Document:

Third Amendment to Credit Agreement

 Exhibit 10.1 

 
  

 
  
 

 
 THIRD AMENDMENT TO CREDIT
AGREEMENT 
 dated as of December 3, 2012 

among 

Memorial Production Operating LLC, 
 as Borrower, 
 The Guarantors Party Hereto, 

Wells Fargo Bank, National Association, 
 as Administrative Agent, 
 JPMorgan Chase Bank, N.A., 

as Syndication Agent, 
 Royal Bank of Canada, The Royal Bank of Scotland plc, Union Bank, N.A., and 

Comerica Bank, 
 as Co-Documentation Agents, 
 and 

The Lenders Party Hereto 
  

 
 Wells Fargo
Securities, LLC and J.P. Morgan Securities LLC 
 Co-Lead Arrangers and Joint Bookrunners 

 
  

 

 THIRD AMENDMENT TO 

CREDIT AGREEMENT 

This THIRD AMENDMENT TO CREDIT AGREEMENT (this
“Third Amendment”), dated as of December 3, 2012 (the “Third Amendment Effective Date”), is among MEMORIAL PRODUCTION OPERATING LLC, a limited liability company
formed under the laws of the State of Delaware (the “Borrower”); MEMORIAL PRODUCTION PARTNERS LP, a limited partnership formed under the laws of the State of Delaware (the
“Parent”); each of the other undersigned guarantors (the “Other Guarantors”, and together with the Borrower and the Parent, the “Loan Parties”); each of the Lenders that is a signatory hereto; and
WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”).

 Recitals 
 A.     The Borrower, the Parent, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of December 14, 2011 (as amended prior to the date
hereof, the “Credit Agreement”), pursuant to which the Lenders have, subject to the terms and conditions set forth therein, made certain credit available to and on behalf of the Borrower. 

B.     The Borrower has advised the Administrative Agent and the Lenders that the Borrower has
entered into that certain Purchase and Sale Agreement dated as of November 19, 2012 and attached hereto as Exhibit A (such version, the “Rise Acquisition Agreement”, and together with all bills of sale, assignments,
agreements, instruments and documents executed and delivered in connection therewith, as amended, the “Rise Acquisition Documents”), among Rise Energy Partners, LP, a Texas limited partnership (the “Seller”), and
the Borrower pursuant to which the Borrower will (i) directly acquire all of the Equity Interests in Rise Energy Operating, LLC, a Delaware limited liability company (“Rise Energy Operating”), and (ii) indirectly acquire
(a) all of the Equity Interests in each Wholly-Owned Subsidiary of Rise Energy Operating (together with Rise Energy Operating, but excluding Beta Operating Company, LLC, the “Rise Entity Loan Parties”), (b) all of the
Equity Interests in San Pedro Bay Pipeline Company, a California corporation (“San Pedro Bay”) that are owned by the Rise Entity Loan parties, (c) all of the Swap Agreements owned by the Rise Entity Loan Parties, and
(d) all of the Oil and Gas Properties owned by the Rise Entity Loan Parties (such Oil and Gas Properties include, without limitation, those listed on Exhibits A through C of the Rise Acquisition Agreement, and the Oil and Gas
Properties listed on Exhibits A through C of the Rise Acquisition Agreement, together with the Swap Agreements listed on Exhibit J to the Rise Acquisition Agreement, are collectively referred to herein as the “Rise
Assets”), in each case as more particularly described in the Rise Acquisition Agreement (such acquisition is referred to herein as the “Rise Acquisition”). The Borrower has further advised that, in connection with the Rise
Acquisition, Rise Energy Operating will transfer its Equity Interests in Beta Operating Company, LLC to Memorial Resource Development LLC for nominal consideration. 

C.     The Borrower has advised the Administrative Agent and the Lenders that the Borrower may
finance all or a part of the Rise Acquisition by incurring subordinated and unsecured indebtedness from the Seller. 

  
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 D.     The parties hereto desire to (i) amend the
Credit Agreement in certain respects including, without limitation, to provide the Borrower with the ability to incur such subordinated and unsecured indebtedness from the Seller, to be effective as of the Third Amendment Effective Date, and
(ii) provide for the automatic increase of the Borrowing Base to an amount equal to the sum of (a) the Borrowing Base in effect immediately prior to the consummation of the Rise Acquisition plus (b) the Rise Acquisition
Borrowing Base Increase Amount (as defined below), which increase is to be effective following (or substantially contemporaneously with) the consummation of the Rise Acquisition on the Rise Acquisition Closing Date (as defined below). 

E.     The Borrower has requested that The Royal Bank of Scotland plc and Natixis (each a
“New Lender” and, collectively, the “New Lenders”) become Lenders hereunder with Maximum Credit Amounts in the amounts as shown on Annex I to the Credit Agreement (as amended hereby). 

F.     Texas Capital Bank, N.A. has assigned all of its rights and obligations as a Lender under the
Credit Agreement to Wells Fargo Bank, National Association in accordance with Section 12.04 of the Credit Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 
 Section 1.     Defined Terms. Each capitalized term
which is defined in the Credit Agreement, but which is not defined in this Third Amendment, shall have the meaning ascribed such term in the Credit Agreement, as amended hereby. Unless otherwise indicated, all section references in this Third
Amendment refer to the Credit Agreement. 
 Section 2.     Amendments as of Third
Amendment Effective Date. In reliance on the representations, warranties, covenants and agreements contained in this Third Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the
Credit Agreement shall be amended effective as of the Third Amendment Effective Date in the manner provided in this Section 2. 
 2.1     Additional Definitions. Section 1.02 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in
full as follows: 
 “Annualized Consolidated EBITDAX” means, if
the Rise Acquisition is consummated, for the purposes of calculating the financial ratios set forth in Section 9.01 for the Rolling Periods ending on or prior to September 30, 2013, the sum of (a) Consolidated EBITDAX for such Rolling
Period (without giving effect to any amounts added to Consolidated Net Income in the calculation thereof pursuant to clause (k) of the definition thereof) multiplied by the factor for such Rolling Period set forth in the table below plus
(b) any amounts added to Consolidated Net Income in the calculation of Consolidated EBITDAX pursuant to clause (k) of the definition thereof for such Rolling Period: 

  
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	 Rolling Period Ending
  
	 	 Factor

 

	 March 31, 2013
	 	 4

 

	
June 30, 2013
	 	 2

 

	
September 30, 2013
	 	 4/3

 

 “Annualized Consolidated Net Interest
Expense” means, if the Rise Acquisition is consummated, for the purposes of calculating the financial ratios set forth in Section 9.01(a) for the Rolling Periods ending on or prior to September 30, 2013, the Consolidated Net
Interest Expense for such Rolling Period multiplied by the factor for such Rolling Period set forth in the table below: 
  

			
	 Rolling Period Ending
  
	 	 Factor

 

	 March 31, 2013

 
	 	 4

 

	 June 30, 2013
  
	 	 2

 

	 September 30, 2013
  
	 	 4/3

 

 “Beta Operating Company” means
Beta Operating Company, LLC, a Delaware limited liability company. 

“Beta Operating Transfer” means the assignment by Rise Energy Operating
of 100% of the Equity Interests in Beta Operating Company to Memorial Resource Development LLC for nominal consideration; provided that (a) such assignment occurs substantially contemporaneously with, and in any event within fifteen
(15) Business Days following, the Rise Acquisition Closing Date, (b) Beta Operating Company does not own, directly or indirectly, any Oil and Gas Properties at the time of such assignment, and (c) Beta Operating Company is not a
Material Subsidiary at the time of such assignment. 
 “Permitted Rise
Acquisition Debt” means Debt incurred by the Borrower and owing to Rise Energy Partners, LP on the Rise Acquisition Closing Date to finance all or part of the Rise Acquisition; provided that such Debt shall, in each case: (a) be
in an aggregate principal amount not to exceed $162,000,000; (b) be unsecured; (c) not provide for any scheduled payment of principal, scheduled mandatory Redemption or scheduled sinking fund payment on or before the date that is
(i) if 100% of such Debt is held by or owed to a Person or Persons that are under the Sole Management Control of the NGP Parties, 16 months following the Rise Acquisition Closing Date, or (ii) if less than 100% of such Debt is held by or

  
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owed to a Person or Persons that are under the Sole Management Control of the NGP Parties, at least 180 days following the Maturity Date in effect at the time of issuance; (d) be evidenced
and governed by documentation containing terms and conditions that are satisfactory to the Administrative Agent and the Majority Lenders in their sole discretion (provided, that the terms and conditions contained in the Permitted Rise Acquisition
Debt Term Sheet shall be deemed satisfactory to the Administrative Agent and the Majority Lenders, and the terms and conditions contained in the definitive loan documentation of such Permitted Rise Acquisition Debt transaction shall be deemed
satisfactory to the Administrative Agent and the Majority Lenders if the terms and conditions of such definitive loan documentation reflect the terms and conditions set forth in the Permitted Rise Acquisition Debt Term Sheet (or any other term sheet
that has been approved by the Administrative Agent and the Majority Lenders) and are otherwise reasonably acceptable to the Administrative Agent); and (e) at all times be subject to an Intercreditor Agreement. 

“Permitted Rise Acquisition Debt Documents” means, each promissory note
or other loan agreement governing Permitted Rise Acquisition Debt, all guarantees of Permitted Rise Acquisition Debt and all other agreements, documents or instruments executed and delivered by any Loan Party in connection with, or pursuant to, the
incurrence of Permitted Rise Acquisition Debt. 
 “Permitted Rise
Acquisition Debt Term Sheet” means that certain Summary Term Sheet setting forth the terms and conditions of the Permitted Rise Acquisition Debt, which Summary Term Sheet was provided by the Borrower and posted to the Lenders on SyndTrak on
November 6, 2012. 
 “Rise Acquisition” has the meaning
given to such term in the Third Amendment. 
 “Rise Acquisition
Agreement” has the meaning given to such term in the Third Amendment, as such agreement may be amended from time to time to the extent permitted under this Agreement. 

“Rise Acquisition Closing Date” has the meaning given to such term in
the Third Amendment. 
 “Rise Assets” has the meaning given to
such term in the Third Amendment. 
 “Rise Energy Operating”
means Rise Energy Operating, LLC, a Delaware limited liability company. 

“Rise Intercreditor Agreement” means the Intercreditor Agreement
attached as Exhibit B to the Third Amendment. 

  
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 “Sole Management Control”
means, with respect to any Person, the ability, through voting power, by contract or otherwise, directly or indirectly, to direct or cause the direction of the management or policies of such Person without requiring the approval, consent or vote of
any other holder of Equity Interests in such Person. 
 “Third
Amendment” means that certain Third Amendment to Credit Agreement dated as of December 3, 2012, among the Borrower, the Parent, the other Guarantors, the Administrative Agent and the Lenders. 

“Total Funded Debt” means, at any date, all Debt of the Parent and the
Consolidated Subsidiaries on a consolidated basis other than (a) contingent obligations in respect of Debt described in clause (b) of the definition of “Debt”, (b) Debt described in clauses (c), (i), (j), (k), (l) and
(m) of the definition of “Debt”, and (c) Debt described in clauses (f) or (g) of the definition of “Debt” in respect of Debt of others described in clauses (a), (b) or (c) of this definition.

