Document:

FORM OF SECOND AMENDED & RESTATED DECLARATION OF TRUST & TRUST AGREEMENT

 Exhibit 4.1.1 
 FORM OF SECOND AMENDED AND RESTATED 
 DECLARATION OF TRUST 

AND 

TRUST AGREEMENT 
 OF 
 POWERSHARES DB US DOLLAR INDEX TRUST 

Dated as of December 31, 2010 
 By and Among 
 DB COMMODITY SERVICES LLC 

WILMINGTON TRUST COMPANY 
 and 
 THE UNITHOLDERS 

from time to time hereunder 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	ARTICLE I DEFINITIONS; THE TRUST	  	 	1	  
			
	 SECTION 1.1.
	 	Definitions	  	 	1	  
	 SECTION 1.2.
	 	Name	  	 	9	  
	 SECTION 1.3.
	 	Delaware Trustee; Business Offices	  	 	9	  
	 SECTION 1.4.
	 	Declaration of Trust	  	 	9	  
	 SECTION 1.5.
	 	Purposes and Powers	  	 	10	  
	 SECTION 1.6.
	 	Tax Treatment	  	 	10	  
	 SECTION 1.7.
	 	General Liability of the Managing Owner	  	 	11	  
	 SECTION 1.8.
	 	Legal Title	  	 	11	  
	 SECTION 1.9.
	 	Series Trust	  	 	11	  
		
	ARTICLE II THE TRUSTEE	  	 	12	  
			
	 SECTION 2.1.
	 	Term; Resignation	  	 	12	  
	 SECTION 2.2.
	 	Powers	  	 	12	  
	 SECTION 2.3.
	 	Compensation and Expenses of the Trustee	  	 	12	  
	 SECTION 2.4.
	 	Indemnification	  	 	12	  
	 SECTION 2.5.
	 	Successor Trustee	  	 	13	  
	 SECTION 2.6.
	 	Liability of Trustee	  	 	13	  
	 SECTION 2.7.
	 	Reliance; Advice of Counsel	  	 	14	  
	 SECTION 2.8.
	 	Payments to the Trustee	  	 	15	  
		
	ARTICLE III CAPITAL CONTRIBUTIONS; CREATIONS AND ISSUANCE OF CREATION BASKETS	  	 	15	  
			
	 SECTION 3.1.
	 	General	  	 	15	  
	 SECTION 3.2.
	 	Establishment of Series, or Funds, of the Trust	  	 	16	  
	 SECTION 3.3.
	 	Establishment of Classes and Sub-Classes	  	 	17	  
	 SECTION 3.4.
	 	Offer of Limited Units, Procedures for Creation and Issuance of Creation Baskets	  	 	17	  
	 SECTION 3.5.
	 	Book-Entry-Only System, Fund Global Securities	  	 	19	  
	 SECTION 3.6.
	 	Assets	  	 	22	  
	 SECTION 3.7.
	 	Liabilities of Funds	  	 	22	  
	 SECTION 3.8.
	 	Distributions	  	 	24	  
	 SECTION 3.9.
	 	Voting Rights	  	 	24	  
	 SECTION 3.10.
	 	Equality	  	 	24	  
		
	ARTICLE IV THE MANAGING OWNER	  	 	25	  
			
	 SECTION 4.1.
	 	Management of the Trust	  	 	25	  
	 SECTION 4.2.
	 	Authority of Managing Owner	  	 	25	  
	 SECTION 4.3.
	 	Obligations of the Managing Owner	  	 	26	  

  
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	 SECTION 4.4.
	 	General Prohibitions	  	 	28	  
	 SECTION 4.5.
	 	Liability of Covered Persons	  	 	29	  
	 SECTION 4.6.
	 	Fiduciary Duty	  	 	29	  
	 SECTION 4.7.
	 	Indemnification of the Managing Owner	  	 	30	  
	 SECTION 4.8.
	 	Expenses and Limitations Thereon	  	 	32	  
	 SECTION 4.9.
	 	Compensation to the Managing Owner	  	 	33	  
	 SECTION 4.10.
	 	Other Business of Unitholders	  	 	33	  
	 SECTION 4.11.
	 	Voluntary Withdrawal of the Managing Owner	  	 	33	  
	 SECTION 4.12.
	 	Authorization of Registration Statements	  	 	33	  
	 SECTION 4.13.
	 	Litigation	  	 	34	  
		
	ARTICLE V TRANSFERS OF UNITS	  	 	34	  
			
	 SECTION 5.1.
	 	General Prohibition	  	 	34	  
	 SECTION 5.2.
	 	Transfer of Managing Owner’s General Units	  	 	34	  
	 SECTION 5.3.
	 	Transfer of Limited Units	  	 	35	  
		
	ARTICLE VI CAPITAL ACCOUNTS; ALLOCATIONS	  	 	35	  
			
	 SECTION 6.1.
	 	Capital Accounts	  	 	35	  
	 SECTION 6.2.
	 	Monthly Closing of Books	  	 	36	  
	 SECTION 6.3.
	 	Periodic Allocations	  	 	36	  
	 SECTION 6.4.
	 	Code Section 754 Adjustments	  	 	37	  
	 SECTION 6.5.
	 	Allocation of Profit and Loss for U.S. Federal Income Tax Purposes	  	 	37	  
	 SECTION 6.6.
	 	Effect of Section 754 Election	  	 	38	  
	 SECTION 6.7.
	 	Allocation of Distributions	  	 	38	  
	 SECTION 6.8.
	 	Admissions of Unitholders; Transfers	  	 	38	  
	 SECTION 6.9.
	 	Liability for State and Local and Other Taxes	  	 	39	  
	 SECTION 6.10.
	 	Consent to Methods	  	 	39	  
		
	ARTICLE VII REDEMPTIONS	  	 	39	  
			
	 SECTION 7.1.
	 	Redemption of Redemption Baskets	  	 	39	  
	 SECTION 7.2.
	 	Other Redemption Procedures	  	 	41	  
		
	ARTICLE VIII THE LIMITED OWNERS	  	 	41	  
			
	 SECTION 8.1.
	 	No Management or Control; Limited Liability; Exercise of Rights through DTC	  	 	41	  
	 SECTION 8.2.
	 	Rights and Duties	  	 	41	  
	 SECTION 8.3.
	 	Limitation on Liability	  	 	42	  
		
	ARTICLE IX BOOKS OF ACCOUNT AND REPORTS	  	 	43	  
			
	 SECTION 9.1.
	 	Books of Account	  	 	43	  
	 SECTION 9.2.
	 	Annual Reports and Monthly Statements	  	 	44	  
	 SECTION 9.3.
	 	Tax Information	  	 	44	  

  
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	 SECTION 9.4.
	 	Calculation of Net Asset Value	  	 	44	  
	 SECTION 9.5.
	 	Maintenance of Records	  	 	44	  
	 SECTION 9.6.
	 	Certificate of Trust	  	 	44	  
		
	ARTICLE X FISCAL YEAR	  	 	45	  
			
	 SECTION 10.1.
	 	Fiscal Year	  	 	45	  
		
	ARTICLE XI AMENDMENT OF TRUST AGREEMENT; MEETINGS	  	 	45	  
			
	 SECTION 11.1.
	 	Amendments to this Trust Agreement	  	 	45	  
	 SECTION 11.2.
	 	Meetings of the Trust or the Funds	  	 	47	  
	 SECTION 11.3.
	 	Action Without a Meeting	  	 	47	  
		
	ARTICLE XII TERM	  	 	47	  
			
	 SECTION 12.1.
	 	Term	  	 	47	  
		
	ARTICLE XIII TERMINATION	  	 	48	  
			
	 SECTION 13.1.
	 	Events Requiring Dissolution of the Trust or any Fund	  	 	48	  
	 SECTION 13.2.
	 	Distributions on Dissolution	  	 	49	  
	 SECTION 13.3.
	 	Termination; Certificate of Cancellation	  	 	50	  
		
	ARTICLE XIV POWER OF ATTORNEY	  	 	50	  
			
	 SECTION 14.1.
	 	Power of Attorney Executed Concurrently	  	 	50	  
	 SECTION 14.2.
	 	Effect of Executing and Submitting the Purchase Order Subscription Agreement	  	 	51	  
	 SECTION 14.3.
	 	Limitation on Power of Attorney	  	 	51	  
		
	ARTICLE XV MISCELLANEOUS	  	 	51	  
			
	 SECTION 15.1.
	 	Governing Law	  	 	51	  
	 SECTION 15.2.
	 	Provisions In Conflict With Law or Regulations	  	 	52	  
	 SECTION 15.3.
	 	Construction	  	 	52	  
	 SECTION 15.4.
	 	Notices	  	 	52	  
	 SECTION 15.5.
	 	Counterparts	  	 	53	  
	 SECTION 15.6.
	 	Binding Nature of Trust Agreement	  	 	53	  
	 SECTION 15.7.
	 	No Legal Title to Trust Estate	  	 	53	  
	 SECTION 15.8.
	 	Creditors	  	 	53	  
	 SECTION 15.9.
	 	Integration	  	 	53	  
	 SECTION 15.10.
	 	Goodwill; Use of Name	  	 	53	  
	
	EXHIBIT A	  
	 Certificate of Trust
	  	 	A-1	  
	EXHIBIT B	  
	 Description of the Indexes
	  	 	B-1	  
	EXHIBIT C	  
	 Form of Global Certificate
	  	 	C-1	  
	EXHIBIT D	  
	 Form of Participant Agreement
	  	 	D-1	  

  
 iii

 POWERSHARES DB US DOLLAR INDEX TRUST 

SECOND AMENDED AND RESTATED 
 DECLARATION OF TRUST 
 AND TRUST AGREEMENT 

This SECOND AMENDED AND RESTATED DECLARATION OF TRUST AND TRUST AGREEMENT of POWERSHARES DB US DOLLAR INDEX
TRUST is made and entered into as promptly as reasonably practicable and after the determination of the net asset value of each series of DB US Dollar Index Master Trust on the 31st day of December, 2010, by and among DB COMMODITY SERVICES LLC, a Delaware limited liability company,
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as trustee, and the UNITHOLDERS from time to time hereunder. 
 *        *        * 
 RECITALS 
 WHEREAS, the Trust was formed on August 3, 2006 pursuant to
the execution and filing by the Trustee of the Certificate of Trust on August 3, 2006 and the execution and delivery by each of the Trustee and the Managing Owner of a Declaration of Trust and Trust Agreement dated as of August 3, 2006
(the “Original Agreement”); 
 WHEREAS, the Managing Owner and the Trustee entered into an Amended and Restated
Declaration of Trust and Trust Agreement dated as of November 21, 2006 (the “Existing Agreement”) to amend and restate the Original Agreement; and 
 WHEREAS, the Trustee and the Managing Owner desire to amend the Existing Agreement pursuant to Section 11.1(b)(iii) thereof to make the amendments effectuated hereby. 

NOW, THEREFORE, pursuant to Section 11.1(b)(iii) of the Existing Agreement, the Trustee and the Managing Owner hereby amend and
restate the Existing Agreement in its entirety as set forth below. 
 ARTICLE I 

DEFINITIONS; THE TRUST 
 SECTION 1.1. Definitions. As used in this Trust Agreement, the following terms shall have the following meanings unless the context otherwise requires: 

“Adjusted Capital Account” means, for each Fund, as of the last day of a taxable period, a Unitholder’s Capital
Account as maintained pursuant to Section 6.1, increased by any amounts which such Unitholder is obligated to restore pursuant to any provision of this Trust Agreement or is deemed to be obligated to restore pursuant to Treasury Regulation
section 1.704-2 and decreased by the amount of all losses and deductions that, as of the end of the taxable period, are reasonably expected to be allocated to such Unitholder in subsequent years under

  
 1 

 
sections 704(e)(2) and 706(d) of the Code and the amount of all distributions that, as of the end of such taxable period, are reasonably expected to be made to such Unitholder in subsequent years
in accordance with the terms of this Trust Agreement or otherwise to the extent they exceed offsetting increases to such Capital Account that are reasonably expected to occur during or prior to the year in which such distributions are reasonably
expected to be made. The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Treasury Regulation section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

“Adjusted Property” means any property the adjusted basis of which has been adjusted pursuant to Sections 6.1(a) and
(b). 
 “Administrator” means any Person from time to time engaged to provide administrative services to the
Trust pursuant to authority delegated by the Managing Owner. 
 “Affiliate” – An “Affiliate” of
a “Person” means (i) any Person directly or indirectly owning, controlling or holding with power to vote 10% or more of the outstanding voting securities of such Person, (ii) any Person 10% or more of whose outstanding voting
securities are directly or indirectly owned, controlled or held with power to vote by such Person, (iii) any Person, directly or indirectly, controlling, controlled by or under common control of such Person, (iv) any employee, officer,
director, member, manager or partner of such Person, or (v) if such Person is an employee, officer, director, member, manager or partner, any Person for which such Person acts in any such capacity. 

“Basket” means a Creation Basket or a Redemption Basket, as the context may require. 

“Beneficial Owners” shall have the meaning assigned to such term in Section 3.5(d). 

“Book-Tax Disparity” means with respect to any item of Adjusted Property, as of the date of any determination, the
difference between the adjusted value of such property and the adjusted basis thereof for federal income tax purposes as of such date. For each Fund, a Unitholder’s portion of such Fund’s Book-Tax Disparities in all of its Adjusted
Property will be reflected by the difference between such Unitholder’s Capital Account balance as maintained pursuant to Section 6.1 and the hypothetical balance of such Unitholder’s Capital Account computed as if it had been
maintained strictly in accordance with U.S. federal income tax accounting principles. 
 “Business Day” means
any day other than a day when banks in New York City are required or permitted to be closed. 
 “Capital
Account” means the capital account maintained for a Unitholder pursuant to Section 6.1. 
 “Capital
Contributions” means the amounts of cash contributed and agreed to be contributed to the Trust by any Participant or by the Managing Owner, as applicable, in accordance with Article III hereof. 

“CE Act” means the Commodity Exchange Act, as amended. 

  
 2 

 “Certificate of Trust” means the Certificate of Trust, including all
amendments thereto, if any, of the Trust in the form attached hereto as Exhibit A, filed with the Secretary of State of the State of Delaware pursuant to Section 3810 of the Delaware Trust Statute. 

“CFTC” means the Commodity Futures Trading Commission. 

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

“Commodity Broker” means any person who engages in the business of effecting transactions in Currency Contracts for the
account of others or for his or her own account. 
 “Continuous Offering” means the continuous offering during
which additional Limited Units may be sold in Baskets pursuant to this Trust Agreement. 
 “Conflicting
Provisions” shall have the meaning assigned thereto in Section 15.2(a). 
 “Corporate Trust
Office” means the principal office at which at any particular time the corporate trust business of the Trustee is administered, which office at the date hereof is located at Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890, Attention: Corporate Trust Administration. 
 “Covered Person” means the Managing Owner and
their respective Affiliates. 
 “Creation Basket” means the minimum number of Limited Units of a Fund that may
be created at any one time, which shall be 200,000 or such greater or lesser number as the Managing Owner may determine from time to time for each Fund. 
 “Creation Basket Capital Contribution” of a Fund means a Capital Contribution made by a Participant in connection with a Purchase Order Subscription Agreement and the creation of a
Creation Basket in an amount equal to the product obtained by multiplying (i) the number of Creation Baskets set forth in the relevant Purchase Order Subscription Agreement by (ii) the Net Asset Value per Basket of a Fund as of closing
time of the Exchange or the last to close of the exchanges on which any one of the Index Currencies of the Fund are traded, whichever is later, on the Purchase Order Subscription Date. 

“Currencies” means positions in Currency Contracts, forward contracts, other foreign exchange positions, as well as cash
resulting from any of the foregoing positions. 
 “Currency Contract” means any futures contract or option
thereon providing for the delivery or receipt at a future date of a specified amount of a traded currency at a specified price and delivery point, or any other futures contract or option thereon approved for trading for U.S. persons. 

“Delaware Trust Statute” means the Delaware Statutory Trust Act, Chapter 38 of Title 12 of the Delaware Code, 12 Del. C.
§ 3801 et seq., as the same may be amended from time to time. 

  
 3 

 “Depository” means The Depository Trust Company, New York, New York, or
such other depository of Limited Units as may be selected by the Managing Owner as specified herein. 
 “Depository
Agreement” means the Letter of Representations relating to each Fund from the Managing Owner to the Depository, dated as of December 12, 2006 as the same may be amended or supplemented from time to time. 

“Distributor” means any Person from time to time engaged to provide distribution services or related services to the
Trust pursuant to authority delegated by the Managing Owner. 
 “DTC” shall have the meaning assigned to such
term in Section 3.5(b). 
 “DTC Participants” shall have the meaning assigned to such term in
Section 3.5(c). 
 “DTCC” shall have the meaning assigned to such term in Section 3.5(c). 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Event of Withdrawal” shall have the meaning set forth in Section 13.1(a) hereof. 

“Exchange” means NYSE Arca or, if the Limited Units of any Fund shall cease to be listed on NYSE Arca and are listed on
one or more other exchanges, the exchange on which the Units of such Fund are principally traded, as determined by the Managing Owner. 
 “Expenses” shall have the meaning assigned to such term in Section 2.4. 
 “Fiscal Quarter” shall mean each period ending on the last day of each March, June, September and December of each Fiscal Year, or, if the Trust is required by law to have a Fiscal Year
other than a calendar year, such other applicable quarterly period. 
 “Fiscal Year” shall have the meaning set
forth in Article X hereof. 
 “Fund” means a Fund established and designated as a series of the Trust as
provided in Section 3.2(a). 
 “Global Security” means the global certificate or certificates for each
Fund issued to the Depository as provided in the Depository Agreement, each of which shall be in substantially the form attached hereto as Exhibit C. 
 “Indemnified Parties” shall have the meaning assigned to such term in Section 2.4. 
 “Index” or “Indexes” means the Index that each Fund is designed to track (or, collectively, the Indexes) as more fully described in Exhibit B hereto, as it may be
amended from time to time. 
 “Index Currencies” means the underlying Currencies that comprise Index or Indexes
from time to time, as described in the Prospectus. 

  
 4 

 “Indirect Participants” shall have the meaning assigned to such term in
Section 3.5(c). 
 “Internal Revenue Service” or “IRS” means the U.S. Internal Revenue
Service or any successor thereto. 
 “Limited Owner” means any person or entity who is or becomes a Beneficial
Owner of Limited Units of a Fund. 
 “Liquidating Trustee” shall have the meaning assigned thereto in
Section 13.2. 
 “Losses” means, in respect of each Fiscal Year of a Fund, losses of such Fund as
determined for U.S. federal income tax purposes, and each item of income, gain, loss or deduction entering into the computation thereof. 
 “Management Fee” means the management fee set forth in Section 4.9. 
 “Managing Owner” means DB Commodity Services LLC, or any substitute therefor as provided herein, or any successor thereto by merger or operation of law. 

“Margin Call” means a demand for additional funds after the initial good faith deposit required to maintain a
customer’s account in compliance with the requirements of a particular commodity exchange or of a commodity broker. 

“Net Asset Value of a Fund” means the total assets of the Trust Estate of a Fund including, but not limited to, all cash
and cash equivalents or other securities less total liabilities of such Fund, each determined on the basis of generally accepted accounting principles in the United States, consistently applied under the accrual method of accounting, including, but
not limited to, the extent specifically set forth below: 
 (a) Net Asset Value of a Fund shall include any unrealized profit or
loss on open Currencies positions and any other credit or debit accruing to such Fund but unpaid or not received by the Fund. 

(b) All open currency futures contracts and options traded on a United States exchange are calculated at their then current market value,
which shall be upon the settlement price for that particular currency futures contract traded on the applicable United States exchange on the date with respect to which net asset value of a Fund is being determined; provided, that if a currency
futures contract or option traded on a United States exchange could not be liquidated on such day, due to the operation of daily limits or other rules of the exchange upon which that position is traded or otherwise, the Managing Owner may value such
currency futures contract and options pursuant to policies the Managing Owner has adopted, which are consistent with normal industry standards. The current market value of all open currency futures contracts and options traded on a non-United States
exchange will be based upon the settlement price for that particular currency futures contract or option traded on the applicable non-United States exchange on the date with respect to which net asset value is being determined; provided further,
that if a currency futures contract or option traded on a non-United States exchange could not be liquidated on such day, due to the operation of daily limits (if applicable) or other rules of the exchange upon which that position is traded or
otherwise, the Managing Owner may value such 

  
 5 

 
currency futures contract pursuant to policies the Managing Owner has adopted, which are consistent with normal industry standards. The current market value of all open forward contracts entered
into by a Fund shall be the mean between the last bid and last asked prices quoted by the bank or financial institution which is a party to the contract on the date with respect to which Net Asset Value of a Fund being determined; provided,
that, if such quotations are not available on such date, the mean between the last bid and asked prices on the first subsequent day on which such quotations are available shall be the basis for determining the market value of such forward
contract for such day. The Managing Owner may in its discretion value any of the Trust Estate (and under circumstances, including, but not limited to, periods during which a settlement price of a futures contract is not available due to exchange
limit orders or force majeure type events such as systems failure, natural or man-made disaster, act of God, armed conflict, act of terrorism, riot or labor disruption or any similar intervening circumstance) value any asset of the Fund pursuant to
such other principles as the Managing Owner deems fair and equitable so long as such principles are consistent with normal industry standards. 
 (c) Interest earned on a Fund’s commodity brokerage account shall be accrued at least monthly. 
 (d) The amount of any distribution made pursuant to Article VI hereof shall be a liability of a Fund from the day when the distribution is declared until it is paid. 

“Net Asset Value Per Basket of a Fund” means the product obtained by multiplying the Net Asset Value Per Unit of a Fund
by the number of Limited Units comprising a Basket of such Fund at such time. 
 “Net Asset Value Per Unit of a
Fund” means the Net Asset Value of a Fund divided by the number of Units of such Fund outstanding on the date of calculation. 
 “NFA” means the National Futures Association. 
 “NYSE
Arca” means NYSE Arca, Inc. 
 “Order Cut-Off Time” means 1:00 p.m., New York time, on a Business Day.

 “Organization and Offering Expenses” shall have the meaning assigned thereto in Section 4.8(a)(iv).

 “Participant” means a Person that is (1) a registered broker dealer or other securities market
participant such as a bank or other financial institution which is not required to register as a broker dealer to engage in securities transactions, (2) a DTC Participant, and (3) has entered into a Participant Agreement which, at the
relevant time, is in full force and effect. 
 “Participant Agreement” means an agreement among a Fund, the
Managing Owner and a Participant, substantially in the form of Exhibit D hereto, as it may be amended or supplemented from time to time in accordance with its terms. 

  
 6 

 “Percentage Interest” shall be a fraction, the numerator of which is the
number of a Unitholder’s Units and the denominator of which is the total number of Units of such Fund outstanding as of the date of determination. 
 “Person” means any natural person, partnership, limited liability company, statutory trust, corporation, association, trust or other legal entity. 

“Pit Brokerage Fee” shall include floor brokerage, clearing fees, NFA fees and exchange fees. 

“Power of Attorney” shall have the meaning assigned thereto in Section 14.2. 

