidated basis in accordance with GAAP consistently applied and
(ii) the combined balance sheet and related statements of operations, stockholders' equity and cash flows of the Borrowers and their Consolidated Subsidiaries, on a combined basis, as of the
end of each fiscal year, setting forth in each case with respect to the foregoing paragraph (i) and (ii), in comparative form the figures for the previous fiscal; 

        (b)   within
forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of each Borrower, (i) the Consolidated
balance sheet and related statements of operations, stockholders' equity and cash flows of each Borrower and its Consolidated Subsidiaries as
of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, such Consolidated financial statements shall be certified by such Borrower's Financial Officer as presenting
fairly in all material respects the financial condition and results of operations of each Borrower and its Consolidated Subsidiaries on a Consolidated basis in accordance with GAAP consistently
applied, excluding non-cash income, gains, losses or charges resulting from the requirements of SFAS 133, 143, 123 or 123R and subject to normal year-end audit
adjustments and the absence of footnotes and (ii) the combined balance sheet and related statements of operations, stockholders' equity and cash flows of the Borrowers and their Consolidated
Subsidiaries, on a combined basis, as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case with respect to the foregoing
paragraph (i) and (ii), in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year; 

        (c)   within
fifty (50) days after the end of the fiscal quarter ending December 31 of each fiscal year of each Borrower, Antero's internally prepared unaudited
quarterly investment report as of the end of and for such fiscal quarter containing (i) the Consolidated balance sheet and related 

Page 49

 

statements
of operations and stockholders' equity of each Borrower and its Consolidated Subsidiaries as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year and
(ii) the combined balance sheet and related statements of operations and stockholders' equity of the Borrowers and their Consolidated Subsidiaries, on a combined basis, as of the end of and for
such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case with respect to the foregoing paragraph (i) and (ii), in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year; 

        (d)   concurrently
with any delivery of financial statements under paragraph (a) or (b) above, a certificate in a form reasonably acceptable to Administrative
Agent signed by a Financial Officer of each Borrower (i) certifying (A) that he or she has reviewed the Loan Documents and (B) as to whether a Default has occurred and, if a
Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, and (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 7.11 and Section 7.12; 

        (e)   as
soon as available, and in any event within sixty (60) days after the end of each fiscal quarter, a report describing by lease or unit the gross volume of
production and sales attributable to production during such previous fiscal quarter from the properties described in the most recent Reserve Report and describing the related severance taxes, other
taxes, leasehold operating expenses, and capital costs attributable thereto and incurred during such previous fiscal quarter; 

        (f)    if
requested by Administrative Agent, within sixty (60) days after the end of each fiscal quarter, a list, by name and address, of those Persons who have
purchased production during such fiscal quarter from the Oil and Gas Interests, giving each such purchaser's owner number for the Credit Parties and each such purchaser's property number for each such
Oil and Gas Interest; 

        (g)   as
soon as available, and in any event no later than (i) April 1, July 1 and October 1 of the calendar year ending on December 31,
2009, (ii) January 1, 2010 and (iii) thereafter by April 1 and October 1 of each year, and promptly following notice of a Special Redetermination under
Section 3.04, the Reserve Reports required on such dates pursuant to Section 3.02. The Reserve Report shall be satisfactory to Administrative Agent, shall take into account any
"over-produced" status under gas balancing arrangements, and shall contain information and analysis comparable in scope to that contained in the Reserve Report used to determine the
Initial Borrowing Base. The Reserve Report shall distinguish (or shall be delivered together with a certificate from an appropriate officer of each Borrower which distinguishes) those properties
treated in the report which are Mortgaged Properties from those properties treated in the report which are not Mortgaged Properties; 

        (h)   together
with the Reserve Reports required under paragraph (f) above, a report, in reasonable detail, setting forth the Hedging Contracts then in effect, the
notional volumes of and prices for, on a monthly basis and in the aggregate, the Crude Oil and Natural Gas for each such Hedging Contract and the term of and counterparties to each such Hedging
Contract; 

        (i)    as
soon as available, and in any event within ninety (90) days after the end of each fiscal year, a business and financial plan for each Borrower, together with a
capital expenditure schedule for each Borrower (in form consistent with previous business and financial plans previously provided to Administrative Agent under the Original Credit Agreement), setting
forth for the first year thereof, monthly or quarterly financial projections and budgets for such Borrower, and thereafter yearly financial projections and budgets during the Availability Period; 

        (j)    when
any Borrower or any of their respective Subsidiaries acquires assets during any fiscal quarter and such assets are included in the calculation of Consolidated
EBITDAX for such fiscal quarter, the Borrower that acquired such assets or the Borrower that is the direct or indirect 

Page 50

 

parent
of the Subsidiary that acquired such assets, as the case may be, shall deliver to Administrative Agent and Lenders, together with the financial statements described in Section 6.01(b),
and with respect to the last fiscal quarter of any fiscal year, together with the financial statements described in Section 6.01(a), pro forma financial statements of such Borrower for such
period prepared on a Consolidated basis as if such assets had been acquired by such Borrower or such Subsidiary, as applicable, on the first day of such fiscal quarter; 

        (k)   promptly
upon delivery thereof to Centrahoma or any Credit Party or Restricted Subsidiary, a copy of any Present Value—Cash Flow report (a
"Centrahoma Report"), if available, prepared with respect to the natural gas and natural gas liquids produced or derived from a Centrahoma Partner's Oil
and Gas Interests that are being transported through or processed by Centrahoma; 

        (l)    as
soon as available, and in any event no later than (i) April 1, July 1 and October 1 of the calendar year ending on December 31,
2009, (ii) January 1, 2010 and (iii) thereafter by April 1 and October 1 of each year, and promptly following notice of a Special Redetermination under
Section 3.04, a Midstream Report concerning all Midstream Assets attributed to the Credit Parties and Centrahoma, prepared by employees of the Credit Parties (or no more frequently than once in
any calendar year at the request of Required Lenders, by a third party firm of independent petroleum engineers selected by the Borrower Representative and reasonably acceptable to the Administrative
Agent and the Required Lenders and in a form reasonably acceptable to the Borrower Representative, the Administrative Agent and the Required Lenders), in each case prepared as of the last day of the
preceding calendar month, together with an accompanying report on property sales, property purchase and changes in categories, in the same form and scope as the reports in paragraph (f) above; 

        (m)  concurrently
with the delivery of the Reserve Reports required under paragraph (f) above and from time to time at the Borrowers' election; supplements to
Schedule 4.19 to the extent necessary to ensure any such representations and warranties relating to Schedule 4.19 are true and correct in all material respects;  provided that such supplements
shall not include disclosure of any contract, agreement, arrangement, event, occurrence, condition or other information
which, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect; provided further that the delivery or
receipt of such subsequent disclosure shall not constitute a waiver by the Administrative Agent or any Lender or a cure of any Default or Event of Default resulting in connection with the matters
disclosed on such supplement; and 

        (n)   promptly
following any request therefor, such other information regarding the operations, business affairs and financial condition of any Credit Party, or compliance
with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request. 

        Section 6.02.    Notices of Material Events.    The Borrower Representative will furnish to the Administrative
Agent and each Lender prompt written notice of the following: 

        (a)   as
soon as possible, but in any event within five (5) days of obtaining knowledge thereof, the occurrence of any Default; 

        (b)   as
soon as possible, but in any event within thirty (30) days after the filing or commencement of any action, suit or proceeding by or before any arbitrator or
Governmental Authority against or affecting any Credit Party or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 

        (c)   as
soon as possible, but in any event within thirty (30) days after becoming aware of the occurrence of any ERISA Event that, alone or together with any other
ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrowers and the Restricted Subsidiaries in an aggregate amount exceeding $500,000; 

Page 51

 

 

        (d)   as
soon as possible, but in any event within thirty (30) days after any notice or claim to the effect that any Credit Party is or may be liable to any Person as a
result of the release by any Credit Party, or any other Person of any Hazardous Material into the environment, which could reasonably be expected to have a Material Adverse Effect; 

        (e)   as
soon as possible, but in any event within thirty (30) days after any notice alleging any violation of any Environmental Law by any Credit Party, which could
reasonably be expected to result in liability in excess of $500,000; 

        (f)    as
soon as possible, but in any event within thirty (30) days after the receipt by any Borrower or any Restricted Subsidiary of any management letter or
comparable analysis prepared by the auditors for any Borrower or any such Restricted Subsidiary; 

        (g)   as
soon as possible, but in any event within thirty (30) days after any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect; and 

        (h)   at
least twenty (20) Business Days prior to any changes of any Credit Party's type of organization or state of formation under the Uniform Commercial Code. 

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

        Section 6.03.    Existence; Conduct of Business.    Each Borrower will, and will cause each Restricted
Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises
material to the conduct of its business and will qualify to do business in all states or jurisdictions where required by law, except where the failure to so qualify could not reasonably be expected to
result in a Material Adverse Change; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted
under Section 7.04 or any sale, conveyance or other transfer permitted under Section 7.05. 

        Section 6.04.    Payment of Obligations.    Each Borrower will, and will cause each Restricted Subsidiary to,
timely pay its obligations, including Tax liabilities before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) such Borrower or such Restricted Subsidiary, as applicable, has set aside on its books adequate reserves with respect thereto in accordance with GAAP or
(c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 

        Section 6.05.    Maintenance of Properties; Insurance.    Each Borrower will, and will cause each Restricted
Subsidiary and use commercially reasonable efforts to cause each operator of Borrowing Base Properties to, (a) keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted, in accordance with prudent industry standards in the surrounding area and in compliance in all material respects with all laws and all
applicable contracts, servitudes, leases and agreements, and from time make all appropriate repairs, renewals and replacements needed to enable the business and operations carried on in connection
therewith to be promptly and advantageously conducted at all times consistent with such Person's past practices and (b) maintain, with financially sound and reputable insurance companies,
insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations. On or prior to the
Effective Date and thereafter, upon request of the Administrative Agent, the Borrowers will furnish or cause to be furnished to the Administrative Agent from time to time a summary of the respective
insurance coverage of each Borrower and its Restricted Subsidiaries in form and substance reasonably satisfactory to the Administrative Agent, and, if requested, will furnish the Administrative Agent
copies of the 

Page 52

 

applicable
policies. The Borrowers will cause any insurance policies covering any such property to be endorsed (x) to provide that such policies may not be cancelled, reduced or affected in any
manner for any reason without ten (10) days prior notice to Administrative Agent, (y) to name the Administrative Agent as an additional insured (in the case of all liability insurance
policies) and loss payee (in the case of all casualty and property insurance policies), and (z) to provide for such other matters as the Lenders may reasonably require. 