 2.2     Amended Definitions. The definitions of “Consolidated
EBITDAX”, “Intercreditor Agreement”, “Loan Documents”, “Restricted Payment”, “Rolling Period”, and “Specified Acquisition” contained in Section 1.02
of the Credit Agreement are hereby amended and restated in its entirety to read in full as follows: 
 “Consolidated EBITDAX” means, with respect to the Parent and the Consolidated Subsidiaries, for any period, Consolidated Net Income for such period plus, without duplication and to the
extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) interest expense (including realized and unrealized losses on interest rate derivative contracts); (b) income tax expense;
(c) depreciation, depletion and amortization expense; (d) impairment of goodwill and long-lived assets (including Oil and Gas Properties); (e) accretion of asset retirement obligations; (f) unrealized losses on commodity
derivative contracts; (g) realized losses upon the early termination or other monetization of commodity derivative contracts; (h) losses on sale of assets; (i) noncash unit-based compensation expenses; (j) exploration costs; and
(k) fees and expenses expensed and paid in cash in connection with any registered offering of Equity Interests in the Parent; minus, without duplication and to the extent included in the statement of such Consolidated Net Income for such
period, the sum of interest income (including realized and unrealized gains on interest rate derivative contracts); income tax benefit; unrealized gains on commodity derivative contracts; realized gains upon the early termination or other
monetization of commodity derivative contracts; and gains on sales of assets. For the purposes of calculating Consolidated EBITDAX for any period of four consecutive fiscal quarters (each, a “Reference Period”) pursuant to any
determination of the financial ratio contained in Section 9.01(a), if during such Reference Period, the Parent or any Consolidated Subsidiary shall have made a Material Disposition or Material Acquisition, the Consolidated EBITDAX for such
Reference Period shall be calculated after giving pro forma effect thereto as if such Material Disposition or Material 

  
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Acquisition, as applicable, occurred on the first day of such Reference Period. As used in this definition, “Material Acquisition” means any acquisition of Property or series of
related acquisitions of Property that involves the payment of consideration by the Parent and the Consolidated Subsidiaries in excess of (1) $10,000,000 in the aggregate during a fiscal quarter or (2) $6,000,000 for any single acquisition
or series of related acquisitions of Property; and “Material Disposition” means any disposition of Property or series of related dispositions of Property that yields gross proceeds to the Parent or any of the Consolidated
Subsidiaries in excess of (1) $10,000,000 in the aggregate during a fiscal quarter or (2) $6,000,000 for any single disposition or series of related dispositions of Property. 

“Intercreditor Agreement” means each intercreditor and subordination
agreement entered into among the Borrower, the Administrative Agent and the applicable lender or administrative agent with respect to the Permitted Second Lien Debt or Permitted Rise Acquisition Debt, which agreement shall be in form and substance
satisfactory to the Administrative Agent and the Majority Lenders in their sole discretion, as the same may be amended, modified, supplemented or restated from time to time. 

“Loan Documents” means this Agreement, the First Amendment, the Second
Amendment, the Third Amendment, the Notes, each Intercreditor Agreement, the Letter of Credit Agreements, the Letters of Credit, the Agency Fee Letter, and the Security Instruments. 

“Restricted Payment” means any dividend or other distribution (whether
in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any of the other Loan Parties, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account
of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of the other Loan Parties or any option, warrant or other right to acquire any such Equity Interests in the
Borrower or any of the other Loan Parties. For the sake of clarity, the Beta Operating Transfer is not a Restricted Payment and shall not constitute a distribution by any Loan Party of Property to its Equity Interest holders. 

“Rolling Period” means (a) if the Rise Acquisition is consummated,
(i) for the fiscal quarter ending on December 31, 2012, the period of four (4) consecutive fiscal quarters ending on such day, (ii) for the fiscal quarters ending on March 31, 2013, June 30, 2013 and
September 30, 2013, the period commencing on January 1, 2013 and ending on the last day of such applicable fiscal quarter and (iii) for the fiscal quarter ending on December 31, 2013, and for each fiscal quarter thereafter, the
period of four (4) consecutive fiscal quarters ending on the last day of such applicable fiscal quarter, and (b) if the Rise Acquisition has not been consummated as of the last day of any fiscal quarter, the period of four
(4) consecutive fiscal quarters ending on the last day of such applicable fiscal quarter. 

  
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 “Specified Acquisition”
means (a) the Rise Acquisition so long as, at the time any Loan Party enters into any Swap Agreements with respect to the reasonably anticipated projected production from proved Oil and Gas Properties included in the Rise Assets, the ratio of
Availability to the then effective Borrowing Base is at least 0.10 to 1.0, and (b) any other Acquisition for which: (i) a binding and enforceable purchase and sale agreement has been signed by a Loan Party; and (ii) at the time of the
signing of the applicable purchase and sale agreement, the ratio of Availability to the then effective Borrowing Base is at least 0.10 to 1.0. 
 2.3     Amendment to Section 1.05 of the Credit Agreement. Section 1.05 of the Credit Agreement is hereby amended to add the following language at the end of such
Section: 
 Notwithstanding anything herein to the contrary, for the purposes of
calculating any of the ratios tested under Section 9.01, and the components of each of such ratios, all Subsidiaries that are not Guarantors, and their subsidiaries (including their assets, liabilities, income, losses, cash flows, and the
elements thereof) shall be excluded, except for any cash dividends or distributions actually paid by any such Person or any of its subsidiaries to the Borrower or any other Loan Party, which shall be deemed to be income to the Borrower or such Loan
Party when actually received by it. 
 2.4     Amendment to Section 2.07(a) of the
Credit Agreement. The last sentence of Section 2.07(a) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows: 

Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments
from time to time pursuant to Section 2.07(e), Section 2.07(f), Section 2.07(g), or Section 8.13(c). 
 2.5     Amendment to Section 2.07(d) of the Credit Agreement. The first sentence of the last paragraph of Section 2.07(d) of the Credit Agreement is hereby amended and
restated in its entirety to read in full as follows: 
 Such amount shall then
become the Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing Base under Section 2.07(e), Section 2.07(f), Section 2.07(g), or
Section 8.13(c), whichever occurs first. 
 2.6     New Section 2.07(g) of the
Credit Agreement. A new Section 2.07(g) is hereby added to the Credit Agreement immediately following Section 2.07(f) thereof, which shall read in full as follows: 

(g)     Reduction in the Borrowing Base – Permitted Rise
Acquisition Debt. In addition to the other automatic reductions of the Borrowing Base set forth herein, if, as of any date, Permitted Rise Acquisition Debt remains outstanding and any principal amount of such Permitted Rise Acquisition Debt
becomes due and payable within 180 days following such date, the Required 

  
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Lenders may, in their sole discretion, by instructing the Administrative Agent to notify the Borrower thereof, cause the Borrowing Base to be reduced by an amount up to 25% of the total principal
amount of the then outstanding Permitted Rise Acquisition Debt; provided that (i) such redetermination shall not be counted towards the maximum number of Interim Redeterminations that may be requested by the Required Lenders pursuant to
Section 2.07(b), (ii) upon any such redetermination, the Administrative Agent shall promptly deliver a New Borrowing Base Notice to the Borrower and the Lenders, and (iii) such redetermination shall become effective as of the date
such New Borrowing Base Notice is received by the Borrower. 
 2.7     Amendment to
Section 3.04(c)(ii) of the Credit Agreement. Section 3.04(c)(ii) of the Credit Agreement is hereby amended by deleting the reference to “(other than Section 2.07(e) or Section 2.07(f))” and inserting in lieu thereof
a reference to “(other than Section 2.07(e), Section 2.07(f) or Section 2.07(g))”. 

2.8     Amendment to Section 3.04(c)(iii) of the Credit Agreement.
Section 3.04(c)(iii) of the Credit Agreement is hereby amended by deleting the reference to “Section 2.07(e) or Section 2.07(f)” and inserting in lieu thereof a reference to “Section 2.07(e), Section 2.07(f) or
Section 2.07(g)”. 
 2.9     Amendment to Section 8.01(d) of the Credit
Agreement. Section 8.01(d) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows: 

(d)     Certificate of Financial Officer -- Consolidating
Information. If, at any time, all of the Consolidated Subsidiaries of the Parent are not Loan Parties, then concurrently with any delivery of financial statements under Section 8.01(a) or Section 8.01(b), a certificate of a Financial
Officer setting forth consolidating spreadsheets that show all Consolidated Subsidiaries that are not Loan Parties and the eliminating entries, in such form as would be presentable to the auditors of the Parent. 

2.10     Amendment to Section 8.01(m) of the Credit Agreement. Section 8.01(m) of
the Credit Agreement is hereby amended and restated in its entirety to read in full as follows: 
 (m)     Issuance of Permitted Senior Unsecured Notes and Incurrence of Permitted Second Lien Debt or Permitted Rise Acquisition Debt. In the event the Parent or the Borrower
intends to issue Permitted Senior Unsecured Notes, prior written notice of such intended offering of such Permitted Senior Unsecured Notes, the amount thereof, and the anticipated date of closing and promptly when available will furnish a copy of
the preliminary offering memorandum (if any) and the final offering memorandum (if any). In the event the Borrower intends to incur Permitted Second Lien Debt, prior written notice of such intended incurrence, the amount thereof, and the anticipated
date of closing, which notice shall include a copy of the term sheet relating to such Permitted Second Lien Debt for the review and approval of the Administrative Agent and the Majority Lenders and the Borrower will subsequently (but prior to the
execution thereof) furnish the 

  
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material documents governing the Permitted Second Lien Debt to the Administrative Agent for approval. In the event the Borrower intends to incur Permitted Rise Acquisition Debt, prior written
notice of such intended incurrence, the amount thereof, and the anticipated date of closing, which notice shall include a copy of the term sheet relating to such Permitted Rise Acquisition Debt (if different from the Permitted Rise Acquisition Debt
Term Sheet) for the review and approval of the Administrative Agent and the Majority Lenders and the Borrower will subsequently (but prior to the execution thereof) furnish the material documents governing the Permitted Rise Acquisition Debt to the
Administrative Agent for approval. 
 2.11     Amendment to Section 8.14(b) of the
Credit Agreement. Section 8.14(b) of the Credit Agreement is hereby amended by deleting the reference to “Permitted Additional Debt” contained therein and inserting in lieu thereof a reference to “Permitted Additional Debt or
Permitted Rise Acquisition Debt”. 
 2.12     Amendments to Section 9.01 of the
Credit Agreement. 
 (a)     Section 9.01(a) of the Credit Agreement is hereby
amended and restated in its entirety to read in full as follows: 

(a)     Interest Coverage Ratio. The Borrower will not, as
of the last day of any fiscal quarter, permit the Parent’s ratio of (i) Consolidated EBITDAX (or, if the Rise Acquisition is consummated, Annualized Consolidated EBITDAX for the Rolling Periods ending on March 31,
2013, June 30, 2013 and September 30, 2013) for the Rolling Period ending on such day to (ii) Consolidated Net Interest Expense (or, if the Rise Acquisition is consummated, Annualized Consolidated Net Interest Expense for the
Rolling Periods ending on March 31, 2013, June 30, 2013 and September 30, 2013) for the Rolling Period ending on such day to be less than 2.50 to 1.00. 

(b)     A new Section 9.01(c) is hereby added to the Credit Agreement immediately following
Section 9.01(b) thereof, which shall read in full as follows: 

(c)     Total Leverage Ratio. The Borrower will not, as of
the last day of any fiscal quarter commencing with the fiscal quarter ending March 31, 2013 on which any Permitted Rise Acquisition Debt remains outstanding, permit the Parent’s ratio of (i) Total Funded Debt as of such day to
(ii) Consolidated EBITDAX (or Annualized Consolidated EBITDAX for the Rolling Periods ending on March 31, 2013, June 30, 2013 and September 30, 2013) for the Rolling Period ending on such day to be greater than 4.75 to 1.00.

