Document:

Form of Guarantee Agreement for Fifth Third Capital Trust VIII

 Exhibit 4(ee) 
  
  
  
 GUARANTEE AGREEMENT

 by and between 
 FIFTH THIRD BANCORP 
 as Guarantor 
 and 
 WILMINGTON
TRUST COMPANY 
 as Guarantee Trustee 
 relating to 
 FIFTH THIRD CAPITAL TRUST VIII 
  
  
 Dated as of      —, 201   
  
  
  
  
  

 CROSS-REFERENCE TABLE* 
  

			
	 Section of
 Trust Indenture Act
 of 1939, as amended
	  	Section of
Guarantee Agreement
	310(a)	  	        4.1(a)
	310(b)	  	        4.1(c), 2.8
	310(c)	  	        Inapplicable
	311(a)	  	        2.2(b)
	311(b)	  	        2.2(b)
	311(c)	  	        Inapplicable
	312(a)	  	        2.2(a)
	312(b)	  	        2.2(b)
	313	  	        2.3
	314(a)	  	        2.4
	314(b)	  	        Inapplicable
	314(c)	  	        2.5
	314(d)	  	        Inapplicable
	314(e)	  	        1.1, 2.5, 3.2
	314(f)	  	        2.1, 3.2
	315(a)	  	        3.1(d)
	315(b)	  	        2.7
	315(c)	  	        3.1
	315(d)	  	        3.1(d)
	316(a)	  	        1.1, 2.6, 5.4
	316(b)	  	        5.3
	316(c)	  	        8.2
	317(a)	  	        Inapplicable
	317(b)	  	        Inapplicable
	318(a)	  	        2.1
	318(b)	  	        2.1
	318(c)	  	        2.1

  

	*	This Cross-Reference Table does not constitute part of the Guarantee Agreement and shall not affect the interpretation of any of its terms or provisions.

  

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 TABLE OF CONTENTS 
  

					
	ARTICLE I
	
	DEFINITIONS
			
	Section 1.1.	  	Definitions.	  	1
	
	ARTICLE II
	
	TRUST INDENTURE ACT
			
	Section 2.1.	  	Trust Indenture Act; Application.	  	4
	Section 2.2.	  	List of Holders.	  	4
	Section 2.3.	  	Reports by the Guarantee Trustee.	  	5
	Section 2.4.	  	Periodic Reports to the Guarantee Trustee.	  	5
	Section 2.5.	  	Evidence of Compliance with Conditions Precedent.	  	5
	Section 2.6.	  	Events of Default; Waiver.	  	5
	Section 2.7.	  	Event of Default; Notice.	  	5
	Section 2.8.	  	Conflicting Interests.	  	6
	
	ARTICLE III
	
	POWERS, DUTIES AND RIGHTS OF THE GUARANTEE
TRUSTEE
			
	Section 3.1.	  	Powers and Duties of the Guarantee Trustee.	  	6
	Section 3.2.	  	Certain Rights of Guarantee Trustee.	  	7
	Section 3.3.	  	Compensation; Indemnity; Fees.	  	9
	
	ARTICLE IV
	
	GUARANTEE TRUSTEE
			
	Section 4.1.	  	Guarantee Trustee; Eligibility.	  	9
	Section 4.2.	  	Appointment, Removal and Resignation of the Guarantee Trustee.	  	10
	
	ARTICLE V
	
	GUARANTEE
			
	Section 5.1.	  	Guarantee.	  	11
	Section 5.2.	  	Waiver of Notice and Demand.	  	11
	Section 5.3.	  	Obligations Not Affected.	  	11
	Section 5.4.	  	Rights of Holders.	  	12
	Section 5.5.	  	Guarantee of Payment.	  	12
	Section 5.6.	  	Subrogation.	  	12
	Section 5.7.	  	Independent Obligations.	  	12

					
	
	ARTICLE VI
	
	COVENANTS AND SUBORDINATION
			
	Section 6.1.	  	Subordination.	  	13
	Section 6.2.	  	Pari Passu Guarantees.	  	13
	
	ARTICLE VII
	
	TERMINATION
			
	Section 7.1.	  	Termination.	  	13
	
	ARTICLE VIII
	
	MISCELLANEOUS
			
	Section 8.1.	  	Successors and Assigns.	  	14
	Section 8.2.	  	Amendments.	  	14
	Section 8.3.	  	Notices.	  	14
	Section 8.4.	  	Benefit.	  	15
	Section 8.5.	  	Governing Law.	  	15
	Section 8.6.	  	Counterparts.	  	15

 GUARANTEE AGREEMENT, dated as of
     —, 201   between FIFTH THIRD BANCORP, an Ohio corporation (the “Guarantor”),
having its principal office at 38 Fountain Square Plaza, Cincinnati, Ohio 45263 and WILMINGTON TRUST COMPANY, as trustee (the “Guarantee Trustee”), for the benefit
of the Holders (as defined herein) from time to time of the Preferred Securities (as defined herein) of FIFTH THIRD CAPITAL TRUST VIII, a Delaware statutory trust
(the “Issuer Trust”). 
 RECITALS OF THE
GUARANTOR 
 WHEREAS, pursuant to an Amended and Restated Declaration of Trust, dated the date
hereof (the “Amended Declaration”), among Fifth Third Bancorp, as Sponsor, Wilmington Trust Company, as Property Trustee, Wilmington Trust Company, as Delaware Trustee, and the Administrative Trustees named therein, the Issuer Trust
is issuing up to $— aggregate Liquidation Amount (as defined in the Amended Declaration) of its —% Trust Preferred Securities (liquidation amount
$1,000 per Preferred Security) (the “Preferred Securities”), representing preferred undivided beneficial interests in the assets of the Issuer Trust and having the terms set forth in the Amended Declaration; and 
 WHEREAS, the Preferred Securities will be issued by the Issuer Trust and the proceeds thereof, together with the proceeds
from the issuance of the Issuer Trust’s Common Securities (as defined herein), will be used to purchase the Debentures (as defined in the Amended Declaration) of the Guarantor, which Debentures will be deposited with Wilmington Trust Company,
as Property Trustee under the Amended Declaration, as trust assets; and 
 WHEREAS, as an incentive for the
Holders to purchase Preferred Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay to the Holders of the Preferred Securities the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein. 
 NOW, THEREFORE, in
consideration of the purchase of Preferred Securities by each Holder, which purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the benefit of the Holders from time
to time. 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1. Definitions. 
 For all purposes of this Guarantee Agreement, except as otherwise expressly provided or unless the context otherwise requires: 

(a) The terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

 (b) All other terms used herein that are defined in the Trust Indenture Act (as defined herein), either directly or by
reference therein, have the meanings assigned to them therein; 
 (c) The words “include”, “includes” and
“including” shall be deemed to be followed by the

 
phrase “without limitation”; 
 (d) All accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, and the term “generally accepted accounting principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles that are generally accepted in the United States at the date or time of such computation; provided that when two or more principles are so generally accepted, it shall mean that set of
principles consistent with those in use by the Guarantor; 
 (e) Unless the context otherwise requires, any reference to an
“Article” or a “Section” refers to an Article or a Section, as the case may be, of this Guarantee Agreement; and 
 (f) The words “hereby”, “herein”, “hereof” and “hereunder” and other words of similar import refer to this Guarantee Agreement as a whole and not to any particular
Article, Section or other subdivision. 
 “Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. 
 “Amended Declaration” means the Amended and Restated Declaration of
Trust of the Issuer Trust referred to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from time to time. 
 “Authorized Officer” of any Person means any officer of such Person or any person authorized by or pursuant to a resolution of the Board of Directors (or equivalent body) of such Person.

 “Board of Directors” means the board of directors of the Guarantor or any committee of that board duly
authorized to act hereunder. 
 “Common Securities” means the securities representing common undivided
beneficial interests in the assets of the Issuer Trust. 
 “Distributions” has the meaning specified in the
Amended Declaration. 
 “Event of Default” means (i) a default by the Guarantor in any of its payment
obligations under this Guarantee Agreement or (ii) a default by the Guarantor in any other obligation hereunder that remains unremedied for 30 days. 
 “Guarantee Agreement” means this Guarantee Agreement, as modified, amended or supplemented from time to time. 
 “Guarantee Payments” means the following payments or distributions, without duplication, with respect to the Preferred
Securities, to the extent not paid or made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid Distributions required to be paid on the Preferred Securities, to the extent the

  

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Issuer Trust shall have funds on hand available therefor at such time; (ii) the Redemption Price (as defined in the Amended Declaration) with respect to any Preferred Securities called for
redemption by the Issuer Trust, to the extent the Issuer Trust shall have funds on hand available therefor at such time; and (iii) upon a voluntary or involuntary termination, winding-up or liquidation of the Issuer Trust, unless Debentures are
distributed to the Holders, the lesser of (a) the Liquidation Distribution (as defined in the Amended Declaration) with respect to the Preferred Securities, to the extent that the Issuer Trust shall have funds on hand available therefor at such
time, and (b) the amount of assets of the Issuer Trust remaining available for distribution to Holders on liquidation of the Issuer Trust. 
 “Guarantee Trustee” means Wilmington Trust Company, solely in its capacity as Guarantee Trustee and not in its individual capacity, until a Successor Guarantee Trustee has been appointed
and has accepted such appointment pursuant to the terms of this Guarantee Agreement, and thereafter means each such Successor Guarantee Trustee. 
 “Guarantor” has the meaning specified in the first paragraph of this Guarantee Agreement. 
 “Holder” means any Holder (as defined in the Amended Declaration) of any Preferred Securities; provided, however, that in determining whether the holders of the requisite
percentage of Preferred Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor or the Guarantee Trustee. 