        Section 6.06.    Books and Records; Inspection Rights.    Each Borrower will, and will cause each Restricted
Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. Each Borrower will,
and will cause each Restricted Subsidiary to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to
examine and make
extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably
requested. If no Event of Default exists at the time of any such visit and inspection, the Administrative Agent will give forty-eight (48) hours written notice to such Borrower or Restricted
Subsidiary prior to such visit and inspection. 

        Section 6.07.    Compliance with Laws.    Each Borrower will, and will cause each Restricted Subsidiary to,
comply in all material respects with all Laws, rules, regulations and orders of any Governmental Authority applicable to it or its property. 

        Section 6.08.    Use of Proceeds and Letters of Credit.    The proceeds of the Loans will be used only to
(a) pay the fees, expenses and transaction costs of the Transactions and (b) finance the working capital needs of the Borrowers, including capital expenditures, and for general corporate
purposes of the Borrowers and the Guarantors, in the ordinary course of business, including the exploration, development and/or acquisition of Oil and Gas Interests, together with ancillary
transportation, gathering, compression and processing assets and the marketing and sale of Hydrocarbons produced. No part of the proceeds of any Loan will be used, whether directly or indirectly, to
purchase or carry any margin stock (as defined in Regulation U issued by the Federal Reserve Board). Letters of Credit will be issued only to support general corporate purposes of the Borrowers
and the Restricted Subsidiaries. 

        Section 6.09.    Security.    Each Borrower will, and will cause each Guarantor to, execute and deliver to the
Administrative Agent, for the benefit of the Secured Parties, (a) Mortgages together with such other assignments, conveyances, amendments, agreements and other writings, including, without
limitation, UCC-1 financing statements (each duly authorized and executed, as applicable) as the Administrative Agent shall deem necessary or appropriate to grant, evidence and perfect
Liens in Oil and Gas Interests having an Engineered Value equal to or greater than the Minimum Collateral Amount and (b) security agreements in form and substance reasonably acceptable to the
Administrative Agent together with such other assignments, conveyances, amendments, agreements and other writings, including, without limitation, UCC-1 financing statements (each duly
authorized and executed, as applicable) and control agreements as the Administrative Agent shall deem necessary or appropriate to grant, evidence and perfect Liens in certain personal property of each
Borrower or such Restricted Subsidiary, as the case may be, subject only to Permitted Liens. 

        Section 6.10.    Title Data.    Each Borrower will, and will cause each Guarantor to, deliver to the
Administrative Agent such opinions of counsel (including, if so requested, title opinions, addressed to the Administrative Agent) and other evidence of title as the Administrative Agent shall deem
reasonably necessary or appropriate to verify (a) the title of the Credit Parties to not less than (i) for the period from the Effective Date until thirty (30) days after the
Effective Date, forty-five percent (45%) of the Minimum Collateral Amount and (ii) at any time thereafter, eighty percent (80%) of the Minimum Collateral Amount, and (b) the
validity, perfection and priority of the Liens created by such 

Page 53

 

Mortgages
and such other matters regarding such Mortgages as Administrative Agent shall reasonably request. 

        Section 6.11.    Operation of Oil and Gas Interests.    

        (a)   Each
Borrower will, and will cause each Restricted Subsidiary to, maintain, develop and operate its Oil and Gas Interests in a good and workmanlike manner, and observe
and comply in all material respects with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Oil and Gas Interests so long as such Oil and Gas Interests are
capable of producing Hydrocarbons and accompanying elements in paying quantities. 

        (b)   Each
Borrower will, and will cause each Restricted Subsidiary to, comply in all material respects with all contracts and agreements applicable to or relating to its Oil
and Gas Interests or the production and sale of Hydrocarbons and accompanying elements therefrom. 

        Section 6.12.    Restricted Subsidiaries.    In the event any Person is or becomes a Restricted Subsidiary, the
Borrowers will (a) promptly take all action necessary to comply with Section 6.13, (b) promptly take all such action and execute and deliver, or cause to be executed and
delivered, to the Administrative Agent all such opinions, documents, instruments, agreements, and certificates similar to those described in Section 5.01(b) and Section 5.01(c) that the
Administrative Agent may reasonably request, and (c) except for Centrahoma, promptly cause any such Restricted Subsidiary to (i) become a party to this Agreement and the Security
Agreement and Guarantee the Obligations by executing and delivering to the Administrative Agent a Counterpart Agreement in the form of Exhibit C, (ii) grant to the Administrative Agent,
for the benefit of the Lenders, a Lien on and security interest in all Oil and Gas Interests of such Restricted Subsidiary, if any, required to comply with Section 6.09 and certain personal
property to secure the Obligations and (iii) deliver all title opinions and other information, if any, required to comply with Section 6.10. Upon delivery of any such Counterpart
Agreement to the Administrative Agent, notice of which is hereby waived by each Credit Party, such Restricted Subsidiary shall be a Guarantor and shall be as fully a party hereto as if such Restricted
Subsidiary were an original signatory hereto. Each Credit Party expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other
Credit Party hereunder. This Agreement shall be fully effective as to any Credit Party that is or becomes a party hereto regardless of whether any other Person becomes or fails to become or ceases to
be a Credit Party hereunder. With
respect to each such Restricted Subsidiary, the Borrowers shall promptly send to the Administrative Agent written notice setting forth with respect to such Person the date on which such Person became
a Restricted Subsidiary of such Borrower, and supplement the data required to be set forth in the Schedules to this Agreement as a result of the acquisition or creation of such Restricted Subsidiary;  provided that such supplemental data must be reasonably acceptable to the Administrative Agent and Required Lenders. 

        Section 6.13.    Pledged Equity Interests.    On the date hereof and at the time hereafter that any Restricted
Subsidiary of any Borrower is created or acquired or any Unrestricted Subsidiary becomes a Restricted Subsidiary, the Borrowers and the Subsidiaries (as applicable) shall execute and deliver to the
Administrative Agent for the benefit of the Secured Parties, a pledge agreement, in form and substance reasonably acceptable to the Administrative Agent, from the Borrowers and/or the Subsidiaries (as
applicable) covering all Equity Interests owned by the Borrowers or such Restricted Subsidiaries in such Restricted Subsidiaries, together with all certificates (or other evidence acceptable to
Administrative Agent) evidencing the issued and outstanding Equity Interests of each such Restricted Subsidiary of every class owned by such Credit Party (as applicable) which, if certificated, shall
be duly endorsed or accompanied by stock powers executed in blank (as applicable), as Administrative Agent shall deem necessary or appropriate to grant, evidence and perfect a first priority security
interest in the issued and outstanding Equity Interests owned by Borrowers or any Restricted Subsidiary in each Restricted Subsidiary; provided that in
no event shall any Borrower or any Restricted 

Page 54

 

Subsidiary
be required to pledge more than sixty-five percent (65%) of the voting Equity Interests of any Subsidiary that is not a Domestic Subsidiary. 

        Section 6.14.    Bank Accounts; Offset.    To secure the repayment of the Obligations each Borrower hereby
grants to the Administrative Agent, for the benefit of the Secured Parties, a security interest, a lien, and a right of offset, each of which shall be in addition to all other interests, liens, and
rights of any Secured Party at common law, under the Loan Documents, or otherwise, and each of which shall be upon and against (a) any and all moneys, securities or other property (and the
proceeds therefrom) of such Borrower now or hereafter held or received by or in transit to any Secured Party from or for the account of such Borrower, whether for safekeeping, custody, pledge,
transmission, collection or otherwise, (b) any and all deposits (general or special, time or demand, provisional or final) of such Borrower with any Secured Party, and (c) any other
credits and claims of such Borrower at any time existing against any Secured Party, including claims under certificates of deposit. At any time and from time to time after the occurrence of any Event
of Default, the Administrative Agent and each Secured Party is hereby authorized to foreclose upon, or to offset against the Obligations then due and payable (in either case without notice to any
Borrower), any and all items hereinabove referred to. The remedies of foreclosure and offset are separate and cumulative, and either may be exercised independently of the other without regard to
procedures or restrictions applicable to the other. 

        Section 6.15.    Further Assurances.    Each Borrower agrees to deliver and to cause each of its Subsidiaries
to deliver, to further secure the Obligations whenever requested by Administrative Agent in its sole and absolute discretion, deeds of trust, mortgages, chattel mortgages, security agreements,
financing statements and other Security Documents in form and substance satisfactory to Administrative Agent
for the purpose of granting, confirming, and perfecting first and prior liens or security interests in any real or personal property which is at such time Collateral or which was intended to be
Collateral pursuant to any Security Document previously executed and not then released by Administrative Agent. 