“Profits” means, for each Fiscal Year of a Fund, profits of such Fund as determined for U.S. federal income tax purposes
and each item of income, gain, loss or deduction entering into the computation thereof. 
 “Prospectus” means
the final prospectus and disclosure document of the Trust, constituting a part of a Registration Statement, as filed with the SEC and declared effective thereby, or becoming automatically effective, as applicable, as the same may at any time and
from time to time be amended or supplemented. 
 “Purchase Order Subscription Agreement” shall have the meaning
assigned thereto in Section 3.4(a)(i). 
 “Purchase Order Subscription Date” shall have the meaning
assigned thereto in Section 3.4(a)(i). 
 “Pyramiding” means the use of unrealized profits on existing
Currencies to provide margin for additional Currencies positions of the same or related Currency. 
 “Reconstituted
Trust” shall have the meaning assigned thereto in Section 13.1(a). 
 “Redemption Basket” means
the minimum number of Limited Units of a Fund that may be redeemed pursuant to Section 7.1, which shall be the number of Limited Units of such Fund constituting a Creation Basket on the relevant Redemption Order Date. 

“Redemption Distribution” means the cash delivered in satisfaction of a redemption of a Redemption Basket as specified
in Section 7.1(c). 
 “Redemption Order” shall have the meaning assigned thereto in Section 7.1(a).

 “Redemption Order Date” shall have the meaning assigned thereto in Section 7.1(b). 

“Redemption Settlement Time” shall have the meaning assigned thereto in Section 7.1(d). 

“Registration Statement” means a registration statement on Form S-1, or any other form, as applicable, as it may be
amended from time to time, filed with the SEC pursuant to which the Trust registered the Units, as the same may at any time and from time to time be further amended or supplemented. 

  
 7 

 “SEC” means the Securities and Exchange Commission. 

“Subscribing Participant” means a Participant who has submitted a Purchase Order Subscription Agreement to create one or
more Units that has not yet been filled or accepted by the Managing Owner. 
 “Suspended Redemption Order”
shall have the meaning assigned thereto in Section 7.1(d). 
 “Tax Matters Partner” shall have the meaning
assigned thereto in Section 1.6(b). 
 “Transaction Fee” shall have the meaning assigned thereto in
Section 3.4(d). 
 “Treasury Regulations” means regulations, including proposed or temporary regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 

“Trust” means PowerShares DB US Dollar Index Trust, the Delaware statutory trust formed in separate series pursuant to
the Certificate of Trust, the business and affairs of which are governed by this Trust Agreement. 
 “Trust
Agreement” means this Second Amended and Restated Declaration of Trust and Trust Agreement, as it may at any time or from time to time be amended. 
 “Trustee” means Wilmington Trust Company or any substitute therefor as provided herein, acting not in its individual capacity but solely as trustee of the Trust. 

“Trust Estate” means, with respect to a Fund, any cash, currency futures, forward and option contracts, all funds on
deposit in the Fund’s accounts, and any other property held by such Fund, and all proceeds therefrom, including any rights of the Fund pursuant to any other agreements to which the Fund is a party. 

“Unitholders” means the Managing Owner and all Limited Owners, as holders of Units of a Fund, where no distinction is
required by the context in which the term is used. 
 “Units” means the common units of fractional undivided
beneficial interest in the profits, losses, distributions, capital and assets of, and ownership of, a Fund. The Managing Owner’s Capital Contributions shall be represented by “General” Units and a Limited Owner’s Capital
Contributions shall be represented by “Limited” Units. 
 “Unrealized Gain” attributable to a Fund
property means, as of any date of determination, the excess, if any, of the fair market value of such property as of such date over the property’s adjusted basis for federal income tax purposes as of the date of determination. 

  
 8 

 “Unrealized Loss” attributable to a Fund property means, as of any date of
determination, the excess, if any, of the property’s adjusted basis for federal income tax purposes as of the date of determination over the fair market value of such property as of such date of determination. 

SECTION 1.2. Name. 
 (a) The name of the Trust is “PowerShares DB US Dollar Index Trust” in which name the Trustee and the Managing Owner may engage in the business of the Trust, make and execute contracts and other
instruments on behalf of the Trust and sue and be sued on behalf of the Trust. 
 SECTION 1.3. Delaware Trustee; Business
Offices. 
 (a) The sole Trustee of the Trust is Wilmington Trust Company, which is located at the Corporate Trust Office or
at such other address in the State of Delaware as the Trustee may designate in writing to the Unitholders. The Trustee shall receive service of process on the Trust in the State of Delaware at the foregoing address. In the event Wilmington Trust
Company resigns or is removed as the Trustee, the Trustee of the Trust in the State of Delaware shall be the successor Trustee, subject to Section 2.5. 
 (b) The principal office of the Trust, and such additional offices as the Managing Owner may establish, shall be located at such place or places inside or outside the State of Delaware as the Managing
Owner may designate from time to time in writing to the Trustee and the Unitholders. Initially, the principal office of the Trust shall be at c/o DB Commodity Services LLC, 60 Wall Street, New York, New York 10005. 

SECTION 1.4. Declaration of Trust. The Trustee hereby acknowledges that the Trust has received the sum of $1,000 for each Fund in
bank accounts in the name of each Fund controlled by the Managing Owner, and hereby declares that it shall hold such sum in trust, upon and subject to the conditions set forth herein for the use and benefit of the Unitholders of each Fund. It is the
intention of the parties hereto that the Trust shall be a statutory trust organized in series, or Funds, under the Delaware Trust Statute and that this Trust Agreement shall constitute the governing instrument of the Trust. It is not the intention
of the parties hereto to create a general partnership, limited partnership, limited liability company, joint stock association, corporation, bailment or any form of legal relationship other than a Delaware statutory trust except to the extent that
each Fund is deemed to constitute a partnership under the Code and applicable state and local tax laws. Nothing in this Trust Agreement shall be construed to make the Unitholders partners or members of a joint stock association except to the extent
such Unitholders are deemed to be partners under the Code and applicable state and local tax laws. Notwithstanding the foregoing, it is the intention of the parties hereto to create a partnership among the Unitholders for purposes of taxation under
the Code and applicable state and local tax laws. Effective as of the date hereof, the Trustee and the Managing Owner shall have all of the rights, powers and duties set forth herein and in the Delaware Trust Statute with respect to accomplishing
the purposes of the Trust. The Trustee has filed the certificate of trust required by Section 3810 of the Delaware Trust Statute in connection with the formation of the Trust under the Delaware Trust Statute. 

  
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 SECTION 1.5. Purposes and Powers. The purposes of the Trust and each Fund shall be:
(a) directly or indirectly to trade, buy, sell, spread or otherwise acquire, hold or dispose of the Index Currencies, including but not limited to, exchange-traded futures on the Index Currencies with a view to tracking the performance of the
applicable Indexes over time; (b) to enter into forward contracts referencing the applicable Indexes or one or more of the Index Currencies with a view to tracking the performance of the applicable Indexes over time; (c) to enter into any
lawful transaction and engage in any lawful activities in furtherance of or incidental to the foregoing purposes; and (d) as determined from time to time by the Managing Owner, to engage in any other lawful business or activity for which a
statutory trust may be organized under the Delaware Trust Statute. The Trust shall have all of the powers specified in Section 15.1 hereof, including, without limitation, all of the powers which may be exercised by a Managing Owner on behalf of
the Trust under this Trust Agreement. 
 SECTION 1.6. Tax Treatment. 

(a) Each of the parties hereto, by entering into this Trust Agreement, (i) expresses its intention that the Units of each Fund will
qualify under applicable tax law as interests in a partnership which holds the Trust Estate of each Fund for their benefit, (ii) agrees that it will file its own Federal, state and local income, franchise and other tax returns in a manner that
is consistent with the treatment of each Fund as a partnership in which each of the Unitholders thereof is a partner and (iii) agrees to use reasonable efforts to notify the Managing Owner promptly upon a receipt of any notice from any taxing
authority having jurisdiction over such holders of Units of each Fund with respect to the treatment of the Units of such Fund as anything other than interests in a partnership. 

(b) The Tax Matters Partner (as defined in Section 6231 of the Code and any corresponding state and local tax law) of each Fund
initially shall be the Managing Owner. The Tax Matters Partner, at the expense of each Fund, (i) shall prepare or cause to be prepared and filed each Fund’s tax returns as a partnership for U.S. federal, state and local tax purposes and
(ii) shall be authorized to perform all duties imposed by § 6221 et seq. of the Code, including, without limitation, (A) the power to conduct all audits and other administrative proceedings with respect to each Fund’s tax items;
(B) the power to extend the statute of limitations for all Unitholders with respect to each Fund’s tax items; (C) the power to file a petition with an appropriate U.S. federal court for review of a final administrative adjustment of
any Fund; and (D) the power to enter into a settlement with the IRS on behalf of, and binding upon, those Limited Owners having less than 1% interest in any Fund, unless a Limited Owner shall have notified the IRS and the Managing Owner that
the Managing Owner shall not act on such Limited Owner’s behalf. The designation made by each Unitholder of a Fund in this Section 1.6(b) is hereby approved by each Unitholder of such Fund as an express condition to becoming a Unitholder.
Each Unitholder agrees to take any further action as may be required by regulation or otherwise to effectuate such designation. Subject to Section 4.7, each Fund hereby indemnifies, to the full extent permitted by law, the Managing Owner from
and against any damages or losses (including attorneys’ fees) arising out of or incurred in connection with any action taken or omitted to be taken by it in carrying out its responsibilities as Tax Matters Partner, provided such action taken or
omitted to be taken does not constitute fraud, negligence or misconduct. 

  
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 (c) Each Unitholder shall furnish the Managing Owner and the Trustee with information
necessary to enable the Managing Owner to comply with U.S. federal income tax information reporting requirements in respect of such Unitholder’s Units. 
 SECTION 1.7. General Liability of the Managing Owner. 
 (a) The Managing
Owner shall be liable for the acts, omissions, obligations and expenses of each Fund, to the extent not paid out of the assets of each Fund, to the same extent the Managing Owner would be so liable as if each Fund were a partnership under the
Delaware Revised Uniform Limited Partnership Act and the Managing Owner were a general partner of such partnership. The foregoing provision shall not, however, limit the ability of the Managing Owner to limit its liability by contract. The
obligations of the Managing Owner under this Section 1.7 shall be evidenced by its ownership of the General Units which, solely for purposes of the Delaware Trust Statute, will be deemed to be a separate class of Units of each Fund. Without
limiting or affecting the liability of the Managing Owner as set forth in this Section 1.7, notwithstanding anything in this Trust Agreement to the contrary, Persons having any claim against the Trust or any Fund by reason of the transactions
contemplated by this Trust Agreement and any other agreement, instrument, obligation or other undertaking to which the Trust or any Fund is a party, shall look only to the appropriate Fund Trust Estate for payment or satisfaction thereof.

 (b) Subject to Sections 8.1 and 8.3 hereof, no Unitholder, other than the Managing Owner, to the extent set forth above,
shall have any personal liability for any liability or obligation of the Trust or any Fund. 
 SECTION 1.8. Legal Title.
Legal title to all of the Trust Estate of each Fund shall be vested in the Trust as a separate legal entity; provided, however, that where applicable law in any jurisdiction requires any part of the Trust Estate to be vested otherwise,
the Managing Owner may cause legal title to the Trust Estate or any portion thereof to be held by or in the name of the Managing Owner or any other Person (other than a Unitholder) as nominee. 

SECTION 1.9. Series Trust. The Units of the Trust shall be divided into series, each a Fund, as provided in
Section 3806(b)(2) of the Delaware Trust Statute. Accordingly, it is the intent of the parties hereto that Articles IV, V, VII, VIII, IX and X of this Trust Agreement shall apply also with respect to each such Fund as if each such Fund were a
separate statutory trust under the Delaware Trust Statute, and each reference to the term “Trust” in such Articles shall be deemed to be a reference to each Fund separately to the extent necessary to give effect to the foregoing intent, as
the context may require. The use of the terms “Trust”, “Fund” or “series” in this Trust Agreement shall in no event alter the intent of the parties hereto that the Trust receive the full benefit of the limitation on
interseries liability as set forth in Section 3804 of the Delaware Trust Statute. 

  
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 ARTICLE II 
 THE TRUSTEE 
 SECTION 2.1. Term; Resignation. 

(a) Wilmington Trust Company has been appointed and hereby agrees to serve as the Trustee of the Trust. The Trust shall have only one
Trustee unless otherwise determined by the Managing Owner. The Trustee shall serve until such time as the Managing Owner removes the Trustee or the Trustee resigns and a successor Trustee is appointed by the Managing Owner in accordance with the
terms of Section 2.5 hereof. 
 (b) The Trustee may resign at any time upon the giving of at least sixty
(60) days’ advance written notice to the Trust; provided, that such resignation shall not become effective unless and until a successor Trustee shall have been appointed by the Managing Owner in accordance with Section 2.5 hereof. If
the Managing Owner does not act within such sixty (60) day period, the Trustee may apply, at the expense of the Trust, to the Court of Chancery of the State of Delaware for the appointment of a successor Trustee. 

SECTION 2.2. Powers. Except to the extent expressly set forth in Section 1.3(a) and this Article II, the duty and authority
of the Trustee to manage the business and affairs of the Trust is hereby delegated to the Managing Owner, which duty and authority the Managing Owner may further delegate as provided herein, all pursuant to Section 3806(b)(7) of the Delaware
Trust Statute. The Trustee shall have only the rights, obligations and liabilities specifically provided for herein and shall have no implied rights, duties, obligations and liabilities with respect to the business and affairs of the Trust or any
Fund. The Trustee shall have the power and authority to execute and file certificates as required by the Delaware Trust Statute and to accept service of process on the Trust in the State of Delaware. The Trustee shall provide prompt notice to the
Managing Owner of its performance of any of the foregoing. The Managing Owner shall reasonably keep the Trustee informed of any actions taken by the Managing Owner with respect to the Trust that would reasonably be expected to affect the rights,
obligations or liabilities of the Trustee hereunder or under the Delaware Trust Statute. 
 SECTION 2.3. Compensation and
Expenses of the Trustee. The Trustee shall be entitled to receive from the Managing Owner or an Affiliate of the Managing Owner (including the Trust) reasonable compensation for its services hereunder as set forth in a separate fee agreement and
shall be entitled to be reimbursed by the Managing Owner or an Affiliate of the Managing Owner (including the Trust) for reasonable out-of-pocket expenses incurred by it in the performance of its duties hereunder, including without limitation, the
reasonable compensation, out-of-pocket expenses and disbursements of counsel and such other agents as the Trustee may employ in connection with the exercise and performance of its rights and duties hereunder. 

SECTION 2.4. Indemnification. The Trust shall be liable for, and does hereby indemnify, protect, save and keep harmless the
Trustee (in its capacity as Trustee and individually) and its successors, assigns, legal representatives, officers, directors, employees, agents and servants (the “Indemnified Parties”) from and against any and all liabilities,

  
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obligations, losses, damages, penalties, taxes (excluding any taxes payable by the Trustee on or measured by any compensation received by the Trustee for its services hereunder or any indemnity
payments received by the Trustee pursuant to this Section 2.4), claims, actions, suits, costs, expenses or disbursements (including legal fees and expenses) of any kind and nature whatsoever (collectively, “Expenses”), which
may be imposed on, incurred by or asserted against the Indemnified Parties in any way relating to or arising out of the formation, operation or termination of the Trust, the execution, delivery and performance of any other agreements to which the
Trust is a party or the action or inaction of the Trustee hereunder or thereunder, except for Expenses resulting from the gross negligence or willful misconduct of the Indemnified Parties. The indemnities contained in this Section 2.4 shall
survive the termination of the Trust Agreement or the removal or resignation of the Trustee. 
 SECTION 2.5. Successor
Trustee. Upon the resignation or removal of the Trustee, the Managing Owner shall appoint a successor Trustee by delivering a written instrument to the outgoing Trustee. Any successor Trustee must satisfy the requirements of Section 3807 of
the Delaware Trust Statute. Any resignation or removal of the Trustee and appointment of a successor Trustee shall not become effective until a written acceptance of appointment is delivered by the successor Trustee to the outgoing Trustee and the
Managing Owner and any fees and expenses due to the outgoing Trustee are paid. Following compliance with the preceding sentence, the successor Trustee shall become fully vested with all of the rights, powers, duties and obligations of the outgoing
Trustee under this Trust Agreement, with like effect as if originally named as Trustee, and the outgoing Trustee shall be discharged of its duties and obligations under this Trust Agreement. 

SECTION 2.6. Liability of Trustee. Except as otherwise provided in this Article II, in accepting the trust created hereby,
Wilmington Trust Company acts solely as Trustee hereunder and not in its individual capacity, and all Persons having any claim against Wilmington Trust Company by reason of the transactions contemplated by this Trust Agreement and any other
agreement to which the Trust or any Fund is a party shall look only to the appropriate Fund Trust Estate for payment or satisfaction thereto; provided, however, that in no event is the foregoing intended to affect or limit the
liability of the Managing Owner as set forth in Section 1.7 hereof. The Trustee shall not be liable or accountable hereunder to the Trust or to any other Person or under any other agreement to which the Trust or any Fund is a party, except for
the Trustee’s own gross negligence or willful misconduct. In particular, but not by way of limitation: 
 (a) The Trustee
shall have no liability or responsibility for the validity or sufficiency of this Trust Agreement or for the form, character, genuineness, sufficiency, value or validity of any Trust Estate; 

(b) The Trustee shall not be liable for any actions taken or omitted to be taken by it in accordance with the instructions of the
Managing Owner or the Liquidating Trustee; 
 (c) The Trustee shall not have any liability for the acts or omissions of the
Managing Owner or its delegatees; 

  
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 (d) The Trustee shall not be liable for its failure to supervise the performance of any
obligations of the Managing Owner or its delegatees or any Participant or Commodity Broker; 
 (e) No provision of this Trust
Agreement shall require the Trustee to act or expend or risk its own funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder if the Trustee shall have reasonable grounds for believing that such
action, repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it; 
 (f) Under no circumstances shall the Trustee be liable for indebtedness evidenced by or other obligations of the Trust or any Fund arising under this Trust Agreement or any other agreements to which the
Trust or any Fund is a party; 
 (g) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Trust Agreement, or to institute, conduct or defend any litigation under this Trust Agreement or any other agreements to which the Trust or any Fund is a party, at the request, order or direction of the Managing Owner or any Unitholders
unless the Managing Owner or such Unitholders have offered to Wilmington Trust Company (in its capacity as Trustee and individually) security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by
Wilmington Trust Company (including, without limitation, the reasonable fees and expenses of its counsel) therein or thereby; 

(h) Notwithstanding anything contained herein to the contrary, the Trustee shall not be required to take any action in any jurisdiction
other than in the State of Delaware if the taking of such action will (i) require the consent or approval or authorization or order of or the giving of notice to, or the registration with or taking of any action in respect of, any state or
other governmental authority or agency of any jurisdiction other than the State of Delaware, (ii) result in any fee, tax or other governmental charge under the laws of any jurisdiction or any political subdivision thereof in existence as of the
date hereof other than the State of Delaware becoming payable by the Trustee or (iii) subject the Trustee to personal jurisdiction, other than in the State of Delaware, for causes of action arising from personal acts unrelated to the
consummation of the transactions by the Trustee, as the case may be, contemplated hereby; and 
 (i) To the extent that, at law
or in equity, the Trustee has duties (including fiduciary duties) and liabilities relating thereto to the Trust, the Unitholders or to any other Person, the Trustee acting under this Trust Agreement shall not be liable to the Trust, the Unitholders
or to any other Person for its good faith reliance on the provisions of this Trust Agreement. The provisions of this Trust Agreement, to the extent that they restrict the duties and liabilities of the Trustee otherwise existing at law or in equity
are agreed by the parties hereto to replace such other duties and liabilities of the Trustee. 
 SECTION 2.7. Reliance;
Advice of Counsel. 
 (a) In the absence of bad faith, the Trustee may conclusively rely upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Trust Agreement in determining the truth of the statements and the correctness of the opinions 

  
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contained therein, and shall incur no liability to anyone in acting on any signature, instrument, notice, resolutions, request, consent, order, certificate, report, opinion, bond or other
document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties and need not investigate any fact or matter pertaining to or in any such document; provided, however, that the Trustee shall have examined
any certificates or opinions so as to reasonably determine compliance of the same with the requirements of this Trust Agreement. The Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any
corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the method of the determination of which is not specifically prescribed herein,
the Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers of the relevant party, as to such fact or matter, and such certificate shall constitute
full protection to the Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon. 
 (b) In
the exercise or administration of the Trust hereunder and in the performance of its duties and obligations under this Trust Agreement, the Trustee, at the expense of the Managing Owner or an Affiliate of the Managing Owner (including the Trust)
(i) may act directly or through its agents, attorneys, custodians or nominees pursuant to agreements entered into with any of them, and the Trustee shall not be liable for the conduct or misconduct of such agents, attorneys, custodians or
nominees if such agents, attorneys, custodians or nominees shall have been selected by the Trustee with reasonable care and (ii) may consult with counsel, accountants and other skilled professionals to be selected with reasonable care by it.
The Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the opinion or advice of any such counsel, accountant or other such Persons. 

SECTION 2.8. Payments to the Trustee. Any amounts paid to the Trustee pursuant to this Article shall be deemed not to be a part of
any Trust Estate immediately after such payment. Any amounts owing to the Trustee under this Trust Agreement shall constitute a claim against the applicable Trust Estate. 
 ARTICLE III 
 CAPITAL CONTRIBUTIONS; CREATIONS AND ISSUANCE OF CREATION
BASKETS 
 SECTION 3.1. General. 
 (a) The Managing Owner shall have the power and authority, without Limited Owner approval, to issue Units in one or more series, or Funds, from time to time as it deems necessary or desirable. Each Fund
shall be separate from all other Funds created as series of the Trust in respect of the assets and liabilities allocated to that Fund and shall represent a separate investment portfolio of the Trust. The Managing Owner shall have exclusive power
without the requirement of Limited Owner approval to establish and designate such separate and distinct series, as set forth in Section 3.2, and to fix and determine the relative rights and preferences as between the Units of the Funds as to
right of redemption, special and relative rights as to dividends and other distributions and on liquidation, conversion rights, and conditions under which the Funds shall have separate voting rights or no voting rights. 

  
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 (b) The Managing Owner may, without Limited Owner approval, divide or subdivide Units of any
Fund into two or more classes or sub-classes, Units of each such class or sub-class having such preferences and special or relative rights and privileges as the Managing Owner may determine as provided in Section 3.3. The fact that a Fund shall
have been initially established and designated without any specific establishment or designation of classes or sub-classes, shall not limit the authority of the Managing Owner to divide a Fund and establish and designate separate classes or
sub-classes thereof. 
 (c) The number of Fund Units authorized shall be unlimited, and the Units so authorized may be
represented in part by fractional Units, calculated to four decimal places. From time to time, the Managing Owner may divide or combine the Units of any Fund or class thereof into a greater or lesser number without thereby changing the proportionate
beneficial interests in the Fund or class thereof. The Managing Owner may issue Units of any Fund or class thereof for such consideration and on such terms as it may determine (or for no consideration if pursuant to a Unit dividend or split-up), all
without action or approval of the Limited Owners thereof. All Units when so issued on the terms determined by the Managing Owner shall be fully paid and non-assessable. The Managing Owner may classify or reclassify any unissued Units or any Units
previously issued and reacquired of any Fund or class thereof into one or more series or classes thereof that may be established and designated from time to time. The Managing Owner may hold as treasury Units, reissue for such consideration and on
such terms as it may determine, or cancel, at its discretion from time to time, any Units of any Fund or class thereof reacquired by the Trust. Unless otherwise determined by the Managing Owner, treasury Units shall not be deemed cancelled. The
Units of each Fund shall initially be divided into two classes: General Units and Limited Units. 
 (d) The Managing Owner
and/or its Affiliates has made an investment of $1,000 in each Fund. 
 (e) Other than contemplated by Section 3.5, no
certificates or other evidence of beneficial ownership of the Units will be issued. 
 (f) Every Unitholder, by virtue of having
purchased or otherwise acquired a Unit, shall be deemed to have expressly consented and agreed to be bound by the terms of this Trust Agreement. 
 SECTION 3.2. Establishment of Series, or Funds, of the Trust. 
 (a) Without
limiting the authority of the Managing Owner set forth in Section 3.2(b) to establish and designate any further series, the Managing Owner hereby establishes and designates two initial series, or Funds, as follows: 

PowerShares DB US Dollar Index Bullish Fund; and 
 PowerShares DB US Dollar Index Bearish Fund. 