“Indemnified Person” has the meaning specified in Section 3.3(c). 
 “Indenture” means the Indenture, dated as of March 20, 1997, between Fifth Third Bancorp and Wilmington Trust Company,
as trustee, as the same may be modified, amended or supplemented from time to time, including by the Second Supplemental Indenture thereto. 
 “Issuer Trust” has the meaning specified in the first paragraph of this Guarantee Agreement. 
 “Liquidation Distribution” has the meaning specified in the Amended Declaration. 
 “List of Holders” has the meaning specified in Section 2.2(a). 
 “Majority in Liquidation Amount of the Preferred Securities” means, except as provided by the Trust Indenture Act, Preferred Securities representing more than 50% of the aggregate Liquidation Amount (as defined in the
Amended Declaration) of all Preferred Securities then Outstanding (as defined in the Amended Declaration). 
 “Officers’ Certificate” means, with respect to any Person, a certificate signed by any two Authorized Officers of such person. Any Officers’ Certificate delivered with respect to compliance with a condition or
covenant provided for in this Guarantee Agreement shall include: 
 (a) a statement by each officer signing the Officers’
Certificate that such officer has read the covenant or condition and the definitions relating thereto; 
 (b) a brief statement
of the nature and scope of the examination or investigation undertaken by such officer in rendering the Officers’ Certificate; 
  

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 (c) a statement that such officer has made such examination or investigation as, in such
officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a statement as to whether, in the opinion of such officer, such condition or covenant has been complied with. 
 “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint-stock company, company, limited liability company, trust,
business trust, statutory trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 
 “Preferred Securities” has the meaning specified in the recitals to this Guarantee Agreement. 
 “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 4.1. 
 “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which this Guarantee Agreement
was executed; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so
amended. 
 ARTICLE II 
 TRUST INDENTURE ACT 
 Section 2.1. Trust Indenture Act; Application. 
 (a) This Guarantee Agreement is subject to the provisions
of the Trust Indenture Act that are required to be part of this Guarantee Agreement and shall, to the extent applicable, be governed by such provisions. 
 (b) If and to the extent that any provision of this Guarantee Agreement limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act through
operation of Section 318(c) thereof, such imposed duties shall control. If any provision of this Guarantee Agreement modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall
be deemed to apply to this Guarantee Agreement as so modified or to be excluded, as the case may be. 
 Section 2.2.
List of Holders. 
 (a) The Guarantor shall furnish or cause to be furnished to the Guarantee Trustee
(a) semiannually, on or before May 15 of each year, a list, in such form as the Guarantee Trustee may reasonably require, of the names and addresses of the Holders (a “List of Holders”) as of a date not more than 15 days
prior to the delivery thereof, and (b) at such other times as the Guarantee Trustee may request in writing, within 30 days after the receipt by the Guarantor of any such request, a List of Holders as of a date not more than 15 days prior to the
time such list is furnished, in each case to the extent such

  

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information is in the possession or control of the Guarantor and has not otherwise been received by the Guarantee Trustee in its capacity as such. Notwithstanding the preceding sentence, the
Guarantor shall not be obligated to provide such List of Holders at any time the List of Holders does not differ from the most recent List of Holders given to the Guarantee Trustee by the Guarantor. The Guarantee Trustee may destroy any List of
Holders previously given to it on receipt of a new List of Holders. 
 (b) The Guarantee Trustee shall comply with the
requirements of Section 311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act. 
 Section 2.3. Reports by the Guarantee Trustee. 
 Within 60 days after May 15 of each year, commencing
May 15, 2010, the Guarantee Trustee shall provide to the Holders such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The
Guarantee Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act. 
 Section 2.4. Periodic Reports to the Guarantee Trustee. 
 The Guarantor shall provide to the Guarantee
Trustee, the Securities and Exchange Commission and the Holders such documents, reports and information, if any, as required by Section 314 of the Trust Indenture Act and the compliance certificate required by Section 314 of the Trust
Indenture Act, in the form, in the manner and at the times required by Section 314 of the Trust Indenture Act. 
 Section 2.5. Evidence of Compliance with Conditions Precedent. 
 The Guarantor shall provide to the
Guarantee Trustee such evidence of compliance with such conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given in the form of an Officers’ Certificate. 
 Section 2.6. Events of Default; Waiver. 
 The Holders of at least a
Majority in Liquidation Amount of the Preferred Securities may, by vote, on behalf of the Holders of all the Preferred Securities, waive any past default or Event of Default and its consequences. Upon such waiver, any such default or Event of
Default shall cease to exist, and any default or Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee Agreement, but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. 
 Section 2.7. Event of Default; Notice. 
 (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid,
to the Holders, notice of any such Event of Default known to the Guarantee Trustee, unless such Event of Default has been cured before the giving of such notice, provided that, except in the case of a default in the payment of a Guarantee
Payment, the Guarantee Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors of the Guarantee Trustee in good faith determines

  

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that the withholding of such notice is in the interests of the Holders. 
 (b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice, or an officer of the Guarantee Trustee charged with the administration of this
Guarantee Agreement shall have obtained actual knowledge, of such Event of Default. 
 Section 2.8. Conflicting
Interests. 
 The Amended Declaration and the Indenture shall be deemed to be specifically described in this Guarantee
Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act. 
 ARTICLE III 
 POWERS, DUTIES AND RIGHTS OF
THE GUARANTEE TRUSTEE 
 Section 3.1. Powers and Duties of the Guarantee
Trustee. 
 (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of the Holders, and the
Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Guarantee Trustee hereunder. The right, title and
interest of the Guarantee Trustee, as such, hereunder shall automatically vest in any Successor Guarantee Trustee, upon acceptance by such Successor Guarantee Trustee of its appointment hereunder, and such vesting of title shall be effective whether
or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee. 
 (b) If an Event of Default has occurred and is continuing of which the Guarantee Trustee is deemed to have knowledge pursuant to Section 2.7(b), the Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of the
Holders. 
 (c) The Guarantee Trustee, before the occurrence of any Event of Default, and after the curing of all Events of
Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee Agreement, and no implied covenants shall be read into this Guarantee Agreement against the Guarantee Trustee. The Guarantee
Trustee shall, during the existence of any Event of Default of which the Guarantee Trustee is deemed to have knowledge pursuant to Section 2.7(b) and which has not been cured or waived pursuant to Section 2.6, exercise such of the rights
and powers vested in it by this Guarantee Agreement, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
 (d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee Trustee from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except that: 
 (i) Prior to the
occurrence of any Event of Default and after the curing or waiving of all

  

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such Events of Default that may have occurred: 
 (A) the
duties and obligations of the Guarantee Trustee shall be determined solely by the express provisions of this Guarantee Agreement (including pursuant to Section 2.1), and the Guarantee Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Guarantee Agreement; and 
 (B) in the absence
of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee
Trustee and conforming to the requirements of this Guarantee Agreement; but in the case of any such certificates or opinions that by any provision hereof or of the Trust Indenture Act are specifically required to be furnished to the Guarantee
Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Guarantee Agreement. 
 (ii) The Guarantee Trustee shall not be liable for any error of judgment made in good faith by an officer of the Guarantee
Trustee, unless it shall be proved that the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made. 
 (iii) The Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a Majority in
Liquidation Amount of the Preferred Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this
Guarantee Agreement. 
 (iv) No provision of this Guarantee Agreement shall require the Guarantee Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the
repayment of such funds or liability is not reasonably assured to it under the terms of this Guarantee Agreement or adequate indemnity against such risk or liability is not reasonably assured to it. 
 Section 3.2. Certain Rights of Guarantee Trustee. 
 (a) Subject to the provisions of Section 3.1: 
 (i) The
Guarantee Trustee may rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence
of indebtedness or other paper or document reasonably believed by it to be genuine and to have been signed, sent or presented by the proper party or parties. 
 (ii) Any direction or act of the Guarantor contemplated by this Guarantee Agreement shall be sufficiently evidenced by an
Officers’ Certificate unless otherwise prescribed herein. 
 (iii) Whenever, in the administration of this
Guarantee Agreement, the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or

  

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omitting to take any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and rely upon an
Officers’ Certificate which, upon receipt of such request from the Guarantee Trustee, shall be promptly delivered by the Guarantor. 
 (iv) The Guarantee Trustee may consult with legal counsel, and the written advice or opinion of such legal counsel with respect to legal matters shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance with such advice or opinion. Such legal counsel may be legal counsel to the Guarantor or any of its Affiliates and may be one of its
employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee Agreement from any court of competent jurisdiction. 
 (v) The Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Guarantee
Agreement at the request or direction of any Holder unless such Holder shall have provided to the Guarantee Trustee such adequate security and indemnity satisfactory to it against the costs, expenses (including attorneys’ fees and expenses) and
liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the Guarantee Trustee; provided that nothing contained in this Section 3.2(a)(v) shall be
taken to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to otherwise exercise the rights and powers vested in it by this Guarantee Agreement. 
 (vi) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit at the expense of the Guarantor and shall incur no liability of any kind by reason of such inquiry or investigation. 
 (vii) The Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly
or by or through its agents or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed by it with due care hereunder. 
 (viii) Whenever in the administration of this Guarantee Agreement the Guarantee Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders, (B) may refrain from enforcing such remedy or right or taking such other
action until such instructions are received, and (C) shall be protected in acting in accordance with such instructions. 
 (b) No provision of this Guarantee Agreement shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it in any
jurisdiction in which it shall be illegal, or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Guarantee Trustee shall be construed to be a duty to act in accordance with such power and

  

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authority. 
 Section 3.3. Compensation; Indemnity; Fees.