  
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 2.13     Amendment to Section 9.02 of the Credit Agreement.
Clauses (f) and (g) of Section 9.02 of the Credit Agreement are hereby deleted and replaced with the following: 
 (f)     Debt under the Permitted Senior Unsecured Notes and guarantees thereof by any Loan Party; provided that in no event shall any Permitted Senior Unsecured Notes be
permitted to be outstanding at any time any Permitted Rise Acquisition Debt is outstanding; 
 (g)     Permitted Second Lien Debt and guarantees thereof by any Loan Party; provided that in no event shall any Permitted Second Lien Debt be permitted to be outstanding at any
time any Permitted Rise Acquisition Debt is outstanding; 

(h)     Permitted Rise Acquisition Debt and guarantees thereof by any
Loan Party; provided that in no event shall any Permitted Rise Acquisition Debt be permitted to be outstanding at any time any Permitted Senior Unsecured Notes or any Permitted Second Lien Debt remains outstanding; and 

(i)     other Debt not to exceed $15,000,000 in the aggregate at any
one time outstanding. 
 2.14     Amendments to Section 9.04 of the Credit
Agreement. Section 9.04 of the Credit Agreement is hereby amended by replacing the reference to “Permitted Additional Debt” in the heading of such Section with a reference to “Permitted Additional Debt and Permitted Rise
Acquisition Debt” and by amending and restating clause (b) of such Section in its entirety as follows: 
 (b)     Repayment of Permitted Additional Debt and Permitted Rise Acquisition Debt; Amendment of Terms of Permitted Additional Debt Documents and Permitted Rise Acquisition
Documents. The Borrower will not, and will not permit any other Loan Party to, prior to the date that is 180 days after the Maturity Date: 

(i)     call, make or offer to make any optional or voluntary
Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) any Permitted Additional Debt, except that, so long as no Default exists, the Borrower may, substantially contemporaneously with its receipt of any cash
proceeds from (A) any incurrence of Permitted Additional Debt or (B) any sale of Equity Interests in the Borrower or the Parent, prepay or otherwise Redeem Permitted Additional Debt in an amount equal to the amount of the net cash proceeds
of such incurrence of Permitted Additional Debt or such sale of Equity Interests (other than Disqualified Capital Stock) of the Borrower or the Parent; 

(ii)     call, make or offer to make any scheduled, optional or
voluntary Redemption of, or otherwise Redeem (whether in whole or in part or at maturity or otherwise) any Permitted Rise Acquisition Debt, except that, so long as no Default exists, the Borrower may: 

  
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 (A)     prepay or
otherwise Redeem Permitted Rise Acquisition Debt in an amount equal to the amount of net cash proceeds received by the Borrower from one or both of 

(1)     any incurrence of Debt permitted under clauses (f),
(g) and/or (i) of Section 9.02 that, together with any cash proceeds received substantially contemporaneously therewith from the sale of Equity Interests in the Borrower or the Parent pursuant to the following clause (2), results in
aggregate cash proceeds sufficient to repay in full any Permitted Rise Acquisition Debt then outstanding, or 
 (2)     any sale of Equity Interests in the Borrower or the Parent (other than Disqualified Capital Stock); 

provided, that any such prepayment or Redemption of any Permitted Rise Acquisition Debt
pursuant to this clause (A) shall occur substantially contemporaneously with the Borrower’s receipt of any such cash proceeds, 

(B)     permit the holders of the Permitted Rise Acquisition Debt
to convert such Permitted Rise Acquisition Debt into Equity Interests in the Parent, and 
 (C)     set off against the Permitted Rise Acquisition Debt any amount owed to the Borrower under Section 11.2 of the Rise Acquisition Agreement; 

(iii)     make any cash payment of interest in respect of Permitted
Rise Acquisition Debt if any Default or Borrowing Base Deficiency exists at such time; 
 (iv)     amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of the Permitted Additional Debt
Documents (except to the extent a new incurrence of Permitted Additional Debt the proceeds of which were used to Redeem such existing Permitted Additional Debt pursuant to the foregoing clause (i) would be permitted to have such terms as so
amended, modified, waived or otherwise changed) if the effect thereof would be to (A) shorten its maturity or average life, (B) increase the amount of any payment of principal thereof, (C) increase the rate or shorten any period for
payment of interest thereon, or (D) modify or amend covenants or events of default such that the resulting covenants and events of default in respect thereof, taken as a whole, are more restrictive with respect to the Loan Parties than the
covenants and Events of Default in this Agreement without this Agreement being contemporaneously amended to add similar provisions (as determined in good faith by senior management of the General Partner); or 

  
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 (v)     amend, modify,
waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of the Permitted Rise Acquisition Debt Documents except to the extent permitted under the Rise Intercreditor Agreement.

 2.15     Amendment to Section 9.05 of the Credit Agreement. Clause
(g) of Section 9.05 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 (g)     Investments (i) made by the Parent in or to the Borrower or any of the Guarantors, (ii) made by any Subsidiary in or to the Borrower or any Guarantor, (iii) made
by Rise Energy Operating, LLC, a Delaware limited liability company, and Rise Energy Beta, LLC, a Delaware limited liability company, in San Pedro Bay Pipeline Company, a California corporation, prior to the Rise Acquisition Closing Date, and
(iv) in an aggregate amount at any one time outstanding not to exceed $15,000,000, made by the Parent or any other Loan Party in or to all other Domestic Subsidiaries which are not Guarantors; and 

2.16     Amendments to Section 9.12 of the Credit Agreement. Section 9.12 of the
Credit Agreement is hereby amended by (a) deleting the reference to “and” at the end of clause (d) thereof, and (b) deleting clause (e) thereof and inserting in lieu thereof the following clauses (e) and
(f) which shall read in full as follows: 
  

	 	(e)	the Beta Operating Transfer; and 

 (f)     sales and other dispositions of Properties not regulated by Section 9.12(a) to (e) having a fair market value not to exceed $5,000,000 in the aggregate during any
12-month period. 
 2.17     Amendment to Section 9.18 of the Credit Agreement.
Clause (b) of Section 9.18 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 “(b)     Swap Agreements that would be permitted by clause (a) hereof pertaining to Oil and Gas Properties to be acquired pursuant to a Specified Acquisition; provided
that Swap Agreements pursuant to this Section 9.18(b) must be Liquidated upon the earlier to occur of: (i) the date that is 90 days after the execution of the purchase and sale agreement relating to the Specified Acquisition to the extent
that such Specified Acquisition has not been consummated by such date, (ii) any Loan Party knows with reasonable certainty that the Specified Acquisition will not be consummated, and (iii) in the case of the Rise Acquisition, the date that
is 30 days following the date any Loan Party enters into any such Swap Agreement with respect to the expected production from the Rise Assets if, as of such date, no binding and enforceable purchase and sale agreement has been signed by a Loan Party
with respect to the Rise Acquisition, and” 

  
 Page 12

 2.18     Amendment to Section 11.12 of the
Credit Agreement. Section 11.12 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows: 

Section 11.12 Intercreditor Agreements.     The Lenders
hereby authorize the Administrative Agent to enter into any intercreditor agreement with any Secured Swap Provider and any Intercreditor Agreement with respect to any Permitted Second Lien Debt or Permitted Rise Acquisition Debt. Each Lender (by
receiving the benefits thereunder and of the collateral pledged pursuant to the Security Instruments) agrees that the terms of each such intercreditor agreement and Intercreditor Agreement shall be binding on such Lender and its successors and
assigns, as if it were a party thereto. 
 2.19     Replacement of Annex I. Annex I
to the Credit Agreement is hereby replaced in its entirety with Annex I attached hereto and Annex I attached hereto shall be deemed to be attached as Annex I to the Credit Agreement. After giving effect to this Third Amendment and any
Borrowings made on the Third Amendment Effective Date, (a) each Lender who holds Loans in an aggregate amount less than its Applicable Percentage (after giving effect to this Third Amendment) of all Loans shall advance new Loans which shall be
disbursed to the Administrative Agent and used to repay Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all Loans, (b) each Lender’s participation in each Letter of Credit,
if any, shall be automatically adjusted to equal its Applicable Percentage (after giving effect to this Third Amendment), (c) such other adjustments shall be made as the Administrative Agent shall specify so that the Revolving Credit Exposure
applicable to each Lender equals its Applicable Percentage (after giving effect to this Third Amendment) of the aggregate Revolving Credit Exposure of all Lenders and (d) the Borrower shall be required to make any break-funding payments
required under Section 5.02 of the Credit Agreement resulting from the Loans and adjustments described in this Section 2.19. 
 Section 3.     Borrowing Base Increase upon Consummation of the Rise Acquisition. In reliance on the representations, warranties, covenants and agreements contained in this
Third Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 5 hereof, the Loan Parties, Administrative Agent, and Lenders hereby agree that the Borrowing Base shall be redetermined and automatically
increased to an amount equal to the sum of (x) the Borrowing Base in effect immediately prior to the consummation of the Rise Acquisition plus (y) the Rise Acquisition Borrowing Base Increase Amount, which increase is to be effective
following the consummation of the Rise Acquisition on the Rise Acquisition Closing Date. The Borrowing Base shall remain at such level until the next Scheduled Redetermination, the next Interim Redetermination or other adjustment to the Borrowing
Base thereafter, whichever occurs first pursuant to the Credit Agreement as amended hereby. The redetermination of the Borrowing Base provided for in this Section 3 shall not be construed or deemed to be a Scheduled Redetermination or an
Interim Redetermination for purposes of Section 2.07 of the Credit Agreement. As used herein, “Rise Acquisition Borrowing Base Increase Amount” shall mean (a) $80,000,000, or (b) if the final Netherland, Sewell and
Associates, Inc. reserve report for the Rise Assets (the “Final Reserve Report”) demonstrates lower reserves than the previous version of the reserve report for the Rise Assets provided to the Administrative Agent and the Lenders
(the “Previous Reserve Report”), $80,000,000 less the Reserve Difference (as defined below). The “Reserve Difference” is the amount, if any, by which (i) the value to the Borrowing Base of the Rise Assets as
determined by the Administrative Agent in its sole discretion using its customary lending criteria based on the engineering data for the Rise Assets set forth in the Previous Reserve Report exceeds (ii) the value to the Borrowing Base of the
Rise Assets 

  
 Page 13

 
as determined by the Administrative Agent in its sole discretion using its customary lending criteria based on the engineering data for the Rise Assets set forth in the Final Reserve Report. The
Administrative Agent shall notify the Borrower and the Lenders in writing on or prior to the Rise Acquisition Closing Date of the “Rise Acquisition Borrowing Base Increase Amount”. 

Section 4.     Conditions Precedent to this Third Amendment. The effectiveness of the
amendments to the Credit Agreement contained in Section 2 and Section 6 hereof, and the increase of the Borrowing Base set forth in Section 3 hereof is subject to the following: 

4.1     The Administrative Agent shall have received counterparts of this Third Amendment from the
Loan Parties and each of the Lenders. 
 4.2     The Administrative Agent shall have
received all fees and other amounts due and payable on or prior to the effective date of this Third Amendment. 

4.3     The Administrative Agent shall have received a duly executed Note payable to Wells Fargo
Bank, National Association in a principal amount equal to its Maximum Credit Amount (as amended by Section 2.19 hereof) dated as of the date hereof. 

4.4     The Administrative Agent shall have received such other documents as the Administrative Agent
or counsel to the Administrative Agent may reasonably request. 
 The Administrative Agent shall notify the
Borrower and the Lenders of the effectiveness of this Third Amendment, and such notice shall be conclusive and binding. 
 Section 5.     Conditions to Borrowing Base Increase upon the Rise Acquisition. The increase of the Borrowing Base provided for in Section 3 hereof shall only
occur to the extent that each of the following conditions is satisfied: 
 5.1     Each of
the conditions set forth in Section 4 hereof shall have been satisfied. 