  
 16 

 The provisions of this Article III shall be applicable to the above-designated Funds and any
further Fund that may from time to time be established and designated by the Managing Owner as provided in Section 3.2(b); provided, however, that such provisions may be amended, varied or abrogated by the Managing Owner with respect to any
Fund created after the initial formation of the Trust in the written instrument creating such Fund. 
 (b) The establishment and
designation of any series, or Funds, other than those set forth above shall be effective upon the execution by the Managing Owner of an instrument setting forth such establishment and designation and the relative rights and preferences of such
series, or Funds, or as otherwise provided in such instrument. At any time that there are no Units outstanding of any particular series previously established and designated, the Managing Owner may by an instrument executed by it abolish that series
and the establishment and designation thereof. Each instrument referred to in this Section shall have the status of an amendment to this Trust Agreement. 
 SECTION 3.3. Establishment of Classes and Sub-Classes. The division of any series, or Funds, into two or more classes or sub-classes and the establishment and designation of such classes or
sub-classes shall be effective upon the execution by the Managing Owner of an instrument setting forth such division, and the establishment, designation, and relative rights and preferences of such classes, or as otherwise provided in such
instrument. The relative rights and preferences of the classes or sub-classes of any series may differ in such respects as the Managing Owner may determine to be appropriate, provided that such differences are set forth in the aforementioned
instrument. At any time that there are no Units outstanding of any particular class or sub-class previously established and designated, the Managing Owner may by an instrument executed by it abolish that class or sub-class and the establishment and
designation thereof. Each instrument referred to in this paragraph shall have the status of an amendment to this Trust Agreement. 
 SECTION 3.4. Offer of Limited Units, Procedures for Creation and Issuance of Creation Baskets. 
 (a) General. The following procedures, as supplemented by the more detailed procedures specified in the Exhibits, annexes, attachments and procedures, as applicable to the Participant Agreement for
each Fund, which may be amended from time to time in accordance with the provisions of the Participant Agreement (and any such amendment will not constitute an amendment of this Trust Agreement), will govern the Trust with respect to the creation
and issuance of Creation Baskets. Subject to the limitations upon and requirements for issuance of Creation Baskets stated herein and in such procedures, the number of Creation Baskets which may be issued by each Fund is unlimited. 

(i) On any Business Day, each Participant may submit to the Managing Owner a purchase order and subscription agreement to
subscribe for and agree to purchase one or more Creation Baskets for the applicable Fund (such request by a Participant, a “Purchase Order Subscription Agreement”) in the manner provided in the Participant Agreement. Purchase Order
Subscription Agreements must be received by the Order Cut-Off Time on a Business Day (the “Purchase Order Subscription Date”). The Managing Owner will process Purchase Order Subscription Agreements only from

  
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Participants with respect to which a Participant Agreement for the Fund is in full force and effect. The Managing Owner will maintain and make available at the Trust’s principal offices
during normal business hours a current list of the Participants for each Fund with respect to which a Participant Agreement is in full force and effect. The Managing Owner will deliver (or cause to be delivered) a copy of the Prospectus to each Fund
Participant prior to its execution and delivery of the applicable Participant Agreement and prior to accepting any Purchase Order Subscription Agreement. 
 (ii) Any Purchase Order Subscription Agreement is subject to rejection by the Managing Owner pursuant to Section 3.4(c). 

(iii) After accepting a Fund Participant’s Purchase Order Subscription Agreement, the Managing Owner will issue and
deliver Creation Baskets to fill such Fund Participant’s Purchase Order Subscription Agreement as of noon New York time on the Business Day immediately following the Purchase Order Subscription Date, but only if by such time the Managing Owner
has received (A) for its own account, the Transaction Fee, and (B) for the account of the applicable Fund the Creation Basket Capital Contribution due from the Fund Participant submitting the Purchase Order Subscription Agreement for the
Fund. 
 (b) Deposit with the Depository. Upon issuing a Creation Basket for any Fund pursuant to a Purchase Order
Subscription Agreement, the Managing Owner will cause the Trust to deposit the Creation Basket with the Depository in accordance with the Depository’s customary procedures, for credit to the account of the Fund Participant that submitted the
Purchase Order Subscription Agreement. 
 (c) Rejection. For each Fund, the Managing Owner shall have the absolute right,
but shall have no obligation, to reject any Purchase Order Subscription Agreement or Creation Basket Capital Contribution: (i) determined by the Managing Owner not to be in proper form; (ii) that the Managing Owner has determined would
have adverse tax consequences to the Trust, any Fund or to any Limited Owners; (iii) the acceptance or receipt of which would, in the opinion of counsel to the Managing Owner, be unlawful; or (iv) if circumstances outside the control of
the Managing Owner make it for all practical purposes not feasible to process creations of Creation Baskets. The Managing Owner shall not be liable to any person by reason of the rejection of any Purchase Order Subscription Agreement or Creation
Basket Capital Contribution. 
 (d) Transaction Fee. For each Fund, a non-refundable transaction fee will be payable by a
Fund Participant to the Managing Owner for its own account in connection with each Purchase Order Subscription Agreement pursuant to this Section and in connection with each Redemption Order of such Participant pursuant to Section 7.1 (each a
“Transaction Fee”). The Transaction Fee charged in connection with each such creation and redemption shall be initially $500, but may be changed as provided below. Even though a single Purchase Order Subscription Agreement or
Redemption Order may relate to multiple Creation Baskets, only a single Transaction Fee will be due for each Purchase Order or Redemption Order for a Fund. The Transaction Fee may subsequently be waived, modified, reduced, increased or otherwise
changed by the Managing Owner, but will not in any event exceed 0.10% of the Net Asset Value 

  
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Per Basket of a Fund at the time of creation of a Creation Basket or redemption of a Redemption Basket, as the case may be. The Managing Owner shall notify the Depository of any agreement to
change the Transaction Fee and shall not implement any increase for redemptions of outstanding Units until 30 days after the date of that notice. The amount of the Transaction Fee in effect at any given time shall be made available by the Trustee
upon request. 
 (e) Global Certificate Only. Certificates for Creation Baskets will not be issued, other than the
applicable Global Security issued to the Depository. So long as the Depository Agreement is in effect, Creation Baskets will be issued and redeemed and Limited Units will be transferable solely through the book-entry systems of the Depository and
the DTC Participants and their Indirect Participants as more fully described in Section 3.5. The Depository may determine to discontinue providing its service with respect to Creation Baskets and Limited Units by giving notice to the Managing
Owner pursuant to and in conformity with the provisions of the Depository Agreement and discharging its responsibilities with respect thereto under applicable law. Under such circumstances, the Managing Owner shall take action either to find a
replacement for the Depository to perform its functions at a comparable cost and on terms acceptable to the Managing Owner or, if such a replacement is unavailable, to terminate the Trust or the Funds, as applicable. 

SECTION 3.5. Book-Entry-Only System, Fund Global Securities. 

(a) Global Security. The Trust and the Managing Owner will enter into the Depository Agreement pursuant to which the Depository
will act as securities depository for Limited Units of each Fund. Limited Units of each Fund will be represented by a Global Security (which may consist of one or more certificates as required by the Depository), which will be registered, as the
Depository shall direct, in the name of Cede & Co., as nominee for the Depository and deposited with, or on behalf of, the Depository. No other certificates evidencing Limited Units will be issued. The Global Security for each Fund shall be
in the form attached hereto as Exhibit C or described therein and shall represent such Limited Units as shall be specified therein, and may provide that it shall represent the aggregate amount of outstanding Limited Units of a Fund from time
to time endorsed thereon and that the aggregate amount of outstanding Limited Units represented thereby may from time to time be increased or decreased to reflect creations or redemptions of Baskets. Any endorsement of a Global Security to reflect
the amount, or any increase or decrease in the amount, of outstanding Limited Units represented thereby shall be made in such manner and upon instructions given by the Managing Owner on behalf of the Trust as specified in the Depository Agreement.

 (b) Legend. Any Global Security issued to The Depository Trust Company or its nominee shall bear a legend
substantially to the following effect: “Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trust 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 required 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.” 

  
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 (c) The Depository. The Depository has advised the Trust and the Managing Owner as
follows: The Depository is a limited-purpose trust company organized under New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the U.S. Federal Reserve System, a “clearing
corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds and provides
asset servicing for DTC’s participants (the “DTC Participants”). DTC also facilitates the post-trade settlement among DTC Participants of sales and other securities transactions among the DTC Participants in deposited
securities, through electronic computerized book-entry transfers and pledges between DTC Participants’ accounts. This eliminates the need for physical movement of securities certificates. DTC Participants include both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding
company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities, brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly (“Indirect
Participants”). 
 (d) Beneficial Owners. As provided in the Depository Agreement, upon the settlement date of
any creation, transfer or redemption of Limited Units of a Fund, the Depository will credit or debit, on its book-entry registration and transfer system, the number of Limited Units so created, transferred or redeemed to the accounts of the
appropriate DTC Participants. The accounts to be credited and charged shall be designated by the Managing Owner on behalf of each Fund and each Participant, in the case of a creation or redemption of Baskets. Ownership of beneficial interest in
Limited Units will be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect Participants. Owners of beneficial interests in Limited Units (“Beneficial Owners”) will be
shown on, and the transfer of beneficial ownership by Beneficial Owners will be effected only through, in the case of DTC Participants, records maintained by the Depository and, in the case of Indirect Participants and Beneficial Owners holding
through a DTC Participant or an Indirect Participant, through those records or the records of the relevant DTC Participants. Beneficial Owners are expected to receive from or through the broker or bank that maintains the account through which the
Beneficial Owner has purchased or sold Limited Units a written confirmation relating to their purchase or sale of Limited Units. 
 (e) Reliance on Procedures. So long as Cede & Co., as nominee of the Depository, is the registered owner of Limited Units, references herein to the registered or record owners of Limited
Units shall mean Cede & Co. and shall not mean the Beneficial Owners of Limited Units. Beneficial Owners of Limited Units will not be entitled to have Limited Units registered in their names, will not receive or be entitled to receive
physical delivery of certificates in definitive form and will not be considered the record or registered holder of Limited Units under this Trust Agreement. Accordingly, to exercise any rights of a holder of Limited Units under this Trust Agreement,
a Beneficial Owner must rely on the procedures of the Depository and, if such Beneficial Owner is not a DTC Participant, on the procedures of each DTC Participant or Indirect Participant through which such Beneficial Owner holds its interests.

  
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The Trust and the Managing Owner understand that under existing industry practice, if the Trust or any Fund requests any action of a Beneficial Owner, or a Beneficial Owner desires to take any
action that the Depository, as the record owner of all outstanding Limited Units of such Fund, is entitled to take, in the case of a Trustee request, the Depository will notify the DTC Participants regarding such request, such DTC Participants will
in turn notify each Indirect Participant holding Limited Units through it, with each successive Indirect Participant continuing to notify each person holding Limited Units through it until the request has reached the Beneficial Owner, and in the
case of a request or authorization to act being sought or given by a Beneficial Owner, such request or authorization is given by the Beneficial Owner and relayed back to the Trust or such Fund through each Indirect Participant and DTC Participant
through which the Beneficial Owner’s interest in the Limited Units is held. 
 (f) Communication between the Trust and
the Beneficial Owners. As described above, the Trust and the Funds will recognize the Depository or its nominee as the owner of all Limited Units for all purposes except as expressly set forth in this Trust Agreement. Conveyance of all notices,
statements and other communications to Beneficial Owners will be effected as follows. Pursuant to the Depository Agreement, the Depository is required to make available to the Funds upon request and for a fee to be charged to the Funds a listing of
the Limited Unit holdings of each DTC Participant. The Trust or the Funds shall inquire of each such DTC Participant as to the number of Beneficial Owners holding Limited Units, directly or indirectly, through such DTC Participant. The Trust or the
Funds shall provide each such DTC Participant with sufficient copies of such notice, statement or other communication, in such form, number and at such place as such DTC Participant may reasonably request, in order that such notice, statement or
communication may be transmitted by such DTC Participant, directly or indirectly, to such Beneficial Owners. In addition, the Funds shall pay to each such DTC Participant an amount as reimbursement for the expenses attendant to such transmittal, all
subject to applicable statutory and regulatory requirements. 
 (g) Distributions. Distributions on Limited Units
pursuant to Section 3.8 shall be made to the Depository or its nominee, Cede & Co., as the registered owner of all Limited Units. The Trust and the Managing Owner expect that the Depository or its nominee, upon receipt of any payment
of distributions in respect of Limited Units, shall credit immediately DTC Participants’ accounts with payments in amounts proportionate to their respective beneficial interests in Limited Units as shown on the records of the Depository or its
nominee. The Trust and the Managing Owner also expect that payments by DTC Participants to Indirect Participants and Beneficial Owners held through such DTC Participants and Indirect Participants will be governed by standing instructions and
customary practices, as is now the case with securities held for the accounts of customers in bearer form or registered in a “street name,” and will be the responsibility of such DTC Participants and Indirect Participants. None of the
Trust, the Funds, the Trustee or the Managing Owner will have any responsibility or liability for any aspects of the records relating to or notices to Beneficial Owners, or payments made on account of beneficial ownership interests in Limited Units,
or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests or for any other aspect of the relationship between the Depository and the DTC Participants or the relationship between such DTC Participants
and the Indirect Participants and Beneficial Owners owning through such DTC Participants or Indirect Participants or between or among the Depository, any Beneficial Owner and any person by or through which such Beneficial Owner is considered to own
Limited Units. 

  
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 (h) Limitation of Liability. Each Global Security to be issued hereunder is executed
and delivered solely on behalf of the applicable Fund by the Managing Owner, as Managing Owner, in the exercise of the powers and authority conferred and vested in it by this Trust Agreement. The representations, undertakings and agreements made on
the part of the Fund in each Global Security are made and intended not as personal representations, undertakings and agreements by the Managing Owner or the Trustee, but are made and intended for the purpose of binding only the Fund. Nothing in the
Global Security shall be construed as creating any liability on the Managing Owner or the Trustee, individually or personally, to fulfill any representation, undertaking or agreement other than as provided in this Trust Agreement. 

(i) Successor Depository. If a successor to The Depository Trust Company shall be employed as Depository hereunder, the Trust and
the Managing Owner shall establish procedures acceptable to such successor with respect to the matters addressed in this Section 3.5. 
 SECTION 3.6. Assets. All consideration received by a Fund for the issue or sale of Units together with all of the applicable Trust Estate in which such consideration is invested or reinvested, all
income, earnings, profits, and proceeds thereof, including any proceeds derived from the sale, exchange or liquidation of such assets, and any funds or payments derived from any reinvestment of such proceeds in whatever form the same may be, shall
irrevocably belong to that Fund for all purposes, subject only to the rights of creditors of such Fund and except as may otherwise be required by applicable tax laws, and shall be so recorded upon the books of account of the Trust. Separate and
distinct records shall be maintained for each Fund and the assets associated with a Fund shall be held and accounted for separately from the other assets of the Trust, or any other Fund. In the event that there is any Trust Estate, or any income,
earnings, profits, and proceeds thereof, funds, or payments which are not readily identifiable as belonging to any particular Fund, the Managing Owner shall allocate them among any one or more of the Funds established and designated from time to
time in such manner and on such basis as the Managing Owner, in its sole discretion, deems fair and equitable. Each such allocation by the Managing Owner shall be conclusive and binding upon all Unitholders for all purposes. 

SECTION 3.7. Liabilities of Funds. 
 (a) The Trust Estate belonging to each particular Fund shall be charged with the liabilities of the Trust in respect of that series and only that series; and all expenses, costs, charges, indemnities and
reserves attributable to that Fund, and any general liabilities, expenses, costs, charges, indemnities or reserves of the Trust which are not readily identifiable as belonging to any particular Fund, shall be allocated and charged by the Managing
Owner to and among any one or more of the series established and designated from time to time in such manner and on such basis as the Managing Owner in its sole discretion deems fair and equitable. Each allocation of liabilities, expenses, costs,
charges and reserves by the Managing Owner shall be conclusive and binding upon all Unitholders for all purposes. The Managing Owner shall have full discretion, to the extent not inconsistent with applicable law, to determine which items shall be
treated as income and which items as capital, and each such determination and allocation shall be conclusive and binding upon the Unitholders. Every written agreement, instrument or other undertaking made or issued by or on behalf of a particular
series shall include a recitation limiting the obligation or claim represented thereby to that series and its assets. 

  
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 (b) Without limitation of the foregoing provisions of this Section, but subject to the right
of the Managing Owner in its discretion to allocate general liabilities, expenses, costs, charges or reserves as herein provided, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a
particular series shall be enforceable against the assets of such series only and against the Managing Owner, and not against the assets of the Trust generally or of any other series. Notice of this limitation on interseries liabilities shall be set
forth in the Certificate of Trust of the Trust (whether originally or by amendment) as filed or to be filed in the Office of the Secretary of State of the State of Delaware pursuant to the Delaware Trust Statute, and upon the giving of such notice
in the Certificate of Trust, the statutory provisions of Section 3804 of the Delaware Trust Statute relating to limitations on interseries liabilities (and the statutory effect under Section 3804 of setting forth such notice in the
Certificate of Trust) shall become applicable to the Trust and each Fund. Every Unit, note, bond, contract, instrument, certificate or other undertaking made or issued by or on behalf of a particular series shall include a recitation limiting the
obligation on Units represented thereby to that series and its assets. 
 (i) Except as set forth below, any
debts, liabilities, obligations, indebtedness, expenses, interests and claims of any nature and all kinds and descriptions, if any, of the Managing Owner and the Trustee (the “Subordinated Claims”) incurred, contracted for or
otherwise existing, arising from, related to or in connection with all series, any combination of series or one particular series and their respective assets (the “Applicable Series”) and the assets of the Trust shall be expressly
subordinate and junior in right of payment to any and all other Claims against the Trust and any series thereof, and any of their respective assets, which may arise as a matter of law or pursuant to any contract, provided, however, that the Claims
of each of the Managing Owner and the Trustee (if any) against the Applicable Series shall not be considered Subordinated Claims with respect to enforcement against and distribution and repayment from the Applicable Series, the Applicable
Series’ assets and the Managing Owner and its assets; and provided further that the valid Claims of either the Managing Owner or the Trustee, if any, against the Applicable Series shall be pari passu and equal in right of repayment and
distribution with all other valid Claims against the Applicable Series; 
 (ii) the Managing Owner and the
Trustee will not take, demand or receive from any Fund or the Trust or any of their respective assets (other than the Applicable Series, the Applicable Series’ assets and the Managing Owner and its assets) any payment for the Subordinated
Claims; 
 (iii) The Claims of each of the Managing Owner and the Trustee with respect to the Applicable Series
shall only be asserted and enforceable against the Applicable Series, the Applicable Series’ assets and the Managing Owner and its assets; and such Claims shall not be asserted or enforceable for any reason whatsoever against any other series,
the Trust generally, or any of their respective assets; 
 (iv) If the Claims of the Managing Owner or the
Trustee against the Applicable Series or the Trust are secured in whole or in part, each of the Managing Owner and the Trustee hereby waives (under section 1111(b) of the Bankruptcy Code (11 U.S.C. § 1111(b)) any right to have any deficiency
Claims (which deficiency Claims may 

  
 23 

 
arise in the event such security is inadequate to satisfy such Claims) treated as unsecured Claims against the Trust or any series (other than the Applicable Series), as the case may be;

 (v) In furtherance of the foregoing, if and to the extent that the Managing Owner and the Trustee receive
monies in connection with the Subordinated Claims from a Fund or the Trust (or their respective assets), other than the Applicable Series, the Applicable Series’ assets and the Managing Owner and its assets, the Managing Owner and the Trustee
shall be deemed to hold such monies in trust and shall promptly remit such monies to the Fund or the Trust that paid such amounts for distribution by the Fund or the Trust in accordance with the terms hereof; and 

(vi) The foregoing Consent shall apply at all times notwithstanding that the Claims are satisfied, and notwithstanding
that the agreements in respect of such Claims are terminated, rescinded or canceled. 
 (c) Any agreement entered into by the
Trust, any Fund, or the Managing Owner, on behalf of the Trust generally or any Fund, including, without limitation, the Purchase Order Subscription Agreement entered into with each Limited Owner, will include language substantially similar to the
language set forth in Section 3.7(b). 
 SECTION 3.8. Distributions. 

(a) Distributions on Units may be paid with such frequency as the Managing Owner may determine, which may be daily or otherwise, to the
Unitholders, from such of the income and capital gains, accrued or realized, from each Trust Estate, after providing for actual and accrued liabilities. All distributions on Units thereof shall be distributed pro rata to the Unitholders in
proportion to the total outstanding Units held by such Unitholders at the date and time of record established for the payment of such distribution and in accordance with Section 3.5(g). Such distributions may be made in cash or Units as
determined by the Managing Owner or pursuant to any program that the Managing Owner may have in effect at the time for the election by each Unitholder of the mode of the making of such distribution to that Unitholder. 

(b) The Units shall represent units of beneficial interest in each applicable Trust Estate. Each Unitholder shall be entitled to receive
its pro rata share of distributions of income and capital gains in accordance with Section 3.8(a). 
 SECTION 3.9.
Voting Rights. Notwithstanding any other provision hereof, on each matter submitted to a vote of the Unitholders, each Unitholder shall be entitled to a proportionate vote based upon the product of the Net Asset Value per Unit of a Fund
multiplied by the number of Units, or fraction thereof, standing in its name on the books of such Fund in accordance with Section 3.5(g). 
 SECTION 3.10. Equality. Except as provided herein, all Units of a Fund shall represent an equal proportionate beneficial interest in the assets of the Fund subject to the liabilities of the Fund,
and each Unit shall be equal to each other Unit. The Managing Owner may from time to time divide or combine the Units into a greater or lesser number of Units without thereby changing the proportionate beneficial interest in the assets of the Funds
or in any way affecting the rights of Unitholders. 