 The Guarantor agrees: 
 (a) to pay to the Guarantee Trustee from time to time such reasonable compensation for all services rendered by it hereunder as may be agreed by the Guarantor and the Guarantee Trustee from time to time
(which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and advances incurred or made by the Guarantee Trustee in accordance with any provision of this
Guarantee Agreement (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or willful misconduct; and

 (c) to indemnify the Guarantee Trustee, any Affiliate of the Guarantee Trustee and any officer, director, shareholder,
employee, representative or agent of the Guarantee Trustee (each, an “Indemnified Person”) for, and to hold each Indemnified Person harmless against, any loss, liability, claim, action, suit, cost, damage or expense of any kind or
nature whatsoever incurred without negligence, willful misconduct or bad faith on the part of the Indemnified Person, arising out of or in connection with the acceptance or administration of this Guarantee Agreement, including the costs and expenses
of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 The Guarantee Trustee will not claim or exact any lien or charge on any Guarantee Payments as a result of any amount due to it under this Guarantee Agreement. 
 The provisions of this Section 3.3 shall survive the termination of this Guarantee Agreement or the resignation or removal of the
Guarantee Trustee. 
 ARTICLE IV 
 GUARANTEE TRUSTEE 
 Section 4.1. Guarantee
Trustee; Eligibility. 
 (a) There shall at all times be a Guarantee Trustee that shall: 
 (i) not be an Affiliate of the Guarantor; and 
 (ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus
of at least $50,000,000, and shall be a corporation meeting the requirements of Section 310(a) of the Trust Indenture Act. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then, for the purposes of this Section 4.1 and to the extent permitted by the

  

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Trust Indenture Act, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

 (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a), the Guarantee
Trustee shall immediately resign in the manner and with the effect set out in Section 4.2. 
 (c) If the Guarantee Trustee
has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust
Indenture Act. 
 Section 4.2. Appointment, Removal and Resignation of the Guarantee Trustee. 
 (a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or removed at any time by the action of the Holders of a Majority
in Liquidation Amount of the Trust Preferred Securities delivered to the Guarantee Trustee and the Guarantor (i) for cause or (ii) if a Debenture Event of Default (as defined in the Amended Declaration) shall have occurred and be
continuing at any time. 
 (b) Subject to Section 4.2(c), the Guarantee Trustee may resign from office (without need for
prior or subsequent accounting) by giving written notice thereof to the Holders and the Guarantor and by appointing a successor Guarantee Trustee. The Guarantee Trustee shall appoint a successor by requesting from at least three Persons meeting the
requirements of Section 4.1(a) their expenses and charges to serve as the Guarantee Trustee, and selecting the Person who agrees to the lowest expenses and charges. 
 (c) The Guarantee Trustee appointed hereunder shall hold office until a Successor Guarantee Trustee shall have been appointed and shall have accepted such appointment. No removal or resignation of a
Guarantee Trustee shall be effective until a Successor Guarantee Trustee has been appointed and has accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor and, in the case of any
resignation, the resigning Guarantee Trustee. 
 (d) If no Successor Guarantee Trustee shall have been appointed and accepted
appointment as provided in this Section 4.2 within 60 days after delivery to the Holders and the Guarantor of a notice of resignation, the resigning Guarantee Trustee may petition, at the expense of the Guarantor, any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee. 
 (e) If a resigning Guarantee Trustee shall fail to appoint a successor, or if a Guarantee Trustee shall be removed or become incapable of
acting as Guarantee Trustee and a replacement shall not be appointed prior to such resignation or removal, or if a vacancy shall occur in the office of Guarantee Trustee for any cause, the Holders of the Preferred Securities, by the action of the
Holders of record of not less than 25% in aggregate Liquidation Amount (as defined in the Amended Declaration) of the Preferred Securities then Outstanding (as defined in the Amended Declaration) delivered to such Guarantee Trustee, may appoint a
Successor Guarantee Trustee or Trustees. If no successor Guarantee Trustee shall have been so appointed by the Holders of the Preferred Securities and accepted appointment, any Holder, on behalf of such Holder and all others similarly situated, or
any other Guarantee Trustee, may petition any court of competent jurisdiction for the appointment of a successor Guarantee Trustee. 
  

 -10- 

 ARTICLE V 
 GUARANTEE 
 Section 5.1. Guarantee. 
 The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (subject to the limitations
contained in the definition of that term) (without duplication of amounts theretofore paid by or on behalf of the Issuer Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer Trust may have or assert,
except the defense of payment. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer Trust to pay such amounts to the Holders.

 Section 5.2. Waiver of Notice and Demand. 
 The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands. 
 Section 5.3. Obligations Not Affected. 
 The obligations, covenants, agreements and duties of the Guarantor under this Guarantee Agreement shall in no way be affected or impaired by
reason of the happening from time to time of any of the following: 
 (a) the release or waiver, by operation of
law or otherwise, of the performance or observance by the Issuer Trust of any express or implied agreement, covenant, term or condition relating to the Preferred Securities to be performed or observed by the Issuer Trust; 
 (b) the extension of time for the payment by the Issuer Trust of all or any portion of the Distributions (other than an
extension of time for payment of Distributions that results from the extension of any interest payment period on the Debentures as provided in the Indenture), Redemption Price, Liquidation Distribution or any other sums payable under the terms of
the Preferred Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with, the Preferred Securities; 
 (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right,
privilege, power or remedy conferred on the Holders pursuant to the terms of the Preferred Securities, or any action on the part of the Issuer Trust granting indulgence or extension of any kind; 
 (d) the voluntary or involuntary liquidation, dissolution, receivership, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer Trust or any of the assets of the Issuer Trust; 
  

 -11- 

 (e) any invalidity of, or defect or deficiency in, the Preferred Securities;

 (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 
 (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a
guarantor (other than payment of the underlying obligation), it being the intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 
 There shall be no obligation of the Holders to give notice to, or obtain the consent of, the Guarantor with respect to the happening of any of the
foregoing. 
 Section 5.4. Rights of Holders. 
 The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with the Guarantee Trustee to be held for the
benefit of the Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in Liquidation Amount of the Preferred Securities have the right to direct the
time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement; and
(iv) any Holder may institute a legal proceeding directly against the Guarantor to enforce its rights under this Guarantee Agreement without first instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust or any other
Person. 
 Section 5.5. Guarantee of Payment. 
 This Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee Agreement will not be discharged except by
payment of the Guarantee Payments in full (without duplication of amounts theretofore paid by the Issuer Trust) or upon the distribution of Debentures to Holders as provided in the Amended Declaration. 
 Section 5.6. Subrogation. 
 The Guarantor shall be subrogated to all rights (if any) of the Holders against the Issuer Trust in respect of any amounts paid to the Holders by the Guarantor under this Guarantee Agreement; provided,
however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any rights which it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in
all cases as a result of payment under this Guarantee Agreement, if, at the time of any such payment, any amounts are due and unpaid under this Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders. 
 Section 5.7. Independent Obligations. 
 The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer Trust with respect to the Preferred Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee Agreement

  

 -12- 

 
notwithstanding the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 5.3. 
 ARTICLE VI 
 COVENANTS AND
SUBORDINATION 
 Section 6.1. Subordination. 
 The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured obligations of the Guarantor and will rank
subordinate and junior in right of payment and upon liquidation to all Senior Debt (as defined in the Indenture) of the Guarantor to the extent and in the manner set forth in the Indenture with respect to the Debentures, and the provisions of
Article XIII of the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor hereunder. The obligations of the Guarantor hereunder do not constitute Senior Debt of the Guarantor. 
 Section 6.2. Pari Passu Guarantees. 
 The obligations of the Guarantor under this Guarantee Agreement shall rank pari passu with the obligations of the Guarantor under (i) any similar guarantee agreements issued by the Guarantor
on behalf of the holders of preferred or capital securities issued by any statutory trust the assets of which consist of debt securities that are pari passu to the Debentures and the proceeds thereof, (ii) the Indenture and the Debt
Securities (as defined therein) issued thereunder; (iii) any expense agreements entered into by the Guarantor in connection with the offering of preferred or capital securities by any statutory trust the assets of which consists of debt
securities that are pari passu to the Debentures and the proceeds thereof, and (iv) any other security, guarantee or other agreement or obligation that is expressly stated to rank pari passu with the obligations of the Guarantor
under this Guarantee Agreement or with any obligation that ranks pari passu with the obligations of the Guarantor under this Guarantee Agreement. 
 ARTICLE VII 
 TERMINATION 
 Section 7.1. Termination. 
 This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full payment of the Redemption Price (as defined in the Amended Declaration) of all Preferred Securities,
(ii) the distribution of Debentures to the Holders in exchange for all of the Preferred Securities or (iii) full payment of the amounts payable in accordance with Article IX of the Amended Declaration upon liquidation of the Issuer Trust.
Notwithstanding the foregoing, this Guarantee Agreement will continue to be effective or will be reinstated, as the case may be, if at any time any Holder is required to repay any sums paid with respect to Preferred Securities or this Guarantee
Agreement. 
  