        Section 6.16.    Production Proceeds.    Notwithstanding that, by the terms of the various Security Documents,
the Credit Parties are and will be assigning to Administrative Agent and Lenders all of the "Production Proceeds" (as defined therein) accruing to the property covered thereby, so long as no Event of
Default has occurred the Credit Parties may continue to receive from the purchasers of production all such Production Proceeds, subject, however, to the Liens created under the Security Documents,
which Liens are hereby affirmed and ratified. Upon the occurrence of an Event of Default, Administrative Agent and Lenders may exercise all rights and remedies granted under the Security Documents,
including the right to obtain possession of all Production Proceeds then held by the Credit Parties or to receive directly from the purchasers of production all other Production Proceeds. In no case
shall any failure, whether purposed or inadvertent, by Administrative Agent or Lenders to collect directly any such Production Proceeds constitute in any way a waiver, remission or release of any of
their rights under the Security Documents, nor shall any release of any Production Proceeds by Administrative Agent or Lenders to the Credit Parties constitute a waiver, remission, or release of any
other Production Proceeds or of any rights of Administrative Agent or Lenders to collect other Production Proceeds thereafter. 

        Section 6.17.    Leases and Contracts; Performance of Obligations.    Each Credit Party will, and will cause
each Restricted Subsidiary to, maintain in full force and effect all oil, gas or mineral leases, contracts, servitudes and other agreements forming a part of any Oil and Gas Interests, to the extent
the same cover or otherwise relate to such Oil and Gas Interest, and each Credit Party and each Restricted Subsidiary will timely perform all of its obligations thereunder. Each Credit Party and each
Restricted Subsidiary will properly and timely pay all rents, royalties and other payments due and payable under any such leases, contracts, servitudes and other agreements, or under the Permitted
Liens, or otherwise attendant to its ownership or operation of any Oil and Gas Interest. Each Credit Party and each Restricted Subsidiary will promptly notify Administrative Agent of any material
claim 

Page 55

 

(or
any conclusion by such Credit Party or such Restricted Subsidiary) that such Credit Party or such Restricted Subsidiary is obligated to account for any royalties, or overriding royalties or other
payments out of production, on a basis (other than delivery in kind) less favorable to such Credit Party or such Restricted Subsidiary than proceeds received by such Credit Party or such Restricted
Subsidiary (calculated at the well) from sale of production. 

        Section 6.18.    Representations to Continue to be True.    Each Credit Party and each Restricted Subsidiary
will carry out its sales of production, will operate the Oil and Gas Interests and Midstream Assets, and will otherwise deal with the Oil and Gas Interests and the Midstream Assets and the production,
in such a way that the representations and warranties in Sections 4.15, 4.18, 4.19, 4.20 (other than the last sentence thereof) and 4.21 (other than the last sentence thereof) remain true and
correct, in all material respects, at, and as of, all times that this Agreement is in effect (and not just at, and as of, the times such representations and warranties are made). 

 
 

  Article VII
  
    Negative Covenants    
    

        Until the Aggregate Commitment has expired or terminated and the principal of and interest on each Loan and all fees payable hereunder
shall have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, each Credit Party covenants and agrees with the Lenders that: 

        Section 7.01.    Limitation on Indebtedness.    No Credit Party will, nor will it permit any of its Restricted
Subsidiaries to, create, incur, assume or permit to exist any Indebtedness except: 

        (a)   the
Obligations; 

        (b)   unsecured
Indebtedness among the Credit Parties arising in the ordinary course of business; 

        (c)   Indebtedness
arising under Hedging Contracts permitted under Section 7.03; 

        (d)   unsecured
Indebtedness of any Credit Party that requires no payments of principal prior to the first anniversary of the Maturity Date and is subordinated to the
Obligations on terms approved by Administrative Agent and the Required Lenders, such approval shall not be unreasonably withheld, and including, without limitation, an indefinite standstill period for
any payment default and a 180-day standstill period for any other defaults; provided that (i) Borrowers shall have notified the
Administrative Agent, in writing, of such Credit Party's intention to incur such Indebtedness (including any increase in the principal amount of any such Indebtedness then outstanding, other than
increases incurred as a result of the capitalization of accrued but unpaid interest or interest that is paid-in-kind) at least thirty (30) days prior to the incurrence
of such Indebtedness and (ii) the Administrative Agent shall have notified such Credit Party of any Special Redetermination of the Borrowing Base that will become effective upon the incurrence
of such Indebtedness; 

        (e)   Cash
Management Obligations; provided that the aggregate outstanding amount of all Cash Management Obligations does not
exceed $7,500,000 at any time and any and all documents, agreements and instruments evidencing any Cash Management Obligations shall be in form and substance reasonably satisfactory to the
Administrative Agent; 

        (f)    Guarantees
by any Credit Party or any Restricted Subsidiary of the Centrahoma Indebtedness; 

        (g)   Indebtedness
of the Credit Parties under the Term Facility Documents in an aggregate principal amount not exceeding $275,000,000 at any one time outstanding;  provided that 

Page 56

 

(i) Borrowers
shall have notified the Administrative Agent, in writing, of their intention to incur any such Indebtedness on or after the Effective Date at least thirty (30) days prior
to the incurrence of such Indebtedness and (ii) the Administrative Agent shall have notified such Credit Party of any Special Redetermination of the Borrowing Base that will become effective
upon the incurrence of such Indebtedness; 

        (h)   Indebtedness
of the Credit Parties incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations
and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements
of any such Indebtedness that do not increase the outstanding principal amount thereof; provided that the aggregate principal amount of Indebtedness
permitted by this paragraph (h) shall not exceed $25,000,000 at any time outstanding; 

        (i)    Centrahoma
Indebtedness incurred by Centrahoma; and 

        (j)    miscellaneous
items of unsecured Indebtedness of the Credit Parties not described in paragraph (a) through (i), including obligations to pay the financing for the
purchase price or deferred premiums with respect to certain Hedge Contracts permitted under Section 7.03(b), which do not in the aggregate (taking into account all such Indebtedness of the
Credit Parties) exceed the lesser of (i) ten percent (10%) of the Borrowing Base or (ii) $15,000,000 at any one time outstanding. 

        Section 7.02.    Limitation on Liens.    Except for Permitted Liens, no Credit Party will, nor will it permit
any of its Restricted Subsidiaries to, create, assume or permit to exist any Lien upon any of the properties or assets which it now owns or hereafter acquires. 

        Section 7.03.    Hedging Contracts.    No Credit Party will, nor will it permit any of its Restricted
Subsidiaries to, be a party to or in any manner be liable on any Hedging Contract except: 

        (a)   swaps
and collars entered into with the purpose and effect of fixing prices on Crude Oil or Natural Gas expected to be produced by the Credit Parties;  provided that at all times: (i) no such contract
fixes
a price for a term of more than forty-eight (48) months; (ii) except for the Liens granted under the Security Documents to secure Lender Hedging Obligations, no such contract requires
any Credit Party to put up money, assets, or other security (other than letters of credit) against the event of its nonperformance prior to actual default by such Credit Party in performing its
obligations thereunder, (iii) each such contract is with a counterparty or has a guarantor of the obligation of the counterparty which at the time the contract is made is an Approved
Counterparty, and (iv) the aggregate monthly production covered by all such contracts to which any Credit Party is a party (determined, in the case of contracts that are not settled on a
monthly basis, by a monthly proration acceptable to Administrative Agent) for any single month does not in the aggregate exceed the Applicable Hedge Percentage (as defined below) of the Credit
Parties' aggregate Projected Oil and Gas Production anticipated to be sold in the ordinary course of the Credit Parties' businesses for such month. 

        As
used in this subsection (a), "Applicable Hedge Percentage" means at the time that any Credit Party enters into any Hedging
Contract, the percentage set forth below with respect to the period during which such Person entered into such Hedging Contract, which period shall be 

Page 57

 

measured
from the date as of which the most recent Reserve Report was prepared prior to the effective date of such Hedging Contract (the "Measurement
Date"): 

 

 

					
	Period

 
	 	Percentage 	 
	 First year after the Measurement Date
	 	 	85	%
	 Second year after Measurement Date
	 	 	

75	
%
	 Third year after Measurement Date
	 	 	

65	
%
	 Fourth year after Measurement Date
	 	 	

55	
%

 

 
        (b)   floors
entered into with the purpose and effect of fixing minimum prices on Crude Oil or Natural Gas expected to be produced by the Credit Parties;  provided that at all times: (i) no such contract fixes a
price for a term of more than forty-eight (48) months, (ii) except for the
Liens granted under the Security Documents to secure Lender Hedging Obligations, no such contract requires any Credit Party to put up money, assets, or other security (other than letters of credit)
against the event of its nonperformance prior to actual default by such Credit Party in performing its obligations thereunder, (iii) each such contract is with a counterparty or has a guarantor
of the obligation of the counterparty who at the time the contract is made is an Approved Counterparty, (iv) there exists no deferred obligation to pay the related premium or other purchase
price for such floor or the only deferred obligation is to pay the financing for such premium or other purchase price and such deferred obligation is permitted under Section 7.01(j), and
(v) the aggregate monthly production covered by all such contracts to which any Credit Party is a party (determined, in the case of contracts that are not settled on a monthly basis, by a
monthly proration acceptable to Administrative Agent) for any single month does not in the aggregate exceed one hundred percent (100%) of the Credit Parties' aggregate Projected Oil and Gas Production
anticipated to be sold in the ordinary course of the Credit Parties' businesses for such month; and 

        (c)   contracts
entered into by a Credit Party with the purpose and effect of fixing interest rates on a principal amount of Indebtedness of such Credit Party that is accruing
interest at a variable rate, provided that (i) the aggregate notional amount of such contracts never exceeds one hundred percent (100%) of the
anticipated outstanding principal balance of the Indebtedness to be hedged by such contracts or an average of such principal balances calculated using a generally accepted method of matching interest
swap contracts to declining principal balances, (ii) the floating rate index of each such contract generally matches the index used to determine the floating rates of interest on the
corresponding Indebtedness to be hedged by such contract and (iii) each such contract is with an Approved Counterparty. 