  
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 ARTICLE IV 
 THE MANAGING OWNER 
 SECTION 4.1. Management of the Trust. Pursuant
to Section 3806(b)(7) of the Delaware Trust Statute, the Trust shall be managed by the Managing Owner and the conduct of the Trust’s business shall be controlled and conducted solely by the Managing Owner in accordance with this Trust
Agreement. 
 SECTION 4.2. Authority of Managing Owner. In addition to and not in limitation of any rights and powers
conferred by law or other provisions of this Trust Agreement, and except as limited, restricted or prohibited by the express provisions of this Trust Agreement or the Delaware Trust Statute, the Managing Owner shall have and may exercise on behalf
of the Trust, all powers and rights necessary, proper, convenient or advisable to effectuate and carry out the purposes, business and objectives of the Trust, which shall include, without limitation, the following: 

(a) To enter into, execute, deliver and maintain, and to cause the Trust to perform its obligations under, contracts, agreements and any
or all other documents and instruments, and to do and perform all such things as may be in furtherance of Trust purposes or necessary or appropriate for the offer and sale of the Units and the conduct of Trust activities, including, but not limited
to, contracts with third parties for commodity brokerage services and/or administrative services, provided, however, that such services may be performed by an Affiliate or Affiliates of the Managing Owner so long as the Managing Owner has made a
good faith determination that: (i) the Affiliate which it proposes to engage to perform such services is qualified to do so (considering the prior experience of the Affiliate or the individuals employed thereby); (ii) the terms and
conditions of the agreement pursuant to which such Affiliate is to perform services for the Trust are no less favorable to the Trust than could be obtained from equally-qualified unaffiliated third parties; and (iii) the maximum period covered
by the agreement pursuant to which such Affiliate is to perform services for the Trust shall not exceed one year, and such agreement shall be terminable without penalty upon sixty (60) days’ prior written notice by the Trust; 

(b) To establish, maintain, deposit into, sign checks and/or otherwise draw upon accounts on behalf of the Trust with appropriate banking
and savings institutions, and execute and/or accept any instrument or agreement incidental to the Trust’s business and in furtherance of its purposes, any such instrument or agreement so executed or accepted by the Managing Owner in the
Managing Owner’s name shall be deemed executed and accepted on behalf of the Trust by the Managing Owner; 
 (c) To
deposit, withdraw, pay, retain and distribute each Trust Estate or any portion thereof in any manner consistent with the provisions of this Trust Agreement; 

  
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 (d) To supervise the preparation and filing of the Registration Statement and supplements
and amendments thereto, and the Prospectus; 
 (e) To pay or authorize the payment of distributions to the Unitholders and
expenses of each Fund; 
 (f) To make any elections on behalf of the Trust under the Code, or any other applicable U.S. federal
or state tax law as the Managing Owner shall determine to be in the best interests of the Trust; and 
 (g) In the sole
discretion of the Managing Owner, to admit an Affiliate or Affiliates of the Managing Owner as additional Managing Owners. Notwithstanding the foregoing, the Managing Owner may not admit Affiliate(s) of the Managing Owner as an additional Managing
Owner if it has received notice of its removal as a Managing Owner, pursuant to Section 8.2(d) hereof, or if the concurrence of at least a majority in interest (over 50%) of the outstanding Units of all Funds (not including Units owned by the
Managing Owner) is not obtained. 
 SECTION 4.3. Obligations of the Managing Owner. In addition to the obligations
expressly provided by the Delaware Trust Statute or this Trust Agreement, the Managing Owner shall: 
 (a) Devote such of its
time to the business and affairs of the Trust as it shall, in its discretion exercised in good faith, determine to be necessary to conduct the business and affairs of the Trust for the benefit of the Trust and the Limited Owners; 

(b) Execute, file, record and/or publish all certificates, statements and other documents and do any and all other things as may be
appropriate for the formation, qualification and operation of the Trust and for the conduct of its business in all appropriate jurisdictions; 
 (c) Retain independent public accountants to audit the accounts of the Trust; 

(d) Employ attorneys to represent the Trust; 
 (e) Select the Trust’s or any Fund’s Trustee, transfer agent, custodian and clearing brokers, and any other service provider; 

(f) Use its best efforts to maintain the status of the Trust as a “statutory trust” for state law purposes and each Fund as a
“partnership” for U.S. federal income tax purposes; 
 (g) Monitor the brokerage fees charged to the Trust, and the
services rendered by futures commission merchants to the Trust, to determine whether the fees paid by, and the services rendered to, the Trust for futures brokerage are at competitive rates and are the best price and services available under the
circumstances, and if necessary, renegotiate the brokerage fee structure to obtain such rates and services for the Trust. No material change related to brokerage fees shall be made except upon sixty (60) Business Days’ prior notice to the
Limited Owners, which notice shall include a description of the Limited Owners’ voting rights as set forth in Section 8.2 hereof and a description of the Limited Owners’ redemption rights as set forth in Section 7.1 hereof;

  
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 (h) Have fiduciary responsibility for the safekeeping and use of each Trust Estate, whether
or not in the Managing Owner’s immediate possession or control, and the Managing Owner will not employ or permit others to employ such funds or assets (including any interest earned thereon as provided for in the Prospectus) in any manner
except for the benefit of the Trust, including, among other things, the utilization of any portion of the Trust Estate as compensating balances for the exclusive benefit of the Managing Owner. The Managing Owner shall at all times act with integrity
and good faith and exercise due diligence in all activities relating to the conduct of the business of the Trust and in resolving conflicts of interest; 
 (i) For each Fund, enter into a Participant Agreement with each Participant and discharge the duties and responsibilities of the Fund and the Managing Owner thereunder; 

(j) For each Fund, receive from Participants and process properly submitted Purchase Order Subscription Agreements, as described in
Section 3.4(a)(iii); 
 (k) For each Fund, in connection with Purchase Order Subscription Agreements, receive Creation
Basket Capital Contributions from Participants; 
 (l) For each Fund, in connection with Purchase Order Subscription Agreements,
deliver or cause the delivery of Creation Baskets to the Depository for the account of the Participant submitting a Purchase Order Subscription Agreement for which the Managing Owner has received the requisite Transaction Fee and the Trust has
received the requisite Creation Basket Capital Contribution, as described in Section 3.4(d); 
 (m) For each Fund, receive
from Participants and process properly submitted Redemption Orders, as described in Section 7.1(a), or as may from time to time be permitted by Section 7.2; 
 (n) For each Fund, in connection with Redemption Orders, receive from the redeeming Participant through the Depository, and thereupon cancel or cause to be cancelled, Limited Units corresponding to the
Redemption Baskets to be redeemed as described in Section 7.1, or as may from time to time be permitted by Section 7.2; 
 (o) Interact with the Depository as required; 
 (p) Delegate those of its duties
hereunder as it shall determine from time to time to one or more Administrators or Distributors, as applicable; 
 (q) Cause the
Trust to make, refrain from making, or once having made, to revoke, the election referred to in section 754 of the Code, and any similar election provided by state or local law, or any similar provision enacted in lieu thereof; 

(r) Cause the Trust to make, refrain from making, or once having made, to revoke the election by a qualified fund under Code section
988(c)(1)(E)(iii)(V), and any similar election provided by state or local law, or any similar provision enacted in lieu thereof; and 

  
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 (s) Perform such other services as the Managing Owner believes that the Trust may from time
to time require. 
 SECTION 4.4. General Prohibitions. The Trust and each Fund, as applicable, shall not: 

(a) Redeem the Units other than to fund a redemption request from a Participant; 

(b) Borrow money from or loan money to any Unitholder (including the Managing Owner) or other Person, except that the foregoing is not
intended to prohibit (i) the deposit on margin with respect to the initiation and maintenance of Currencies positions or (ii) obtaining lines of credit for the trading of forward contracts; provided, however, that the Trust is prohibited
from incurring any indebtedness on a non-recourse basis; 
 (c) Create, incur, assume or suffer to exist any lien, mortgage,
pledge conditional sales or other title retention agreement, charge, security interest or encumbrance, except (i) the right and/or obligation of a Commodity Broker to close out sufficient Currencies positions of the Trust so as to restore the
Trust’s account to proper margin status in the event that the Trust fails to meet a Margin Call, (ii) liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have
been established, (iii) deposits or pledges to secure obligations under workmen’s compensation, social security or similar laws or under unemployment insurance, (iv) deposits or pledges to secure contracts (other than contracts for
the payment of money), leases, statutory obligations, surety and appeal bonds and other obligations of like nature arising in the ordinary course of business, or (v) mechanic’s, warehousemen’s, carrier’s, workmen’s,
materialmen’s or other like liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith, and for which appropriate reserves have been established if required by
generally accepted accounting principles, and liens arising under ERISA; 
 (d) Commingle its assets with those of any other
Person, except to the extent permitted under the CE Act and the regulations promulgated thereunder; 
 (e) Engage in Pyramiding
of its Currencies positions; provided, however, that the Managing Owner may take into account open trade equity positions in determining generally whether to require additional Currencies positions; 

(f) Permit rebates to be received by the Managing Owner or any Affiliate of the Managing Owner, or permit the Managing Owner or any
Affiliate of the Managing Owner to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; 
 (g) Permit the Managing Owner to share in any portion of brokerage fees related to commodity brokerage services paid with respect to commodity trading activities; 

(h) Enter into any contract with the Managing Owner or an Affiliate of the Managing Owner (except for selling agreements for the sale of
Units) which has a term of more than one year and which does not provide that it may be canceled by the Trust without penalty on 

  
 28 

 
sixty (60) days prior written notice or for the provision of goods and services, except at rates and terms at least as favorable as those which may be obtained from third parties in
arm’s-length negotiations; 
 (i) Permit churning of its Currency trading account(s) for the purpose of generating excess
brokerage commissions; 
 (j) Enter into any exclusive brokerage contract; 

(k) Operate the Trust or a Fund in any manner so as to contravene the requirements to preserve the limitation on interseries liability
set forth in Section 3804 of the Delaware Trust Statute; or 
 (l) Cause the Trust or any Fund to elect to be treated as an
association taxable as a corporation for U.S. federal income tax purposes. 
 SECTION 4.5. Liability of Covered Persons.
A Covered Person shall have no liability to the Trust, any Fund or to any Unitholder or other Covered Person for any loss suffered by the Trust or any Fund which arises out of any action or inaction of such Covered Person if such Covered Person, in
good faith, determined that such course of conduct was in the best interest of the Trust or the applicable Fund and such course of conduct did not constitute negligence or misconduct of such Covered Person. Subject to the foregoing, neither the
Managing Owner nor any other Covered Person shall be personally liable for the return or repayment of all or any portion of the capital or profits of any Limited Owner or assignee thereof, it being expressly agreed that any such return of capital or
profits made pursuant to this Trust Agreement shall be made solely from the assets of the applicable Fund without any rights of contribution from the Managing Owner or any other Covered Person. A Covered Person shall not be liable for the conduct or
misconduct of any Administrator or other delegatee selected by the Managing Owner with reasonable care. 
 SECTION 4.6.
Fiduciary Duty. 
 (a) To the extent that, at law or in equity, the Managing Owner has duties (including fiduciary duties)
and liabilities relating thereto to the Trust, the Funds, the Unitholders or to any other Person, the Managing Owner acting under this Trust Agreement shall not be liable to the Trust, the Funds, the Unitholders or to any other Person for its good
faith reliance on the provisions of this Trust Agreement subject to the standard of care in Section 4.5 herein. The provisions of this Trust Agreement, to the extent that they restrict the duties and liabilities of the Managing Owner otherwise
existing at law or in equity are agreed by the parties hereto to replace such other duties and liabilities of the Managing Owner. Any material changes in the Trust’s basic investment policies or structure shall occur only upon the written
approval or affirmative vote of Limited Owners holding Units equal to at least a majority (over 50%) of the Net Asset Value of a Fund (excluding Units held by the Managing Owner and its Affiliates) affected by the change pursuant to
Section 11.1(a) below. 

  
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 (b) Unless otherwise expressly provided herein: 

(i) whenever a conflict of interest exists or arises between the Managing Owner or any of its Affiliates, on the one hand,
and the Trust or any Unitholder or any other Person, on the other hand; or 
 (ii) whenever this Trust Agreement
or any other agreement contemplated herein or therein provides that the Managing Owner shall act in a manner that is, or provides terms that are, fair and reasonable to the Trust, any Unitholder or any other Person, 

the Managing Owner shall resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest of
each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable generally accepted accounting
practices or principles. In the absence of bad faith by the Managing Owner, the resolution, action or terms so made, taken or provided by the Managing Owner shall not constitute a breach of this Trust Agreement or any other agreement contemplated
herein or of any duty or obligation of the Managing Owner at law or in equity or otherwise. 
 (c) The Managing Owner and any
Affiliate of the Managing Owner may engage in or possess an interest in other profit-seeking or business ventures of any nature or description, independently or with others, whether or not such ventures are competitive with the Trust and the
doctrine of corporate opportunity, or any analogous doctrine, shall not apply to the Managing Owner. If the Managing Owner acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the
Trust, it shall have no duty to communicate or offer such opportunity to the Trust, and the Managing Owner shall not be liable to the Trust or to the Unitholders for breach of any fiduciary or other duty by reason of the fact that the Managing Owner
pursues or acquires for, or directs such opportunity to another Person or does not communicate such opportunity or information to the Trust. Neither the Trust nor any Unitholder shall have any rights or obligations by virtue of this Trust Agreement
or the trust relationship created hereby in or to such independent ventures or the income or profits or losses derived therefrom, and the pursuit of such ventures, even if competitive with the activities of the Trust, shall not be deemed wrongful or
improper. Except to the extent expressly provided herein, the Managing Owner may engage or be interested in any financial or other transaction with the Trust, the Unitholders or any Affiliate of the Trust or the Unitholders. 

SECTION 4.7. Indemnification of the Managing Owner. 
 (a) The Managing Owner shall be indemnified by the Trust (or, in furtherance of Section 3.8, any Fund separately to the extent the matter in question relates to a single Fund or is otherwise
disproportionate) against any losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by it in connection with its activities for the Trust, provided that (i) the Managing Owner was acting on behalf of or
performing services for the Trust and has determined, in good faith, that such course of conduct was in the best interests of the Trust and such liability or loss was not the result of negligence, misconduct, or a breach of this Trust Agreement on
the part of the Managing Owner and (ii) any such indemnification will 

  
 30 

 
only be recoverable from the applicable Trust Estate or Trust Estates. All rights to indemnification permitted herein and payment of associated expenses shall not be affected by the dissolution
or other cessation to exist of the Managing Owner, or the withdrawal, adjudication of bankruptcy or insolvency of the Managing Owner, or the filing of a voluntary or involuntary petition in bankruptcy under Title 11 of the Code by or against the
Managing Owner. 
 (b) Notwithstanding the provisions of Section 4.7(a) above, the Managing Owner and any Person acting as
broker-dealer for the Trust or any Fund shall not be indemnified for any losses, liabilities or expenses arising from or out of an alleged violation of U.S. federal or state securities laws unless (i) there has been a successful adjudication on
the merits of each count involving alleged securities law violations as to the particular indemnitee and the court approves the indemnification of such expenses (including, without limitation, litigation costs), (ii) such claims have been
dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee and the court approves the indemnification of such expenses (including, without limitation, litigation costs) or (iii) a court of
competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and related costs should be made. 
 (c) The Trust and the Funds shall not incur the cost of that portion of any insurance which insures any party against any liability, the indemnification of which is herein prohibited. 

(d) Expenses incurred in defending a threatened or pending civil, administrative or criminal action, suit or proceeding against the
Managing Owner shall be paid by the Trust in advance of the final disposition of such action, suit or proceeding, if (i) the legal action relates to the performance of duties or services by the Managing Owner on behalf of the Trust;
(ii) the legal action is initiated by a third party who is not a Limited Owner or the legal action is initiated by a Limited Owner and a court of competent jurisdiction specifically approves such advance; and (iii) the Managing Owner
undertakes to repay the advanced funds with interest to the Trust in cases in which it is not entitled to indemnification under this Section 4.7. 
 (e) The term “Managing Owner” as used in this Section 4.7 shall include, in addition to the Managing Owner, any other Covered Person performing services on behalf of the Trust and acting
within the scope of the Managing Owner’s authority as set forth in this Trust Agreement. 
 (f) In the event the Trust is
made a party to any claim, dispute, demand or litigation or otherwise incurs any loss, liability, damage, cost or expense as a result of or in connection with any Limited Owner’s (or assignee’s) obligations or liabilities unrelated to
Trust business, such Limited Owner (or assignees cumulatively) shall indemnify, defend, hold harmless, and reimburse the Trust for all such loss, liability, damage, cost and expense incurred, including attorneys’ and accountants’ fees.

 (g) The payment of any amount pursuant to this Section shall be subject to Section 3.7 with respect to the allocation of
liabilities and other amount, as appropriate, among the Funds. 

  
 31 

 SECTION 4.8. Expenses and Limitations Thereon. 

(a)(i) The Managing Owner or an Affiliate of the Managing Owner shall be responsible for the payment of all
Organization and Offering Expenses as defined in Section 4.8(a)(ii). 
 (ii) Organization and Offering
Expenses shall mean those expenses incurred in connection with the formation, qualification and registration of the Trust, the Funds and the Units and in offering, distributing and processing the Units under applicable U.S. federal and state law, as
applicable, and any other expenses actually incurred and, directly or indirectly, related to the organization of the Trust or the continuous offering of the Units, including, but not limited to, expenses such as: (A) initial and ongoing
registration fees, filing fees, escrow fees and taxes, (B) costs of preparing, printing (including typesetting), amending, supplementing, mailing and distributing the Registration Statement, the Exhibits thereto and the Prospectus during the
Continuous Offering, (C) the costs of qualifying, printing (including typesetting), amending, supplementing, mailing and distributing sales materials used in connection with the offering and issuance of the Units during the Continuous Offering,
(D) travel, telegraph, telephone and other expenses in connection with the offering and issuance of the Units during the Continuous Offering, and (E) accounting, auditing and legal fees (including disbursements related thereto) incurred in
connection therewith. However, such Organization and Offering Expenses shall exclude any extraordinary expenses (including, but not limited to, legal claims and liabilities and litigation costs and any permitted indemnification associated therewith)
related thereto. 
 (b) Routine Operational, Administrative and Other Ordinary and Extraordinary Fees and Expenses. All
ongoing charges, costs and expenses of each Fund’s operation, including, but not limited to, the routine expenses associated with (i) preparation of monthly, quarterly, annual and other reports required by applicable U.S. federal and state
regulatory authorities; (ii) Fund meetings and preparing, printing and mailing of proxy statements and reports to Unitholders; (iii) the payment of any distributions related to redemption of Units; (iv) routine services of the
Trustee, legal counsel and independent accountants; (v) routine accounting and bookkeeping services, whether performed by an outside service provider or by Affiliates of the Managing Owner; (vi) postage and insurance; (vii) client
relations and services; (viii) computer equipment and system maintenance; and (ix) required payments to any other service providers of the Trust pursuant to any applicable contract shall be billed to and/or paid by the Managing Owner. The
Management Fee and extraordinary fees and expenses (including, but not limited to, legal claims and liabilities and litigation costs and any indemnification related thereto) shall be billed to and/or paid by the respective Funds. Each Fund shall pay
all its extraordinary fees and expenses (as defined in the next sentence), if any, of such Fund generally, if any, as determined by the Managing Owner. Extraordinary fees and expenses shall include, but not be limited to, fees and expenses which are
non-recurring and unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses shall also include material expenses which are not currently
anticipated obligations of each Fund or of managed futures trusts in general. Routine operational, administrative and other ordinary expenses will not be deemed extraordinary fees and expenses. 

  
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 (c) Brokerage Commissions and Fees. Each Fund shall pay to the Commodity Broker all
brokerage commissions, including applicable exchange fees, NFA fees, give-up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with its trading activities. 

(d) The Managing Owner or any Affiliate of the Managing Owner may only be reimbursed for the actual cost to the Managing Owner or such
Affiliate of any expenses which it advances on behalf of a Fund for which payment a Fund is responsible. In addition, payment to the Managing Owner or such Affiliate for indirect expenses incurred in performing services for a Fund in its capacity as
the managing owner of the Trust, such as salaries and fringe benefits of officers and directors, rent or depreciation, utilities and other administrative items generally falling within the category of the Managing Owner’s “overhead,”
is prohibited. 
 (e) All general expenses of the Trust will be allocated among the Funds as determined by the Managing Owner in
its sole and absolute discretion. 
 SECTION 4.9. Compensation to the Managing Owner. The Managing Owner shall be
entitled to compensation for its services as managing owner of each Fund as set forth in the Prospectus (the “Management Fee”). 
 SECTION 4.10. Other Business of Unitholders. Except as otherwise specifically provided herein, any of the Unitholders and any shareholder, officer, director, employee or other person holding a
legal or beneficial interest in an entity which is a Unitholder, may engage in or possess an interest in other business ventures of every nature and description, independently or with others, and the pursuit of such ventures, even if competitive
with the business of the Trust, shall not be deemed wrongful or improper. 
 SECTION 4.11. Voluntary Withdrawal of the
Managing Owner. The Managing Owner may withdraw voluntarily as the Managing Owner of the Trust only upon one hundred and twenty (120) days’ prior written notice to all Limited Owners and the Trustee. If the withdrawing Managing Owner
is the last remaining Managing Owner, Limited Owners holding Units equal to at least a majority (over 50%) of each Fund’s aggregate Net Asset Value (excluding Units held by the Managing Owner) may vote to elect and appoint, effective as of a
date on or prior to the withdrawal, a successor Managing Owner who shall carry on the business of the Trust. In the event of its removal or withdrawal, the Managing Owner shall be entitled to a redemption of its Units at their respective Net Asset
Value. If the Managing Owner withdraws and a successor Managing Owner is named, the withdrawing Managing Owner shall pay all expenses as a result of its withdrawal. 
 SECTION 4.12. Authorization of Registration Statements. Each Limited Owner (or any permitted assignee thereof) hereby agrees that the Trust, the Managing Owner and the Trustee are authorized to
execute, deliver and perform the agreements, acts, transactions and matters contemplated hereby or described in or contemplated by the Registration Statements on behalf of the Trust without any further act, approval or vote of the Limited Owners of
the Funds, notwithstanding any other provision of this Trust Agreement, the Delaware Trust Statute or any applicable law, rule or regulation. 

  
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 SECTION 4.13. Litigation. The Managing Owner is hereby authorized to prosecute,
defend, settle or compromise actions or claims at law or in equity as may be necessary or proper to enforce or protect the Trust’s interests. The Managing Owner shall satisfy any judgment, decree or decision of any court, board or authority
having jurisdiction or any settlement of any suit or claim prior to judgment or final decision thereon, first, out of any insurance proceeds available therefor, next, out of the Funds’ assets on a pro rata basis and, thereafter, out of the
assets (to the extent that it is permitted to do so under the various other provisions of this Trust Agreement) of the Managing Owner. 
 ARTICLE V 
 TRANSFERS OF UNITS 

SECTION 5.1. General Prohibition. To the fullest extent permitted by law, a Limited Owner may not sell, assign, transfer or
otherwise dispose of, or pledge, hypothecate or in any manner encumber any or all of his Units or any part of his right, title and interest in the capital or profits in any Fund except as permitted in this Article V and any act in violation of this
Article V shall not be binding upon or recognized by the Trust (regardless of whether the Managing Owner shall have knowledge thereof), unless approved in writing by the Managing Owner. 

SECTION 5.2. Transfer of Managing Owner’s General Units. 