5.2     The closing date of the Rise Acquisition (the “Rise Acquisition Closing
Date”) occurs on or prior to January 31, 2013. 
 5.3     The Administrative
Agent shall have received (a) a certificate of a Responsible Officer of the Borrower certifying: (i) that the Borrower is concurrently consummating the Rise Acquisition and indirectly acquiring all of the Rise Assets in accordance with all
Governmental Requirements and the terms of the Rise Acquisition Documents, with all of the material conditions precedent thereto having been satisfied in all material respects by the parties thereto and with no provision of such Rise Acquisition
Documents having been waived, amended, supplemented or otherwise modified in any material respect without the approval of the Administrative Agent (such approval not to be unreasonably withheld, conditioned or delayed; provided, that, for the
avoidance of doubt, it shall be reasonable for the Administrative Agent to withhold its consent to any such waiver or amendment that removes any Oil and Gas Properties (other than a waiver or amendment which removes up to $2,000,000 of Oil and Gas
Properties (as determined by the Administrative Agent) from the Rise Assets)); and (ii) as to the final purchase price for the Equity Interests in Rise Energy Operating after giving effect to all adjustments as of the Rise Acquisition Closing
Date and specifying, by category, the amount of 

  
 Page 14

 
such adjustment; (b) original counterparts or copies, certified as true and complete by a Responsible Officer of the Borrower, of each of the Rise Acquisition Documents not previously
delivered and certified to the Administrative Agent, which Rise Acquisition Documents shall have terms and conditions reasonably satisfactory to the Administrative Agent; and (c) such other related documents and information as the
Administrative Agent shall have reasonably requested. 
 5.4     No Default, Event of
Default, or Borrowing Base Deficiency exists immediately prior to or after giving effect to such increase in the Borrowing Base. 
 5.5     After giving effect to the Rise Acquisition and any additional title information and Security Instruments delivered by the Borrower to the Administrative Agent in connection
therewith, (A) the Administrative Agent shall have received title information satisfactory to it on at least 80% of the total value of the Oil and Gas Properties evaluated in the most recent Reserve Report (as supplemented by any applicable
Reserve Reports relating to the Rise Assets) and (B) the Mortgaged Properties shall represent at least 80% of the total value of the Oil and Gas Properties evaluated in the most recent Reserve Report (as supplemented by any applicable Reserve
Reports relating to the Rise Assets). 
 5.6     The Administrative Agent shall have
received, for the benefit of each Increasing Lender (as defined below), a Borrowing Base increase fee for each such Increasing Lender in an amount equal to forty (40) basis points (0.40%) of the amount of such Increasing Lender’s Increased
Commitment (as defined below). As used herein, “Increasing Lender” means each Lender (including the New Lenders) whose Commitment after giving effect to Section 6.1 and Section 3 hereof exceeds such Lender’s
Commitment, if any, that was in effect immediately prior to giving effect to this Third Amendment, and “Increased Commitment” means the amount of such excess. 

5.7     The Administrative Agent shall be reasonably satisfied with the environmental condition of
the Rise Assets. 
 5.8     The Administrative Agent shall have received evidence reasonably
satisfactory to the Administrative Agent, that concurrently with the funding of any Loans on the Rise Acquisition Closing Date and application of the proceeds thereof, all Liens encumbering (a) the Equity Interests in the Rise Entity Loan
Parties, (b) the other Equity Interests owned by the Rise Entity Loan Parties, (c) the Rise Assets, and (d) all other Property of the Rise Entity Loan Parties will be released (other than the Liens securing the Indebtedness and
created pursuant to the Security Instruments and Excepted Liens identified in clauses (a) to (d) and (f) of the definition thereof, subject to the provisos at the end of such definition). 

5.9     The Administrative Agent shall have received (a) such duly executed Security Instruments
including, without limitation, such supplements and amendments to the Security Agreement and the Guaranty Agreement as necessary pursuant to which (i) each Rise Entity Loan Party becomes a Guarantor, (ii) each Rise Entity Loan Party grants
to the Administrative Agent a perfected, first-priority security interest in substantially all of the material tangible and intangible personal property assets of such Rise Entity Loan Party, (iii) the Loan Parties grant to the Administrative
Agent a perfected, first-priority security interest in the Equity Interests in the 

  
 Page 15

 
Rise Entity Loan Parties and in San Pedro Bay owned by each such Loan Party, and (b) such other stock certificates, stock powers, closing documents, certificates, authorization resolutions,
Organizational Documents and legal opinions, in each case as shall be reasonably requested by, and in form and substance reasonably satisfactory to, the Administrative Agent. 

5.10     The Parent shall have filed a Form S-1 on or after November 20, 2012 with the SEC with
respect to the issuance of additional Equity Interests in the Parent in a minimum amount of $162,000,000. 

5.11     The Administrative Agent and the Lenders shall have received and had a sufficient
opportunity to review the Final Reserve Report. 
 5.12     The Administrative Agent shall
have received duly executed Notes payable to each Lender requesting a Note in a principal amount equal to its Maximum Credit Amount (as amended by Section 6.1 hereof) dated as of the Rise Acquisition Closing Date. 

5.13     The Administrative Agent shall have received such other documents as the Administrative
Agent or counsel to the Administrative Agent may reasonably request. 
 Promptly upon receipt of any replacement
Note under Section 5.12 hereof, each Lender shall return to the Administrative Agent (for delivery to the Borrower for cancellation) any other Note in such Lender’s possession that was previously delivered to such Lender under the
Credit Agreement. If the Rise Acquisition Closing Date does not occur, and the conditions set forth in this Section 5 are not satisfied, on or prior to January 31, 2013, any Lender with a Maximum Credit Amount of $0.00 shall
automatically cease to be a Lender for all purposes under the Credit Agreement and the other Loan Documents as of February 1, 2013. 
 Section 6.     Amendments as of Rise Acquisition Closing Date. In reliance on the representations, warranties, covenants and agreements contained in this Third Amendment,
and subject to the satisfaction of the conditions precedent set forth in Section 5 hereof, the Credit Agreement shall be automatically amended (without any further action required by any party) effective as of the Rise Acquisition
Closing Date in the manner provided in this Section 6. 
 6.1     Replacement
of Annex I. Annex I to the Credit Agreement shall be replaced in its entirety with Annex I-A attached hereto and Annex I-A attached hereto shall be deemed to be attached as Annex I to the Credit Agreement. After giving effect to
this Section 6.1 and any Borrowings made on the Rise Acquisition Closing Date, (a) each Lender who holds Loans in an aggregate amount less than its Applicable Percentage (after giving effect to this Section 6.1) of all
Loans shall advance new Loans which shall be disbursed to the Administrative Agent and used to repay Loans outstanding to each Lender who holds Loans in an aggregate amount greater than its Applicable Percentage of all Loans, (b) each
Lender’s participation in each Letter of Credit, if any, shall be automatically adjusted to equal its Applicable Percentage (after giving effect to this Section 6.1), (c) such other adjustments shall be made as the
Administrative Agent shall specify so that the Revolving Credit Exposure applicable to each Lender equals its Applicable Percentage (after giving effect to this Section 6.1) of the aggregate Revolving Credit Exposure of all Lenders and
(d) the Borrower shall be required to make any break-funding payments required under Section 5.02 of the Credit Agreement resulting from the Loans and adjustments described in this Section 6.1. 

  
 Page 16

 Section 7.     New Lenders. Each New Lender
hereby joins in, becomes a party to, and agrees to comply with and be bound by the terms and conditions of the Credit Agreement as a Lender thereunder and under each and every other Loan Document to which any Lender is required to be bound by the
Credit Agreement as amended hereby, to the same extent as if such New Lender were an original signatory thereto. Each New Lender hereby appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers and discretion under the Credit Agreement as amended hereby as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto. Each New Lender represents and
warrants that (a) it has full power and authority, and has taken all action necessary, to execute and deliver this Third Amendment, to consummate the transactions contemplated hereby and to become a party to, and a Lender under, the Credit
Agreement as amended hereby, (b) it has received a copy of the Credit Agreement and copies of the most recent financial statements delivered pursuant to Section 8.01 thereof, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Third Amendment and to become a Lender on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any
other Lender, and (c) from and after the Third Amendment Effective Date, it shall be a party to and be bound by the provisions of the Credit Agreement as amended hereby and the other Loan Documents and have the rights and obligations of a
Lender thereunder. 
 Section 8.     Permitted Rise Acquisition Debt Intercreditor
Agreement. Each Lender hereby consents to the terms of, and authorizes the Administrative Agent to enter into in the event that the Borrower incurs Permitted Rise Acquisition Debt, a form of Intercreditor Agreement with respect to the Permitted
Rise Acquisition Debt that is substantially in the form attached hereto as Exhibit B, and each Lender agrees that the terms of such Intercreditor Agreement shall be binding on such Lender and its successors and assigns, as if it were a party
thereto. 
 Section 9.     Representations and Warranties; Etc. Each Loan Party
hereby affirms: (a) that as of the date hereof, all of the representations and warranties contained in each Loan Document to which such Loan Party is a party are true and correct in all material respects as though made on and as of the date
hereof (unless made as of a specific earlier date, in which case, was true as of such date), (b) no Defaults exist under the Loan Documents or will, after giving effect to this Third Amendment, exist under the Loan Documents and (c) no
Material Adverse Effect has occurred. 
 Section 10.     Miscellaneous.

 10.1     Confirmation and Effect. The provisions of the Credit Agreement (as
amended by this Third Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this Third Amendment. Each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“hereof’, “herein”, or words of like import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference to the Credit Agreement in any other document, instrument or agreement executed and/or
delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby. 

  
 Page 17

 10.2     Ratification and Affirmation of Loan
Parties. Each of the Loan Parties hereby expressly (i) acknowledges the terms of this Third Amendment, (ii) ratifies and affirms its obligations under the Guaranty Agreement and the other Loan Documents to which it is a party,
(iii) acknowledges, renews and extends its continued liability under the Guaranty Agreement and the other Loan Documents to which it is a party and (iv) agrees that its guarantee under the Guaranty Agreement and the other Loan Documents to
which it is a party remains in full force and effect with respect to the Indebtedness as amended hereby. 

10.3     Counterparts. This Third Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Third Amendment by facsimile or electronic (e.g. pdf) transmission shall be
effective as delivery of a manually executed original counterpart hereof. 
 10.4     No
Oral Agreement. THIS WRITTEN THIRD AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. 

10.5     Governing Law. THIS THIRD AMENDMENT
(INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK. 
 10.6    
Payment of Expenses. The Borrower agrees to pay or reimburse the Administrative Agent for all of its out-of-pocket costs and expenses incurred in connection with this Third Amendment, any other documents prepared in connection herewith and
the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent. 
 10.7     Severability. Any provision of this Third Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. 
 10.8     Successors and Assigns. This Third Amendment shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 

[signature pages follow] 

  
 Page 18

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

							
	BORROWER: 	  	 MEMORIAL PRODUCTION OPERATING LLC,
 a Delaware limited liability company

			
		  	      By:  	  	 Memorial Production Partners LP,
 its sole member

			
		  	By:   	  	 Memorial Production Partners GP LLC,
 its general partner

				
		  		  	By:	  	 /s/ Andrew J. Cozby

		  		  	Name:	  	Andrew J. Cozby
		  		  	Title:	  	 Vice President & Chief Financial Officer

		
	GUARANTORS: 	  	 MEMORIAL PRODUCTION PARTNERS LP,
 a Delaware limited partnership

			
		  	 By:   
	  	 Memorial Production Partners GP LLC, its general partner

				
		  		  	By: 	  	 /s/ Andrew J. Cozby

		  		  	Name:	  	Andrew J. Cozby
		  		  	Title:	  	 Vice President & Chief Financial Officer

		
		  	 COLUMBUS ENERGY, LLC,
 a Delaware limited liability company

			
		  	By:   	  	 Memorial Production Operating LLC, its sole member

			
		  	By:   	  	 Memorial Production Partners LP, its sole member

			
		  	By:   	  	 Memorial Production Partners GP LLC, its general partner

				
		  		  	By: 	  	 /s/ Andrew J. Cozby

		  		  	 Name:
	  	Andrew J. Cozby
		  		  	Title:	  	 Vice President & Chief Financial Officer

  
  
  

 

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
		  	ETX I LLC, a Delaware limited liability company
			
		  	      By:  	  	 Memorial Production Operating LLC, its sole member

			
		  	By:   	  	 Memorial Production Partners LP, its sole member

			
		  	By:   	  	 Memorial Production Partners GP LLC, its general partner

				
		  		  	By:	  	 /s/ Andrew J. Cozby

		  		  	Name:	  	Andrew J. Cozby
		  		  	Title:	  	 Vice President & Chief Financial Officer

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

 ADMINISTRATIVE AGENT AND LENDER: 

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Issuing Bank and a Lender
		
	By:  	 	 /s/ Richard A. Gould

	Name: Richard A. Gould
	Title: Managing Director

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	JPMORGAN CHASE BANK, N.A., as a Lender
				