        (d)   The
Borrowers shall promptly, and in any event within three (3) Business Days thereafter, provide written notice to the Administrative Agent of the terms of any
amendment, modification, cancellation, sale, transfer, assignment, early termination or other disposition of any Hedging Contract permitted under Section 7.03(a) or 7.03(b) (each, a
"Hedge Modification") and in effect as of the most recent Redetermination Date (or the Effective Date with respect to the period prior to the first
Redetermination Date after the Effective Date), setting forth, in reasonable detail, the effect of such amendment, modification, cancellation, early termination or other disposition on the notional
volume of Crude Oil and Natural Gas subject to the Credit Parties' Hedging Contracts; provided that no Hedge Modification may be made if the aggregate
notional volume of Crude Oil and Natural Gas affected by such Hedge Modification together with the aggregate notional volume of Crude Oil and Natural Gas affected by all other Hedge Modifications made
since the most recent Redetermination Date is greater than five percent (5%) of the aggregate notional volume of Crude Oil and Natural Gas subject to the Credit Parties' Hedging Contracts in effect as
of such Redetermination Date unless (i) the Borrowers' have received the prior written consent of the 

Page 58

 

Required
Lenders to such Hedge Modification or (ii) (1) all consideration received by any Credit Party or Restricted Subsidiary as a result of such Hedge Modification is cash and such
cash is held by Borrowers in a segregated account subject to a first priority security interest in favor of the Administrative Agent to secure the Obligations pending the completion of a Special
Redetermination of the Borrowing Base and payment in full of any Borrowing Base Deficiency arising as a result of such Special Redetermination, (2) a Special Redetermination is made by the
Administrative Agent and the Lenders in accordance with the procedures and standards set forth in Section 3.03 and (3) within three (3) Business Days after receipt by Borrowers'
of notice of the amount of the Borrowing Base as a result of such Special Redetermination, the Borrowers prepay, without premium or penalty, the principal amount of the Loans (and after all Loans are
repaid in full, provide cash collateral in accordance with Section 2.06(j)) in an amount sufficient to eliminate any Borrowing Base Deficiency arising as a result of such Special
Redetermination (which prepayment or deposit of cash collateral may be made with the amounts deposited in the segregated account described in the immediately preceding clause (1)). 

        Section 7.04.    Limitation on Mergers, Issuances of Securities.    No Credit Party will, nor will it permit
any of its Restricted Subsidiaries to, merge or consolidate with or into any other Person, except that any Restricted Subsidiary or any Borrower may be merged into or Consolidated with another
Restricted Subsidiary or Borrower, so long as a Borrower or Guarantor, as applicable, is the surviving business entity, and at least one Borrower exists. No Restricted Subsidiary of any Borrower will
issue any additional shares of its capital stock or other securities or any options, warrants or other rights to acquire such additional shares or other securities except to such Borrower or a
Restricted Subsidiary of such Borrower and only to the extent not otherwise forbidden under the terms hereof. No Restricted Subsidiary of any Borrower which is a partnership will allow any diminution
of such Borrower's interest (direct or indirect) therein. 

        Section 7.05.    Limitation on Dispositions of Property.    No Credit Party will, nor will it permit any of its
Restricted Subsidiaries to, sell, transfer, lease, exchange, alienate or dispose of any of the Borrowing Base Properties (including Midstream Assets) or the Equity Interests of any Restricted
Subsidiary or any material interest therein, or discount, sell, pledge or assign any notes payable to it, accounts
receivable or future income, or enter into any Sale and Leaseback Transaction except, to the extent not otherwise prohibited under the Security Documents: 

        (a)   equipment
which is worthless or obsolete or which is replaced by equipment of equal suitability and similar value; 

        (b)   inventory
(including Crude Oil and Natural Gas sold as produced and seismic data) which is replaced and/or sold in the ordinary course of business on ordinary trade
terms; 

        (c)   Equity
Interests of any Subsidiary of any Borrower transferred to any Credit Party; 

        (d)   acreage-swap
agreements; provided that (x) such acreage swap agreement provides for such Credit Party
or Restricted Subsidiary, as the case may be, to receive good and defensible title to acreage having a reasonable equivalent value to the value of the acreage exchanged by such Credit Party or
Restricted Subsidiary, (y) the Administrative Agent shall have received from such Credit Party or Restricted Subsidiary at least ten (10) days' prior notice of the closing of any such
acreage swap agreement and (z) such Credit Party or Restricted Subsidiary and the Administrative Agent shall have made mutually satisfactory arrangements for the release of the Liens granted
under the Security Documents and for the grant of a Lien on the proved reserves associated with the properties under the Security Documents upon the closing of such exchange to the extent required to
comply with Section 6.09(a); 

Page 59

 

 

        (e)   the
disposition (whether by sale, assignment, transfer or otherwise) of the common Equity Interests of Centrahoma to any Person or Persons (collectively, the
"Centrahoma Partner") that is not a Credit Party or Restricted Subsidiary or an Affiliate of the foregoing;  provided that in the reasonable good faith
judgment of the Borrowers, the foregoing disposition is being made to enhance the business or business
prospects of Centrahoma; provided, further that after giving effect to any and all such dispositions,
Antero Midstream shall continue to own at least fifty-one percent (51%) of the issued and outstanding common Equity Interests of Centrahoma; 

        (f)    any
Borrowing Base Property which is sold, transferred or disposed of for fair consideration to a Person who is not an Affiliate;  provided that the aggregate amount of such sales, transfers or disposals
during any period commencing on the date of a Scheduled Redetermination until,
but not including, the date of the next Scheduled Redetermination (a "Borrowing Base Period") shall not exceed five percent (5%) of the lowest Borrowing
Base in effect during such Borrowing Base Period (in each case, determined based on the Assigned Value of such Borrowing Base Properties); 

        (g)   assets
of any Credit Party to another Credit Party; 

        (h)   assets
of Centrahoma to a Credit Party; or 

        (i)    Sale
and Leaseback Transactions in which the liability for any lease incurred by any Credit Party is a Capital Lease Obligation permitted under Section 7.01(h). 

        No
Credit Party will, nor will it permit any of its Restricted Subsidiaries to, abandon or consent to the abandonment of, any oil or gas well constituting Collateral so long as such well
is capable (or is subject to being made capable through drilling, reworking or other operations which it would be commercially feasible to conduct consistent with the Borrowers' business practices) of
producing Hydrocarbons or
other minerals in commercial quantities (as determined without considering the effect of any Security Document). No Credit Party will, nor will it permit any of its Restricted Subsidiaries to, elect
to permanently forfeit any Borrowing Base Properties during any Borrowing Base Period if the aggregate Assigned Value of such forfeited Borrowing Base Properties together with the aggregate Assigned
Value of all sales, transfers and dispositions permitted by Section 7.05(f) during such Borrowing Base Period exceed five percent (5%) of the lowest Borrowing Base in effect during such
Borrowing Base Period. Notwithstanding the foregoing, in the event any Credit Party or Centrahoma sells, transfers or disposes of Borrowing Base Properties, including any election to permanently
forfeit any Borrowing Base Properties, with the prior written consent of the Required Lenders during any Borrowing Base Period, the Assigned Value of which exceeds, individually or in the aggregate,
five percent (5%) of the lowest Borrowing Base in effect during such Borrowing Base Period, the Borrowing Base shall be automatically reduced by an amount equal to the aggregate Assigned Value of such
Borrowing Base Properties. 

        Section 7.06.    Limitation on Dividends and Redemptions.    No Credit Party will, nor will it permit any of
its Restricted Subsidiaries to, declare or make any Restricted Payment, other than Restricted Payments payable to Borrowers or to Guarantors that are Subsidiaries of a Borrower;  provided that, subject
to the fulfillment of all of the conditions set forth below at the time of any such repurchase, any Borrower may repurchase from
any terminated employee of such Borrower any and all stock in such Borrower and options to purchase stock in such Borrower previously granted by such Borrower to such terminated employee, any such
repurchase to be conditional upon: (1) the non-existence of any Default hereunder at the time of such repurchase, and (2) such Borrower's compliance with all financial
covenants contained herein, both immediately before and immediately after such repurchase. 

        Section 7.07.    Limitation on Investments and New Businesses.    No Credit Party will, nor will it permit any
of its Restricted Subsidiaries to, (a) make any expenditure or commitment or incur any obligation or enter into or engage in any transaction except in the ordinary course of business, 

Page 60

 

(b) engage
directly or indirectly in any business or conduct any operations except in connection with or incidental to its present businesses and operations, or (c) make any acquisitions
of or capital contributions to or other Investments in any Person, other than Permitted Investments. 

        Section 7.08.    Limitation on Credit Extensions.    Except for Permitted Investments, no Credit Party will,
nor will it permit any of its Restricted Subsidiaries to, extend credit, make advances or make loans to any Person. 

        Section 7.09.    Transactions with Affiliates.    No Credit Party will, nor will it permit any of its
Restricted Subsidiaries to, engage in any material transaction with any of its Affiliates on terms which are less favorable to it than those which would have been obtainable at the time in
arm's-length dealing with Persons other than such Affiliates, provided that such restriction shall not apply to transactions among Credit Parties. 

        Section 7.10.    Prohibited Contracts; Negative Pledge.    Except as expressly provided for in the Loan
Documents and the Term Facility Documents, no Credit Party will, nor will it permit any of its Restricted Subsidiaries to, directly or indirectly, enter into, create, or otherwise allow to exist any
contract or other consensual restriction on the ability of any Credit Party or any Restricted Subsidiary to: (a) pay dividends or make other distributions to another Credit Party or any
Restricted Subsidiary, (b) redeem Equity Interests held in it by another Restricted Subsidiary, (c) repay loans and other Indebtedness owing by it to another Credit Party or any
Restricted Subsidiary, (d) transfer any of its assets to another Credit Party, or (e) grant Liens to Administrative Agent to secure the Obligations. Except as otherwise disclosed on
Schedule 4.19, the Credit Parties will not, and will not permit any Restricted Subsidiary to, enter into any "take-or-pay" contract or other contract or arrangement for
the purchase of goods or services which obligates it to pay for such goods or service regardless of whether they are delivered or furnished to it. The Credit Parties will not, and will not permit any
Restricted Subsidiary to, amend or permit any amendment to any contract or lease which releases, qualifies, limits, makes contingent or otherwise detrimentally affects, in any material respect, the
rights and benefits of Administrative Agent or any Lender under or acquired pursuant to any Security Documents. 