(a) Upon an Event of Withdrawal (as defined in Section 13.1), the Managing Owner’s General Units shall be purchased by the Trust
for a purchase price in cash equal to the Net Asset Value thereof. The Managing Owner will not cease to be a Managing Owner of the Trust merely upon the occurrence of its making an assignment for the benefit of creditors, filing a voluntary petition
in bankruptcy, filing a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, filing an answer or other pleading admitting
or failing to contest material allegations of a petition filed against it in any proceeding of this nature or seeking, consenting to or acquiescing in the appointment of a trustee, receiver or liquidator for itself or of all or any substantial part
of its properties. 
 (b) To the full extent permitted by law, and on sixty (60) days’ prior written notice to the
Limited Owners, of their right to vote thereon, if the transaction is other than with an Affiliated entity, nothing in this Trust Agreement shall be deemed to prevent the merger of the Managing Owner with another corporation or other entity, the
reorganization of the Managing Owner into or with any other corporation or other entity, the transfer of all the capital stock of the Managing Owner or the assumption of the rights, duties and liabilities of the Managing Owner by, in the case of a
merger, reorganization or consolidation, the surviving corporation or other entity by operation of law or the transfer of the Managing Owner’s Units to an Affiliate of the Managing Owner. Without limiting the foregoing, none of the transactions
referenced in the preceding sentence shall be deemed to be a voluntary withdrawal for purposes of Section 4.11 or an Event of Withdrawal or assignment of Units for purposes of Sections 5.2(a) or 5.2(c). 

  
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 (c) Upon assignment of all of its Units, the Managing Owner shall not cease (x) to be a
Managing Owner of the Trust, or (y) to have the power to exercise any rights or powers as a Managing Owner, or (z) to have liability for the obligations of the Trust under Section 1.7 hereof, until an additional Managing Owner, who
shall carry on the business of the Trust, has been admitted to the Trust. 
 SECTION 5.3. Transfer of Limited Units.
Beneficial Owners that are not DTC Participants may transfer Limited Units by instructing the DTC Participant or Indirect Participant holding the Limited Units for such Beneficial Owner in accordance with standard securities industry practice.
Beneficial Owners that are DTC Participants may transfer Limited Units by instructing the Depository in accordance with the rules of the Depository and standard securities industry practice. 

ARTICLE VI 

CAPITAL ACCOUNTS; ALLOCATIONS 
 SECTION 6.1. Capital Accounts. The Trust shall maintain for each Unitholder with respect to each Fund (which includes beneficial owners of Fund interests where information regarding the identity of
such owner has been furnished to the Trust in accordance with section 6031(c) or the Code or any other method acceptable to the Managing Owner in its sole discretion) owning a Fund interest a separate Capital Account with respect to such Fund
interest in accordance with the rules of Treasury Regulation section 1.704-1(b)(2)(iv). The initial balance of each Unitholder’s book capital account shall be the amount of its initial Capital Contribution. Such Capital Account shall be
(i) increased by the amount of all Capital Contributions made with respect to the respective Fund interest and all items of income and gain with respect to each Fund computed and allocated to the Fund Units in accordance with this Trust
Agreement and (ii) decreased by the amount of cash distributions made with respect to such Fund interest and all items of deduction and loss with respect to each Fund computed and allocated in accordance with this Agreement. 

(a) Consistent with the provisions of Treasury Regulation section 1.704-1(b)(2)(iv)(f), upon an issuance of additional Units with respect
to a Fund for cash, the Capital Accounts of all Unitholders with respect to such Fund shall, immediately prior to such issuances, be adjusted (consistent with the provisions hereof) upwards or downwards to reflect any Unrealized Gain or Unrealized
Loss attributable to each Fund property, as if such Unrealized Gain or Unrealized Loss had been recognized upon an actual sale of each such property, immediately prior to such issuance, and had been allocated to its Unitholders at such time pursuant
to Section 6.3. 
 (b) In accordance with Treasury Regulation section 1.704-1(b)(2)(iv)(f), immediately prior to the
distribution of cash in redemption of all or a portion of a Unitholder’s Units, the capital accounts of all Unitholders with respect to a Fund shall, immediately prior to any such distribution, be adjusted (consistent with the provisions
hereof) upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to each Fund property, as if such Unrealized Gain or Unrealized Loss had been recognized upon an actual sale of each property, immediately prior to such
distribution, and had been allocated to the Unitholders at such time pursuant to Section 6.3. 

  
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 SECTION 6.2. Monthly Closing of Books. Within forty-five (45) days after the end
of each calendar month or such shorter period as required for the final closing of the books for the taxable year, the Trust shall conduct an interim closing of the books of each Fund as of the end of the last day of that calendar month. On the
basis of the closing of the books for each calendar month, the Trust shall determine the amount of Profit and Loss of each Fund attributable to that calendar month. Fund Profits and Losses shall be determined in accordance with the accounting
methods followed by the Trust for federal income tax purposes. 
 SECTION 6.3. Periodic Allocations. All allocations to
Unitholders of items included within the Fund’s Profits and Losses attributable to each calendar month (or such other periods as the Managing Owner may determine in its sole discretion) shall be allocated solely among the Unitholders recognized
as Unitholders as of the close of the last trading day of the preceding month (or the last trading day of such other period as the Managing Owner may determine in its sole discretion), as follows: 

(a) For purposes of maintaining each Fund’s Capital Accounts and in determining the rights of the Unitholders among themselves,
except as otherwise provided in this Article VI, each item of income, gain, loss and deduction shall be allocated among Unitholders in accordance with their respective Percentage Interests. 

(b) Any item of loss or deduction otherwise allocated to the Managing Owner pursuant to Section 6.3 which is in excess of such
Managing Owner’s positive Adjusted Capital Account balance (following adjustment to reflect the allocation of all other items for such period) shall instead be allocated to the other Unitholders in accordance with their respective Percentage
Interests to the extent such item of loss or deduction exceeds such Managing Owner’s Adjusted Capital Account balance; provided that the allocation of any such item to such other Unitholders shall only be made hereunder to the extent the
allocation would not result in or increase a negative balance in the Adjusted Capital Account of such other Unitholders. If such an allocation occurs, items of income or gain that would otherwise be allocated to the Managing Owner equal to the
amount of such allocated loss or deduction will be allocated to the other Unitholders in accordance with their Percentage Interests as quickly as possible. 
 (c) If any Unitholder unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulation sections 1.704-1(b)(ii)(d)(4), (5) or (6), items of Fund income and
gain shall be specially allocated to such Unitholder in an amount and manner sufficient to eliminate a deficit in its Adjusted Capital Account created by such adjustments, allocations or distributions as quickly as possible. This Section 6.3(c)
is intended to constitute a “qualified income offset” within the meaning of Treasury Regulation section 1.704-1(b)(2)(ii)(d). 
 (d) Notwithstanding any other provision of this Trust Agreement, upon or prior to the issuance of additional Units, the Managing Owner shall have the sole and complete discretion, without the approval of
any other Unitholder, to amend any provisions of this Article VI in any manner, as is necessary, appropriate or advisable to comply with any current or future provisions of the Code or the Treasury Regulations or to implement the terms and
conditions of any Units. 

  
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 SECTION 6.4. Code Section 754 Adjustments. To the extent an adjustment to the
tax basis of any Fund asset pursuant to Section 743(b) or 743(c) of the Code is required, pursuant to Treasury Regulation section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to
the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such item of gain or loss shall be specially allocated to the Unitholders in a manner
consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such regulation. For purposes of computing the adjustments under section 743(b) of the Code, a Fund is authorized (but not required) to adopt a
convention whereby the price paid by a transferee of Units will be deemed to be the lowest quoted closing price of the Units of the particular Fund on the Exchange during the calendar month in which such transfer is deemed to occur pursuant to
Section 5.2 without regard to the actual price paid by the transferee. 
 SECTION 6.5. Allocation of Profit and Loss for
U.S. Federal Income Tax Purposes. 
 (a) Except as otherwise provided, each item of income, gain, loss, deduction and credit
of each Fund shall be allocated among the Unitholders in accordance with their respective Percentage Interests. 
 (b) In an
attempt to eliminate Book-Tax Disparities attributable to Adjusted Property, items of income, gain, and loss will be allocated for federal income tax purposes among the Unitholders of each Fund as follows: 

(i) Items attributable to an Adjusted Property will be allocated among the Unitholders of each Fund in a manner consistent
with the principles of section 704(c) of the Code to take into account the Unrealized Gain or Loss attributable to the property and the allocations thereof pursuant to Section 6.3(a) and (b). 

(ii) Any items of income, gain, loss or deduction otherwise allocable under this Section 6.5 shall be subject to
allocation by the Managing Owner in a manner designed to eliminate, to the maximum extent possible, Book-Tax Disparities in an Adjusted Property otherwise resulting from the application of the ceiling limitation under section 704(c) principles to
the allocations provided under this Section. 
 (iii) Subject to this Section 6.5(b), any items of income,
gain, loss or deduction otherwise allocable to the Managing Owner pursuant to Section 6.3(a) that constitutes the tax corollary of an item of “book” income, gain, loss or deduction that has been allocated to the other Unitholders of a
Fund pursuant to Section 6.3(b) shall be allocated to such other Unitholders in the same manner and to the same extent provided in this Section 6.5(b). 

(iv) If any Unitholder unexpectedly receives any adjustments, allocations or distributions described in Treasury
Regulation section 1.704-1(b)(2)(ii)(d), items of income and gain shall be specially allocated to such Unitholder in an amount and manner consistent with the allocations of income and gain pursuant to Section 6.3(c). 

  
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 (c) The tax allocations prescribed by this Section 6.5 shall be made to each holder of
a Unit whether or not the holder is a substituted Limited Owner. For purposes of this Section 6.5, tax allocations shall be made to the Managing Owner’s Units on a Unit-equivalent basis. 

(d) The allocation of income and loss (and items thereof) for U.S. federal income tax purposes set forth in this Section 6.5 is
intended to allocate taxable income and loss among Unitholders generally in the ratio and to the extent that net profit and net loss shall be allocated to such Unitholders under Section 6.3 so as to eliminate, to the extent possible, any
disparity between a Unitholder’s book capital account and his tax capital account, consistent with the principles set forth in Sections 704(b) and (c)(2) of the Code. 
 (e) Notwithstanding this Section 6.5, if after taking into account any distributions to be made with respect to such Unit for the relevant period pursuant to Section 6.7 herein, any allocation
would produce a deficit in the book capital account of a Unit, the portion of such allocation that would create such a deficit shall instead be allocated pro rata to the book capital accounts of all the remaining Unitholders in such Fund (subject to
the same limitation). 
 SECTION 6.6. Effect of Section 754 Election. All items of income, gain, loss, deduction and
credit recognized by a Fund for federal income tax purposes and allocated to Unitholders in such Fund in accordance with the provisions of this Agreement shall be determined without regard to any election under section 754 of the Code which may be
made by such Fund; provided, however, that such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted or required by sections 734 or 743 of the Code. 

SECTION 6.7. Allocation of Distributions. Initially, distributions shall be made by the Managing Owner, and the Managing Owner
shall have sole discretion in determining the amount and frequency of distributions, other than redemptions, with respect to the Units; provided, however, that no distribution shall be made that violates the Delaware Trust Statute. The aggregate
distributions made in a Fiscal Year (other than distributions on termination, which shall be allocated in the manner described in Article XIII) shall be allocated among the holders of record of Units in the ratio in which the number of Units held of
record by each of them bears to the number of Units held of record by all of the Unitholders of such Fund as of the record date of such distribution; provided, further, however, that any distribution made in respect of a Unit shall not exceed the
book capital account for such Unit. 
 SECTION 6.8. Admissions of Unitholders; Transfers. For purposes of this
Article VI, items of each Fund’s income, gain, loss, deduction and credit attributable to a transferred Unit shall, for federal income tax purposes, be determined on an annual basis and prorated on a monthly basis (or other basis, as required
or permitted by section 706 of the Code) and shall be allocated to such Unitholders who own the Units as of the close of the Exchange on the last day of the month in which the transfer is recognized by the Trust; provided that, gain or loss on the
sale or other disposition of all or a substantial portion of the assets of the Trust shall be allocated to the Unitholders who own Units as of the close of the Exchange on the last day of the month in which such gain or loss is recognized for
federal income tax purposes. The Managing Owner may revise, alter or otherwise modify such methods of determination and allocation as it determines necessary, to the extent permitted by section 706 of the Code and the regulations or rulings
promulgated thereunder. 

  
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 SECTION 6.9. Liability for State and Local and Other Taxes. In the event that the
Trust or a Fund shall be separately subject to taxation by any state or local or by any foreign taxing authority, the Trust or such Fund shall be obligated to pay such taxes to such jurisdiction. In the event that the Trust or any Fund shall be
required to make payments to any Federal, state or local or any foreign taxing authority in respect of any Unitholder’s allocable share of income, the amount of such taxes shall be considered a loan by the Trust or such Fund to such Unitholder,
and such Unitholder shall be liable for, and shall pay to the Trust or such Fund, any taxes so required to be withheld and paid over by the Trust or such Fund within ten (10) days after the Managing Owner’s request therefor. Such
Unitholder shall also be liable for (and the Managing Owner shall be entitled to redeem additional Units of the foreign Unitholder as necessary to satisfy) interest on the amount of taxes paid over by the Trust or the Fund to the IRS or other taxing
authority, from the date of the Managing Owner’s request for payment to the date of payment or the redemption, as the case may be, at the rate of two percent (2%) over the prime rate charged from time to time by Citibank, N.A. The amount,
if any, payable by the Trust or a Fund to the Unitholder in respect of its Units so redeemed, or in respect of any other actual distribution by the Trust or any Fund to such Unitholder, shall be reduced by any obligations owed to the Trust or any
Fund by the Unitholder, including, without limitation, the amount of any taxes required to be paid over by the Trust or any Fund to the IRS or other taxing authority and interest thereon as aforesaid. Amounts, if any, deducted by the Trust or any
Fund from any actual distribution or redemption payment to such Unitholder shall be treated as an actual distribution to such Unitholder for all purposes of this Trust Agreement. 

SECTION 6.10. Consent to Methods. The methods set forth in this Article VI by which Distributions are made and items of Profit and
Loss are allocated are hereby expressly consented to by each Unitholder as an express condition to becoming a Unitholder. 

ARTICLE VII 
 REDEMPTIONS 
 SECTION 7.1. Redemption of Redemption Baskets.
The following procedures, as supplemented by the more detailed procedures specified in the attachment to the applicable Participant Agreement, which may be amended from time to time in accordance with the provisions of such Participant Agreement
(and any such amendment will not constitute an amendment of this Trust Agreement), will govern the Trust and the Funds with respect to the redemption of Redemption Baskets. 
 (a) On any Business Day, a Participant with respect to which a Participant Agreement is in full force and effect (as reflected on the list maintained by the Managing Owner pursuant to
Section 3.4(a)(i)) may redeem one or more Redemption Baskets standing to the credit of the Participant on the records of the Depository by delivering a request for redemption to the Managing Owner (such request, a “Redemption
Order”) in the manner specified in the procedures specified in the attachment to the Participant Agreement, as amended from time to time in accordance with the provisions of the Participant Agreement (and any such amendment will not
constitute an amendment of this Trust Agreement). 

  
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 (b) To be effective, a Redemption Order must be submitted on a Business Day by the Order
Cut-Off Time in form satisfactory to the Managing Owner (the Business Day on which the Redemption Order is so submitted, the “Redemption Order Date”). The Managing Owner shall reject any Redemption Order the fulfillment of which its
counsel advises may be illegal under applicable laws and regulations, and the Managing Owner shall have no liability to any person for rejecting a Redemption Order in such circumstances. 

(c) Subject to deduction of any tax or other governmental charges due thereon, the redemption distribution (“Redemption
Distribution”) shall consist of cash in an amount equal to the product obtained by multiplying (i) the number of Redemption Baskets set forth in the relevant Redemption Order by (ii) the Net Asset Value Per Basket of a Fund as of
the closing time of the Exchange or the last to close of the exchanges on which any of the Index Currencies is traded, whichever is later, on the Redemption Order Date. 
 (d) By noon, New York time, on the Business Day immediately following the Redemption Order Date (the “Redemption Settlement Time”), if the Managing Owner’s account at the Depository
has by noon, New York time, on such day been credited with the Redemption Baskets being tendered for redemption and the Managing Owner has by such time received the Transaction Fee, the Managing Owner shall deliver the Redemption Distribution
through the Depository to the account of the Participant as recorded on the book entry system of the Depository. If by such Redemption Settlement Time the Managing Owner has not received from a redeeming Participant all Redemption Baskets comprising
the Redemption Order, the Managing Owner will (i) settle the Redemption Order to the extent of whole Redemption Baskets received from the Participant and (ii) keep the redeeming Participant’s Redemption Order open until noon, New York
time, on the first Business Day following the Redemption Settlement Date as to the balance of the Redemption Order (such balance, the “Suspended Redemption Order”). If the Redemption Basket(s) comprising the Suspended Redemption
Order are credited to the Managing Owner’s account at the Depository by noon, New York time, on such following Business Day, the Redemption Distribution with respect to the Suspended Redemption Order shall be paid in the manner provided in the
second preceding sentence. If by such Redemption Settlement Time the Managing Owner has not received from the redeeming Participant all Redemption Baskets comprising the Suspended Redemption Order, the Managing Owner will settle the Suspended
Redemption Order to the extent of whole Redemption Baskets then received and any balance of the Suspended Redemption will be cancelled. Notwithstanding the foregoing, when and under such conditions as the Managing Owner may from time to time
determine, the Managing Owner shall be authorized to deliver the Redemption Distribution notwithstanding that a Redemption Basket has not been credited to the Trust’s or the applicable Fund’s account at the Depository if the Participant
has collateralized its obligation to deliver the Redemption Basket on such terms as the Managing Owner may, in its sole discretion, from time to time agree. 
 (e) The Managing Owner may, in its discretion, suspend the right of redemption, or postpone the Redemption Settlement Date, (i) for any period during which the Exchange or any other applicable
exchange is closed other than customary weekend or holiday 

  
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closings, or trading is suspended or restricted; (ii) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of a Fund’s assets is not
reasonably practicable; or (iii) for such other period as the Managing Owner determines to be necessary for the protection of Beneficial Owners. The Managing Owner is not liable to any person or in any way for any loss or damages that may
result from any such suspension or postponement. 
 (f) Redemption Baskets effectively redeemed pursuant to the provisions of
this Section 7.1 shall be cancelled by the Trust or the applicable Fund in accordance with the Depository’s procedures. 
 SECTION 7.2. Other Redemption Procedures. The Managing Owner from time to time may, but shall have no obligation to, establish procedures with respect to redemption of Limited Units in lot
sizes smaller than the Redemption Basket and permitting the Redemption Distribution to be in a form, and delivered in a manner, other than that specified in Section 7.1. 
 ARTICLE VIII 
 THE LIMITED OWNERS 

SECTION 8.1. No Management or Control; Limited Liability; Exercise of Rights through DTC. The Limited Owners shall not participate
in the management or control of the Trust’s or the applicable Fund’s business nor shall they transact any business for the Trust or any Fund or have the power to sign for or bind the Trust or any Fund, said power being vested solely and
exclusively in the Managing Owner. Except as provided in Section 8.3 hereof, no Limited Owner shall be bound by, or be personally liable for, the expenses, liabilities or obligations of the Trust or any Fund in excess of its Capital
Contribution plus its share of any Fund Trust Estate in which such Limited Owner owns a Limited Unit and profits remaining, if any. Except as provided in Section 8.3 hereof, each Limited Unit owned by a Limited Owner shall be fully paid and no
assessment shall be made against any Limited Owner. No salary shall be paid to any Limited Owner in its capacity as a Limited Owner, nor shall any Limited Owner have a drawing account or earn interest on its Capital Contribution. By the purchase and
acceptance or other lawful delivery and acceptance of Limited Units, each Beneficial Owner shall be deemed to be a Limited Owner and beneficiary of the applicable Fund and vested with beneficial undivided interest in such Fund to the extent of the
Limited Units owned beneficially by such Beneficial Owner, subject to the terms and conditions of this Trust Agreement. The rights of Beneficial Owners under this Trust Agreement must be exercised by DTC Participants, or Indirect Participants, as
applicable, acting on their behalf in accordance with the rules and procedures of the Depository, as provided in Section 3.5. 
 SECTION 8.2. Rights and Duties. The Limited Owners shall have the following rights, powers, privileges, duties and liabilities: 

(a) The Limited Owners shall have the right to obtain from the Managing Owner information on all things affecting the Trust or the
applicable Fund, provided that such is for a purpose reasonably related to the Limited Owner’s interest as a beneficial owner of the Trust or the applicable Fund, including, without limitation, such reports as are set forth in Article IX and
the list of Participants contemplated by Section 3.4(a)(i). In the event that the Managing 

  
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Owner neglects or refuses to produce or mail to a Limited Owner a copy of the list of Participants contemplated by Section 3.4(a)(i), the Managing Owner shall be liable to such Limited Owner
for the costs, including reasonable attorney’s fees, incurred by such Limited Owner to compel the production of such information, and for any actual damages suffered by such Limited Owner as a result of such refusal or neglect; provided,
however, it shall be a defense of the Managing Owner that the actual purpose of the Limited Owner’s request for such information was not reasonably related to the Limited Owner’s interest as a beneficial owner in a Fund (e.g., to secure
such information in order to sell it, or to use the same for a commercial purpose unrelated to the participation of such Limited Owner in the Fund). The foregoing rights are in addition to, and do not limit, other remedies available to Limited
Owners under U.S. federal or state law. 
 (b) The Limited Owners shall receive the share of the distributions provided for in
this Trust Agreement in the manner and at the times provided for in this Trust Agreement. 
 (c) Except for the Limited
Owners’ redemption rights set forth in Article VII hereof, the Limited Owners shall have the right to demand the return of their Capital Account only upon the dissolution and winding up of the applicable Fund or the Trust and only to the extent
of funds available therefor. In no event shall a Limited Owner be entitled to demand or receive property other than cash. Except with respect to class differences, no Limited Owner shall have priority over any other Limited Owner either as to the
return of capital or as to profits, losses or distributions. The Limited Owner shall not have any right to bring an action for partition against the Trust or a Fund. 
 (d) Limited Owners holding Units representing at least a majority (over 50%) in Net Asset Value of each affected Fund (not including Units held by the Managing Owner and its Affiliates), voting separately
as a class, may vote to (i) continue the Trust as provided in Section 13.1(a), (ii) remove the Managing Owner on reasonable prior written notice to the Managing Owner, (iii) elect and appoint one or more additional Managing
Owners, or consent to such matters as are set forth in Section 5.2(b), (iv) approve a material change in the trading policies, as set forth in the Prospectus, which change shall not be effective without the prior written approval of such
majority, (v) approve the termination of any agreement entered into between the Trust and the Managing Owner or any Affiliate of the Managing Owner for any reason, without penalty, (vi) approve amendments to this Trust Agreement as set
forth in Section 11.1 hereof, and (vii) terminate the Trust as provided in Section 13.1(e), and in the case of (iii), (iv) and (v) in each instance on 60 days’ prior written notice. 

Except as set forth above, the Limited Owners shall have no voting or other rights with respect to the Trust or any Fund. 

SECTION 8.3. Limitation on Liability. 
 (a) Except as provided in Sections 4.7(f), and 6.2 hereof, and as otherwise provided under Delaware law, the Limited Owners shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the general corporation law of Delaware and no Limited Owner shall be liable for claims against, or debts of the Trust or the applicable Fund in excess of its Capital Contribution and
his share of the 

  
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applicable Fund Trust Estate and undistributed profits, except in the event that the liability is founded upon misstatements or omissions contained in such Limited Owner’s Participant
Agreement delivered in connection with his purchase of Units. In addition, and subject to the exceptions set forth in the immediately preceding sentence, the Trust or the applicable Fund shall not make a claim against a Limited Owner with respect to
amounts distributed to such Limited Owner or amounts received by such Limited Owner upon redemption unless, under Delaware law, such Limited Owner is liable to repay such amount. 