		 		 	By:	 	 /s/ Ryan Aman

		 		 	Name: Ryan Aman
		 		 	Title: Authorized Officer

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	CITIBANK, N.A., as a Lender
				
		 		 	By:	 	 /s/ Phil Ballard

		 		 	 Name: Phil Ballard

Title: Vice-President

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	COMERICA BANK, as a Lender
				
		 		 	By:	 	 /s/ Jeff Treadway

		 		 	 Name: Jeff Treadway

Title: Vice President

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	ROYAL BANK OF CANADA, as a Lender
				
		 		 	By:	 	 /s/ Chris Benton

		 		 	 Name: Chris Benton

Title: Authorized Signatory

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	THE ROYAL BANK OF SCOTLAND PLC, as a Lender
				
		 		 	By:	 	 /s/ Sanjay Remond

		 		 	 Name: Sanjay Remond

Title: Authorised Signatory

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	U.S. BANK NATIONAL ASSOCIATION, as a Lender
				
		 		 	By:	 	/s/ Justin M. Alexander
		 		 	Name: Justin M. Alexander
		 		 	Title: Senior Vice President

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	UNION BANK, N.A., as a Lender
				
		 		 	By:	 	/s/ Haylee Dallas
		 		 	Name: Haylee Dallas
		 		 	Title: Vice President

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	BARCLAYS BANK PLC, as a Lender
				
		 		 	By:	 	/s/ Vanessa A. Kurbatskiy
		 		 	Name: Vanessa A. Kurbatskiy
		 		 	Title: Vice President

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	BANK OF AMERICA, N.A., as a Lender
				
		 		 	By:	 	/s/ Jeffrey Rathkamp
		 		 	Name: Jeffrey Rathkamp
		 		 	Title: Managing Director

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

							
	LENDER:	 		 	NATIXIS, as a Lender
				
		 		 	By:	 	/s/ Louis P. Laville, III
		 		 	Name: Louis P. Laville, III
		 		 	Title: Managing Director

  
  

							
		 		 	By:	 	/s/ Carlos Quinteros
		 		 	Name: Carlos Quinteros
		 		 	Title: Managing Director

  

[SIGNATURE PAGE TO THIRD AMENDMENT TO
CREDIT AGREEMENT - 
 MEMORIAL PRODUCTION OPERATING
LLC] 

 Annex I 
 LIST OF MAXIMUM CREDIT AMOUNTS 
 Aggregate Maximum Credit Amounts

  

					
	Name of Lender	 	Applicable Percentage	 	Maximum Credit
Amount
	 Wells Fargo Bank, National

Association
	 	27.55462576%	 	$275,546,257.61
	 JPMorgan Chase Bank, N.A.
	 	21.21212121%	 	$212,121,212.12
	 Citibank, N.A.
	 	12.12121212%	 	$121,212,121.21
	 Comerica Bank
	 	12.12121212%	 	$121,212,121.21
	 Union Bank, N.A.
	 	9.21052576%	 	$92,105,257.57
	 Royal Bank of Canada
	 	6.06060606%	 	$60,606,060.60
	 U.S. Bank National Association
	 	6.06060606%	 	$60,606,060.60
	 Barclays Bank PLC
	 	3.03030303%	 	$30,303,030.30
	 Bank of America, N.A.
	 	2.62878788%	 	$26,287,878.78
	 The Royal Bank of Scotland plc
	 	0.00000000%	 	$0.00
	 Natixis
	 	0.00000000%	 	$0.00
	 TOTAL
	 	100.00%	 	$1,000,000,000.00

 Annex I-A 
 LIST OF MAXIMUM CREDIT AMOUNTS 
 Aggregate Maximum Credit Amounts

  

					
	Name of Lender	 	Applicable Percentage	 	Maximum Credit
Amount
	 Wells Fargo Bank, National

Association
	 	15.21739130%	 	$152,173,913.06
	 JPMorgan Chase Bank, N.A.
	 	15.21739130%	 	$152,173,913.06
	 The Royal Bank of Scotland plc
	 	9.56521739%	 	$95,652,173.91
	 Comerica Bank
	 	9.56521739%	 	$95,652,173.91
	 Union Bank, N.A.
	 	9.56521739%	 	$95,652,173.91
	 Royal Bank of Canada
	 	9.56521739%	 	$95,652,173.91
	 Citibank, N.A.
	 	6.46739130%	 	$64,673,913.04
	 Natixis
	 	6.46739130%	 	$64,673,913.04
	 Barclays Bank PLC
	 	6.46739130%	 	$64,673,913.04
	 Bank of America, N.A.
	 	6.46739130%	 	$64,673,913.04
	 U.S. Bank National Association
	 	5.43478261%	 	$54,347,826.08
	 TOTAL
	 	100.00%	 	$1,000,000,000.00

 Exhibit A 
 Rise Acquisition Agreement 
 [attached] 

 Exhibit B 
 Form of Permitted Rise Acquisition Debt Intercreditor Agreement 
 [attached]Seventh Supplemental Indenture, dated December 4, 2012

 Exhibit 4.2 
 EXECUTION VERSION 
  
  

PRUDENTIAL FINANCIAL, INC. 
 TO 
 THE BANK OF NEW YORK MELLON 

Trustee 

Seventh Supplemental Indenture 
 Dated as of December 4, 2012 
 5.75% Junior Subordinated Notes due 2052

  
  

 TABLE OF CONTENTS 

 

							
		 		  	 	Page	  
	 ARTICLE ONE DEFINITIONS
	  	 	1	  
			
	 Section 1.01.
	 	Definitions	  	 	1	  
		
	 ARTICLE TWO GENERAL TERMS AND CONDITIONS OF THE NOTES
	  	 	5	  
	 Section 2.01.
	 	Designation and Principal Amount	  	 	5	  
	 Section 2.02.
	 	Maturity	  	 	6	  
	 Section 2.03.
	 	Form	  	 	6	  
	 Section 2.04.
	 	Rate of Interest; Interest Payment Dates	  	 	6	  
	 Section 2.05.
	 	Deferral	  	 	7	  
	 Section 2.06.
	 	Events of Default	  	 	7	  
	 Section 2.07.
	 	Securities Registrar; Paying Agent; Place of Payment	  	 	8	  
	 Section 2.08.
	 	No Sinking Fund	  	 	8	  
	 Section 2.09.
	 	Subordination	  	 	8	  
	 Section 2.10.
	 	Senior Indebtedness	  	 	9	  
	 Section 2.11.
	 	Defeasance	  	 	10	  
		
	 ARTICLE THREE COVENANTS
	  	 	10	  
			
	 Section 3.01.
	 	Dividend and Other Payment Stoppages	  	 	10	  
		
	 ARTICLE FOUR REDEMPTION OF THE NOTES
	  	 	12	  
			
	 Section 4.01.
	 	Redemption	  	 	12	  
		
	 ARTICLE FIVE ORIGINAL ISSUE OF NOTES
	  	 	12	  
			
	 Section 5.01.
	 	Calculation of Original Issue Discount	  	 	12	  
		
	 ARTICLE SIX SUPPLEMENTAL INDENTURES
	  	 	13	  
	 Section 6.01.
	 	Supplemental Indentures without Consent of Holders	  	 	13	  
	 Section 6.02.
	 	Supplemental Indentures with Consent of Holders	  	 	13	  
	 ARTICLE SEVEN MISCELLANEOUS
	  	 	14	  
	 Section 7.01.
	 	Effectiveness	  	 	14	  
	 Section 7.02.
	 	Successors and Assigns	  	 	14	  
	 Section 7.03.
	 	Effect of Recitals	  	 	14	  
	 Section 7.04.
	 	Ratification of Indenture	  	 	14	  
	 Section 7.05.
	 	Tax Treatment	  	 	15	  
	 Section 7.06.
	 	Governing Law	  	 	15	  
	 Section 7.07.
	 	Severability	  	 	15	  
	 Section 7.08.
	 	Consequential Damages and Force Majeure	  	 	15	  

 SEVENTH SUPPLEMENTAL INDENTURE 

Seventh Supplemental Indenture, dated as of December 4, 2012 (the “Supplemental Indenture”), between Prudential
Financial, Inc., a New Jersey corporation (the “Company”), having its principal office at 751 Broad Street, Newark, New Jersey 07102, and The Bank of New York Mellon (formerly known as The Bank of New York), a New York banking
corporation, as trustee (hereinafter called the “Trustee”). 
 RECITALS OF THE COMPANY 

The Company and the Trustee executed and delivered an indenture, dated as of June 17, 2008 (the “Base Indenture”),
to the Trustee to provide for the future issuance of the Company’s subordinated debt securities, to be issued from time to time in one or more series as might be determined by the Company under the Base Indenture. 

Section 901 of the Base Indenture provides that the Company and the Trustee, without the consent of any Holder, may enter into a
supplemental indenture to establish the form or terms of Securities of any series as permitted by Sections 201 and 301 thereof. 

Pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment, authentication and issuance of a new
series of its Securities, the form and terms thereof, as hereinafter set forth. 
 The Company has requested that the Trustee
execute and deliver this Supplemental Indenture. The Company has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate pursuant to Sections 102 and 903 of the Base Indenture to the effect, among other things, that all
conditions precedent provided for in the Base Indenture to the Trustee’s execution and delivery of this Supplemental Indenture have been complied with. All acts and things necessary have been done and performed to make this Supplemental
Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental Indenture has been duly authorized in all respects. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: For and in consideration of the premises and the purchase of the Notes (as herein defined) by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: 
 ARTICLE ONE 

Definitions 

Section 1.01. Definitions 
 For all purposes of this Supplemental Indenture, except as otherwise expressly provided herein or unless the context otherwise requires: 

(a) the terms defined in the Base Indenture have the same meanings when used in this Supplemental Indenture unless otherwise defined
herein; 

  

 (b) the terms defined in this Article have the meanings assigned to them in this article,
and include the plural as well as the singular; 
 (c) any reference to an Article, Section, other subdivision or Exhibit refers
to an Article, Section or other subdivision of, or Exhibit to, this Supplemental Indenture; and 
 (d) the words
“herein”, “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 

In addition, the following terms used in this Supplemental Indenture have the following respective meanings: 

“Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in
The City of New York are authorized or required by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business. 
 “Capital Regulator” means the Board of Governors of the Federal Reserve System, if the Company is then subject to its regulation, or such other agency or instrumentality of the United
States as may have primary oversight of the Company’s regulatory capital. 
 “Company” has the meaning
specified in the Recitals. 
 “Deferral Period” means the period commencing on an Interest Payment Date with
respect to which the Company defers interest pursuant to Section 2.05 and ending on the earlier of (i) the fifth anniversary of that Interest Payment Date and (ii) the next Interest Payment Date on which the Company has paid all
deferred and unpaid amounts (including compounded interest on such deferred amounts) and all other accrued interest on the Notes. 
 “Indenture” means the Base Indenture as supplemented by this Supplemental Indenture, and as further supplemented from time to time with respect to the Notes. 

“Interest Payment Date” has the meaning specified in Section 2.04(b). 

“Interest Period” means the period beginning on and including the date hereof and ending on but excluding the first
Interest Payment Date thereafter and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next Interest Payment Date. 
 “Make-Whole Redemption Price” means, with respect to a redemption of the Notes in whole prior to December 4, 2017, the present value of a principal payment on December 4, 2017
and scheduled payments of interest that would have accrued from the Redemption Date to December 4, 2017 on the Notes being redeemed (excluding any accrued and unpaid interest for the period prior to the Redemption Date), discounted to the
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Rate, plus 0.45%, as determined and provided to the Company by the Treasury Dealer. 

  
 2 

 “Maturity Date” has the meaning specified in Section 2.02. 

“Notes” has the meaning specified in Section 2.01(a). 