 -13- 

 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.1. Successors and Assigns.

 All guarantees and agreements contained in this Guarantee Agreement shall bind the successors, assigns, receivers, trustees
and representatives of the Guarantor and shall inure to the benefit of the Holders of the Preferred Securities then outstanding. Except in connection with a consolidation, merger or sale involving the Guarantor that is permitted under Article VIII
of the Indenture and pursuant to which the successor or assignee agrees in writing to perform the Guarantor’s obligations hereunder, the Guarantor shall not assign its obligations hereunder, and any purported assignment other than in accordance
with this provision shall be void. 
 Section 8.2. Amendments. 
 Except with respect to any changes that do not adversely affect the rights of the Holders in any material respect (in which case no consent
of the Holders will be required), this Guarantee Agreement may only be amended with the prior approval of the Holders of not less than a Majority in Liquidation Amount of the Preferred Securities. The provisions of Article VI of the Amended
Declaration concerning meetings of the Holders shall apply to the giving of such approval. 
 Section 8.3. Notices.

 Any notice, request or other communication required or permitted to be given hereunder shall be in writing, duly signed by
the party giving such notice, and delivered, telecopied or mailed by first class mail as follows: 
 (a) if given to the
Guarantor, to the address or facsimile number set forth below or such other address or facsimile number as the Guarantor may give notice to the Guarantee Trustee and the Holders: 
 Fifth Third Bancorp 
 38 Fountain Square Plaza 
 Cincinnati, Ohio 45263 
 Tel: 
 Fax:

 Attention: 
 (b) if given to the Guarantee Trustee, at the address or facsimile number set forth below or such other address or facsimile number as the Guarantee Trustee may give notice to the Guarantor and the Holders: 
  

 -14- 

 Wilmington Trust Company 
 Rodney Square North, 1100 N. Market Street, 
 Wilmington, Delaware 19890 
 Tel: 
 Fax: 
 Attention:

 (c) if given to any Holder, at the address set forth on the books and records of the Issuer Trust. 
 All notices hereunder shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first
class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the
date of such refusal or inability to deliver. 
 Section 8.4. Benefit. 
 This Guarantee Agreement is solely for the benefit of the Holders and is not separately transferable from the Preferred Securities.

 Section 8.5. Governing Law. 
 THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Section 8.6. Counterparts. 
 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same
instrument. 
  

 -15- 

 IN WITNESS WHEREOF, the
parties hereto have executed this Guarantee Agreement as of the day and year first above written. 
  

			
	FIFTH THIRD BANCORP
		
	By:	 	  

		 	Name:
		 	Title:
	
	 WILMINGTON TRUST COMPANY,
as Guarantee Trustee

		
	By:	 	  

		 	Name:
		 	Title:Third Amendment to Credit Agreement

 Exhibit 10.17 
 THIRD AMENDMENT TO 
 CREDIT AGREEMENT 

THIRD AMENDMENT, dated as of March 23, 2010 (this “Amendment”), to the Credit Agreement, dated as of May 15,
2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the lenders identified on the signature pages thereof (such lenders, together with their respective successors and
permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), Wells Fargo Capital Finance, Inc. (f/k/a Wells Fargo Foothill, Inc.), a California corporation, as the
arranger and administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), Dune Energy, Inc., a Delaware corporation (“Parent”), and each of
Parent’s Subsidiaries identified on the signature pages thereof as a Borrower (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly
and severally, as the “Borrowers”), and each of Parent’s Subsidiaries identified on the signature pages thereof as a Guarantor (such Subsidiaries are referred to hereinafter each individually as a “Guarantor”,
and individually and collectively, jointly and severally, as the “Guarantors”; and together with Borrowers, each a “Loan Party” and collectively, the “Loan Parties”). 
 WHEREAS, the Loan Parties, the Agent and the Lenders agree to modify the Credit Agreement on and subject to the terms set forth herein;

 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the parties hereto hereby agree as
follows: 
 1. Definitions. Any capitalized term used herein and not defined shall have the meaning assigned to it in the
Credit Agreement. 
 2. Amendments. 
 (i) New Definitions. Schedule 1.1 of the Credit Agreement is hereby amended by adding the following definitions, in appropriate alphabetical order: 
 “‘Payable Reserve” means, as of any date of determination, the amount of reserves that Agent has established in
respect of accounts payable of Loan Parties that remain outstanding for more than 10 days past due date. The Agent shall adjust the Payable Reserve on the first day of each month (or more frequently as Agent determines in its sole discretion).”

 ““Third Amendment” means the Third Amendment to Credit Agreement, dated as of March 23, 2010,
among the Borrowers, the Guarantors, the Agent and the Lenders.” 
 “‘Third Amendment Effective
Date” means the date on which the Third Amendment shall become effective in accordance with its terms.” 
 (ii)
Activation Instruction. Schedule 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Activation Instruction” in its entirety. 

 (iii) Applicable Margin. Schedule 1.1 of the Credit Agreement is hereby amended by
deleting the definition of “Applicable Margin” in its entirety. 
 (iv) Base Rate. Schedule 1.1 of the Credit
Agreement is hereby amended by amending and restating the definition of “Base Rate” in its entirety to read as follows: 
 “Base Rate” means the greater of (a) the rate of interest announced, from time to time, within Wells Fargo at its principal office in San Francisco as its “prime rate”, with the understanding that the
“prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the
recording thereof after its announcement in such internal publications as Wells Fargo may designate and (b) 1.00%.” 
 (v) Borrowing Base. Schedule 1.1 of the Credit Agreement is hereby amended by amending and restating the definition of “Borrowing Base” in its entirety to read as follows: 
 “Borrowing Base” means, as of any date of determination, the result of: 
 (a) 65% of the PV-10 of the Proved Developed Producing Reserves of Borrowers (i) that are subject to a Mortgage and UCC financing
statements that in each case create a first priority perfected Lien in such Oil and Gas Properties in favor of Agent for the benefit of Lenders, (ii) for which Agent shall have received land records/and or title searches and abstracts of Oil
and Gas Properties of such Oil and Gas Properties, the form and substance of which shall be satisfactory to Agent and (iii) for which Agent has received title opinions or updated title opinions (together with reliance letters with respect to
previously issued title opinions) of such Oil and Gas Properties with respect to the Hydrocarbon Interests therein, the form and substance of which shall be satisfactory to Agent, minus 
 (b) the sum of (i) the Bank Product Reserve, (ii) the Payable Reserve and (iii) the aggregate amount of reserves, if any,
established by Agent under Section 2.1(b).” 
 (vi) EBITDA. Schedule 1.1 of the Credit Agreement is
hereby amended by amending and restating the definition of “EBITDA” in its entirety to read as follows: 
 ““EBITDA” means, with respect to any fiscal period, Parent’s and its Subsidiaries’ consolidated net income (or loss), plus (i) interest expense, depreciation, depletion and amortization of assets
(including goodwill and other intangible assets); federal, state, local and foreign taxes; costs and expenses for seismic, geological, and geophysical services performed in the course of oil and gas exploration; accretion of asset retirement
expenses, proved property impairment, share based compensation, oil and gas exploration expenses; gain on sale of oil and gas properties, other non-cash items and extraordinary or non-recurring items; restructuring costs (including employee
relocation costs) and integration expenses and charges that are identified at the time of closing of any acquisition as resulting from such acquisition (including, without limitation, cash severance payments and facility closures); any non-cash
gains, losses or charges on any hedging agreement resulting from the requirements of SFAS 133,

  