        Section 7.11.    Current Ratio.    At the end of the fiscal quarter ending December 31, 2008, the
Consolidated Current Ratio will not be less than .85 to 1.0 and as of the end of any fiscal quarter ending on or after March 31, 2009, the Consolidated Current Ratio will not be less than 1.0
to 1.0. 

        Section 7.12.    Leverage Ratio.    At the end of each fiscal quarter ending on or after December 31,
2008, and on or before September 30, 2009, the Leverage Ratio will not be greater than 4.00 to 1.00. At the end of each fiscal quarter ending on or after December 31, 2009, the Leverage
Ratio will not be greater than 3.50 to 1.00. As used herein, with respect to any fiscal quarter, "Leverage Ratio" means the ratio of (i) the sum
of the Consolidated Funded Indebtedness of each Borrower, calculated on a combined basis, as of the end of such fiscal quarter, minus the Capital Call Amount to (ii) the sum of the Consolidated
EBITDAX of each Borrower, calculated on a combined basis, for such fiscal quarter multiplied by four (4). 

        Section 7.13.    Limitation on Amendments to Related Documents.    No Credit Party will, nor will it permit any
of its Restricted Subsidiaries to, prior to the scheduled maturity thereof, prepay, redeem, defease or purchase any Permitted Subordinated Debt. Borrowers shall not, without the prior written consent
of Required Lenders, enter into, or permit any of their respective Subsidiaries to enter into, any amendment to any instrument or agreement governing Permitted Subordinated Debt which would
(i) increase the principal amount of the Indebtedness, except as otherwise permitted under Section 7.01(d), (ii) increase the interest rate on the Indebtedness by more than two
percent (2.00%) per annum (except in connection with the imposition of a default rate of interest), (iii) make the date of maturity thereof earlier than the original maturity date,
(iv) cause any financial covenant or any negative covenant contained therein to be more restrictive on any Credit Party or any Restricted Subsidiary, or (v) modify the provisions
regarding cross-default to other Indebtedness. 

Page 61

 

        Section 7.14.    Term Facility Restrictions.    No Credit Party will, nor will it permit any of its Restricted
Subsidiaries to, except for payment of principal at maturity and regularly scheduled payments of interest required under the Term Facility Documents, prepay, redeem, defease or purchase any
Indebtedness owing by any Credit Party or any Restricted Subsidiary under the Term Facility; provided that, so long as no Default or Event of Default
has occurred and is continuing or would be caused thereby and after giving effect to such payment, the Aggregate Unused Commitment is more than the greater of (a) $30,000,000 and
(b) twenty percent (20%) of the Aggregate Commitment, the Credit Parties and the Restricted Subsidiaries may prepay the Term Loans. Borrowers shall not, without the prior written consent of
Required Lenders, enter into, or permit any Credit Parties or any Restricted Subsidiary to enter into, any amendment to any Term Facility Document which would (i) increase the principal amount
of the Indebtedness in excess of the amount permitted by Section 7.01(g), (ii) increase the interest rate on the Indebtedness by more than two percent (2.00%) per annum (except in
connection with the imposition of a default rate of interest), (iii) make the date of maturity thereof earlier than ninety (90) days after the Maturity Date, (iv) cause any
financial covenant or any negative covenant contained therein to be more restrictive on any Credit Party or any Restricted Subsidiary to the extent material and adverse to the Lenders as determined by
Administrative Agent, (v) change any redemption or prepayment provisions of the Indebtedness evidenced by the Term Facility Documents to the extent material and adverse to the Lenders as
determined by Administrative Agent, (vi) modify the provisions regarding cross-default to other Indebtedness to the extent material and adverse to the Lenders as determined by Administrative
Agent or (vii) grant any Liens in any assets or properties of any Credit Party or any Restricted Subsidiary, other than the Liens permitted under the Intercreditor Agreement. 

 
 

  Article VIII    
    

 
  Guarantee of Obligations

        Section 8.01.    Guarantee of Payment.    Each Guarantor unconditionally and irrevocably guarantees to the
Administrative Agent for the benefit of the Secured Parties, the punctual payment of all Obligations now or which may in the future be owing by the Borrowers under the Loan Documents and all
Obligations which may now or which may in the future be owing by the Borrowers or any other Guarantor to any Secured Party under any Hedging Contract (the "Guaranteed
Liabilities"). This Guarantee is a guaranty of payment and not of collection only. The Administrative Agent shall not be required to exhaust any right or remedy or take any
action against the Borrowers or any other Person or any collateral. The Guaranteed Liabilities include interest accruing after the commencement of a proceeding under bankruptcy, insolvency or similar
laws of any jurisdiction at the rate or rates provided in the Loan Documents, or the Hedging Contracts between any Credit Party and any Secured Party, as the case may be, regardless of whether such
interest is an allowed claim. Each Guarantor agrees that, as between the Guarantor and the Administrative Agent, the Guaranteed Liabilities may be declared to be due and payable for the purposes of
this Guarantee notwithstanding any stay, injunction or other prohibition which may prevent, delay or vitiate any declaration as regards any Borrower or any other Guarantor and that in the event of a
declaration or attempted declaration, the Guaranteed Liabilities shall immediately become due and payable by each Guarantor for the purposes of this Guarantee. 

        Section 8.02.    Guarantee Absolute.    Each Guarantor guarantees that the Guaranteed Liabilities shall be paid
strictly in accordance with the terms of this Agreement and the Hedging Contracts. The liability of each Guarantor hereunder is absolute and unconditional irrespective of: (a) any change in the
time, manner or place of payment of, or in any other term of, all or any of the Loan Documents or the Guaranteed Liabilities, or any other amendment or waiver of or any consent to departure from any
of the terms of any Loan Document or Guaranteed Liability, including any increase or decrease in the rate of interest thereon; (b) any release or amendment or waiver of, or consent to departure
from, any other guaranty or support document, or any exchange, release or non-perfection of any collateral, for 

Page 62

 

all
or any of the Loan Documents or Guaranteed Liabilities; (c) any present or future law, regulation or order of any jurisdiction (whether of right or in fact) or of any agency thereof
purporting to reduce, amend, restructure or otherwise affect any term of any Loan Document or Guaranteed Liability; (d) without being limited by the foregoing, any lack of validity or
enforceability of any Loan Document or Guaranteed Liability; and (e) any other setoff, defense or counterclaim whatsoever (in any case, whether based on contract, tort or any other theory) with
respect to the Loan Documents or the transactions contemplated thereby which might constitute a legal or equitable defense available to, or discharge of, the Borrowers or a Guarantor. 

        Section 8.03.    Guarantee Irrevocable.    This Guarantee is a continuing guaranty of the payment of all
Guaranteed Liabilities now or hereafter existing under this Agreement and the Hedging Contracts and shall remain in full force and effect until payment in full of all Guaranteed Liabilities and other
amounts payable hereunder and until this Agreement and the Hedging Contracts are no longer in effect or, if earlier, when the Guarantor has given the Administrative Agent written notice that this
Guarantee has been revoked; provided that any notice under this Section shall not release the revoking Guarantor from any Guaranteed Liability, absolute
or contingent, existing prior to the Administrative Agent's actual receipt of the notice at its branches or departments responsible for this Agreement and the Hedging Contracts and reasonable
opportunity to act upon such notice. 

        Section 8.04.    Reinstatement.    This Guarantee shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of any of the Guaranteed Liabilities is rescinded or must otherwise be returned by any Secured Party on the insolvency, bankruptcy or reorganization of any Borrower
or any other Credit Party, or otherwise, all as though the payment had not been made. 

        Section 8.05.    Subrogation.    No Guarantor shall exercise any rights which it may acquire by way of
subrogation, by any payment made under this Guarantee or otherwise, until all the Guaranteed Liabilities have been paid in full and this Agreement and the Hedging Contracts are no longer in effect. If
any amount is paid to the Guarantor on account of subrogation rights under this Guarantee at any time when all the Guaranteed Liabilities have not been paid in full, the amount shall be held in trust
for the benefit of the Lenders and the Lender Counterparties and shall be promptly paid to the Administrative Agent to be credited and applied to the Guaranteed Liabilities, whether matured or
unmatured or absolute or contingent, in accordance with the terms of this Agreement and the Hedging Contracts. If any Guarantor makes payment to the Administrative Agent, Lenders, or any Lender
Counterparties of all or any part of the Guaranteed Liabilities and all the Guaranteed Liabilities are paid in full and this Agreement and the Hedging Contracts are no longer in effect, the
Administrative Agent, Lenders and Lender Counterparties shall, at such Guarantor's request, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Liabilities resulting from the payment. 

        Section 8.06.    Subordination.    Without limiting the rights of the Administrative Agent, the Lenders and the
Lender Counterparties under any other agreement, any liabilities owed by any Borrower to any Guarantor in connection with any extension of credit or financial accommodation by any Guarantor to or for
the account of the Borrowers, including but not limited to interest accruing at the agreed contract rate after the commencement of a bankruptcy or similar proceeding, are hereby subordinated to the
Guaranteed Liabilities, and such liabilities of the Borrowers to such Guarantor, if the Administrative Agent so requests, shall be collected, enforced and received by any Guarantor as trustee for the
Administrative Agent and shall be paid over to the Administrative Agent on account of the Guaranteed Liabilities but without reducing or affecting in any manner the liability of the Guarantor under
the other provisions of this Guarantee. 