“Pari Passu Securities” means (i) the Company’s 8.875% Fixed-to-Floating Rate Junior
Subordinated Notes due 2068, (ii) the Company’s 9.0% Junior Subordinated Notes due 2068, (iii) the Company’s 5.875% Fixed-to-Floating Rate Junior Subordinated Notes due 2042 and (iv) the Company’s 5.625%
Fixed-to-Floating Rate Junior Subordinated Notes due 2043. 
 “Parity Securities” means indebtedness of the
Company that by its terms ranks in right of payment upon liquidation of the Company on a parity with the Notes, including the Pari Passu Securities. 
 “Rating Agency Event” means that any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act that then publishes a rating for
the Company (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Notes, which amendment, clarification or change results in: 

(i) the shortening of the length of time the Notes are assigned a particular level of equity credit by that rating agency
as compared to the length of time they would have been assigned that level of equity credit by that rating agency or its predecessor on the date hereof, or 
 (ii) the lowering of the equity credit (including up to a lesser amount) assigned to the Notes by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on
the date hereof. 
 “Regulatory Capital Event” means that, if (a) the Company is or will be considered to
be a systemically important nonbank financial company (a “nonbank SIFT”) or is or will be otherwise subject to capital adequacy supervision by a Capital Regulator and (b) the capital adequacy guidelines that apply or will apply
to the Company as a nonbank SIFI or as a result of such other capital adequacy supervision (“future federal capital adequacy guidelines”), set forth criteria for qualifying “Tier 2 Capital” (or its equivalent), the Company
makes a good faith determination that, as a result of: 
 (i) any amendment to, or change in, the laws or
regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the date hereof; 
 (ii) any proposed amendment to, or change in, those laws or regulations that is announced or becomes effective after the date hereof; or 

(iii) any official administrative decision or judicial decision or administrative action or other official pronouncement
interpreting or applying those laws or regulations that is announced after the date hereof, 

  
 3 

 
such that, in any such case, there is more than an insubstantial risk that the full principal amount of the Notes outstanding from time to time would not qualify as “Tier 2 Capital” (or
its equivalent) for purposes of the future federal capital adequacy guidelines, as in effect and/or as proposed from time to time to which the Company is or will be subject, for as long as any notes are outstanding; provided that the proposal
or adoption of any criterion set forth in the future federal capital adequacy guidelines that is substantially the same as the corresponding criterion in either the capital adequacy guidelines applicable to bank holding companies as of date hereof
or such guidelines as proposed in the June 2012 joint notice of proposed rulemaking to implement the capital provisions of the Basel Committee on Banking Supervision for U.S. banking institutions will not constitute a Regulatory Capital Event.

 “Supplemental Indenture” means this instrument as originally executed or as it from time to time may be
supplemented or amended by one or more agreements supplemental hereto. 
 “Tax Event” means the receipt by the
Company of an opinion of independent counsel experienced in such matters to the effect that, as a result of any: 

(i) amendment to or change (including any officially announced proposed change) in the laws or regulations of the United
States or any political subdivision or taxing authority of or in the United States that is enacted or effective on or after the date hereof; 
 (ii) official administrative decision or judicial decision or administrative action or other official pronouncement (including a private letter ruling, technical advice memorandum or other similar
pronouncement) by any court, government agency or regulatory authority that reflects an amendment to, or change in, the interpretation or application of those laws or regulations that is announced on or after the date hereof; or 

(iii) threatened challenge asserted in connection with an audit of the Company, or a threatened challenge asserted in
writing against any taxpayer that has raised capital through the issuance of securities that are substantially similar to the Notes, which challenge is asserted against the Company or becomes publicly known on or after the date hereof, 

there is more than an insubstantial increase in the risk that interest payable by the Company on the Notes is not, or within 90 days of the date of such
opinion will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes. 
 “Treasury
Dealer” means one of Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC (or their successors), as selected by the Company, or if all of the
foregoing refuse to act as Treasury Dealers for the purpose of determining the Make-Whole Redemption Price or cease to be primary U.S. government securities dealers, another nationally recognized investment banking firm that is a primary U.S.
government securities dealer specified by the Company to act as Treasury Dealer for the purpose of determining the Make-Whole Redemption Price. 

  
 4 

 “Treasury Price” means, with respect to a Redemption Date, the bid-side
price for the Treasury Security as of the third trading day preceding the Redemption Date, as set forth in the Wall Street Journal in the table entitled “Treasury Bonds, Notes and Bills”, except that: (i) if that table (or any
successor table) is not published or does not contain that price information on that trading day or (ii) if the Treasury Dealer determines that the price information is not reasonably reflective of the actual bid-side price of the Treasury
Security prevailing at 3:30 p.m., New York City time, on that trading day, then Treasury Price will instead mean the bid-side price for the Treasury Security at or around 3:30 p.m., New York City time, on that trading day (expressed on a next
trading day settlement basis) as determined by the Treasury Dealer through such alternative means as are commercially reasonable under the circumstances. 
 “Treasury Rate” means, with respect to a Redemption Date, the semi-annual equivalent yield to maturity of the Treasury Security that corresponds to the Treasury Price (calculated by the
Treasury Dealer in accordance with standard market practice and computed by the Treasury Dealer as of the second trading day preceding the Redemption Date). 
 “Treasury Security” means the United States Treasury security that the Treasury Dealer determines would be appropriate to use, at the time of determination and in accordance with standard
market practice, in pricing the Notes being redeemed in a tender offer based on a spread to United States Treasury yields. 

ARTICLE TWO 
 General Terms and Conditions of the Notes 
 Section 2.01. Designation and Principal
Amount 
  

	 	(a)	Designation 

 Pursuant to
Section 301 of the Base Indenture, there is hereby established a series of Securities of the Company designated as the 5.75% Junior Subordinated Notes due 2052 (the “Notes”), the principal amount of which to be issued shall be
in accordance with Section 2.01(b) and as set forth in a Company Order for the authentication and delivery of Notes pursuant to the Base Indenture, and the form and terms of which shall be as set forth hereinafter. 

 

	 	(b)	Principal Amount; Additional Notes 

 Notes in an initial aggregate principal amount of $500,000,000 upon execution of this Supplemental Indenture, shall be executed by the Company and delivered to the Trustee, and the Trustee shall thereupon
authenticate and deliver said Notes in accordance with a Company Order. The Company may execute and deliver to the Trustee, and the Trustee shall thereupon authenticate and deliver said Notes in accordance with a Company Order, up to an additional
$75,000,000 principal amount of Notes pursuant to the exercise of the underwriters’ over-allotment option under the Underwriting Agreement, dated November 27, 2012, among the Company and Morgan Stanley & Co. LLC, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC, as representatives of the several underwriters. At any time and from time to time after the date hereof, without the consent of any

  
 5 

 
Holders of the Notes, the Company may execute and deliver additional Notes, in addition to the $500,000,000 initial aggregate principal amount previously provided for and in addition to the
principal amount of any Notes delivered pursuant to the exercise of the underwriters’ over-allotment option, to the Trustee for authentication, together with a Company Order for the authentication and delivery of such additional Notes, so long
as such additional Notes are fungible for U.S. federal income tax purposes with the Notes issued as of the date hereof. Any additional Notes so issued shall have the same terms and conditions as the Notes issued on the date hereof in all respects,
except for any difference in the issue date, issue price, interest accrued prior to the issue date of the additional Notes and first Interest Payment Date and shall be governed by this Supplemental Indenture and shall rank equally and ratably in
right of payment with the Notes issued on the date of this Supplemental Indenture and, together with the Notes issued as of the date of this Supplemental Indenture, shall be treated as a single series of Notes for all purposes. 

Section 2.02. Maturity 
 The Notes will mature on December 15, 2052 (the “Maturity Date”). If the Maturity Date is not a Business Day, payment of principal and interest to be made on the Maturity Date shall
be made on the next Business Day (but no interest shall accrue as a result of that postponement). 
 Section 2.03. Form 

The Notes shall be substantially in the form of Exhibit A, shall include the Trustee’s certificate of authentication in the form
required by Section 205 of the Base Indenture and shall be issued in fully registered definitive form without interest coupons. 
 The Notes initially are issuable solely as Global Securities and shall bear the legend required by Section 204 of the Base Indenture. 

The Depositary for the Notes initially shall be the Depository Trust Company (or any successor thereto). 

Section 2.04. Rate of Interest; Interest Payment Dates 
  

	 	(a)	Rate of Interest; Accrual 

The Notes shall bear interest on their principal amount from and including December 4, 2012, to but excluding, the Maturity Date, or
any earlier Redemption Date, at the rate of 5.75% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months. Defaulted Interest and interest deferred pursuant to Section 2.05 will bear interest, to the extent
permitted by law, at such interest rate, from and including the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. 
  

	 	(b)	Interest Payment Dates 

Subject to Section 2.05, accrued interest on the Notes shall be payable quarterly in arrears on March 15, June 15, September 15 and
December 15 of each year, beginning on March 15, 2013 

  
 6 

 
(each such date, an “Interest Payment Date”), or if any such day is not a Business Day, the next Business Day (but no interest will accrue as a result of that postponement), to
the Holders of the Notes at the close of business on the immediately preceding March 1, June 1, September 1 and December 1 (whether or not a Business Day), as the case may be. 
 Section 2.05. Deferral 
  

	 	(a)	Option to Defer Interest Payments 

 (i) So long as no Event of Default with respect to the Notes has occurred or is continuing, the Company shall have the right, at any time and from time to time, to defer the payment of interest on the
Notes for one or more consecutive Interest Periods that do not exceed five years for any single Deferral Period, provided that no Deferral Period shall extend beyond the Maturity Date, any earlier accelerated maturity date arising from an
Event of Default or any other earlier redemption of the Notes. If the Company has paid all deferred interest (including compounded interest thereon) on the Notes, the Company shall have the right to elect to begin a new Deferral Period pursuant to
this Section 2.05(a). 
 (ii) At the end of any Deferral Period, the Company shall pay all deferred
interest (including compounded interest thereon) on the Notes to the Persons in whose names the Notes are registered in the Securities Register at the close of business on the Regular Record Date with respect to the Interest Payment Date at the end
of such Deferral Period. 
  

	 	(b)	Notice of Deferral 

 The
Company shall give written notice of its election to commence or continue any Deferral Period to the Trustee and the Holders of the Notes at least one Business Day and not more than 60 Business Days before the next Interest Payment Date. Such notice
shall be given to the Trustee and each Holder of Notes at such Holder’s address appearing in the Security Register by first-class mail, postage prepaid. 
 Section 2.06. Events of Default 
 (a) Clauses (1) through
(4) of Section 501 of the Base Indenture shall not apply to the Notes. Clauses (5) and (6) of Section 501 of the Base Indenture shall apply to the Notes. 

(b) If an Event of Default specified in Clause (5) or (6) of Section 501 of the Base Indenture occurs, the principal
amount of all the Notes shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
 (c) The Trustee shall provide to the Holders of the Notes notice of any Event of Default or default with respect to the Notes within 90 days after the actual knowledge of a Responsible Officer of the
Trustee of such Event of Default or default. However, except in the case of a default in payment on the Notes, the Trustee will be protected in withholding the notice if one of its Responsible Officers determines that withholding of the notice is in
the interest of such Holders. 

  
 7 

 (d) The Trustee shall have no right or obligation under the Indenture or otherwise to
exercise any remedies on behalf of any Holders of the Notes pursuant to the Indenture in connection with any default, unless such remedies are available under the Indenture and the Trustee is directed to exercise such remedies pursuant to and
subject to the conditions of Section 512 of the Base Indenture, provided, however, that this provision shall not affect the rights of the Trustee with respect to any Events of Default as set forth in Section 2.06(b) that may
occur with respect to the Notes. In connection with any such exercise of remedies the Trustee shall be entitled to the same immunities and protections and remedial rights (other than acceleration) as if such default were an Event of Default.

 (e) For purposes of this Section 2.06, the term “default” means any of the following events: 

(i) default in the payment of interest, including compounded interest, in full on any Notes for a period of 30 days after
the conclusion of a five-year period following the commencement of any Deferral Period if such Deferral Period has not ended prior to the conclusion of such five-year period; 

(ii) default in the payment of principal of or premium, if any, on the Notes when due; or 

(iii) default in the observance or performance of any covenant or agreement contained in the Indenture or the Notes.