(b) The Trust or the applicable Fund shall indemnify to the full extent permitted by law and the other provisions of this Trust
Agreement, and to the extent of the applicable Fund Trust Estate, each Limited Owner (excluding the Managing Owner to the extent of its ownership of any Limited Units) against any claims of liability asserted against such Limited Owner solely
because he is a beneficial owner of one or more Units as a Limited Owner (other than for taxes for which such Limited Owner is liable under Section 6.2 hereof). 
 (c) Every written note, bond, contract, instrument, certificate or undertaking made or issued by the Managing Owner shall give notice to the effect that the same was executed or made by or on behalf of
the Trust or the applicable Fund and that the obligations of such instrument are not binding upon the Limited Owners individually but are binding only upon the assets and property of the applicable Fund, and no resort shall be had to the Limited
Owners’ personal property for satisfaction of any obligation or claim thereunder, and appropriate references may be made to this Trust Agreement and may contain any further recital which the Managing Owner deems appropriate, but the omission
thereof shall not operate to bind the Limited Owners individually or otherwise invalidate any such note, bond, contract, instrument, certificate or undertaking. Nothing contained in this Section 8.3 shall diminish the limitation on the
liability of the Trust to the extent set forth in Sections 3.6 and 3.7 hereof. 
 ARTICLE IX 

BOOKS OF ACCOUNT AND REPORTS 
 SECTION 9.1. Books of Account. Proper books of account for each Fund shall be kept and shall be audited annually by an independent certified public accounting firm selected by the Managing Owner in
its sole discretion, and there shall be entered therein all transactions, matters and things relating to each Fund’s business as are required by the CE Act and regulations promulgated thereunder, and all other applicable rules and regulations,
and as are usually entered into books of account kept by Persons engaged in a business of like character. The books of account shall be kept at the principal office of the Trust and each Limited Owner (or any duly constituted designee of a Limited
Owner) shall have, at all times during normal business hours, free access to and the right to inspect and copy the same for any purpose reasonably related to the Limited Owner’s interest as a beneficial owner of the applicable Fund, including
such access as is required under CFTC rules and regulations. Such books of account shall be kept, and the Trust shall report its Profits and Losses on, the accrual method of accounting for financial accounting purposes on a Fiscal Year basis as
described in Article X. 

  
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 SECTION 9.2. Annual Reports and Monthly Statements. 

(a) Each Limited Owner shall be furnished as of the end of each month and as of the end of each Fiscal Year with (a) such reports (in
such detail) as are required to be given to Limited Owners by the CFTC and the NFA subject to, as applicable, either (y) certain relief granted by the CFTC or (z) pursuant to the applicable rules and regulations of the CFTC, (b) any
other reports (in such detail) required to be given to Limited Owners by any other governmental authority which has jurisdiction over the activities of the Trust and the Funds and (c) any other reports or information which the Managing Owner,
in its discretion, determines to be necessary or appropriate. 
 (b) The Limited Owners will have access to periodic reports
filed with the SEC by the Managing Owner on behalf of the Trust. The Managing Owner will file (i) the Quarterly Reports on Form 10-Q, filed for the first three quarters of each fiscal year; (ii) the Annual Reports on Form 10-K, filed at
end of each fiscal year; and (iii) Current Reports on Form 8-K, which will be filed as necessary to announce material events not disclosed in either Form 10-Q or 10-K. 
 SECTION 9.3. Tax Information. Appropriate tax information (adequate to enable each Limited Owner to complete and file its U.S. federal tax return) shall be delivered to each Limited Owner as soon
as practicable following the end of each Fiscal Year but generally no later than March 15. 
 SECTION 9.4. Calculation
of Net Asset Value. Net Asset Value of a Fund shall be calculated at such times as the Managing Owner shall determine from time to time. 
 SECTION 9.5. Maintenance of Records. The Managing Owner shall maintain: (a) for a period of at least six Fiscal Years all books of account required by Section 9.1 hereof; a list of the
names and last known addresses of, and number of Units owned by, all Unitholders of each Fund, a copy of the Certificate of Trust and all certificates of amendment thereto, together with executed copies of any powers of attorney pursuant to which
any certificate has been executed; copies of the Trust’s and Funds’ U.S. federal, state and local income tax returns and reports, if any; and (b) for a period of at least six Fiscal Years copies of any effective written Trust
Agreements, Participant Agreements, including any amendments thereto, and any financial statements of the Trust and the Funds. The Managing Owner may keep and maintain the books and records of the Trust and the Funds in paper, magnetic, electronic
or other format as the Managing Owner may determine in its sole discretion, provided the Managing Owner uses reasonable care to prevent the loss or destruction of such records. 

SECTION 9.6. Certificate of Trust. Except as otherwise provided in the Delaware Trust Statute or this Trust Agreement, the
Managing Owner shall not be required to mail a copy of any Certificate of Trust filed with the Secretary of State of the State of Delaware to each Limited Owner; however, such certificates shall be maintained at the principal office of the Trust and
shall be available for inspection and copying by the Limited Owners in accordance with this Trust Agreement. The Certificate of Trust shall not be amended in any respect if the effect of such amendment is to diminish the limitation on interseries
liability under Section 3804 of the Delaware Trust Statute. 

  
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 ARTICLE X 
 FISCAL YEAR 
 SECTION 10.1. Fiscal Year. The
Fiscal Year shall begin on the 1st day of January and end on the 31st day of December of each year. The first Fiscal Year of the Trust shall commence on the date of filing of the Certificate of Trust and end on the
31st day of December 2006. If, after commencement of
operations, applicable tax rules require the Trust to adopt a taxable year other than the calendar year, the term “Fiscal Year” for the Trust shall mean such other taxable year as required by Code Section 706 or an alternative
taxable year chosen by the Managing Owner which has been approved by the Internal Revenue Service. The Fiscal Year in which the Trust shall terminate shall end on the date of such termination. 

ARTICLE XI 

AMENDMENT OF TRUST AGREEMENT; MEETINGS 
 SECTION 11.1. Amendments to this Trust Agreement. 
 (a) Amendments to this
Trust Agreement may be proposed by the Managing Owner or by Limited Owners holding Units equal to at least 10% of the Net Asset Value of each Fund, unless the proposed amendment affects only certain series, in which case such amendment may be
proposed by Limited Owners holding Units equal to at least ten percent (10%) of Net Asset Value of each affected series. Following such proposal, the Managing Owner shall submit to the Limited Owners of each affected series a verbatim statement
of any proposed amendment, and statements concerning the legality of such amendment and the effect of such amendment on the limited liability of the Limited Owners. The Managing Owner shall include in any such submission its recommendations as to
the proposed amendment. The amendment shall become effective only upon the written approval or affirmative vote of Limited Owners holding Units (excluding Units held by the Managing Owner and its Affiliates) equal to at least a majority (over 50%)
of the Net Asset Value of all Funds (excluding Units held by the Managing Owner and its Affiliates) or, if the proposed amendment affects only certain series, of each affected series, or such higher percentage as may be required by applicable law,
and upon receipt of an opinion of independent legal counsel to the effect that the amendment is legal, valid and binding and will not adversely affect the limitations on liability of the Limited Owners as described in Section 8.3 of this Trust
Agreement. Notwithstanding the foregoing, where any action taken or authorized pursuant to any provision of this Trust Agreement requires the approval or affirmative vote of Limited Owners holding a greater interest in Limited Units than is required
to amend this Trust Agreement under this Section 11.1, and/or the approval or affirmative vote of the Managing Owner, an amendment to such provision(s) shall be effective only upon the written approval or affirmative vote of the minimum number
of Unitholders which would be required to take or authorize such action, or as may otherwise be required by applicable law, and upon receipt of an opinion of independent legal counsel as set forth above in this Section 11.1. In addition, except
as otherwise provided below, reduction of the capital account of any assignee or modification of the percentage of Profits, Losses or distributions to which an assignee is entitled hereunder shall not be affected by amendment to this Trust Agreement
without such assignee’s approval. 

  
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 (b) Notwithstanding any provision to the contrary contained in Section 11.1(a) hereof,
the Managing Owner may, without the approval of the Limited Owners, make such amendments to this Trust Agreement which (i) are necessary to add to the representations, duties or obligations of the Managing Owner or surrender any right or power
granted to the Managing Owner herein, for the benefit of the Limited Owners, (ii) are necessary to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or in the Prospectus,
or to make any other provisions with respect to matters or questions arising under this Trust Agreement or the Prospectus which will not be inconsistent with the provisions of the Trust Agreement or the Prospectus, or (iii) the Managing Owner
deems advisable, provided, however, that no amendment shall be adopted pursuant to this clause (iii) unless the adoption thereof (A) is not adverse to the interests of the Limited Owners; (B) is consistent with Section 4.1
hereof; (C) except as otherwise provided in Section 11.1(c) below, does not affect the allocation of Profits and Losses among the Limited Owners or between the Limited Owners and the Managing Owner; and (D) does not adversely affect
the limitations on liability of the Limited Owners, as described in Article VIII hereof or the status of the Trust or any Fund as a partnership for U.S. federal income tax purposes. Amendments to this document which adversely affect (i) the
rights of Limited Owners, (ii) the appointment of a new Managing Owner pursuant to Section 4.2(g) above, (iii) the dissolution of the Trust pursuant to Section 13.1(f) below and (iv) any material changes in the Trust’s
or a Fund’s basic investment policies or structure shall occur only upon the written approval or affirmative vote of Limited Owners holding Units equal to at least a majority (over 50%) of the Net Asset Value of each Fund or, if not all Funds
are affected, of the affected Fund or Funds (excluding Units held by the Managing Owner and its Affiliates) pursuant to Section 11.1(a) above. 
 (c) Notwithstanding any provision to the contrary contained in Sections 11.1(a) and (b) hereof, the Managing Owner may, without the approval of the Limited Owners, amend the provisions of this Trust
Agreement if the Trust is advised at any time by the Trust’s accountants or legal counsel that the amendments made are necessary to ensure that the Trust’s status as a partnership will be respected for U.S. federal income tax purposes.

 (d) Upon amendment of this Trust Agreement, the Certificate of Trust shall also be amended, if required by the Delaware Trust
Statute, to reflect such change. 
 (e) No amendment shall be made to this Trust Agreement without the consent of the Trustee if
it reasonably believes that such amendment adversely affects any of the rights, duties or liabilities of the Trustee; provided, however, that the Trustee may not withhold its consent for any action which the Limited Owners are permitted to take
under Section 8.2(d) above. At the expense of the Managing Owner, the Trustee shall execute and file any amendment to the Certificate of Trust if so directed by the Managing Owner or if such amendment is required in the opinion of the Trustee.

 (f) The Trustee shall be under no obligation to execute any amendment to the Trust Agreement or to any agreement to which the
Trust is a party until it has received an instruction letter from the Managing Owner, in form and substance reasonably satisfactory to the Trustee (i) directing the Trustee to execute such amendment, (ii) representing and warranting to the
Trustee that such execution is authorized and permitted by the terms of the Trust Agreement and (if applicable) such other agreement to which the Trust is a party and does not conflict with 

  
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or violate any other agreement to which the Trust is a party and (iii) confirming that such execution and acts related thereto are covered by the indemnity provisions of the Trust Agreement
in favor of the Trustee and do not adversely affect the Trustee. 
 (g) To the fullest extent permitted by law, no provision of
this Trust Agreement may be amended, waived or otherwise modified orally but only by a written instrument adopted in accordance with this Section. 
 SECTION 11.2. Meetings of the Trust or the Funds. Meetings of the Unitholders may be called by the Managing Owner and will be called by it upon the written request of Limited Owners holding Units
equal to at least 10% of the Net Asset Value of all Funds or any Fund, as applicable. Such call for a meeting shall be deemed to have been made upon the receipt by the Managing Owner of a written request from the requisite percentage of Limited
Owners. The Managing Owner shall deposit in the United States mails, within fifteen (15) days after receipt of said request, written notice to all Unitholders of the applicable Fund of the meeting and the purpose of the meeting, which shall be
held on a date, not less than thirty (30) nor more than sixty (60) days after the date of mailing of said notice, at a reasonable time and place. Any notice of meeting shall be accompanied by a description of the action to be taken at the
meeting and an opinion of independent counsel as to the effect of such proposed action on the liability of Limited Owners for the debts of the applicable Fund. Unitholders may vote in person or by proxy at any such meeting. 

SECTION 11.3. Action Without a Meeting. Any action required or permitted to be taken by Unitholders by vote may be taken without a
meeting by written consent setting forth the actions so taken. Such written consents shall be treated for all purposes as votes at a meeting. If the vote or consent of any Unitholder to any action of the Trust, any Fund or any Unitholder, as
contemplated by this Trust Agreement, is solicited by the Managing Owner, the solicitation shall be effected by notice to each Unitholder given in the manner provided in Section 15.4. The vote or consent of each Unitholder so solicited shall be
deemed conclusively to have been cast or granted as requested in the notice of solicitation, whether or not the notice of solicitation is actually received by that Unitholder, unless the Unitholder expresses written objection to the vote or consent
by notice given in the manner provided in Section 15.4 below and actually received by the Trust within twenty (20) days after the notice of solicitation is effected. The Managing Owner and all persons dealing with the Trust shall be
entitled to act in reliance on any vote or consent which is deemed cast or granted pursuant to this Section and shall be fully indemnified by the Trust in so doing. Any action taken or omitted in reliance on any such deemed vote or consent of one or
more Unitholders shall not be void or voidable by reason of timely communication made by or on behalf of all or any of such Unitholders in any manner other than as expressly provided in Section 15.4. 

ARTICLE XII 
 TERM 
 SECTION 12.1. Term. The term for which the Trust and each
Fund is to exist shall commence on the date of the filing of the Certificate of Trust, and shall be perpetual, unless terminated pursuant to the provisions of Article XIII hereof or as otherwise provided by law. 

  
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 ARTICLE XIII 
 TERMINATION 
 SECTION 13.1. Events Requiring Dissolution of the Trust or
any Fund. The Trust or, as the case may be, any Fund shall dissolve at any time upon the happening of any of the following events: 
 (a) The filing of a certificate of dissolution or revocation of the Managing Owner’s charter (and the expiration of ninety (90) days after the date of notice to the Managing Owner of revocation
without a reinstatement of its charter) or upon the withdrawal, removal, adjudication or admission of bankruptcy or insolvency of the Managing Owner (each of the foregoing events an “Event of Withdrawal”) unless (i) at the time
there is at least one remaining Managing Owner and that remaining Managing Owner carries on the business of the Trust or (ii) within ninety (90) days of such Event of Withdrawal all the remaining Unitholders agree in writing to continue
the business of the Trust and to select, effective as of the date of such event, one or more successor Managing Owners. If the Trust is terminated as the result of an Event of Withdrawal and a failure of all remaining Unitholders to continue the
business of the Trust and to appoint a successor Managing Owner as provided in clause (a)(ii) above, within one hundred and twenty (120) days of such Event of Withdrawal, Limited Owners holding Units representing at least a majority (over 50%)
of the Net Asset Value of each Fund (not including Units held by the Managing Owner and its Affiliates) may elect to continue the business of the Trust by forming a new statutory trust (the “Reconstituted Trust”) on the same terms
and provisions as set forth in this Trust Agreement (whereupon the parties hereto shall execute and deliver any documents or instruments as may be necessary to reform the Trust). Any such election must also provide for the election of a Managing
Owner to the Reconstituted Trust. If such an election is made, all Limited Owners of the Trust shall be bound thereby and continue as Limited Owners of the Reconstituted Trust. 

(b) The occurrence of any event which would make unlawful the continued existence of the Trust or any Fund, as the case may be.

 (c) In the event of the suspension, revocation or termination of the Managing Owner’s registration as a commodity pool
operator or commodity trading advisor under the CE Act, or membership as a commodity pool operator or commodity trading advisor with the NFA (if, in either case, such registration is required under the CE Act or the rules promulgated thereunder)
unless at the time there is at least one remaining Managing Owner whose registration or membership has not been suspended, revoked or terminated. 
 (d) The Trust or any Fund, as the case may be, becomes insolvent or bankrupt. 

(e) The Limited Owners holding Units representing at least a majority (over 50%) of the Net Asset Value of all Funds (which excludes the
Units of the Managing Owner) vote to dissolve the Trust, notice of which is sent to the Managing Owner not less than ninety (90) Business Days prior to the effective date of termination. 

  
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 (f) The determination of the Managing Owner that a Fund’s aggregate net assets in
relation to the operating expenses of such Fund make it unreasonable or imprudent to continue the business of such Fund, or, in the exercise of its reasonable discretion, the determination by the Managing Owner to dissolve the Trust because the
aggregate Net Asset Value of the Trust or any Fund as of the close of business on any Business Day declines below $10 million. 

(g) The Trust is required to be registered as an investment company under the Investment Company Act of 1940. 

(h) DTC is unable or unwilling to continue to perform its functions, and a comparable replacement is unavailable. 

The death, legal disability, bankruptcy, insolvency, dissolution, or withdrawal of any Limited Owner (as long as such Limited Owner is
not the sole Limited Owner of the Trust) shall not result in the termination of the Trust or any Fund, and such Limited Owner, his estate, custodian or personal representative shall have no right to withdraw or value such Limited Owner’s Units.
Each Limited Owner (and any assignee thereof) expressly agrees that in the event of his death, he waives on behalf of himself and his estate, and he directs the legal representative of his estate and any person interested therein to waive the
furnishing of any inventory, accounting or appraisal of the assets of the applicable Fund and any right to an audit or examination of the books of the applicable Fund, except for such rights as are set forth in Article IX hereof relating to the
books of account and reports of the applicable Fund. 
 SECTION 13.2. Distributions on Dissolution. Upon the dissolution
of the Trust or any Fund, the Managing Owner (or in the event there is no Managing Owner, such person (the “Liquidating Trustee”) as the majority in interest of the Limited Owners may propose and approve) shall take full charge of
the applicable Trust Estate. Any Liquidating Trustee so appointed shall have and may exercise, without further authorization or approval of any of the parties hereto, all of the powers conferred upon the Managing Owner under the terms of this Trust
Agreement, subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers, and provided that the Liquidating Trustee shall not have general liability for the acts, omissions, obligations and expenses of the
Trust or the Funds. Thereafter, in accordance with Section 3808(e) of the Delaware Trust Statute, the business and affairs of the Trust or any Fund shall be wound up and all assets shall be liquidated as promptly as is consistent with obtaining
the fair value thereof, and the proceeds therefrom shall be applied and distributed in the following order of priority: (a) to the expenses of liquidation and termination and to creditors, including Unitholders who are creditors, to the extent
otherwise permitted by law, in satisfaction of liabilities of the Trust or the Funds (whether by payment or the making of reasonable provision for payment thereof) other than liabilities for distributions to Unitholders, and (b) to the Managing
Owner and each Limited Owner pro rata in accordance with his positive book capital account balance, less any amount owing by such Unitholder, after giving effect to all adjustments made pursuant to Article VI and all distributions theretofore made
to the Unitholders pursuant to Article VI. After the distribution of all remaining assets of the Trust or any Fund, the Managing Owner will contribute to the Trust or Fund an amount equal to the lesser of (i) the deficit balance, if any, in its
book capital account, and (ii) the total Capital Contributions of the Limited Owners. Any Capital Contributions made by the Managing Owner 

  
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pursuant to this Section shall be applied first to satisfy any amounts then owed by the Trust or a Fund to its creditors, and the balance, if any, shall be distributed to those Unitholders whose
book capital account balances (immediately following the distribution of any liquidation proceeds) were positive, in proportion to their respective positive book capital account balances. 

SECTION 13.3. Termination; Certificate of Cancellation. Following the dissolution and distribution of the assets of all Funds, the
Trust shall terminate and the Managing Owner or Liquidating Trustee, as the case may be, shall instruct the Trustee to execute and cause such certificate of cancellation of the Certificate of Trust to be filed in accordance with the Delaware Trust
Statute. Notwithstanding anything to the contrary contained in this Trust Agreement, the existence of the Trust as a separate legal entity shall continue until the filing of such certificate of cancellation. 

ARTICLE XIV 
 POWER OF ATTORNEY 
 SECTION 14.1. Power of Attorney Executed
Concurrently. Concurrently with the written acceptance and adoption of the provisions of this Trust Agreement, each Limited Owner shall execute and deliver to the Managing Owner a Power of Attorney as part of its applicable Purchase Order
Subscription Agreement, or in such other form as may be prescribed by the Managing Owner. Each Limited Owner, by its execution and delivery hereof, irrevocably constitutes and appoints the Managing Owner and its officers and directors, with full
power of substitution, as the true and lawful attorney-in-fact and agent for such Limited Owner with full power and authority to act in his name and on his behalf in the execution, acknowledgment, filing and publishing of Trust documents, including,
but not limited to, the following: 
 (a) Any certificates and other instruments, including but not limited to, any applications
for authority to do business and amendments thereto, which the Managing Owner deems appropriate to qualify or continue the Trust as a business or statutory trust in the jurisdictions in which the Trust may conduct business, so long as such
qualifications and continuations are in accordance with the terms of this Trust Agreement or any amendment hereto, or which may be required to be filed by the Trust or the Unitholders under the laws of any jurisdiction; 

(b) Any instrument which may be required to be filed by the Trust under the laws of any state or by any governmental agency, or which the
Managing Owner deems advisable to file; and 
 (c) This Trust Agreement and any documents which may be required to effect an
amendment to this Trust Agreement approved under the terms of the Trust Agreement, and the continuation of the Trust, the admission of the signer of the Power of Attorney as a Limited Owner or of others as additional or substituted Limited Owners,
or the termination of the Trust, provided such continuation, admission or termination is in accordance with the terms of this Trust Agreement. 