 2 

 
for the first three (3) months after the Third Amendment Effective Date, severance costs actually incurred in an aggregate amount not to exceed $500,000; minus (ii) extraordinary gains,
any income tax benefit, other income and interest income. For the purposes of calculating EBITDA for any period of four consecutive fiscal quarters (each, a “Reference Period”), if at any time during such Reference Period (and after
the Closing Date) Parent or any of its Subsidiaries shall have made a Permitted Acquisition, EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto in accordance with Regulation S-X promulgated under the Exchange
Act or in such other manner acceptable to the Agent as if the Permitted Acquisition occurred on the first day of such Reference Period.” 
 (vii) LIBOR Rate. Schedule 1.1 of the Credit Agreement is hereby amended by amending and restating the definition of “LIBOR Rate” in its entirety to read as follows: 
 “LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the greater of (i) the rate per annum
determined by Agent by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage and (ii) 1.00%. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the Reserve
Percentage. 
 (viii) NYMEX Strip Price. Schedule 1.1 of the Credit Agreement is hereby amended by amending and
restating the definition of “NYMEX Strip Price” in its entirety to read as follows: 
 “NYMEX Strip Price” means the lower of (i) as of any date of determination (A) for the 24 month period commencing with the month in which the date of determination occurs, the average of the 24 succeeding monthly
futures contract prices, commencing with the month during which the determination date occurs, for each of the appropriate crude oil and natural gas categories included in the most recent Reserve Report provided by Borrowers to Agent pursuant to
Section 5.2, as quoted on the NYMEX, and (B) for period after such 24 month period, the average of the quoted prices for the period from and including the 13th month in such 24 month period through the 24th month in such period; provided, that if the NYMEX no longer provides futures contract price quotes or has
ceased to operate, the future contract prices used shall be the comparable futures contract prices quoted on such other nationally recognized commodities exchange as Agent shall designate and (ii) the Wells Fargo “Base Case” pricing
for each of the appropriate crude oil and natural gas categories included in the most recent Reserve Report.” 
 (ix)
Section 2.1 (Revolver Advances). Section 2.1(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
 “(a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender with a Revolver Commitment agrees (severally, not jointly or jointly and severally) to
make advances (“Advances”) to Borrowers in an amount at any one time outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the Maximum Revolver Amount less the Letter
of Credit Usage at such time less the Payable Reserve at such time, and (ii) the Borrowing Base at such time less the Letter of Credit Usage at such time.” 
  

 3 

 (x) Section 2.6 (Interest Rates). Sections 2.6(a) and (b) of the Credit
Agreement are hereby amended and restated in its entirety to read as follows: 
 “2.6 Interest Rates and Letter of
Credit Fee: Rates, Payments, and Calculations. 
 (a) Interest Rates. Except as provided in
Section 2.6(c), all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as
follows (i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus 5.00%, (ii) if the relevant Obligation is an Advance that is a Base Rate Loan, at a per annum rate equal to
the Base Rate plus 5.00%, and (iii) otherwise, at a per annum rate equal to the Base Rate plus 5.00%. 
 (b) Letter of
Credit Fee. Borrowers shall pay Agent (for the ratable benefit of the Lenders with a Revolver Commitment, subject to any agreements between Agent and individual Lenders), a Letter of Credit fee (in addition to the charges, commissions, fees, and
costs set forth in Section 2.12(e)) which shall accrue at a rate per annum equal to 3.50% times the Daily Balance of the undrawn amount of all outstanding Letters of Credit.” 
 (xi) Section 2.7 (Cash Management). Section 2.7 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows: 
 “2.7 Cash Management. 
 (a) Loan Parties shall and shall cause each of their Subsidiaries to (i) establish and maintain cash management services of a type and
on terms satisfactory to Agent at one or more of the banks set forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall request in writing and otherwise take such reasonable steps to ensure that all of their and
their Subsidiaries’ Account Debtors forward payment of the amounts owed by them directly to such Cash Management Bank, and (ii) deposit or cause to be deposited promptly all of their Collections (including those sent directly by their
Account Debtors to Loan Parties or their Subsidiaries) into a bank account in a Loan Party’s name (a “Cash Management Account”) at one of the Cash Management Banks. 
 (b) Each Cash Management Bank shall establish and maintain Cash Management Agreements with Agent and Loan Parties. Each such Cash
Management Agreement shall provide, among other things, that (i) the Cash Management Bank will comply with any instructions originated by Agent directing the disposition of the funds in such Cash Management Account without further consent by
Loan Parties or their Subsidiaries, as applicable, (ii) the Cash Management Bank has no rights of setoff or recoupment or any other claim against the applicable Cash Management Account, other than for payment of its service fees and other
charges directly related to the administration of such Cash Management Account and for returned checks or other items of payment, and (iii) it will forward by daily sweep all amounts in the applicable Cash Management Account to the Agent’s
Account. 
 (c) So long as no Default or Event of Default has occurred and is continuing, Administrative Borrower may amend
Schedule 2.7(a) to add or replace a Cash

  

 4 

 
Management Bank or Cash Management Account; provided, however, that (i) such prospective Cash Management Bank shall be reasonably satisfactory to Agent, and (ii) prior to
the time of the opening of such Cash Management Account, a Loan Party (or its Subsidiary, as applicable) and such prospective Cash Management Bank shall have executed and delivered to Agent a Cash Management Agreement. Loan Parties (or their
Subsidiaries, as applicable) shall close any of their Cash Management Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days of notice from Agent that the
creditworthiness of any Cash Management Bank is no longer acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Agent that the operating performance, funds transfer, or
availability procedures or performance of the Cash Management Bank with respect to Cash Management Accounts or Agent’s liability under any Cash Management Agreement with such Cash Management Bank is no longer acceptable in Agent’s
reasonable judgment. 
 (d) Each Cash Management Account shall be a cash collateral account subject to a Control Agreement.

 (xii) Section 2.8 (Crediting Payments). Section 2.8 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows: 
 “2.8 Crediting Payments. 
 (a) The receipt of any payment item by Agent (whether from transfers to Agent by the Cash Management Banks pursuant to the Cash Management
Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal funds made to the Agent’s Account or unless and until such payment item is honored when presented
for payment. Should any payment item not be honored when presented for payment, then Loan Parties shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding,
any payment item shall be deemed received by Agent only if it is received into the Agent’s Account on a Business Day on or before 2:00 p.m. (Georgia time). If any payment item is received into the Agent’s Account on a non-Business Day or
after 2:00 p.m. (Georgia time) on a Business Day, it shall be deemed to have been received by Agent as of the opening of business on the immediately following Business Day. 
 (b) Agent shall be entitled to charge Borrowers for one (1) Business Days of ‘clearance’ at the rate then applicable under
Section 2.6 to Advances that are Base Rate Loans on all Collections that are received by Parent and its Subsidiaries (regardless of whether forwarded to Agent). This across-the-board one (1) Business Day clearance charge on all
Collections of Parent and its Subsidiaries is acknowledged by the parties to constitute an integral aspect of the pricing of the financing of Borrowers and shall apply irrespective of whether or not there are any outstanding monetary Obligations;
the effect of such clearance charge being the equivalent of charging interest on such Collections through the completion of a period ending one (1) Business Days after the receipt thereof. The parties acknowledge and agree that the economic
benefit of the foregoing provisions of this Section 2.8(b) shall be for the exclusive benefit of Agent.” 
  

 5 

 (xiii) Section 3.3 (Term). Section 3.3 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows: 
 “3.3 Term. This Agreement shall continue in full
force and effect for a term ending on the earlier of (a) March 31, 2011, and (b) the date that is 90 days prior to the earliest date on which any principal amount of the Second Secured Notes is scheduled to become due and payable or
is required to be prepaid or redeemed, in each case in accordance with the terms of the Second Secured Note Indenture (such earlier date, the “Maturity Date”). The foregoing notwithstanding, the Lender Group, upon the election of
the Required Lenders, shall have the right to terminate its obligations under this Agreement immediately and without notice upon the occurrence and during the continuation of an Event of Default.” 
 (xiv) Title Work. The following new Section 5.23 is hereby added to the Credit Agreement to read as follows: 
 “5.23 Title Work. No later than 60 days after the Third Amendment Effective Date (or 90 days after the Third Amendment
Effective Date if such time period is extended in writing (including by electronic mail) by the Agent in its sole discretion), with respect to the Oil and Gas Properties of the Borrowers (other than the Comite and South Florence oil and gas fields),
deliver to the Agent title information, including without limitation, title searches, title abstracts, title reports, and/or title opinions or updates to title opinions (together with reliance letters with respect to previously issued title
opinions) setting forth a status of title satisfactory to Agent of such Oil and Gas Properties with respect to the Hydrocarbon Interests therein.” 
 (xv) Audited Financials. The following new Section 5.24 is hereby added to the Credit Agreement to read as follows: 
 “5.24 Audited Financials. No later than 3 Business Days after the Third Amendment Effective Date, Borrowers shall have
delivered to Agent consolidated and consolidating financial statements of Parent and its Subsidiaries for fiscal year 2009, audited, in the case of consolidated financial statements, by independent certified public accountants reasonably acceptable
to Agent and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C) qualification which relates to
the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of Section 6.16),
by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’ letter to management), together
with a Compliance Certificate.” 
  