 Section 2.07. Securities Registrar; Paying Agent; Place of Payment 

The Company appoints the Trustee as Securities Registrar and Paying Agent with respect to the Notes. The Place of Payment for the Notes
will be as specified in the Notes. 
 Section 2.08. No Sinking Fund 

The Notes shall not be subject to Article Thirteen of the Base Indenture. 
 Section 2.09. Subordination 
 The subordination provisions of
Article Eleven of the Base Indenture shall apply to the Notes, except that solely for purposes of the Notes, Section 1103 of the Base Indenture shall be amended as follows: 

 

	 	(a)	Clauses (a) and (b) of Section 1103 of the Base Indenture shall be deleted and replaced with the following: 

“(a) (1) In the event and during the continuation of any default in the payment of principal, premium, if any, or interest on any
Senior Indebtedness beyond any applicable grace period with respect thereto, 

  
 8 

 
(2) in the event that any event of default with respect to any Senior Indebtedness shall have occurred and be continuing, permitting the direct holders of that Senior Indebtedness (or a
trustee on behalf of the holders thereof) to accelerate maturity of that Senior Indebtedness, whether or not the maturity is in fact accelerated (unless, in the case of either subclause (1) or (2) of this clause (a), the payment default or
event of default has been cured or waived or ceased to exist and any related acceleration has been rescinded), or (3) in the event that any judicial proceeding shall be pending with respect to a payment default or event of default described in
subclause (1) or (2) of this clause (a), no payment or distribution of any kind or character, whether in cash, securities or other property, shall be made by the Company on account of the principal of or interest on the Notes unless and
until all amounts then due and payable in respect of such Senior Indebtedness, including any interest accrued after such event occurs, shall have been paid in full.” 

 

	 	(b)	Clause “(c)” of Section 1103 of the Base Indenture shall be renumbered clause “(b)”; and 

 

	 	(c)	Clause “(d)” of Section 1103 of the Base Indenture shall be renumbered clause “(c)”. 

Section 2.10. Senior Indebtedness 
 Solely for the purposes of the Notes, the definition of “Senior Indebtedness” in Section 101 of the Base Indenture shall be deleted and replaced by the following: 

“Senior Indebtedness” means the principal of, premium, if any, and interest on and any other payment due pursuant to any
of the following, whether Incurred on or prior to the date hereof or hereafter Incurred: 
 (i) all obligations
of the Company (other than obligations pursuant to the Notes and obligations pursuant to the Indenture with respect thereto) for money borrowed; 
 (ii) all obligations of the Company evidenced by securities, notes, debentures, bonds or other similar instruments (other than the Notes), including obligations Incurred in connection with the acquisition
of property, assets or businesses; 
 (iii) all capital lease obligations of the Company; 

(iv) all reimbursement obligations of the Company with respect to letters of credit, bankers’ acceptances or similar
facilities issued for the account of the Company; 
 (v) all obligations of the Company issued or assumed as the
deferred purchase price of property or services, including all obligations under master lease transactions pursuant to which the Company or any of its subsidiaries have agreed to be treated as owner of the subject property for U.S. federal income
tax purposes; 

  
 9 

 (vi) all payment obligations of the Company under interest rate swap or
similar agreements or foreign currency hedge, exchange or similar agreements at the time of determination, including any such obligations Incurred by the Company solely to act as a hedge against increases in interest rates that may occur under the
terms of other outstanding variable or floating rate indebtedness of the Company; and 
 (vii) all obligations of
the type referred to in clauses (i) through (vi) above of another Person and all dividends of another Person the payment of which, in either case, the Company has assumed or guaranteed or for which the Company is responsible or liable,
directly or indirectly, jointly or severally, as obligor, guarantor or otherwise; 
 provided, however, that
“Senior Indebtedness” shall not include: (1) obligations to trade creditors created or assumed by the Company in the ordinary course of business, (2) indebtedness that is by its terms subordinate, or not superior, in right of
payment to the Notes or (3) the Company’s Pari Passu Securities.” 
 Section 2.11. Defeasance 

The provisions of Section 1402 of the Base Indenture (relating to discharge of the Indenture) shall apply to the Notes. For purposes
of Section 1404(2) of the Base Indenture as applicable to the Notes, the Opinion of Counsel referred to therein shall be an independent counsel satisfactory to the Trustee, and the words “gain or loss” in the eighth line of
Section 1404(2) shall be replaced by the words “income, gain or loss”. 
 ARTICLE THREE 

Covenants 

Section 3.01. Dividend and Other Payment Stoppages 
 So long as any Notes remain outstanding, (a) if the Company has given notice of its election to defer interest payments on the Notes but the related Deferral Period has not yet commenced, or
(b) a Deferral Period is continuing, the Company shall not, and shall not permit any Subsidiary to: 
 (i)
declare or pay any dividends or other distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of capital stock of the Company; 

(ii) make any payment of principal of, or interest or premium, if any, on, or repay, purchase or redeem any of the
Company’s debt securities that rank upon the Company’s liquidation on a parity with or junior to the Notes; or 
 (iii) make any guarantee payments regarding any guarantee issued by the Company of securities of any Subsidiary if the guarantee ranks upon the Company’s liquidation on a parity with or junior to the
Notes;  
 provided, however, the restrictions in clauses (i), (ii) and (iii) above do not apply
to: 
 (A) any purchase, redemption or other acquisition of shares of its capital stock by the Company in
connection with: 
 (1) any employment contract, benefit plan or other similar arrangement with or for the
benefit of any one or more of its employees, officers, directors, consultants or independent contractors; 

  
 10 

 (2) the satisfaction of the Company’s obligations pursuant to any
contract entered into prior to the beginning of the applicable Deferral Period; 
 (3) a dividend reinvestment or
shareholder purchase plan; or 
 (4) the issuance of shares of the Company’s capital stock, or securities
convertible into or exercisable for such shares, as consideration in an acquisition transaction, the definitive agreement for which is entered into prior to the applicable Deferral Period; 

(B) any exchange, redemption or conversion of any class or series of the Company’s capital stock, or shares of the
capital stock of one of its Subsidiaries, for any other class or series of the Company’s capital stock, or of any class or series of the Company’s indebtedness for any class or series of the Company’s capital stock; 

(C) any purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or
exchange provisions of such shares or the securities being converted or exchanged; 
 (D) any declaration of a
dividend in connection with any shareholder rights plan, or the issuance of rights, stock or other property under any shareholder rights plan, or the redemption or purchase of rights pursuant thereto; or 

(E) any dividend in the form of stock, warrants, options or other rights where the dividend stock issuable upon exercise
of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock; or 
 (F) (i) any payment of current or deferred interest on Parity Securities that is made pro rata to the amounts due on such Parity Securities (including the Notes) and (ii) any payments of
principal or current or deferred interest on Parity Securities that, if not made, would cause the Company to breach the terms of the instrument governing such Parity Securities. 

For the avoidance of doubt, notwithstanding anything herein to the contrary, no terms of the Notes will restrict in any manner the
ability of any of the Subsidiaries to pay dividends or make any distributions to the Company or to any other Subsidiaries. 

  
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 ARTICLE FOUR 
 Redemption of the Notes 
 Section 4.01. Redemption 

(a) The Notes shall be redeemable in accordance with the procedures set forth in Article Twelve of the Base Indenture: 

(i) in whole at any time or in part from time to time on or after December 4, 2017, at 100% of the principal amount
of the Notes being redeemed plus accrued and unpaid interest to but excluding the Redemption Date, provided that no partial redemption shall be effected unless (A) at least $25 million aggregate principal amount of the Notes, excluding
any Notes held by the Company or any of its Affiliates, shall remain outstanding after giving effect to such redemption and (B) all accrued and unpaid interest, including deferred interest, shall have been paid in full on all Outstanding Notes
for all Interest Periods terminating on or before the Redemption Date; 
 (ii) in whole, but not in part, at any
time prior to December 4, 2017, within 90 days after the occurrence of a Tax Event or a Rating Agency Event at the greater of (A) 100% of the principal amount of the Notes being redeemed and (B) the Make-Whole Redemption Price, in
each case plus accrued and unpaid interest to but excluding the Redemption Date; or 
 (iii) in whole, but not in
part, at any time prior to December 4, 2017, within 90 days after the occurrence of a Regulatory Capital Event at 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to but excluding the Redemption Date.

 (b) In the event the Notes are treated as “Tier 2 capital” (or its equivalent) under the capital guidelines of the
Capital Regulator applicable to the Company, any redemption of the Notes shall be subject to the Company’s receipt of any required prior approval from the Capital Regulator and to the satisfaction of any conditions set forth in those capital
guidelines or any other applicable regulations of the Capital Regulator to the redemption by the Company of the Notes. 

ARTICLE FIVE 
 Original Issue of Notes 
 Section 5.01. Calculation of Original Issue Discount

 If during any calendar year any original issue discount shall have accrued on the Notes, the Company shall file with each
Paying Agent (including the Trustee if it is a Paying Agent) promptly at the end of each calendar year (a) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding
Securities as of the end of such year and (b) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time, or Treasury Regulations
enacted thereunder, or other administrative or judicial guidance. 

  
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 ARTICLE SIX 
 Supplemental Indentures 
 Section 6.01. Supplemental Indentures without Consent of
Holders 
 Solely for purposes of the Notes, Section 901 of the Base Indenture shall be deleted and replaced with the
following: 
 “Section 901. Supplemental Indentures without Consent of Holders. 

Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may supplement or amend the Indenture for any of the following purposes: 
 (1) to evidence
the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and in the Notes; or 
 (2) to add to or modify the covenants of the Company for the benefit of the Holders of Notes or to surrender any right or power herein conferred upon the Company (including surrendering of the
Company’s right to redeem the Notes upon the occurrence of the Rating Agency Event); provided that no such amendment or modification may add Events of Default or acceleration events with respect to the Notes; or 

(3) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes;
or 
 (4) to cure any ambiguity, to correct or supplement any provision herein which may be defective or
inconsistent with any other provision herein or in any supplemental indenture, or to make any other provisions with respect to matters or questions arising under this Indenture, provided such action shall not adversely affect the interests of
the Holders of Notes in any material respect; or 
 (5) to make any changes to the Indenture in order to conform
the Indenture to the final prospectus supplement provided to investors in connection with the offering of the Notes.” 

Section 6.02. Supplemental Indentures with Consent of Holders 
 Solely for purposes of the Notes, clauses (1) through (3) of Section 902(a) of the Base Indenture shall be deleted and replaced with the following clauses (1) through (6): 

“(1) change the Stated Maturity of any payment of principal of or interest (including any additional interest) on
the Notes; 
 (2) change the manner of calculating payments due on the Notes in a manner adverse to Holders;

  
 13 

 (3) reduce the requirements contained in the Indenture for quorum or
voting; 
 (4) change the Place of Payment for any payment on the Notes that is adverse to the Holders or change
the currency in which any payment on the Notes is payable; 
 (5) impair the right of any Holder to institute
suit for the enforcement of any payment on the Notes; 
 (6) reduce the percentage in principal amount of
Outstanding Notes, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of the Indenture or certain defaults hereunder and
their consequences; 
 (7) reduce the principal amount of, the rate of interest on or any premium payable upon
the redemption of the Notes; or 
 (8) modify any of the provisions of this Section.” 

ARTICLE SEVEN 
 Miscellaneous 
 Section 7.01. Effectiveness 

This Supplemental Indenture will become effective upon its execution and delivery. 

Section 7.02. Successors and Assigns 
 All covenants and agreements in the Base Indenture, as supplemented and amended by this Supplemental Indenture, by the Company shall bind its successors and assigns, whether so expressed or not.

 Section 7.03. Effect of Recitals 
 The recitals contained herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Trustee does not assume any
responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of the Notes
or the proceeds thereof. 
 Section 7.04. Ratification of Indenture 

The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental
Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

  
 14 

 Section 7.05. Tax Treatment 

The Company and, by acceptance of the Notes or a beneficial interest in the Notes, each Holder and beneficial owner of a Note agree to
treat the Notes as indebtedness for United States federal income tax purposes. 
 Section 7.06. Governing Law 

This Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York.