  
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 SECTION 14.2. Effect of Executing and Submitting the Purchase Order Subscription
Agreement. By executing and submitting the Purchase Order Subscription Agreement, each Limited Owner has agreed to concurrently grant the following power of attorney to the Managing Owner (the “Power of Attorney”) which:

 (a) Is a special, irrevocable Power of Attorney coupled with an interest, and shall survive and not be affected by the death,
disability, dissolution, liquidation, termination or incapacity of the Limited Owner; 
 (b) May be exercised by the Managing
Owner for each Limited Owner by a facsimile signature of one of its officers or by a single signature of one of its officers acting as attorney-in-fact for all of them; and 
 (c) Shall survive the delivery of an assignment by a Limited Owner of the whole or any portion of his Limited Units; except that where the assignee thereof has been approved by the Managing Owner for
admission to the Trust as a substituted Limited Owner, the Power of Attorney of the assignor shall survive the delivery of such assignment for the sole purpose of enabling the Managing Owner to execute, acknowledge and file any instrument necessary
to effect such substitution. 
 Each Limited Owner agrees to be bound by any representations made by the Managing Owner and by
any successor thereto, determined to be acting in good faith pursuant to such Power of Attorney and not constituting negligence or misconduct. 
 SECTION 14.3. Limitation on Power of Attorney. The Power of Attorney concurrently granted by each Limited Owner to the Managing Owner shall not authorize the Managing Owner to act on behalf of
Limited Owners in any situation in which this Trust Agreement requires the approval of Limited Owners unless such approval has been obtained as required by this Trust Agreement. In the event of any conflict between this Trust Agreement and any
instruments filed by the Managing Owner or any new Managing Owner pursuant to this Power of Attorney, this Trust Agreement shall control. 
 ARTICLE XV 
 MISCELLANEOUS 

SECTION 15.1. Governing Law. The validity and construction of this Trust Agreement and all amendments hereto shall be governed by
the laws of the State of Delaware, and the rights of all parties hereto and the effect of every provision hereof shall be subject to and construed according to the laws of the State of Delaware without regard to the conflict of laws provisions
thereof; provided, however, that causes of action for violations of U.S. federal or state securities laws shall not be governed by this Section, and provided, further, that the parties hereto intend that the provisions hereof shall control over any
contrary or limiting statutory or common law of the State of Delaware (other than the Delaware Trust Statute) and that, to the maximum extent permitted by applicable law, there shall not be applicable to the Trust, the Funds, the Trustee, the
Managing Owner, the Unitholders or this Trust Agreement any provision of the laws (statutory or common) of the State of Delaware (other than the Delaware Trust Statute) 

  
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pertaining to trusts which relate to or regulate in a manner inconsistent with the terms hereof: (a) the filing with any court or governmental body or agency of trustee accounts or schedules
of trustee fees and charges, (b) affirmative requirements to post bonds for trustees, officers, agents, or employees of a trust, (c) the necessity for obtaining court or other governmental approval concerning the acquisition, holding or
disposition of real or personal property, (d) fees or other sums payable to trustees, officers, agents or employees of a trust, (e) the allocation of receipts and expenditures to income or principal, (f) restrictions or limitations on
the permissible nature, amount or concentration of trust investments or requirements relating to the titling, storage or other manner of holding of trust assets, or (g) the establishment of fiduciary or other standards or responsibilities or
limitations on the acts or powers of trustees or managers that are inconsistent with the limitations on liability or authorities and powers of the Trustee or the Managing Owner set forth or referenced in this Trust Agreement. Section 3540 of
Title 12 of the Delaware Code shall not apply to the Trust. The Trust shall be of the type commonly called a “statutory trust,” and without limiting the provisions hereof, the Trust may exercise all powers that are ordinarily exercised by
such a statutory trust under Delaware law. The Trust specifically reserves the right to exercise any of the powers or privileges afforded to statutory trusts and the absence of a specific reference herein to any such power, privilege or action shall
not imply that the Trust may not exercise such power or privilege or take such actions. 
 SECTION 15.2. Provisions In
Conflict With Law or Regulations. 
 (a) The provisions of this Trust Agreement are severable, and if the Managing Owner
shall determine, with the advice of counsel, that any one or more of such provisions (the “Conflicting Provisions”) are in conflict with the Code, the Delaware Trust Statute or other applicable U.S. federal or state laws, the
Conflicting Provisions shall be deemed never to have constituted a part of this Trust Agreement, even without any amendment of this Trust Agreement pursuant to this Trust Agreement; provided, however, that such determination by the Managing Owner
shall not affect or impair any of the remaining provisions of this Trust Agreement or render invalid or improper any action taken or omitted prior to such determination. No Managing Owner or Trustee shall be liable for making or failing to make such
a determination. 
 (b) If any provision of this Trust Agreement shall be held invalid or unenforceable in any jurisdiction,
such holding shall not in any manner affect or render invalid or unenforceable such provision in any other jurisdiction or any other provision of this Trust Agreement in any jurisdiction. 

SECTION 15.3. Construction. In this Trust Agreement, unless the context otherwise requires, words used in the singular or in the
plural include both the plural and singular and words denoting any gender include all genders. The title and headings of different parts are inserted for convenience and shall not affect the meaning, construction or effect of this Trust Agreement.

 SECTION 15.4. Notices. All notices or communications under this Trust Agreement (other than requests for redemption of
Units, notices of assignment, transfer, pledge or encumbrance of Units, and reports and notices by the Managing Owner to the Limited Owners) shall be in writing and shall be effective upon personal delivery, or if sent by mail, postage prepaid, or
if sent electronically, by facsimile or by overnight courier; and addressed, in each 

  
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such case, to the address set forth in the books and records of the Trust or the applicable Fund or such other address as may be specified in writing, of the party to whom such notice is to be
given, upon the deposit of such notice in the United States mail, upon transmission and electronic confirmation thereof or upon deposit with a representative of an overnight courier, as the case may be. Requests for redemption, notices of
assignment, transfer, pledge or encumbrance of Units shall be effective upon timely receipt by the Managing Owner in writing. 

SECTION 15.5. Counterparts. This Trust Agreement may be executed in several counterparts, and all so executed shall constitute one
agreement, binding on all of the parties hereto, notwithstanding that all the parties are not signatory to the original or the same counterpart. 
 SECTION 15.6. Binding Nature of Trust Agreement. The terms and provisions of this Trust Agreement shall be binding upon and inure to the benefit of the heirs, custodians, executors, estates,
administrators, personal representatives, successors and permitted assigns of the respective Unitholders. For purposes of determining the rights of any Unitholder or assignee hereunder, the Trust and the Managing Owner may rely upon the Trust and
Fund records as to who are Unitholders and permitted assignees, and all Unitholders and assignees agree that the Trust, each Fund and the Managing Owner, in determining such rights, shall rely on such records and that Limited Owners and assignees
shall be bound by such determination. 
 SECTION 15.7. No Legal Title to Trust Estate. Subject to the provisions of
Section 1.8 in the case of the Managing Owner, the Unitholders shall not have legal title to any part of the applicable Fund’s Trust Estate. 
 SECTION 15.8. Creditors. No creditors of any Unitholders shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to the applicable Fund’s
Trust Estate. 
 SECTION 15.9. Integration. This Trust Agreement constitutes the entire agreement among the parties
hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto. 

SECTION 15.10. Goodwill; Use of Name. No value shall be placed on the name or goodwill of the Trust or any Fund, which
shall belong exclusively to DB Commodity Services LLC. 

  
 53 

 IN WITNESS WHEREOF, the undersigned have duly executed this Second Amended and
Restated Declaration of Trust and Trust Agreement as of the day and year first above written. 
  

			
	 WILMINGTON TRUST COMPANY,
 as Trustee

		
	By:	 	  

		 	Name:
		 	Title:
	
	 DB COMMODITY SERVICES LLC,
 as Managing Owner

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	  Title:
	
	All Limited Owners now and hereafter admitted as Limited Owners of the Trust and reflected in the records maintained by the Depository, the DTC Participants or the
Indirect Participants, as the case may be, as Limited Owners from time to time, pursuant to powers of attorney now and hereafter executed in favor of, and granted and delivered to, the Managing Owner by each of the Limited Owners
		
	By:	 	 DB COMMODITY SERVICES LLC,
  as attorney-in-fact

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 54 

 EXHIBIT A 
 CERTIFICATE OF TRUST 

  
 A-1

 

 

 EXHIBIT B 
 DESCRIPTION OF THE INDEXES 

  
 B-1

 EXHIBIT C 

FORM OF GLOBAL CERTIFICATE1 
 CERTIFICATE OF BENEFICIAL INTEREST 
 -Evidencing- 

All Limited Units 
 -in- 
 POWERSHARES DB US DOLLAR INDEX TRUST 

WITH RESPECT TO ONE OF ITS SERIES 
 POWERSHARES DB US DOLLAR INDEX [            ]FUND 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST WITH RESPECT TO THE FUND 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 REQUIRED 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. 
 This is to certify that CEDE & CO. is the owner and registered holder of this Certificate evidencing the ownership
of all issued and outstanding Limited Units (“Units”), each of which represents a fractional undivided unit of beneficial interest in PowerShares DB US Dollar Index [    ] Fund (the “Fund”), established and
designated as a series of PowerShares DB US Dollar Index Trust (the “Trust”), a Delaware statutory trust formed under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) pursuant to a Certificate of Trust, dated
as of and filed in the offices of the Secretary of State of the State of Delaware on August 3, 2006, and an Amended and Restated Declaration of Trust and Trust Agreement, dated as of January 31, 2007, by and among DB Commodity Services
LLC, a Delaware limited liability company, as managing owner, Wilmington Trust Company, a Delaware banking company, as trustee, and the unitholders of each series from time to time thereunder (hereinafter called the “Trust Agreement”),
copies of which are available at the principal offices of the Trust. 
 At any given time this Certificate shall represent all
limited units of beneficial interest in the Fund, which shall be the total number of Units that are outstanding at such time. The Trust Agreement provides for the deposit of cash with the Fund from time to time and the 

 
  

	1	 Forms of Global Certificates of Beneficial Interest for each of PowerShares DB US Dollar Index Bullish Fund and PowerShares DB US Dollar Index Bearish
Fund shall be, except for the names of the Funds, substantially identical to this Form of Global Certificate. 

  
 C-1

 
issuance by the Trust, with respect to the Fund, of additional Creation Baskets representing the undivided units of beneficial interest in the assets of the Fund. At the request of the registered
holder this Certificate may be exchanged for one or more Certificates issued to the registered holder in such denominations as the registered holder may request, provided, however, that, in the aggregate, the Certificates issued to the registered
holder hereof shall represent all Units outstanding at any given time. 
 Each Authorized Participant hereby grants and conveys
all of its rights, title and interest in and to the Fund to the extent of the undivided interest represented hereby to the registered holder of this Certificate subject to and in pursuance of the Trust Agreement, all the terms, conditions and
covenants of which are incorporated herein as if fully set forth at length. 
 The registered holder of this Certificate is
entitled at any time upon tender of this Certificate to the Fund, endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form, at its principal office in the State of New York and, upon payment of any tax
or other governmental charges, to receive at the time and in the manner provided in the Trust Agreement, such holder’s ratable portion of the assets of the Fund for each Redemption Basket tendered and evidenced by this Certificate. 

The holder of this Certificate, by virtue of the purchase and acceptance hereof, assents to and shall be bound by the terms of the Trust
Agreement, copies of which are on file and available for inspection at reasonable times during business hours at the principal office of the Trust, to which reference is made for all the terms, conditions and covenants thereof. 

The Fund may deem and treat the person in whose name this Certificate is registered upon the books of the Fund as the owner hereof for
all purposes and the Fund shall not be affected by any notice to the contrary. 
 The Trust Agreement permits, with certain
exceptions as therein provided, the amendment thereof, by the Managing Owner with the consent of the Beneficial Owners holding Units (excluding Units held by the Managing Owner and its Affiliates) equal to at least a majority (over 50%) of the net
asset value of the Fund and other funds established as series of the Trust or such higher percentage as may be required by applicable law, and upon receipt of an opinion of independent legal counsel to the effect that the amendment is legal, valid
and binding and will not adversely affect the limitations on liability of the Beneficial Owners; provided, however that the Managing Owner may, without the approval of the Beneficial Owners, make such amendments to the Trust Agreement which
(i) are necessary to add to the representations, duties or obligations of the Managing Owner or surrender any right or power granted to the Managing Owner in the Trust Agreement, for the benefit of the Beneficial Owners, (ii) are necessary
to cure any ambiguity, to correct or supplement any provision in the Trust Agreement which may be inconsistent with any other provision in the Trust Agreement or in the Prospectus, or to make any other provisions with respect to matters or questions
arising under the Trust Agreement or the Prospectus which will not be inconsistent with the provisions of the Trust Agreement or the Prospectus, or (iii) the Managing Owner deems advisable, provided, however, that no amendment shall be adopted
pursuant to clause (iii) unless the adoption thereof (A) is not adverse to the interests of the Beneficial Owners; (B) is consistent with Managing Owner’s control of and power to conduct the business of the Trust; (C) with
certain exceptions, does not 

  
 C-2

 
affect the allocation of profits and losses among the Beneficial Owners or between the Beneficial Owners and the Managing Owner; and (D) does not adversely affect the limitations on
liability of the Beneficial Owners or the status of the Trust or the Fund as a grantor trust for U.S. federal income tax purposes. Any such consent or waiver by the holder of Units shall be conclusive and binding upon such holder of Units and upon
all future holders of Units, and shall be binding upon any Units, whether evidenced by a Certificate or held in uncertificated form, issued upon the registration or transfer hereof whether or not notation of such consent or waiver is made upon this
Certificate and whether or not the Units evidenced hereby are at such time in uncertificated form. The Trust Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of any holders of Units. 

In accordance with Section 3.7 of the Trust Agreement, the holder of this Certificate agrees and consents (the “Consent”)
to look solely to the assets (the “Fund Assets”) of the Fund and to the Managing Owner and its assets for payment in respect of any claim against or obligation of the Fund. The Fund Assets include only those funds and other assets that are
paid, held or distributed to the Trust on account of and for the benefit of the Fund, including, without limitation, funds delivered to the Trust for the purchase of Units in the Fund. 

In furtherance of the Consent, the holder agrees that (i) any debts, liabilities, obligations, indebtedness, expenses and claims of
any nature and of all kinds and descriptions (collectively, “Claims”) of the Fund incurred, contracted for or otherwise existing and (ii) the Units shall be subject to the following limitations: 

(a)(i) except as set forth below, the Claims and Units (collectively, the “Subordinated Claims and Units”) shall be expressly
subordinate and junior in right of payment to any and all other claims against and Units in the Trust and any series thereof, pursuant to any contract; provided, however, that the holder’s Claims (if any) against and Units shall not be
considered Subordinated Claims and Units with respect to enforcement against and distribution and repayment from the Fund, the Fund Assets and the Managing Owner and its assets; and provided further that (1) the holder’s valid Claims, if
any, against the Fund shall be pari passu and equal in right of repayment and distribution with all other valid Claims against the Fund and (2) the holder’s Units shall be pari passu and equal in right of repayment and distribution with
all other Units in the Fund; and (ii) the holder will not take, demand, or receive from any series or the Trust or any of their respective assets (other than the Fund, the Fund Assets and the Managing Owner and its assets) any payment for the
Subordinated Claims and Units; 
 (b) the Claims and Units of the holder shall only be asserted and enforceable against the
Fund, the Fund Assets and the Managing Owner and its assets and such Claims and Units shall not be asserted or enforceable for any reason whatsoever against any other series, the Trust generally or any of their respective assets; 

(c) If the Claims of the holder against the Fund or the Trust are secured in whole or in part, the holder hereby waives (under section
1111(b) of the Bankruptcy Code (11 U.S.C. § 1111(b)) any right to have any deficiency Claims (which deficiency Claims may arise in the event such security is inadequate to satisfy such Claims) treated as unsecured Claims against the Trust or
any series (other than the Fund), as the case may be; 

  
 C-3

 (d) in furtherance of the foregoing, if and to the extent that the holder receives monies in
connection with the Subordinated Claims and Units from a series or the Trust (or their respective assets), other than the Fund, the Fund Assets and the Managing Owner and its assets, the holder shall be deemed to hold such monies in trust and shall
promptly remit such monies to the series or the Trust that paid such amounts for distribution by the series or the Trust in accordance with the terms hereof; and 
 (e) the foregoing Consent shall apply at all times notwithstanding that the Claims are satisfied, the Units represented by this Certificate are sold, transferred, redeemed or in any way disposed of and
notwithstanding that the agreements in respect of such Claims and Units are terminated, rescinded or canceled. 
 The Trust
Agreement, and this Certificate, is executed and delivered by DB Commodity Services LLC, as Managing Owner, in the exercise of the powers and authority conferred and vested in it by the Trust Agreement. The representations, undertakings and
agreements made on the part of the Trust in the Trust Agreement or the Fund in this Certificate are made and intended not as personal representations, undertakings and agreements by DB Commodity Services LLC but are made and intended for the purpose
of binding only the Trust and the Fund. Nothing in the Trust Agreement or this Certificate shall be construed as creating any liability on DB Commodity Services LLC, individually or personally, to fulfill any representation, undertaking or agreement
other than as provided in the Trust Agreement or this Certificate. 
 This Certificate shall not become valid or binding for any
purpose until properly executed by the Managing Owner pursuant to the Trust Agreement. 
 Terms not defined herein have the same
meaning as in the Trust Agreement. 
 IN WITNESS WHEREOF, DB Commodity Services LLC, as Managing Owner, has caused this
Certificate to be executed in its name by the manual or facsimile signature of one of its Authorized Officers. 
  

			
	 PowerShares DB US Dollar Index Trust, with
respect to PowerShares DB US Dollar
Index
             Fund

		
	By:	 	DB Commodity Services LLC, as
		 	Managing Owner
		
	By:	 	  

		 	Authorized Officer
		
	By:	 	  

		 	Authorized Officer
		
	Date:	 	                             
   , 200    

  
 C-4

 EXHIBIT D 
 FORM OF PARTICIPANT AGREEMENT 

  
 D-1Amended and Restated Credit Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 by and among 

DUNE ENERGY, INC. 
 and 
 EACH OF ITS SUBSIDIARIES THAT ARE IDENTIFIED ON THE SIGNATURE

 PAGES HERETO AS BORROWERS 
 as Borrowers, 
 EACH OF ITS SUBSIDIARIES THAT ARE IDENTIFIED ON THE SIGNATURE

 PAGES HERETO AS GUARANTORS 
 as Guarantors, 
 THE LENDERS THAT ARE SIGNATORIES HERETO 

as the Lenders, 

and 
 WELLS
FARGO CAPITAL FINANCE, INC. 
 as Administrative Agent 

Dated as of December 7, 2010 

 TABLE OF CONTENTS 

 

									
	 	    	 	  	 	  	Page	 
			
	1.	    	DEFINITIONS AND CONSTRUCTION	  	 	1	  
				
		    	1.1	  	Definitions	  	 	1	  
		    	1.2	  	Accounting Terms	  	 	1	  
		    	1.3	  	Code	  	 	1	  
		    	1.4	  	Construction	  	 	2	  
		    	1.5	  	Schedules and Exhibits	  	 	2	  
			
	2.	    	LOAN AND TERMS OF PAYMENT	  	 	2	  
				
		    	2.1	  	Intentionally Omitted	  	 	2	  
		    	2.2	  	Term Loan	  	 	2	  
		    	2.3	  	Prepayments; Premium	  	 	2	  
		    	2.4	  	Payments Generally	  	 	4	  
		    	2.5	  	[Intentionally Deleted]	  	 	5	  
		    	2.6	  	Interest: Rates, Payments, and Calculations	  	 	5	  
		    	2.7	  	Cash Management	  	 	6	  
		    	2.8	  	Crediting Payments	  	 	7	  
		    	2.9	  	Maintenance of Books and Records; Statements of Obligations	  	 	7	  
		    	2.10	  	Fees	  	 	8	  
		    	2.11	  	Joint and Several Liability of Borrowers	  	 	8	  
			
	3.	    	CONDITIONS; TERM OF AGREEMENT	  	 	10	  
				
		    	3.1	  	Conditions Precedent to Amendment and Restatement	  	 	10	  
		    	3.2	  	Term	  	 	10	  
		    	3.3	  	Effect of Maturity or Acceleration	  	 	11	  
			
	4.	    	REPRESENTATIONS AND WARRANTIES	  	 	11	  
				
		    	4.1	  	No Encumbrances	  	 	11	  
		    	4.2	  	 Jurisdiction of Organization; Location of Chief Executive Office;
 Organizational Identification Number; Commercial Tort Claims
	  	 	11	  
		    	4.3	  	Due Organization and Qualification; Subsidiaries	  	 	11	  
		    	4.4	  	Due Authorization; No Conflict	  	 	12	  
		    	4.5	  	Litigation	  	 	13	  
		    	4.6	  	No Material Adverse Change	  	 	13	  
		    	4.7	  	Fraudulent Transfer	  	 	13	  
		    	4.8	  	Employee Benefits	  	 	14	  
		    	4.9	  	Environmental Condition	  	 	14	  
		    	4.10	  	Intellectual Property	  	 	14	  
		    	4.11	  	Leases	  	 	14	  
		    	4.12	  	Deposit Accounts and Securities Accounts	  	 	14	  
		    	4.13	  	Complete Disclosure	  	 	14	  

  
 -i-

  

									
		    	4.14	  	Indebtedness	  	 	15	  
		    	4.15	  	Margin Stock	  	 	15	  
		    	4.16	  	Permits, Etc.	  	 	15	  
		    	4.17	  	Material Contracts	  	 	15	  
		    	4.18	  	Employee and Labor Matters	  	 	15	  
		    	4.19	  	Customers and Suppliers	  	 	16	  
		    	4.20	  	Taxes	  	 	16	  
		    	4.21	  	Insurance	  	 	16	  
		    	4.22	  	Investment Company Act	  	 	16	  
		    	4.23	  	Brokerage Fees	  	 	17	  
		    	4.24	  	Second Secured Debt Documents	  	 	17	  
		    	4.25	  	Compliance with the Law	  	 	17	  
		    	4.26	  	Oil and Gas Imbalances	  	 	17	  
		    	4.27	  	Hedge Agreements	  	 	18	  
		    	4.28	  	Oil and Gas Properties	  	 	18	  
		    	4.29	  	Bonds and Insurance	  	 	18	  
		    	4.30	  	Royalties	  	 	19	  
		    	4.31	  	Nature of Business	  	 	19	  
		    	4.32	  	Seismic Licenses	  	 	19	  
		    	4.33	  	Marketing of Production	  	 	19	  
			
	5.	    	AFFIRMATIVE COVENANTS	  	 	20	  
				
		    	5.1	  	Accounting System	  	 	20	  
		    	5.2	  	Collateral Reporting	  	 	20	  
		    	5.3	  	Financial Statements, Reports, Certificates	  	 	20	  
		    	5.4	  	[Intentionally Deleted]	  	 	20	  
		    	5.5	  	Inspection	  	 	20	  
		    	5.6	  	Maintenance of Properties	  	 	20	  
		    	5.7	  	Taxes	  	 	21	  
		    	5.8	  	Insurance	  	 	21	  
		    	5.9	  	Compliance with Laws	  	 	22	  
		    	5.10	  	Leases	  	 	22	  
		    	5.11	  	Existence	  	 	23	  
		    	5.12	  	Environmental	  	 	23	  
		    	5.13	  	Disclosure Updates	  	 	23	  
		    	5.14	  	Control Agreements	  	 	23	  
		    	5.15	  	Formation of Subsidiaries	  	 	23	  
		    	5.16	  	Further Assurances	  	 	24	  
		    	5.17	  	Organizational ID Number; Commercial Tort Claims	  	 	24	  
		    	5.18	  	Material Contracts	  	 	24	  
		    	5.19	  	Obtaining Permits, Etc	  	 	25	  
		    	5.20	  	After Acquired Properties	  	 	25	  
		    	5.21	  	Ad Valorem and Severance Taxes; Royalties	  	 	25	  
		    	5.22	  	Interest Reserve	  	 	25	  
		    	5.23	  	Post-Closing Deliveries	  	 	25	  

  
 -ii-

  