 6 

 (xvi) Ad Valorem and Severance Taxes; Royalties. The following new Section 5.25
is hereby added to the Credit Agreement to read as follows: 
 “5.25 Ad Valorem and Severance Taxes;
Royalties (a) Cause all ad valorem taxes assessed against their Oil and Gas Properties or any part thereof and all production, severance and other taxes assessed against, a measure by, production or the value, or proceeds, of the
production therefrom, that are due or payable by, or imposed, levied, or assessed against any Loan Parties, their Subsidiaries, or any of their respective assets, to be paid in full, before delinquency or before the expiration of any extension
period, except to the extent that the validity of any such tax or assessment shall be the subject of a Permitted Protest and (b) cause all royalties, overriding royalties, compensatory royalties and other payments due from or in respect of
Hydrocarbon production from or allocable to the Oil and Gas Properties of Parent or any of its Subsidiaries, that are due or payable by any Loan Parties or their Subsidiaries, to be paid in full, before delinquency, in accordance with the terms of
the applicable Material Contracts and applicable law, except to the extent that the validity of any such royalty or other payment shall be the subject of a Permitted Protest.” 
 (xvii) Section 6.16 (Financial Covenants). Section 6.16 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows: 
 “6.16 Financial Covenants. 
 (a) Minimum EBITDA. Fail to achieve EBITDA, measured on a month-end basis, of at least the required amount set forth in the
following table for the applicable period set forth opposite thereto: 
  

			
	 Applicable Amount
	  	 Applicable Period

	$2,871,927	  	 For the 1 month period
 ending February 28, 2010

		
	$5,926,070	  	 For the 2 month period
 ending March 31, 2010

		
	$8,697,935	  	 For the 3 month period
 ending April 30, 2010

		
	$12,298,870	  	 For the 4 month period
 ending May 31, 2010

		
	$15,479,172	  	 For the 5 month period
 ending June 30, 2010

		
	$18,858,648	  	 For the 6 month period
 ending July 31, 2010

		
	$23,224,603	  	 For the 7 month period
 ending August 31, 2010

		
	$27,464,455	  	 For the 8 month period
 ending September 30, 2010

  

 7 

			
	$31,876,694	  	 For the 9 month period
 ending October 31, 2010

		
	$36,191,674	  	 For the 10 month period
 ending November 30, 2010

		
	$40,950,069	  	 For the 11 month period
 ending December 31, 2010

		
	$45,945,081	  	 For the 12 month period
 ending January 31, 2011

		
	$47,200,804	  	 For the 12 month period
 ending February 28, 2011

 (b) Minimum Net Production.
Have aggregate Hydrocarbon production (with one barrel of oil equal to six Mcf of gas) for any calendar month, calculated on the last day of the calendar month indicated below, of at least the required amount set forth in the following table for the
applicable period set forth opposite thereto: 
  

			
	 Applicable Amount (Mcf)
	  	 Calendar Month

		
	615,472	  	February 2010
		
	661,976	  	March 2010
		
	657,806	  	April 30, 2010
		
	662,613	  	May 31, 2010
		
	669,010	  	June 30, 2010
		
	750,959	  	July 31, 2010
		
	916,044	  	August 31, 2010
		
	878,460	  	September 30, 2010
		
	916,854	  	October 31, 2010
		
	883,889	  	November 30, 2010
		
	944,887	  	December 31, 2010
		
	1,006,068	  	January 31, 2011
		
	894,816	  	February 28, 2011

  

 8 

 (c) Capital Expenditures. Make Capital Expenditures in any fiscal year in an
amount less than or equal to, but not greater than, the amount set forth in the following table for the applicable period: 
  

			
	 Fiscal Year 2010
	  	 Fiscal Year 2011

	$22,505,000	  	$2,725,000

 (d) Minimum
Proved Developed Producing Reserve. Fail to maintain PV-10 of the Proved Developed Producing Reserves of Borrowers, measured on a daily basis, of at least $80,000,000 at all times.” 
 (xviii) Events of Default. Section 7.2(a) of the Credit Agreement is hereby amended and restated in its entirety to read as
follows: 
 “(a) fails to perform or observe any term, provision, condition, covenant or other agreement contained in any
of Sections 2.7, 5.2, 5.3, 5.5, 5.8, 5.12, 5.14, 5.16, 5.17, 5.21, 5.22, 5.23, 5.24, 5.25, and 6.1 through 6.16 of this Agreement or
Section 6 of the Security Agreement;” 
 (xix) Schedule 5.2. Schedule 5.2 is hereby replaced in its entirety
with the new Schedule 5.2 attached hereto as Annex I. 
 (xx) Schedule 5.3. Schedule 5.3 is hereby replaced
in its entirety with the new Schedule 5.3 attached hereto as Annex II. 
 3. Conditions to Effectiveness. The
effectiveness of this Amendment is subject to the fulfillment, in a manner satisfactory to the Agent and the Lenders, of each of the following conditions precedent (the date such conditions are fulfilled or waived by the Agent and the Lenders is
hereinafter referred to as the “Third Amendment Effective Date”): 
 (a) Representations and Warranties; No
Event of Default. The representations and warranties herein, in Section 4 of the Credit Agreement and in each other Loan Document and certificate or other writing delivered to the Agent and the Lenders pursuant hereto on or prior to the
Third Amendment Effective Date shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof) after giving effect to this Amendment on and as of the Third Amendment Effective Date as though made on and as of such date (except to the extent such representations and warranties expressly relate to an earlier date), and no Default or
Event of Default shall have occurred and be continuing on the Third Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms (except as expressly waived herein). 
  

 9 

 (b) Execution of Amendment. The Agent and the Lenders shall have executed this
Amendment and shall have received a counterpart to this Amendment, duly executed by the Borrowers and each Guarantor. 
 (c)
Execution of Fee Letter Amendment. The Agent shall have executed an amendment to the Fee Letter (the “Fee Letter Amendment”) and shall have received a counterpart to the Fee Letter Amendment, duly executed by the Borrowers.
The Borrowers shall have paid to the Agent all amounts due and owing to any Agent or any Lender in connection with this Amendment, including, without limitation, closing fees, attorneys’ fees and search fees. 
 (d) Closing Certificates. The Agent shall have received (w) a certificate from the Secretary of each Loan Party
(i) attesting to the resolutions of such Loan Party’s Board of Directors authorizing its execution, delivery, and performance of this Amendment and the other Loan Documents to which such Loan Party is a party, (ii) authorizing
specific officers of such Loan Party to execute the same, and (iii) attesting to the incumbency and signatures of such specific officers of such Loan Party; (x) copies of each Loan Party’s Governing Documents, as amended, modified, or
supplemented to the Third Amendment Effective Date, certified by the Secretary of such Loan Party; (y) a certificate of status with respect to each Loan Party, dated within 10 days of the Third Amendment Effective Date, such certificate to be
issued by the appropriate officer of the jurisdiction of organization of such Loan Party, which certificate shall indicate that such Loan Party is in good standing in such jurisdiction; and (z) certificates of status with respect to each Loan
Party, each dated within 30 days of the Third Amendment Effective Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Loan Party) in which its failure to be duly
qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that such Borrower is in good standing in such jurisdictions. 
 (e) Legal Opinions. The Agent shall have received legal opinions, in form and substance satisfactory to Agent, from counsel to the Loan Parties. 
 (f) Lien Searches. The Agent shall have received evidence that appropriate financing statements have been duly filed in such office
or offices as may be necessary or, in the opinion of Agent, desirable to perfect Agent’s Liens in and to the Collateral, and Agent shall have received searches reflecting the filing of all such financing statements, and evidencing the absence
of any other Liens on the Collateral, other than Liens acceptable to Agent. 
 (g) Other Agreements. The Agent shall
have received such other agreements, instruments, approvals and other documents, each reasonably satisfactory to the Agent in from and substance, as the Agent may reasonably request. 
 4. Representations and Warranties. Each of the Borrowers and the Guarantors represents and warrants as follows: 
 (a) The execution, delivery and performance by the Borrowers or such Guarantor of this Amendment (including, without limitation,
Section 5) and the performance by

  