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        Section 8.07.    Payments Generally.    All payments by the Guarantors shall be made in the manner, at the
place and in the currency (the "Payment Currency") required by the Loan Documents and the Hedging Contract, as the case may be;  provided, however, that (if the Payment Currency is other than Dollars) any Guarantor may, at its option
(or, if for any reason whatsoever any Guarantor is unable to effect payments in the foregoing manner, such Guarantor shall be obligated to) pay to the Administrative Agent at its principal office the
equivalent amount in Dollars computed at the selling rate of the Administrative Agent or a selling rate chosen by the Administrative Agent, most recently in effect on or prior to the date the
Guaranteed Liability becomes due, for cable transfers of the Payment Currency
to the place where the Guaranteed Liability is payable. In any case in which any Guarantor makes or is obligated to make payment in Dollars, the Guarantor shall hold the Administrative Agent, the
Lenders and the Lender Counterparties harmless from any loss incurred by the Administrative Agent, any Lender or any Lender Counterparty arising from any change in the value of Dollars in relation to
the Payment Currency between the date the Guaranteed Liability becomes due and the date the Administrative Agent, such Lender or such Lender Counterparty is actually able, following the conversion of
the Dollars paid by such Guarantor into the Payment Currency and remittance of such Payment Currency to the place where such Guaranteed Liability is payable, to apply such Payment Currency to such
Guaranteed Liability. 

        Section 8.08.    Setoff.    Each Guarantor agrees that, in addition to (and without limitation of) any right of
setoff, banker's lien or counterclaim the Administrative Agent, any Lender or any Lender Counterparty may otherwise have, the Administrative Agent, such Lender or such Lender Counterparty shall be
entitled, at its option, to offset balances (general or special, time or demand, provisional or final) held by it for the account of any Guarantor at any office of the Administrative Agent, such
Lender or such Lender Counterparty, in Dollars or in any other currency, against any amount payable by such Guarantor under this Guarantee which is not paid when due (regardless of whether such
balances are then due to such Guarantor), in which case it shall promptly notify such Guarantor thereof; provided that the failure of the Administrative
Agent, such Lender, or such Lender Counterparty to give such notice shall not affect the validity thereof. 

        Section 8.09.    Formalities.    Each Guarantor waives presentment, notice of dishonor, protest, notice of
acceptance of this Guarantee or incurrence of any Guaranteed Liability and any other formality with respect to any of the Guaranteed Liabilities or this Guarantee. 

        Section 8.10.    Limitations on Guarantee.    The provisions of the Guarantee under this Article VIII
are severable, and in any action or proceeding involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors
generally, if the obligations of any Guarantor under this Guarantee would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of such Guarantor's
liability under this Guarantee, then, notwithstanding any other provision of this Guarantee to the contrary, the amount of such liability shall, without any further action by the Guarantors, the
Administrative Agent, any Lender or any Lender Counterparty, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such
highest amount determined hereunder being the relevant Guarantor's "Maximum Liability"). This Section 8.10 with respect to the Maximum Liability
of the Guarantors is intended solely to preserve the rights of the Administrative Agent, Lenders and Lender Counterparties hereunder to the maximum extent not subject to avoidance under applicable
law, and no Guarantor nor any other Person shall have any right or claim under this Section 8.10 with respect to the Maximum Liability, except to the extent necessary so that none of the
obligations of any Guarantor hereunder shall not be rendered voidable under applicable law. 

        Section 8.11.    Existing Guarantees.    The Guarantees (as defined in the Original Credit Agreement) executed
by certain Credit Parties in connection with the Original Credit Agreement are amended and restated in their entirety and superseded by, the terms and conditions set forth in this Article VIII;  provided, that nothing in this Article VIII shall be deemed to constitute a novation or 

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extinguishment
of any of the obligations and liabilities existing under the Guarantees (as defined in the Original Credit Agreement). 

 
 

  Article IX    
    

 
  Events of Default

        If
any of the following events ("Events of Default") shall occur: 

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

        (b)   the
Borrowers shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in paragraph (a) of this Article)
payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; 

        (c)   any
representation or warranty made or deemed made by or on behalf of any Borrower, any Restricted Subsidiary in or in connection with this Agreement or any amendment or
modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or
modification hereof or waiver hereunder or in any Loan Document furnished pursuant to or in connection with this Agreement or any amendment or modification thereof or waiver hereunder, shall prove to
have been incorrect in any material respect (without duplication of any materiality qualifier contained therein) when made or deemed made; 

        (d)   any
Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in Section 6.02, Section 6.03
(with respect to any Borrower or any Restricted Subsidiary's existence), Section 6.05 (with respect to insurance), Section 6.08, or in Article VII; 

        (e)   any
Borrower or any Restricted Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in (i) this Agreement (other than those
specified in paragraph (a), (b) or (d) of this Article) and such failure shall continue unremedied for a period of thirty (30) days after receipt of written notice thereof
from the Administrative Agent to the Borrowers (which notice will be given at the request of any Lender) or (ii) any Loan Document and such failure continues beyond the applicable period of
grace (if any) provided in such Loan Document; 

        (f)    any
Borrower or any Restricted Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable and such failure shall continue beyond the applicable grace period, if any. 

        (g)   any
event or condition occurs that results in the Permitted Subordinated Debt, the Term Loans or any other Material Indebtedness becoming due prior to its scheduled
maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf
to cause such Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;  provided that this paragraph (g) shall not
apply to (i) secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness and (ii) Indebtedness that becomes due as a result of a change in law, tax regulation or accounting treatment so long as such
Indebtedness is paid when due; 

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        (h)   an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any
Borrower or any Restricted Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Borrower or any Restricted Subsidiary or for a substantial part of its
assets, and, in any such case, such proceeding or petition shall continue undismissed for thirty (30) days or an order or decree approving or ordering any of the foregoing shall be entered; 

        (i)    any
Borrower or, any Restricted Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief
under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in paragraph (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Borrower or any Restricted Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing; 

        (j)    any
Borrower or any Restricted Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due; 

        (k)   one
or more judgments for the payment of money in an aggregate amount in excess of $3,000,000 (not covered by insurance reasonably expected to provide payment therefor)
shall be rendered against any Borrower or any Restricted Subsidiary or any combination thereof and the same shall remain undischarged or unsatisfied for a period of thirty (30) consecutive days
during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of any Borrower or any Restricted Subsidiary to
enforce any such judgment; 

        (l)    an
ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in a liability in excess of $500,000; 

        (m)  the
delivery by any Guarantor to the Administrative Agent of written notice that a Guarantee under Article VIII has been revoked or is otherwise declared invalid
or unenforceable; 

        (n)   the
Liens granted by any Credit Party under the Security Documents shall become invalid in any material respect or any obligation of any Credit Party under any Loan
Document shall become invalid in any material respect and, with respect to both of the foregoing, the same remains unremedied for thirty (30) days after an executive officer of such Credit
Party has actual knowledge thereof, or the validity of such Liens or obligation shall be challenged by any Credit Party in writing; or 

        (o)   a
Change of Control shall occur; 

then,
and in every such event (other than an event with respect to any Borrower or any Restricted Subsidiary described in paragraph (h) or (i) of this Article), and at any time
thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrowers, take either or both of the following
actions, at the same or different times: (i) terminate the Aggregate Commitment, and thereupon the Aggregate Commitment shall terminate immediately, and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal
of the Loans so declared to be due and payable, 

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together
with accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to the Borrowers described in paragraph (h) or (i) of this Article, the
Aggregate Commitment shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued
hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers. Without limiting the
foregoing, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent, the Issuing Bank and each Lender may protect and enforce its rights under this Agreement and
the other Loan Documents by any appropriate proceedings, including proceedings for specific performance of any covenant or agreement contained in this Agreement or any other Loan Document, and the
Administrative Agent, the Issuing Bank and each Lender may enforce payment of any Obligations due and payable hereunder or enforce any other legal or equitable right which it may have. 

 
 

  Article X    
    

 
  The Administrative Agent

        Each
of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto. 

        The
bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were
not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Credit Party or other Affiliate thereof as
if it were not the Administrative Agent hereunder. 

        The
Administrative Agent shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) the Administrative
Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.02), and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Credit Party that is
communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.02) or in
the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by a Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or
any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent. None of the 

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Co-Syndication
Agents, the Documentation Agent nor the Arranger, in each case, in its respective capacity as such, shall have any responsibilities or duties, or incur any liability, under
this Agreement or the other Loan Documents. 

        The
Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or
other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrowers),
independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

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

        Subject
to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time upon notice to the Lenders,
the Issuing Bank and the Borrower Representative. Upon any such resignation, the Required Lenders shall have the right, with the consent of the Borrowers (which consent shall not be unreasonably
withheld or delayed), to appoint a successor; provided that no consent of the Borrowers shall be required if any Default has occurred and is continuing.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in Chicago,
Illinois, New York, New York, Dallas, Texas or Houston, Texas. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The
fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the
Administrative Agent's resignation hereunder, the provisions of this Article and Section 11.03 shall continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 

        Each
Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or thereunder. 

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  Article XI    
    
    Miscellaneous    
    

        Section 11.01.    Notices.    

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

          (i)  if
to the Borrowers, to Antero Resources Corporation, 1625 17th Street, 3rd Floor, Denver, Colorado 80202, Attention: Glen
Warren, President and Chief Financial Officer, Telecopy No. (303) 357-7315; 

         (ii)  if
to the Administrative Agent or Issuing Bank, to JPMorgan Chase Bank, N.A., Mail Code IL1-0010, 10 South Dearborn, Chicago, Illinois,
60603-2003, Telecopy No.: (312) 385-1544, Attention: Lillian Arroyo, with a copy to JPMorgan Chase Bank, N.A., Mail Code TX2-S038, 712 Main Street,
8th Floor, Houston, Texas 77002, Telecopy No. (713) 216-7770, Attention: Ryan Fuessel; 

        (iii)  if
to a Co-Syndication Agent or Documentation Agent, to it at its address (or telecopy number) set forth in its Administrative Questionnaire; and 

        (iv)  if
to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 

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

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

        Section 11.02.    Waivers; Amendments.    