 Section 7.07. Severability 
 If any provision of the Base Indenture, as supplemented and amended by this Supplemental Indenture, shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same
shall not affect any other provision or provisions herein contained or render the same invalid, inoperative or unenforceable to any extent whatever. 
 Section 7.08. Consequential Damages and Force Majeure 
 (a) In
no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action. 
 (b) In no event shall the Trustee be responsible or liable for
any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, so long as the Trustee maintains and updates from time to
time business continuation and disaster recovery procedures that it determines meet the standards of the industry; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry
to resume performance as soon as practicable under the circumstances. 
 * * * 

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 caused this Supplemental Indenture to be duly
executed as of the day and year first above written. 
  

			
	PRUDENTIAL FINANCIAL, INC.
		
	By:	 	 /s/ Jurgen Muhlhauser

	Name:	 	Jurgen Muhlhauser
	Title:	 	Vice President and Asst. Tresurer

  
 [Signature
Page to Seventh Supplemental Indenture] 

 
			
	 THE BANK OF NEW YORK MELLON,
 as Trustee

		
	By:	 	 /s/ Laurence J. O’Brien

	Name:	 	Laurence J. O’Brien
	Title:	 	Vice President

  

  
 [Signature
Page to Seventh Supplemental Indenture] 

 EXHIBIT A 

FORM OF NOTE 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO
TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	 No.
	  	Principal Amount: $            
		
	 Issue Date:
	  	CUSIP: 744320 607

 PRUDENTIAL FINANCIAL, INC. 
 5.75% JUNIOR SUBORDINATED NOTES DUE 2052 
 Prudential Financial, Inc., a
corporation organized and existing under the laws of the State of New Jersey (hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby
promises to pay to                     or registered assigns, the principal sum
of             dollars ($         ) on December 15, 2052 (the “Maturity Date”), or if such day is not a Business Day (as
defined below), the following Business Day. 
 The Company further promises to pay interest on said principal sum from and
including December 4, 2012 to but excluding December 15, 2052, at the annual rate of 5.75%, (computed on the basis of a 360-day year consisting of twelve 30-day months) quarterly in arrears on
March 15, June 15, September 15 and December 15 of each year, beginning on March 15, 2013 (each, an “Interest Payment Date”), subject to deferral as set forth herein. In the event that any Interest
Payment Date falls on a day that is not a Business Day, the interest payment due on that date will be postponed to the next day that is a Business Day, and no interest will accrue as a result of that postponement. Defaulted Interest and interest
deferred pursuant to said Indenture will bear additional interest to the extent permitted by law, at the rate of 5.75% per 

  
 A-1

 
annum, from and including the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. A “Business Day” shall mean any day other than (i) a
Saturday or Sunday, (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business.

 The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, as provided in said
Indenture, will be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
March 1, June 1, September 1 and December 1 (whether or not a Business Day), as the case may be, immediately preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid, in the case of deferred interest, as provided in the following paragraph, and otherwise to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days
prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture. 
 So long as no Event of Default with respect to this Security has
occurred or is continuing, the Company shall have the right at any time during the term of this Security to defer payment of interest on this Security for one or more consecutive Interest Periods that do not exceed five years for any single Deferral
Period, during which the Company shall have the right to make partial payments of interest on any Interest Payment Date, and at the end of which the Company shall pay all interest then accrued and unpaid; provided, however, that no
Deferral Period shall extend beyond the Maturity Date or the earlier accelerated maturity date arising from an Event of Default or redemption of this Security. Upon the termination of any Deferral Period and upon the payment of all deferred interest
then due, the Company may elect to begin a new Deferral Period, subject to the above requirements. 
 So long as any Securities
of this series remain outstanding, if the Company has given notice of its election to defer interest payments on the Securities but the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Company shall not, and
shall not permit any Subsidiary to, (i) declare or pay any dividends or other distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the Company’s capital stock, (ii) make any
payment of principal of, or interest or premium, if any, on or repay, purchase or redeem any debt securities of the Company that rank upon the Company’s liquidation on a parity with this Security (including the Company’s 8.875%
Fixed-to-Floating Rate Junior Subordinated Notes due 2068, the Company’s 9.0% Junior Subordinated Notes due 2068, the Company’s 5.875% Fixed-to-Floating Rate Junior Subordinated Notes due 2042 and the Company’s 5.625%
Fixed-to-Floating Rate Junior Subordinated Notes due 2043, the “Pari Passu Securities”) or junior to this Security or (iii) make any guarantee payments regarding any guarantee issued by the Company of securities of any
Subsidiary if the guarantee ranks upon the Company’s liquidation on a parity with or junior to this Security (other than (a)

  
 A-2

 
any purchase, redemption or other acquisition of shares of its capital stock in connection with (1) any employment contract, benefit plan or other similar arrangement with or for the benefit
of any one or more of its employees, officers, directors, consultants or independent contractors, (2) the satisfaction of the Company’s obligations pursuant to any contract entered into prior to the beginning of the applicable Deferral
Period, (3) a dividend reinvestment or shareholder purchase plan, or (4) the issuance of shares of the Company’s capital stock, or securities convertible into or exercisable for such shares, as consideration in an acquisition
transaction entered into prior to the applicable Deferral Period, (b) any exchange, redemption or conversion of any class or series of the Company’s capital stock, or the capital stock of one of its Subsidiaries, for any other class or
series of its capital stock, or of any class or series of its indebtedness for any class or series of its capital stock, (c) any purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or
exchange provisions of such shares or the securities being converted or exchanged, (d) any declaration of a dividend in connection with any shareholder rights plan, or the issuance of rights, stock or other property under any shareholder rights
plan, or the redemption or purchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or stock issuable upon exercise of such warrants, options or other rights is the
same stock as that on which the dividend is being paid or ranks equally with or junior to such stock, or (f) (1) any payment of current or deferred interest on Parity Securities that is made pro rata to the amounts due on such Parity
Securities (including the Notes), and (2) any payments of principal or current or deferred interest on Parity Securities that, if not made, would cause the Company to breach the terms of the instrument governing such Parity Securities.

 The Company shall give written notice of its election to commence or continue any Deferral Period to the Trustee and the
Holders of all Securities of this series then Outstanding at least one Business Day and not more than 60 Business Days before the next Interest Payment Date. Such notice shall be given to the Trustee and the Holder of this Security at such
Holder’s address appearing in the Security Register by first-class mail, postage prepaid. 
 Payment of the principal of
(and premium, if any) and interest on this Security will be made at the paying agency office or agency of the Company maintained for that purpose in the United States, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, payment of interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the Securities Register or (ii) by wire transfer in immediately available funds at such place and to such bank account number as may be designated by the Person entitled thereto as specified in the Securities Register in
writing not less than ten days before the relevant Interest Payment Date. 
 The indebtedness evidenced by this Security is, to
the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of
this Security, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on such Holder’s behalf to take such actions as may be necessary or appropriate to effectuate the
subordination so provided and (c) appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. Each Holder hereof, by such Holder’s acceptance hereof, waives all notice of the acceptance of the

  
 A-3

 
subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such Holder upon
said provisions. 
 The Company and, by acceptance of this Security or a beneficial interest in this Security, each Holder and
beneficial owner of this Security agree to treat this Security as indebtedness for United States federal income tax purposes. 

By acceptance of this Security or a beneficial interest in this Security, each Holder hereof and any person acquiring a beneficial
interest herein, agree that either (A) no portion of the assets used by such purchaser to acquire and hold this Security or a beneficial interest in this Security constitutes assets of any (i) employee benefit plan subject to Title I of
the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (ii) any plan, individual retirement accounts and other arrangement subject to Section 4975 of the U.S. Internal Revenue Code of 1986, as
amended (the “Code”) or provisions under any federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, “Similar Laws”), and
(iii) entities whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement within the meaning of Section 3(42) of ERISA as modified by 29 CFR § 2510.3-101 or under any applicable
Similar Laws or (B) the purchase and holding of this Security or a beneficial interest in this Security by such purchaser will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
or a similar violation under any applicable Similar Laws. 
 Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose. 

  
 A-4

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Date: 
  

			
	PRUDENTIAL FINANCIAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 Attest:              

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within mentioned Indenture. 
 Date: 
  

			
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	 By
	 	  

		 	 Authorized Officer

  
 A-5

 (FORM OF REVERSE OF NOTE) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under the Indenture, dated as of June 17, 2008 (herein called the “Base Indenture”), between the Company and The Bank of New York Mellon (formerly known as The Bank of New York), as
trustee (the “Trustee”), as amended and supplemented by the Seventh Supplemental Indenture, dated as of December 4, 2012, between the Company and the Trustee (the “Supplemental Indenture”, and together with the
Base Indenture, the “Indenture”), to which Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Trustee, the Company, the holders of the Senior Indebtedness and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are issuable in
series that may vary as to amount, date of maturity, rate of interest, rank and in any other respect provided in the Indenture. 

All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

The Securities of this series shall be redeemable at the election of the Company in accordance with the terms of the Indenture. In
particular, this Security is redeemable: 
 (a) in whole at any time or in part from time to time on or after
December 4, 2017, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest to but excluding the Redemption Date; provided that if the Securities of this series are not
redeemed in whole, at least $25 million aggregate principal amount of the Outstanding Securities of this series remain outstanding after giving effect to such redemption; 

(b) in whole, but not in part, at any time prior to December 4, 2017, within 90 days after the occurrence of a Tax
Event or a Rating Agency Event, at a redemption price equal to the greater of (i) 100% of the principal amount of the Securities being redeemed or (ii) the Make-Whole Redemption Price, in each case plus accrued and unpaid interest to but
excluding the Redemption Date; or 
 (c) in whole, but not in part, at any time prior to December 4, 2017,
within 90 days after the occurrence of a Regulatory Capital Event, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest to but excluding the Redemption Date. 

Notwithstanding the foregoing, the Company may not redeem the Securities of this series in part unless all accrued and
unpaid interest, including deferred interest, has been paid in full on all Outstanding Securities of this series for all Interest Periods terminating on or before the Redemption Date. 

In the event of a redemption of this Security in part only, a new Security or Securities of this Series and of a like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

  
 A-6

 No sinking fund is provided for the Securities. 

The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of this Security upon compliance by the
Company with certain conditions set forth in the Indenture. 
 The Indenture permits, with certain exceptions as therein
provided, the Company and the Trustee at any time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the
Holders of not less than a majority in principal amount of the Outstanding Securities to be affected by such supplemental indenture. The Indenture also contains provisions permitting Holders of specified percentages in principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the
Indenture, if an Event of Default as set forth in the Indenture occurs, the principal amount of the Securities shall automatically become due and payable; provided that in any such case the payment of principal and interest on such Securities
shall remain subordinated to the extent provided in Article Eleven of the Base Indenture. 
 No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Security at the times, place
and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Securities Register, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained under Section 1002 of the Base Indenture
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee shall have the right to treat and shall treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

  
 A-7

 The Securities are issuable only in registered form without coupons in minimum denominations
of $25 and any integral multiples of $25 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities are exchangeable for a like aggregate principal amount of Securities of a different authorized
denomination, as requested by the Holder surrendering the same. 
 THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

  
 A-8

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned assigns and transfers this 
 Security to: 

 
  
  

 
  

 
  

 
 (Insert assignee’s social
security or tax identification number) 
  
  

 
  
 (Insert address and zip code of assignee) 
 hereby irrevocably constituting and
appointing                                       
                                         
                                         
                
 agent to transfer this Security on the books of
the Securities Registrar. The agent may substitute another to act for him or her. 
  

			
	 Dated:
	  	Signature:
		
		  	  
  
 Signature Guarantee:

 (Sign exactly as your name appears on the other side of this Security) 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Securities Registrar,
which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Securities Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-9

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