 10 

 
the Borrowers or such Guarantor of the Credit Agreement, as amended hereby, have been duly authorized by all necessary action, and the Borrowers or such Guarantor has all requisite power,
authority and legal right to execute, deliver and perform this Amendment (including, without limitation, Section 5) and to perform the Credit Agreement, as amended hereby. 
 (b) This Amendment and the Credit Agreement, as amended hereby, is a legal, valid and binding obligation of the Borrowers or such
Guarantor, enforceable against the Borrowers or such Guarantor in accordance with the terms thereof, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to
or limiting creditors’ rights generally. 
 (c) The representations and warranties contained in Section 4 of the
Credit Agreement are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) after
giving effect to this Amendment on and as of the Third Amendment Effective Date as though made on and as of the Third Amendment Effective Date (except to the extent such representations and warranties expressly relate to an earlier date), and no
Event of Default or Default has occurred and is continuing on and as of the Third Amendment Effective Date, or would result from this Amendment becoming effective in accordance with its terms (except as expressly waived herein). 
 5. Release. Each of the Borrowers and the Guarantors may have certain Claims against the Released Parties, as those terms are defined
below, regarding or relating to the Credit Agreement or the other Loan Documents. The Agent, the Lenders, the Borrowers and the Guarantors desire to resolve each and every one of such Claims in conjunction with the execution of this Amendment and
thus each of the Borrowers and the Guarantors makes the releases contained in this Section 5. In consideration of the Agent and the Lenders entering into this Amendment and agreeing to substantial concessions as set forth herein, each of the
Borrowers and the Guarantors hereby fully and unconditionally releases and forever discharges each of the Agent and the Lenders, and their respective directors, officers, employees, subsidiaries, branches, affiliates, attorneys, agents,
representatives, successors and assigns and all persons, firms, corporations and organizations acting on any of their behalves (collectively, the “Released Parties”), of and from any and all claims, allegations, causes of action,
costs or demands and liabilities, of whatever kind or nature, from the beginning of the world to the date on which this Amendment is executed, whether known or unknown, liquidated or unliquidated, fixed or contingent, asserted or unasserted,
foreseen or unforeseen, matured or unmatured, suspected or unsuspected, anticipated or unanticipated, which the Borrowers or the Guarantors has, had, claims to have had or hereafter claims to have against the Released Parties by reason of any act or
omission on the part of the Released Parties, or any of them, occurring prior to the date on which this Amendment is executed, including all such loss or damage of any kind heretofore sustained or that may arise as a consequence of the dealings
among the parties up to and including the date on which this Amendment is executed, including the administration or enforcement of the Advances, the Obligations, the Credit Agreement or any of the Loan Documents (collectively, all of the foregoing,
the “Claims”). Each of the Borrowers and the Guarantors represents and warrants that it has no knowledge of any claim by it against the Released Parties or of any facts or acts of omissions of the Released Parties which on the date
hereof would be the basis of a claim by the Borrowers or the Guarantors against the Released Parties which is not released hereby. Each of the Borrowers and the Guarantors represents and warrants that the foregoing constitutes a full and complete
release of all Claims. 
  

 11 

 6. Miscellaneous. 
 (a) Continued Effectiveness of the Credit Agreement. Except as otherwise expressly provided herein, the Credit Agreement and the
other Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, except that on and after the Third Amendment Effective Date (i) all references in the Credit Agreement to
“this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Credit Agreement shall mean the Credit Agreement as amended by this Amendment, and (ii) all references in the
other Loan Documents to the “Credit Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Credit Agreement shall mean the Credit Agreement as amended by this Amendment. To the
extent that the Credit Agreement or any other Loan Document purports to pledge to Agent, or to grant to Agent, a security interest or lien, such pledge or grant is hereby ratified and confirmed in all respects. Except as expressly provided herein,
the execution, delivery and effectiveness of this Amendment shall not operate as an amendment of any right, power or remedy of the Agent and the Lenders (including the Issuing Lender) under the Credit Agreement or any other Loan Document, nor
constitute an amendment of any provision of the Credit Agreement or any other Loan Document. 
 (b) Counterparts. This
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery
of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment. 
 (c) Headings. Section headings herein are included for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose. 
 (d) Costs and Expenses. The Borrowers agree to pay on demand all reasonable fees,
costs and expenses of the Agent and the Lenders in connection with the preparation, execution and delivery of this Amendment. 
 (e) No Waivers. Except as otherwise expressly provided herein, this Amendment is not a waiver of, or consent to, any Default or Event of Default now existing or hereafter arising under the Credit Agreement or any other Loan Document
and the Agent and the Lenders expressly reserve all of their rights and remedies under the Credit Agreement and the other Loan Documents in respect of all such Defaults or Events of Default not waived or consented to hereby, under applicable law or
otherwise. 
 (f) Amendment as Loan Document. The Borrowers and each Guarantor hereby acknowledge and agree that this
Amendment constitutes a “Loan Document” under the Credit Agreement. Accordingly, it shall be an Event of Default under the Credit

  

 12 

 
Agreement if (i) any representation or warranty made by the Borrowers or any Guarantor under or in connection with this Amendment shall have been untrue, false or misleading in any material
respect when made, or (ii) the Borrowers or any Guarantor shall fail to perform or observe any term, covenant or agreement contained in this Amendment. 
 (g) Governing Law. This Amendment shall be governed by the laws of the State of New York. 
 (h) Waiver of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AMENDMENT OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. 
 [Remainder of this Page Intentionally Left Bank] 
  

 13 

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

			
	BORROWERS:
	
	 DUNE ENERGY, INC.,
 a Delaware corporation

		
	By:	 	 /s/ James A. Watt

	Name:	 	 James A. Watt

	Title:	 	 President

	
	 DUNE PROPERTIES, INC.,
 a Texas corporation

		
	By:	 	 /s/ James A. Watt

	Name:	 	 James A. Watt

	Title:	 	 President

	
	 VAQUERO PARTNERS LLC,
 a Texas limited liability company

		
	By:	 	 /s/ James A. Watt

	Name:	 	 James A. Watt

	Title:	 	 President

	
	GUARANTORS:
	
	 DUNE OPERATING COMPANY,
 a Texas corporation

		
	By:	 	 /s/ James A. Watt

	Name:	 	 James A. Watt

	Title:	 	 President

	
	 DUNE GC HOLDINGS, INC.,
 a Delaware corporation

		
	By:	 	 /s/ James A. Watt

	Name:	 	 James A Watt

	Title:	 	 President

			
	AGENT AND LENDER:
	
	WELLS FARGO CAPITAL FINANCE, INC.,
	a California corporation, as Agent and as a Lender
		
	By:	 	 /s/ Gary Forlenza

	Name:	 	 Gary Forlenza

	Title:	 	 Vice President

 Annex I 
 Schedule 5.2 
 Provide Agent (and if so
requested by Agent, with copies for each Lender) with each of the documents set forth below at the following times in form satisfactory to Agent: 
  

			
	Monthly (as soon as possible and in any event within 30 days of each fiscal month)	  	(a) a report setting forth as of the last Business Day of such month, a summary of its hedging positions under all Hedge Agreements (including commodity price swap agreements,
forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of Hydrocarbons of Borrowers, including the type, term, effective date, termination date and notional principal amounts or volumes, the hedged
price(s), interest rate(s) or exchange rate(s), as applicable, the net market to marked value thereof and any credit support agreements relating thereto (including any margin required or supplied), and the counterparty to each such
agreement,
		  	
	Quarterly (as soon as possible and in any event not later than 45 days after end of each quarter)	  	 (b) a report on a lease-by-lease or unit basis, showing (i) the gross proceeds from the sale of Hydrocarbon products produced from
Borrowers’ Oil and Gas Properties, (ii) the quantity of Hydrocarbon products sold, (iii) the severance, gross production, occupation, or gathering taxes deducted from or paid out of the proceeds, (iv) the lease operating expenses, tangible
drilling costs, and Capital Expenditures, (v) the number of wells operated (or the numbers of pooled units), drilled, or abandoned, the name, address, telephone number, and contact with the purchaser of production for all of the Oil and Gas
Properties of Borrowers,
  
 (c) a summary aging, by vendor, of each Loan
Party’s accounts payable and any book overdraft, including lease operating expenses and royalty payments, including adequate documentation, as requested by Agent, that ensures such royalty payments are being paid on a timely basis;
and
  
 (d) a report: (i) setting forth the total amount actually paid by
each Loan Party during the preceding quarter for: (A) plugging and abandonment costs for previous or ongoing plugging and abandonment operations pertaining to such Loan Party’s Oil and Gas Properties, and (B) general bond and supplemental bond
payments pertaining to plugging and abandonment costs; and (ii) estimating the future payments for (A) and (B), above, for each of the succeeding two quarters.

		  	
	Semi-annually (not later than 5 Business Days after the delivery of a Reserve Report)	  	(e) a Borrowing Base Certificate, current as of the close of business on the last day of the immediately preceding month, supported by schedules showing the derivation thereof and
containing such detail and other information as shall be determined in Agent’s Permitted Discretion, provided that (i) the Borrowing Base set forth in the Borrowing Base

			
		  	Certificate shall be (A) determined on the basis of the NYMEX Strip Prices used in preparation of the report most recently delivered by Borrowers and (B) effective from and
including the date such Borrowing Base Certificate is duly received by Agent but not including the date on which a subsequent Borrowing Base Certificate is received by Agent unless Agent disputes the eligibility of any Oil and Gas Property for
inclusion in the calculation of the Borrowing Base or the valuation thereof by notice of such dispute to Borrowers and (ii) in the event of any dispute about the eligibility of any such property included in the calculation of the Borrowing Base
or the valuation thereof, eligibility shall be determined in Agent’s Permitted Discretion,
		  	
	Annually (not later than 90 days after June 30th of each year)	  	(f) a Reserve Report, prepared under the supervision of the chief engineer of each Borrower in accordance with the procedures used in the Initial Reserve Report, and together with
each such Reserve Report, a certificate of an Authorized Officer of each Borrower certifying that, to the best of his or her knowledge that: (i) such Borrower owns good and defensible title to its Oil and Gas Properties evaluated in such Reserve
Report and such Properties are free and clear of all Liens except for Permitted Liens, (ii) except as set forth on an exhibit to the certificate, on a net basis there are no gas imbalances, take-or-pay or other prepayments with respect to its
Oil and Gas Properties evaluated in such Reserve Report which would require such Borrower to deliver Hydrocarbons produced from such Oil and Gas Properties or make cash payments at some future time without then or thereafter receiving full payment
therefore, (iii) except as set forth on an exhibit to the certificate, none of such Borrower’s Oil and Gas Properties have been sold since the date of the Reserve Report, which exhibit shall list all of such Borrower’s Oil and Gas
Properties sold and in such detail as is reasonably required by Agent, (iv) attached as an exhibit to the certificate is a list of its Oil and Gas Properties added to and deleted from the Reserve Report most recently delivered and a list of all
Persons disbursing proceeds to such Borrower, as applicable, from its Oil and Gas Properties, (v) attached to the certificate as an exhibit is a list of all of the Oil and Gas Properties of such Borrower evaluated by such Reserve Report that are
subject to a Mortgage, a Security Agreement and UCC financing statements, that in each case create a perfected, first priority Lien in such Oil and Gas Properties in favor of Agent, and (vi) except as set forth and explained on an exhibit to
such certificate, there has not been any change in the working interest or net revenue interest of such Borrower in any of the Oil and Gas Properties included on such Reserve Report since the date of the last certificate delivered.
		  	