        (a)   No
failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrowers therefrom shall in any event be effective unless the same shall be permitted
by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may
have had notice or knowledge of such Default at the time. 

Page 69

 

        (b)   Neither
this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Credit
Parties and the Required Lenders or by the Credit Parties and the Administrative Agent with the consent of the Required Lenders; provided that no such
agreement shall (1) amend or waive any of the conditions specified in Article V (provided that the Administrative Agent may in its discretion withdraw any request it has made under
Section 5.01(n)), (2) increase the Borrowing Base without the written consent of each Lender, (3) increase the Applicable Percentage of any Lender or increase the Commitment of
any Lender above such Lender's Applicable Percentage of the Maximum Facility Amount without the written consent of such Lender, (4) increase the Maximum Facility Amount without the written
consent of each Lender, (5) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent
of each Lender affected thereby, (6) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or
reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of the Aggregate Commitment, without the written consent of each Lender affected thereby,
(7) change Section 2.18(b) or Section 2.18(c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender,
(8) release any Credit Party from its obligations under the Loan Documents or, except in connection with any sales, transfers, leases or other dispositions permitted in Section 7.05,
release any of the Collateral without the written consent of each Lender, (9) change any of the provisions of this Section or the definition of "Required Lenders" or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each
Lender, (10) amend Section 11.18 without the written consent of each Person affected thereby, or (11) amend this Section 11.02; provided
further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the Issuing Bank hereunder without the prior written
consent of the Administrative Agent or the Issuing Bank, as the case may be. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. 

        (c)   Notwithstanding
anything to the contrary contained in this Section 11.02, the Administrative Agent may, with the consent of the Borrowers only, amend, modify or
supplement this Agreement or any of the other Loan Documents to correct any clerical errors or cure any ambiguity, omission, mistake, defect or inconsistency. 

        Section 11.03.    Expenses; Indemnity; Damage Waiver.    

        (a)   The
Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Arranger and their Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and
administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall
be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter
of Credit or any demand for payment thereunder and (iii) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender,
including the fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection
with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all 

Page 70

 

such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 

        (b)   THE CREDIT PARTIES SHALL INDEMNIFY THE ADMINISTRATIVE AGENT, THE ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING
PERSONS (EACH SUCH PERSON BEING CALLED AN "INDEMNITEE") AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, PENALTIES,
LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR
AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS
HEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY, (II) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY
THE ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT),
(III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY SUBSIDIARY, OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY
WAY TO THE BORROWER OR ANY SUBSIDIARY, OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO. THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES ARE IN
ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNITEE;  PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED
EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNITEE. FOR THE AVOIDANCE OF DOUBT, WITH RESPECT TO THE FOREGOING PROVISO "ANY INDEMNITEE" MEANS ONLY THE INDEMNITEE OR INDEMNITEES, AS THE CASE MAY BE, THAT ARE DETERMINED BY SUCH COURT TO HAVE
BEEN GROSSLY NEGLIGENT OR TO HAVE ENGAGED IN WILLFUL MISCONDUCT AND NOT ANY OTHER INDEMNITEE.

        (c)   To
the extent that any Credit Party fails to pay any amount required to be paid by it to the Administrative Agent or the Issuing Bank under paragraph (a) or
(b) of this Section, each Lender severally agrees to pay to the Administrative Agent or the Issuing Bank, as the case may be, such Lender's Applicable Percentage of such unpaid amount with
respect to amounts to be paid to the Issuing Bank and such Lender's Applicable Percentage of such unpaid amount with respect to amounts to be paid to the Administrative Agent (in each case, determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought); provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or the Issuing Bank in its capacity as such. 

Page 71

 

        (d)   TO
THE EXTENT PERMITTED BY APPLICABLE LAW, THE CREDIT PARTIES SHALL NOT ASSERT, AND HEREBY WAIVE, ANY CLAIM AGAINST ANY INDEMNITEE, ON ANY THEORY OF LIABILITY, FOR
SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY, THE TRANSACTIONS, ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREOF. 

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

        Section 11.04.    Successors and Assigns.    

        (a)   The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) no Credit Party may assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment or transfer by such Credit Party without such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted
hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

        (b)   

          (i)  Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 

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

        (B)  the
Administrative Agent; and 

        (C)  the
Issuing Bank. 

         (ii)  Assignments
shall be subject to the following additional conditions: 

        (A)  except
in the case of an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or an assignment of the entire remaining amount of the assigning Lender's
Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrowers and the Administrative Agent otherwise consent;  provided that no such consent of the
Borrowers shall be required if any Event of Default has occurred and is continuing;
 

Page 72

 

        (B)  each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations in respect of such Lender's
Commitment and such Lender's Loans under this Agreement; 

        (C)  the
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; provided that no such processing and recordation fee shall be required for an assignment by a Lender to an Affiliate of such Lender; and 

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

        For
the purposes of this Section 11.04(b), the term "Approved Fund" has the following meaning: 

        "Approved Fund" means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans
and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender. 

        (iii)  Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case
of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of Section 2.15, Section 2.16, Section 2.17 and Section 11.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 11.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section except that any attempted assignment or transfer by any Lender that does not comply with clause (C) of Section 11.04(b)(ii) shall be null and void. 

        (iv)  The
Administrative Agent, acting for this purpose as an agent of the Borrowers, 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 Commitment and Applicable Percentage of, and principal amount of the Loans and LC Disbursements owing to,
each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Credit Parties,
the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Credit Parties, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

         (v)  Upon
its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee's completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register;  provided that if either the
assigning Lender or the assignee shall have failed to make any payment required to 

Page 73

 

be
made by it pursuant to Section 2.06(d) or Section 2.06(e), Section 2.07, Section 2.18(d) or Section 11.03(c), the Administrative Agent shall have no obligation to
accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 

        (c)   

          (i)  Any
Lender may, without the consent of the Borrowers, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a
"Participant") in all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the
Loans owing to it); provided that (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;  provided that
such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 11.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrowers agree that each
Participant shall be entitled to the benefits of Section 2.15, Section 2.16 and Section 2.17 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender,  provided such
Participant agrees to be subject to Section 2.18(c) as though it were a Lender. 

         (ii)  A
Participant shall not be entitled to receive any greater payment under Section 2.15 or Section 2.17 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 prior written consent of the Borrowers. A Participant
that would be a Foreign Lender if it were a Lender shall not
be entitled to the benefits of Section 2.17 unless the Borrower Representative is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrowers, to comply with Section 2.17(e) as though it were a Lender. 

        (d)   Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including
without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest;  provided that no
such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto. 

Page 74

 

  
        Section 11.05.    Survival.    All covenants, agreements, representations and warranties made by the Credit
Parties herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and
shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit
is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid or any Letter of Credit is outstanding and so long as the Aggregate Commitment has not expired or terminated. The provisions of Section 2.15, Section 2.16,
Section 2.17, Section 11.03, Section 11.12 and Article X shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Aggregate Commitment or the termination of this Agreement or any provision hereof. 

        Section 11.06.    Counterparts; Integration; Effectiveness.    This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof. 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. Except as provided in Section 5.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement. 

        Section 11.07.    Severability.    Any provision of this Agreement held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

        Section 11.08.    Right of Setoff.    If an Event of Default shall have occurred and be continuing, each Lender
and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrowers against any of and all the
obligations of any Credit Party now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each Lender under this Section and Section 8.08 are in addition to other rights and remedies (including other rights of setoff) which
such Lender may have. 

Page 75

 

        Section 11.09.    GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.    

        (a)   THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF. 

        (b)   EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR TEXAS STATE
COURT SITTING IN DALLAS, TEXAS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL
COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT AGAINST ANY CREDIT PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

        (c)   EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

        (d)   EACH
PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.01. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

        Section 11.10.    WAIVER OF JURY
TRIAL.    EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.

        Section 11.11.    Headings.    Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

Page 76

 

        Section 11.12.    Confidentiality.    Each of the Administrative Agent, the Issuing Bank and the Lenders agrees
to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority having jurisdiction over any Lender or any self-regulatory authority or
agency possessing investigative
powers and the ability to sanction members for non-compliance, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process,
(d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to
the Credit Parties and their obligations, (g) with the consent of the Borrowers or (h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than a Credit Party. For the purposes
of this Section, "Information" means all information received from any Credit Party relating to any Credit Party or its business, other than any such
information that is available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by any Credit Party;  provided that, in the case of information
received from any Credit Party after the date hereof, such information is clearly identified at the time of
delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

        Section 11.13.    Interest Rate Limitation.    Notwithstanding anything herein to the contrary, if at any time
the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the
"Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. In the event that the law
of the State of Texas provides for an interest ceiling under Chapter 303 of the Texas Finance Code (the "Texas Finance Code") as amended, for
each day, the ceiling shall be the "weekly ceiling" as defined in the Texas Finance Code and shall be used in this Agreement, any promissory note issued pursuant to Section 2.09(e) and the
other Loan Documents for calculating the Maximum Rate and for all other purposes. Chapter 346 of the Texas Finance Code (which regulates certain revolving credit accounts (formerly Tex. Rev.
Civ. Stat. Ann. Art. 5069, Ch. 15)) shall not apply to this Agreement or to any Loan, nor shall this Agreement or any Loan be governed by or be subject to the provisions of such
Chapter 346 in any manner whatsoever. 

        Section 11.14.    USA PATRIOT Act.    Each Lender that is subject to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act") hereby notifies each Credit Party that pursuant to the
requirements of the Act, it is required to obtain, verify and record information that identifies each Credit Party, which information includes the name and address of each Credit Party and other
information that will allow such Lender to identify each Credit Party in 

Page 77

 

accordance
with the Act. The Borrowers shall, upon the request of the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender
reasonably requires to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the Act. 