	Annually (not later than 90 days after December 31st of each year)	  	(g) a Reserve Report, prepared by a qualified independent third party in accordance with the procedures used in the Initial Reserve Report, and together with each such Reserve
Report, a certificate of an Authorized Officer of each Borrower certifying that, to the best of his or her knowledge that: (i) such Borrower owns good and defensible title to its

			
		  	Oil and Gas Properties evaluated in such Reserve Report and such Properties are free and clear of all Liens except for Permitted Liens, (ii) except as set forth on an exhibit
to the certificate, on a net basis there are no gas imbalances, take-or-pay or other prepayments with respect to its Oil and Gas Properties evaluated in such Reserve Report which would require such Borrower to deliver Hydrocarbons produced from such
Oil and Gas Properties or make cash payments at some future time without then or thereafter receiving full payment therefore, (iii) except as set forth on an exhibit to the certificate, none of such Borrower’s Oil and Gas Properties have been
sold since the date of the Reserve Report, which exhibit shall list all of such Borrower’s Oil and Gas Properties sold and in such detail as is reasonably required by Agent, (iv) attached as an exhibit to the certificate is a list of its Oil
and Gas Properties added to and deleted from the Reserve Report most recently delivered and a list of all Persons disbursing proceeds to such Borrower, as applicable, from its Oil and Gas Properties, (v) attached to the certificate as an exhibit is
a list of all of the Oil and Gas Properties of such Borrower evaluated by such Reserve Report that are subject to a Mortgage, a Security Agreement and UCC financing statements, that in each case create a perfected, first priority Lien in such Oil
and Gas Properties in favor of Agent, and (vi) except as set forth and explained on an exhibit to such certificate, there has not been any change in the working interest or net revenue interest of such Borrower in any of the Oil and Gas
Properties included on such Reserve Report since the date of the last certificate delivered.
		  	
	Upon request by Agent	  	 (h) as soon as practicable, notification of prepayment of Hydrocarbons by any customer of any Loan Party, together with a reasonably
detailed summary of the terms of such transaction, including, without limitation, the amount of such prepayment, the quantity of Hydrocarbons to be delivered, the delivery schedule of such Hydrocarbons and such other information as may be reasonably
requested by Agent,

		  	  
 (i) promptly after sending or receipt thereof, copies of any
material notice or other correspondence sent to, or received from, any Governmental Authority related to the Oil and Gas Properties of any Loan Party, including, without limitation, notice of any new plugging and abandonment or other performance or
other assurance bond requirements related to such Oil and Gas Properties,

		  	  
 (j) proof of payment of applicable Taxes, including Real Property,
ad valorem and Production Taxes,

		  	  
 (k) up to twice a year at Loan Parties’ expense (in addition
to the Reserve Reports required to be delivered pursuant to clauses (f) and (g) above), a Reserve Report, prepared by a qualified independent third party in accordance with the procedures used in the Initial Reserve Report, and together with each
such Reserve Report, a certificate of an Authorized

			
		  	 Officer of each Borrower certifying that, to the best of his or her knowledge that: (i) such Borrower owns good and defensible title to
its Oil and Gas Properties evaluated in such Reserve Report and such Properties are free and clear of all Liens except for Permitted Liens, (ii) except as set forth on an exhibit to the certificate, on a net basis there are no gas imbalances,
take-or-pay or other prepayments with respect to its Oil and Gas Properties evaluated in such Reserve Report which would require such Borrower to deliver Hydrocarbons produced from such Oil and Gas Properties or make cash payments at some future
time without then or thereafter receiving full payment therefore, (iii) except as set forth on an exhibit to the certificate, none of such Borrower’s Oil and Gas Properties have been sold since the date of the Reserve Report, which exhibit
shall list all of such Borrower’s Oil and Gas Properties sold and in such detail as is reasonably required by Agent, (iv) attached as an exhibit to the certificate is a list of its Oil and Gas Properties added to and deleted from the Reserve
Report most recently delivered and a list of all Persons disbursing proceeds to such Borrower, as applicable, from its Oil and Gas Properties, (v) attached to the certificate as an exhibit is a list of all of the Oil and Gas Properties of such
Borrower evaluated by such Reserve Report that are subject to a Mortgage, a Security Agreement and UCC financing statements, that in each case create a perfected, first priority Lien in such Oil and Gas Properties in favor of Agent, and (vi)
except as set forth and explained on an exhibit to such certificate, there has not been any change in the working interest or net revenue interest of such Borrower in any of the Oil and Gas Properties included on such Reserve Report since the date
of the last certificate delivered, and

		  	
		  	(l) such other reports as to the Collateral or the financial condition of Loan Parties, as Agent may reasonably request.

  

 Annex II 
 Schedule 5.3 
 Deliver to Agent, with copies to
each Lender, each of the financial statements, reports, or other items set forth set forth below at the following times in form satisfactory to Agent: 
  

			
	Commencing on September 30, 2007 and as soon as available, but in any event within 45 days after the end of each month thereafter during each of Parent’s fiscal
years	  	 (a) each month, an unaudiated consolidated and consolidating balance sheet, income statement, and statement of cash flow covering
Parent’s and its Subsidiaries’ operations during such period,
  
 (b) each quarter, an unaudiated consolidated and consolidating balance sheet, income statement, and statement of cash flow covering Parent’s and its Subsidiaries’ operations during such period, and
  
 (c) a Compliance Certificate.

		  	
	as soon as available, but in any event within 90 days after the end of each of Parent’s fiscal years (or 3 Business Days after the Third Amendment Effective Date in the case of
fiscal year 2009)	  	 (d) consolidated and consolidating financial statements of Parent and its Subsidiaries for each such fiscal year, audited, in the case
of consolidated financial statements, by independent certified public accountants reasonably acceptable to Agent and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B)
qualification or exception as to the scope of such audit, or (C) qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the
effect of which would be to cause any noncompliance with the provisions of Section 6.16), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and
statement of cash flow and, if prepared, such accountants’ letter to management), and
  
 (e) a Compliance Certificate.

		  	
	as soon as available, but in any event within 30 days prior to the start of each of Parent’s fiscal years,	  	(f) copies of Parent’s Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Agent, in its Permitted Discretion, for the
forthcoming fiscal year, month by month, certified by the chief financial officer of Parent as being such officer’s good faith estimate of the financial performance of Parent during the period covered thereby.
		  	
	if and when filed by any Borrower,	  	(g) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,

			
		  	 (h) any other filings made by any Loan Party with the SEC, and
  
 (i) any other information that is provided by a Loan Party to its shareholders
generally.

		  	
	promptly, but in any event within 10 days after a Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default,	  	(j) notice of such event or condition and a statement of the curative action that Loan Parties propose to take with respect thereto.
		  	
	promptly, but in any event within 10 days after a Loan Party has knowledge of any labor negotiations or strikes or termination or cancellation of any Material Contract,	  	(k) notice of such event or condition and a statement of the curative action that Loan Parties propose to take with respect thereto.
		  	
	promptly after the commencement thereof, but in any event within 10 days after the service of process with respect thereto on any Borrower or any Subsidiary of a
Borrower,	  	(l) notice of all actions, suits, or proceedings brought by or against any Loan Party or any Subsidiary of a Loan Party before any Governmental Authority which reasonably could be
expected to result in a Material Adverse Change.
		  	
	promptly after sending or receipt thereof,	  	(m) copies of any material notice or other correspondence sent to, or received from, any Governmental Authority related to the Oil and Gas Properties of any Loan Party, including,
without limitation, notice of any new plugging and abandonment or other performance or other assurance bond requirements related to such Oil and Gas Properties.

			
	promptly after receipt or delivery thereof,	  	(n) (i) copies of any material notices that any Loan Party receives from or sends to any person in connection with any Material Contract and (ii) at least 3 Business Days prior to
the effective date thereof, any amendments, modifications, waivers or other changes to any such documents.
		  	
	upon the request of Agent,	  	(o) any other information reasonably requested relating to the financial condition of Loan Parties or their Subsidiaries.

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