        Section 11.15.    Original Credit Agreement.    Upon the Effective Date, the Default under and as defined in
the Original Credit Agreement as a result of the Borrowers' failure to comply with Section 7.11 of the Original Credit Agreement for the fiscal quarter ending September 30, 2008, shall
be, and it hereby is, deemed waived and this Agreement shall supersede and replace in its entirety the Original Credit Agreement; provided,  however, that
(i) all loans, letters of credit, and other Indebtedness, obligations and liabilities outstanding under the Original Credit
Agreement on such date shall continue to constitute Loans, Letters of Credit and other Indebtedness, obligations and liabilities under this Agreement, (ii) the execution and delivery of this
Agreement or any of the Loan Documents hereunder shall not constitute a novation, refinancing or any other fundamental change in the relationship among the parties and (iii) the Loans, Letters
of Credit, and other Indebtedness, obligations and liabilities outstanding hereunder, to the extent outstanding under the Original Credit Agreement immediately prior to the date hereof, shall
constitute the same loans, letters of credit, and other Indebtedness, obligations and liabilities as were outstanding under the Original Credit Agreement. 

        Section 11.16.    Reaffirmation and Grant of Security Interest.    Each Credit Party hereby (i) confirms
that each Security Document (for purposes of this Section 11.16, as defined in the Original Credit Agreement) and each Security Document to which it is a party or is otherwise bound and all
assets, property and interests encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and
performance of all Obligations and Guaranteed Liabilities under this Agreement and the Secured Obligations (as such term is defined in the Security Documents) under the Security Documents, as the case
may be, including without limitation the payment and performance of all such Obligations and Guaranteed Liabilities under this Agreement and the Secured Obligations under the Security Documents, and
(ii) grants to the Administrative Agent for the benefit of the Secured Parties a continuing Lien on and security interest in and to such Credit Party's right, title and interest in, to and
under all Collateral as collateral security for the prompt payment and performance in full when due of the Obligations and Guaranteed Liabilities under this Agreement and the Secured Obligations under
the Security Documents (whether at stated maturity, by acceleration or otherwise) in accordance with the terms thereof. 

        Section 11.17.    Reallocation of Aggregate Commitment.    The Lenders (as defined in the Original Credit
Agreement) have agreed among themselves to reallocate the Aggregate Commitment (as defined in the
Original Credit Agreement) as contemplated by this Agreement and to adjust their interests in the Aggregate Commitment (as defined in the Original Credit Agreement) and the Loans (as defined in the
Original Credit Agreement) accordingly. On the Effective Date and after giving effect to such reallocation and adjustment of such Aggregate Commitment and such Loans, the Lenders shall own the
Applicable Percentages set forth on Schedule 1.01. The outstanding Loans (as defined in the Original Credit Agreement) and the funds delivered to the Administrative Agent on the Effective Date
by the Lenders shall be allocated such that after giving effect to such allocation each of the Lenders shall own the Applicable Percentages of the Aggregate Commitment and the Commitments set forth on
Schedule 1.01 and such Lenders shall own the Loans consistent with the Applicable Percentages set forth on Schedule 1.01. The Borrower shall pay any funding indemnification amounts
required by Section 3.5 of the Original Credit Agreement in the event the payment of any principal of any Eurodollar Loan or the conversion of any Eurodollar Loan other than on the last day of
an Interest Period applicable thereto is required in connection with the reallocation contemplated by this Section 11.17. 

Page 78

 

        Section 11.18.    Intercreditor Agreement.    The parties hereto agree that (i) JPMorgan Chase Bank,
N.A., in its capacity as Administrative Agent under this Agreement, shall be the First Priority Representative (as such term is defined in the Intercreditor Agreement) for all purposes and in all
respects under the Intercreditor Agreement, (ii) each Lender shall be subject to the terms and conditions, and entitled to the benefits, of the Intercreditor Agreement, and (iii) each
Lender or Affiliate of any Lender that provides Cash Management Obligations permitted by the terms of this Agreement to any Credit Party shall be a First Priority Creditor (as such term is defined in
the Intercreditor Agreement) for all purposes and in all respects under the Intercreditor Agreement. 

[Signature
Pages Follow] 

Page 79

  
        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. 

 

 

							
	 
	 	 BORROWERS:
	 
	 	  ANTERO RESOURCES CORPORATION

	 
	 	 By:
	 	 /s/ Alvyn A. Schopp

 
	 
	 	 	 	Name:	 	Alvyn A. Schopp
	 
	 	 	 	Title:	 	Treasurer and Vice President,

Administration and Accounting
	 
	 	  ANTERO RESOURCES MIDSTREAM CORPORATION

	 
	 	 By:
	 	 /s/ Alvyn A. Schopp

 
	 
	 	 	 	Name:	 	Alvyn A. Schopp
	 
	 	 	 	Title:	 	Treasurer and Vice President,

Administration and Accounting
	 
	 	  ANTERO RESOURCES PICEANCE CORPORATION

	 
	 	 By:
	 	 /s/ Alvyn A. Schopp

 
	 
	 	 	 	Name:	 	Alvyn A. Schopp
	 
	 	 	 	Title:	 	Treasurer and Vice President,

Administration and Accounting
	 
	 	  ANTERO RESOURCES PIPELINE CORPORATION

	 
	 	 By:
	 	 /s/ Alvyn A. Schopp

 
	 
	 	 	 	Name:	 	Alvyn A. Schopp
	 
	 	 	 	Title:	 	Treasurer and Vice President,

Administration and Accounting

 

 Signature
Page 

 

 

							
	 
	 	 ANTERO RESOURCES APPALACHIAN CORPORATION
	 
	 	 By:
	 	 /s/ Alvyn A. Schopp

 
	 
	 	 	 	Name:	 	Alvyn A. Schopp
	 
	 	 	 	Title:	 	Treasurer and Vice President,

Administration and Accounting

 

 Signature
Page 

 

 

							
	 
	 	 JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Issuing Bank and a Lender,
	 
	 	 By:
	 	 /s/ Ryan Fuessel

 
	 
	 	 	 	Name:	 	Ryan Fuessel
	 
	 	 	 	Title:	 	Senior Vice President

 

 Signature
Page 

 

 

							
	 
	 	 BANK OF SCOTLAND plc,

as Co-Syndication Agent and a Lender,
	 
	 	 By:
	 	 /s/ Julia R. Franklin

 
	 
	 	 	 	Name:	 	Julia R. Franklin
	 
	 	 	 	Title:	 	Assistant Vice President

 

 Signature
Page 

 

 

							
	 
	 	 BNP PARIBAS,

as Co-Syndication Agent and a Lender,
	 
	 	 By:
	 	 /s/ David Dodd

 
	 
	 	 	 	Name:	 	David Dodd
	 
	 	 	 	Title:	 	Managing Director
	

 
	
 	
 By:	
 	
/s/ Betsy Jocher

 
	 
	 	 	 	Name:	 	Betsy Jocher
	 
	 	 	 	Title:	 	Director

 

 Signature
Page 

 

 

							
	 
	 	 UNION BANK OF CALIFORNIA, N.A.,

as Documentation Agent and a Lender,
	 
	 	 By:
	 	 /s/ Timothy Brendel

 
	 
	 	 	 	Name:	 	Timothy Brendel
	 
	 	 	 	Title:	 	Vice President

 

 Signature
Page 

 

 

							
	 
	 	 WELLS FARGO BANK, N.A.,

as a Lender,
	 
	 	 By:
	 	 /s/ Oleg Kogan

 
	 
	 	 	 	Name:	 	Oleg Kogan
	 
	 	 	 	Title:	 	Vice President

 

 Signature
Page 

 

 

							
	 
	 	 FORTIS CAPITAL CORP.,

as a Lender,
	 
	 	 By:
	 	 /s/ David Montgomery

 
	 
	 	 	 	Name:	 	David Montgomery
	 
	 	 	 	Title:	 	Director
	 
	 	 By:
	 	 /s/ Darrell Holley

 
	 
	 	 	 	Name:	 	Darrell Holley
	 
	 	 	 	Title:	 	Managing Director

 

 Signature
Page 

 

 

							
	 
	 	 U.S. BANK NATIONAL ASSOCIATION,

as a Lender,
	 
	 	 By:
	 	 /s/ Daria Mahoney

 
	 
	 	 	 	Name:	 	Daria Mahoney
	 
	 	 	 	Title:	 	Vice President

 

 Signature
Page 

 

 

							
	 
	 	 COMERICA BANK,

as a Lender,
	 
	 	 By:
	 	 /s/ Matt Turner

 
	 
	 	 	 	Name:	 	Matt Turner
	 
	 	 	 	Title:	 	Corporate Banking Officer

 

 Signature
Page 

 

 

							
	 
	 	 KEYBANK NATIONAL ASSOCIATION,

as a Lender,
	 
	 	 By:
	 	 /s/ Todd Coker

 
	 
	 	 	 	Name:	 	Todd Coker
	 
	 	 	 	Title:	 	Assistant Vice President

 

 Signature
Page 

 

 

							
	 
	 	 GUARANTY BANK AND TRUST COMPANY,

as a Lender,
	 
	 	 By:
	 	 /s/ Gail J. Nofsinger

 
	 
	 	 	 	Name:	 	Gail J. Nofsinger
	 
	 	 	 	Title:	 	Senior Vice President

 

 Signature
Page 

QuickLinks

Exhibit 10.1

TABLE OF CONTENTS

Article I

Definitions

Article II The Credits

Article III Borrowing Base

Article IV Representations and Warranties

Article V

Conditions

Article VI

Affirmative Covenants

Article VII Negative Covenants

Article VIII

Guarantee of Obligations

Article IX

Events of Default

Article X

The Administrative Agent

Article XI Miscellaneous

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]