									
	6.	    	NEGATIVE COVENANTS	  	 	26	  
				
		    	6.1	  	Indebtedness	  	 	26	  
		    	6.2	  	Liens	  	 	27	  
		    	6.3	  	Restrictions on Fundamental Changes	  	 	27	  
		    	6.4	  	Disposal of Assets	  	 	27	  
		    	6.5	  	Change Name	  	 	27	  
		    	6.6	  	Nature of Business	  	 	27	  
		    	6.7	  	Prepayments and Amendments	  	 	27	  
		    	6.8	  	Change of Control	  	 	28	  
		    	6.9	  	Distributions	  	 	28	  
		    	6.10	  	Accounting Methods	  	 	28	  
		    	6.11	  	Investments	  	 	28	  
		    	6.12	  	Transactions with Affiliates	  	 	29	  
		    	6.13	  	Use of Proceeds	  	 	29	  
		    	6.14	  	Hedging Agreements	  	 	29	  
		    	6.15	  	Farm-Out Agreements	  	 	29	  
		    	6.16	  	Financial Covenant	  	 	29	  
		    	6.17	  	Forward Sales	  	 	29	  
		    	6.18	  	Oil and Gas Imbalances	  	 	30	  
		    	6.19	  	Environmental	  	 	30	  
		    	6.20	  	Marketing Activities	  	 	30	  
			
	7.	    	EVENTS OF DEFAULT	  	 	30	  
			
	8.	    	THE LENDER GROUP’S RIGHTS AND REMEDIES	  	 	33	  
				
		    	8.1	  	Rights and Remedies	  	 	33	  
		    	8.2	  	Remedies Cumulative	  	 	33	  
			
	9.	    	TAXES AND EXPENSES	  	 	33	  
			
	10.	    	WAIVERS; INDEMNIFICATION	  	 	34	  
				
		    	10.1	  	Demand; Protest; etc	  	 	34	  
		    	10.2	  	The Lender Group’s Liability for Collateral	  	 	34	  
		    	10.3	  	Indemnification	  	 	34	  
			
	11.	    	NOTICES	  	 	35	  
			
	12.	    	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER	  	 	36	  
			
	13.	    	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	  	 	37	  
				
		    	13.1	  	Assignments and Participations	  	 	37	  
		    	13.2	  	Successors	  	 	39	  

  
 -iii-

  

									
	14.	    	AMENDMENTS; WAIVERS	  	 	39	  
				
		    	14.1	  	Amendments and Waivers	  	 	39	  
		    	14.2	  	No Waivers; Cumulative Remedies	  	 	40	  
			
	15.	    	AGENT; THE LENDER GROUP	  	 	41	  
				
		    	15.1	  	Appointment and Authorization of Agent	  	 	41	  
		    	15.2	  	Delegation of Duties	  	 	41	  
		    	15.3	  	Liability of Agent	  	 	42	  
		    	15.4	  	Reliance by Agent	  	 	42	  
		    	15.5	  	Notice of Default or Event of Default	  	 	42	  
		    	15.6	  	Credit Decision	  	 	43	  
		    	15.7	  	Costs and Expenses; Indemnification	  	 	43	  
		    	15.8	  	Agent in Individual Capacity	  	 	44	  
		    	15.9	  	Successor Agent	  	 	44	  
		    	15.10	  	Lender in Individual Capacity	  	 	45	  
		    	15.11	  	Collateral Matters	  	 	45	  
		    	15.12	  	Restrictions on Actions by Lenders; Sharing of Payments	  	 	46	  
		    	15.13	  	Agency for Perfection	  	 	46	  
		    	15.14	  	Payments by Agent to the Lenders	  	 	46	  
		    	15.15	  	Concerning the Collateral and Related Loan Documents	  	 	47	  
		    	15.16	  	Reports; Confidentiality; Disclaimers by Lenders; and Information	  	 	47	  
		    	15.17	  	Several Obligations; No Liability	  	 	48	  
			
	16.	    	WITHHOLDING TAXES	  	 	48	  
			
	17.	    	GUARANTY	  	 	50	  
				
		    	17.1	  	Guarantied Obligations	  	 	50	  
		    	17.2	  	Continuing Guaranty	  	 	50	  
		    	17.3	  	Performance Under this Guaranty	  	 	51	  
		    	17.4	  	Primary Obligations	  	 	51	  
		    	17.5	  	Waivers	  	 	51	  
		    	17.6	  	Releases	  	 	52	  
		    	17.7	  	No Election	  	 	53	  
		    	17.8	  	Financial Condition of Borrowers	  	 	53	  
		    	17.9	  	Payments; Application	  	 	53	  
		    	17.10	  	Attorneys Fees and Costs	  	 	53	  
			
	18.	    	GENERAL PROVISIONS	  	 	53	  
				
		    	18.1	  	Effectiveness	  	 	53	  
		    	18.2	  	Section Headings	  	 	53	  
		    	18.3	  	Interpretation	  	 	53	  
		    	18.4	  	Severability of Provisions	  	 	54	  
		    	18.5	  	Bank Product Providers	  	 	54	  
		    	18.6	  	Lender-Creditor Relationship	  	 	54	  

  
 -iv-

  

									
		    	18.7	  	Counterparts; Electronic Execution	  	 	54	  
		    	18.8	  	Revival and Reinstatement of Obligations	  	 	54	  
		    	18.9	  	Confidentiality; Public Lenders	  	 	54	  
		    	18.10	  	Lender Group Expenses	  	 	56	  
		    	18.11	  	USA PATRIOT Act	  	 	56	  
		    	18.12	  	Integration	  	 	56	  
		    	18.13	  	Parent as Agent for Borrowers	  	 	56	  
		    	18.14	  	Ratification of Loan Documents	  	 	56	  

  
 -v-

 AMENDED AND RESTATED CREDIT AGREEMENT 

THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), is entered into as of
December 7, 2010, by and among the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and
collectively as the “Lenders”), WELLS FARGO CAPITAL FINANCE, INC., a California corporation (“WFCF”), as administrative agent for the Lenders (in such capacity, together with its successors and assigns
in such capacity, “Agent”), Dune Energy, Inc., a Delaware corporation (“Parent”), and each of Parent’s Subsidiaries identified on the signature pages hereof as a Borrower (such Subsidiaries,
together with Parent, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as the “Borrowers”), and each of Parent’s
Subsidiaries identified on the signature pages hereof as a Guarantor (such Subsidiaries are referred to hereinafter each individually as a “Guarantor”, and individually and collectively, jointly and severally, as the
“Guarantors”). 
 Borrowers, Guarantors, WFCF and Agent are parties to that certain
Credit Agreement dated as of May 15, 2007 (as amended by a First Amendment dated August 4, 2008, a Second Amendment dated July 7, 2009, a Third Amendment dated March 23, 2010, a Fourth Amendment dated May 21, 2010, a Fifth
Amendment dated June 25, 2010, and a Sixth Amendment dated September 30, 2010, the “2007 Credit Agreement”). WFCF has executed an Assignment and Acceptance in favor of Wayzata Opportunities Fund II, L.P., a Delaware
limited partnership (“Wayzata”), such that Wayzata is the sole Lender under the 2007 Credit Agreement. 
 The parties wish to amend and restate the 2007 Credit Agreement in its entirety as provided herein. 
 In consideration of the mutual covenants and agreements herein contained, the parties agree that the 2007 Credit Agreement is hereby amended and restated in its entirety as follows: 

 

	1.	 DEFINITIONS AND CONSTRUCTION. 

 1.1      Definitions.  Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1. 

1.2      Accounting Terms.  All accounting terms not specifically
defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term “Borrowers” or the term “Parent” is used in
respect of a financial covenant or a related definition, it shall be understood to mean Parent and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. 

1.3      Code.  Any terms used in this Agreement that are defined
in the Code shall be construed and defined as set forth in the Code unless otherwise defined herein; provided, however, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of
the Code, the definition of such term contained in Article 9 of the Code shall govern. 

  
 1 

1.4      Construction.  Unless the context of this Agreement or any
other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has,
except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan
Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit
references herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements set forth herein). Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or, in the case of Bank Products,
the cash collateralization or support by a standby letter of credit in accordance with the terms hereof) of all Obligations other than unasserted contingent indemnification Obligations and other than any Bank Product Obligations that, at such time,
are allowed by the applicable Bank Product Provider to remain outstanding and that are not required by the provisions of this Agreement to be repaid or cash collateralized. Any reference herein to any Person shall be construed to include such
Person’s successors and assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record and any Record so transmitted shall constitute a representation and warranty as to
the accuracy and completeness of the information contained therein. 

1.5      Schedules and Exhibits.  All of the schedules and exhibits
attached to this Agreement shall be deemed incorporated herein by reference. 
  

	2.	 LOAN AND TERMS OF PAYMENT. 

 2.1      Intentionally Omitted. 
 2.2      Term Loan.    Subject to the terms and conditions of this Agreement, on the Restatement Date (a) the full amount of the
undisbursed Commitments will be advanced to Borrowers by Wayzata and such advance, together with any outstanding advances under the 2007 Credit Agreement, will be converted into a term loan (the “Term Loan”), and (b) the
Commitments will thereafter immediately terminate. The outstanding unpaid principal balance and all accrued and unpaid interest on the Term Loan shall be due and payable in accordance with Section 3.2. Any principal amount of the Term Loan that
is repaid or prepaid may not be reborrowed. All principal of, interest on, and other amounts payable in respect of the Term Loan shall constitute Obligations. 
 2.3      Prepayments; Premium. 
   (a)      Voluntary Prepayments.    Borrowers may, upon at least 10 Business Days prior written notice to Agent, prepay the principal of
the Term Loan, in whole or in part. 

  
 2 

 
Each voluntary prepayment shall be accompanied by the payment of accrued interest to the date of such payment on the amount prepaid and the prepayment premium, if any, provided in
subsection (c) below. 
   (b)      Mandatory Prepayments.

     (i)       Within one Business Day of the date of
receipt by any Loan Party or any of their Subsidiaries of the Net Cash Proceeds of any voluntary or involuntary sale or disposition by Loan Parties or any of their Subsidiaries of assets (including casualty losses or condemnations but excluding
sales or dispositions which qualify as Permitted Dispositions), Borrowers shall prepay the outstanding Obligations in accordance with Section 2.4(b)(ii) in an amount equal to 100% of such Net Cash Proceeds (including condemnation awards and
payments in lieu thereof) in connection with such sales or dispositions; provided, that so long as (A) no Default or Event of Default shall have occurred and is continuing or would result therefrom, (B) Administrative Borrower shall have
given Agent prior written notice of Loan Parties’ intention to apply such monies to the costs of replacement of the properties or assets that are the subject of such sale or disposition or the cost of purchase or construction of other assets
useful in the business of Loan Parties, (C) the monies are held in a Deposit Account in which Agent has a perfected first-priority security interest, (D) Loan Parties complete such replacement, purchase, or construction within 180 days
after the initial receipt of such monies, and (E) Lenders have consented to such replacement, purchase or construction in lieu of prepayment, then Loan Parties shall have the option to apply such monies to the costs of replacement of the assets
that are the subject of such sale or disposition or the costs of purchase or construction of other assets useful in the business of Loan Parties unless and to the extent that such applicable period shall have expired without such replacement,
purchase, or construction being made or completed, in which case, any amounts remaining in the cash collateral account shall be paid to Agent and applied in accordance with Section 2.4(b)(ii). Nothing contained in this Section 2.3(b)(i)
shall permit Loan Parties or any of their Subsidiaries to sell or otherwise dispose of any assets other than in accordance with Section 6.4. 
     (ii)      Within one Business Day of the date of incurrence by any Loan Party or any of their Subsidiaries of any Indebtedness (other than
Indebtedness permitted by Section 6.1), Borrowers shall prepay the outstanding Obligations in accordance with Section 2.4(b)(ii) in an amount equal to 100% of the Net Cash Proceeds received in connection with such incurrence. The
provisions of this Section 2.3(b)(ii) shall not be deemed to be implied consent to any such incurrence otherwise prohibited by the terms and conditions of this Agreement. 

    (iii)     Within one Business Day of the date of the issuance by any
Loan Party or any of their Subsidiaries of any shares of its or their Stock (other than (A) in the event that a Loan Party or any of its Subsidiaries forms any Subsidiary in accordance with the terms hereof, the issuance by such Subsidiary of
Stock to its immediate parent, (B) the issuance of Stock of Parent to directors, officers and employees of Parent and its Subsidiaries pursuant to employee stock option plans (or other employee incentive plans or other compensation
arrangements) approved by the Board of Directors, and (C) the issuance of Stock of Parent in order to finance the purchase consideration (or a portion thereof) in connection with a Permitted Acquisition), Borrowers shall prepay the outstanding
Obligations in accordance with 

  
 3 

 
Section 2.4(b)(ii) in an amount equal to 100% of the Net Cash Proceeds received in connection with such issuance. The provisions of this Section 2.3(b)(iii) shall not be deemed to be
implied consent to any such issuance otherwise prohibited by the terms and conditions of this Agreement. 

  (c)      Prepayment Premium. Any prepayment of the Term Loan (whether
mandatory or voluntary) on or prior to November 15, 2011 shall be accompanied by a prepayment premium equal to 10% of the principal amount prepaid. 
 2.4      Payments Generally. 
   (a)      Payments by Borrowers. 
     (i)       Except as otherwise expressly provided herein, all payments by Loan Parties shall be made to Agent’s Account for the account of
the Lender Group and shall be made in immediately available funds, no later than 2:00 p.m. (New York time) on the date specified herein. Any payment received by Agent later than 2:00 p.m. (New York time), shall be deemed to have been received on the
following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day. 
     (ii)      Unless Agent receives notice from Administrative Borrower prior to the date on which any payment is due to the Lenders that Borrowers will
not make such payment in full as and when required, Agent may assume that Borrowers have made (or will make) such payment in full to Agent on such date in immediately available funds and Agent may (but shall not be so required), in reliance upon
such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrowers do not make such payment in full to Agent on the date when due, each Lender severally shall repay to Agent
on demand such amount distributed to such Lender, together with interest thereon at the Federal Funds Rate for each day from the date such amount is distributed to such Lender until the date repaid. 

  (b)      Apportionment and Application. 

    (i)       [Reserved]. 

    (ii)      All payments to be made hereunder by Loan Parties shall
be remitted to Agent and all such payments, and all proceeds of Collateral received by Agent, shall be applied as follows: 
      (A)      first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Agent under the Loan
Documents, until paid in full, 
      (B)      second,
to pay any fees or premiums then due to Agent under the Loan Documents until paid in full, 

  
 4 

      (C)      third,
ratably to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to any of the Lenders under the Loan Documents, until paid in full, 

     (D)      fourth, ratably to pay any fees or premiums then
due to any of the Lenders under the Loan Documents until paid in full, 

     (E)      fifth, ratably to pay interest due in respect of
the Term Loan until paid in full, 

     (F)      sixth, ratably to pay the principal of the Term
Loan until paid in full, 
      (G)      seventh, to
pay any other Obligations (including the provision of amounts to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount determined by Agent in its Permitted Discretion as the
amount necessary to secure Borrowers’ and their Subsidiaries’ obligations in respect of Bank Products), and 
      (H)      eighth, to Borrowers or such other Person entitled thereto under applicable law. 

    (iii)     Agent promptly shall distribute to each Lender, pursuant to
the applicable wire instructions received from each Lender in writing, such funds as it may be entitled to receive. 
     (iv)      For purposes of foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to the terms
thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or
not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
     (v)       In the event of a direct conflict between the priority provisions of this Section 2.4 and any other provision contained in any
other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be
resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern. 

2.5      [Intentionally Deleted]. 

2.6      Interest: Rates, Payments, and Calculations. 

  (a)      Interest Rate.    Except as provided in
Section 2.6(c), all outstanding Obligations (except for Bank Product Obligations) shall bear interest at the rate of 15.0% per annum. 

  
 5 

   (b)      [Reserved].

   (c)      Default Rate.    Upon the
occurrence and during the continuation of an Event of Default (and at the election of Agent or the Required Lenders), all outstanding Obligations (except for Bank Product Obligations) shall bear interest at a per annum rate equal to two percentage
points above the per annum rate otherwise applicable hereunder. 

  (d)      Payment.    Interest and any fees payable
hereunder shall be due and payable, in arrears, on the first day of each month at any time that Obligations are outstanding. 
   (e)      Computation.      All interest and fees chargeable under the Loan Documents shall be computed on the basis of a
360-day year for the actual number of days elapsed. 

  (f)      Intent to Limit Charges to Maximum Lawful Rate.  In
no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination,
deem applicable. Borrowers and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein to the
contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrowers are and shall be liable only for the payment of such
maximum as allowed by law, and payment received from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess. 

2.7      Cash Management. 

  (a)      Loan Parties shall and shall cause each of their Subsidiaries to
(i) establish and maintain cash management services of a type and on terms satisfactory to Required Lenders at one or more of the banks set forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall
request in writing and otherwise take such reasonable steps to ensure that all of their and their Subsidiaries’ Account Debtors forward payment of the amounts owed by them directly to such Cash Management Bank, and (ii) deposit or cause to
be deposited promptly all of their Collections (including those sent directly by their Account Debtors to Loan Parties or their Subsidiaries) into a bank account in a Loan Party’s name (a “Cash Management Account”) at
one of the Cash Management Banks. 
   (b)      Each Cash Management
Bank shall establish and maintain Cash Management Agreements with Agent and Loan Parties. Each such Cash Management Agreement shall provide, among other things, that (i) the Cash Management Bank will comply with any instructions originated by
Agent (an “Activation Instruction”) directing the disposition of the funds in such Cash Management Account without further consent by Loan Parties or their Subsidiaries, as applicable, and Agent agrees not to issue an
Activation Instruction with respect to the Cash Management Accounts unless an Application Event has occurred and is continuing at the time such Activation Instruction is issued, (ii) the Cash Management Bank has no rights of setoff or
recoupment or any other claim against the 

  
 6 

 
applicable Cash Management Account, other than for payment of its service fees and other charges directly related to the administration of such Cash Management Account and for returned checks or
other items of payment, and (iii) upon the issuance of an Activation Instruction, it will forward by daily sweep all amounts in the applicable Cash Management Account to the Agent’s Account. Agent agrees not to issue an Activation
Instruction with respect to the Cash Management Accounts unless an Application Event has occurred and is continuing at the time such Activation Instruction is issued. Agent agrees to use commercially reasonable efforts to rescind an Activation
Instruction (the “Rescission”) if: (x) the Event of Default upon which such Activation Instruction was issued has been waived in writing in accordance with the terms of this Agreement, (y) no additional Event of
Default has occurred and is continuing prior to the date of the Rescission or is reasonably expected to occur on or immediately after the date of the Rescission. 

  (c)      So long as no Default or Event of Default has occurred and is
continuing, Administrative Borrower may amend Schedule 2.7(a) to add or replace a Cash Management Bank or Cash Management Account; provided, however, that (i) such prospective Cash Management Bank shall be reasonably satisfactory to
Required Lenders, and (ii) prior to the time of the opening of such Cash Management Account, a Loan Party (or its Subsidiary, as applicable) and such prospective Cash Management Bank shall have executed and delivered to Agent a Cash Management
Agreement. Loan Parties (or their Subsidiaries, as applicable) shall close any of their Cash Management Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days
of notice from Agent that the creditworthiness of any Cash Management Bank is no longer acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Agent that the operating
performance, funds transfer, or availability procedures or performance of the Cash Management Bank with respect to Cash Management Accounts or Agent’s liability under any Cash Management Agreement with such Cash Management Bank is no longer
acceptable in Agent’s reasonable judgment. 
   (d)      Each Cash
Management Account shall be a cash collateral account subject to a Control Agreement. 

2.8      Crediting Payments.  The receipt of any payment item by
Agent (whether from transfers to Agent by the Cash Management Banks pursuant to the Cash Management Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer of immediately available federal
funds made to the Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Loan Parties shall be deemed not to have made such payment
and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into the Agent’s Account on a Business Day on or before 2:00 p.m.
(New York time). If any payment item is received into the Agent’s Account on a non-Business Day or after 2:00 p.m. (New York time) on a Business Day, it shall be deemed to have been received by Agent as of the opening of business on the
immediately following Business Day. 
 2.9      Maintenance of Books and
Records; Statements of Obligations.  Agent shall maintain an account on its books regarding the Term Loan and all other payment Obligations 

  
 7 

 
hereunder or under the other Loan Documents (except for Bank Product Obligations), including accrued interest, fees and expenses, and Lender Group Expenses (such account, the “Loan
Account”). In accordance with Sections 2.4(b) and 2.8, the Loan Account will be credited with all payments received by Agent from Borrowers or for Borrowers’ account, including all amounts received in the Agent’s Account
from any Cash Management Bank. Agent shall render statements regarding the Loan Account to Administrative Borrower, including principal, interest, and fees, and including an itemization of all charges and expenses constituting Lender Group Expenses
owing, and such statements, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and the Lender Group unless, within 30 days after receipt thereof by Administrative
Borrower, Administrative Borrower shall deliver to Agent written objection thereto describing the error or errors contained in any such statements. 
 2.10    Fees.    Borrowers shall pay to Agent, as and when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter.

 2.11    Joint and Several Liability of Borrowers. 

  (a)      Each Borrower is accepting joint and several liability hereunder and
under the other Loan Documents in consideration of the financial accommodations to be provided by the Lender Group under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings of
the other Borrowers to accept joint and several liability for the Obligations. 

  (b)      Each Borrower, jointly and severally, hereby irrevocably and
unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including any Obligations arising under this
Section 2.11), it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each Borrower without preferences or distinction among them. 

  (c)      If and to the extent that any Borrower shall fail to make any payment
with respect to any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will make such payment with respect to, or perform, such Obligation.

   (d)      The Obligations of each Borrower under the provisions of
this Section 2.11 constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable against each Borrower to the full extent of its properties and assets, irrespective of the validity, regularity or
enforceability of this Agreement or any other circumstances whatsoever. 

  (e)      Except as otherwise expressly provided in this Agreement, each
Borrower hereby waives notice of acceptance of its joint and several liability, notice of the occurrence of any Default, Event of Default, or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by
Agent or Lenders under or in respect of any of the Obligations, any requirement of diligence or to mitigate damages and, generally, to the extent 

  
 8 

 
permitted by applicable law, all demands, notices and other formalities of every kind in connection with this Agreement (except as otherwise provided in this Agreement). Each Borrower hereby
assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or
other action or acquiescence by Agent or Lenders at any time or times in respect of any default by any Borrower in the performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences
whatsoever by Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release,
in whole or in part, of any Borrower. Without limiting the generality of the foregoing, each Borrower assents to any other action or delay in acting or failure to act on the part of any Agent or Lender with respect to the failure by any Borrower to
comply with any of its respective Obligations, including, without limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder, which might, but for the
provisions of this Section 2.11 afford grounds for terminating, discharging or relieving any Borrower, in whole or in part, from any of its Obligations under this Section 2.11, it being the intention of each Borrower that, so long as any
of the Obligations hereunder remain unsatisfied, the Obligations of each Borrower under this Section 2.11 shall not be discharged except by performance and then only to the extent of such performance. The Obligations of each Borrower under this
Section 2.11 shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any Borrower or any Agent or Lender. 

  (f)      Each Borrower represents and warrants to Agent and Lenders that such
Borrower is currently informed of the financial condition of Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each Borrower further represents and warrants
to Agent and Lenders that such Borrower has read and understands the terms and conditions of the Loan Documents. Each Borrower hereby covenants that such Borrower will continue to keep informed of Borrowers’ financial condition, the financial
condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations. 
   (g)      The provisions of this Section 2.11 are made for the benefit of Agent, Lenders and their respective successors and assigns, and may be enforced by
it or them from time to time against any or all Borrowers as often as occasion therefor may arise and without requirement on the part of Agent, Lender, successor or assign first to marshal any of its or their claims or to exercise any of its or
their rights against any Borrower or to exhaust any remedies available to it or them against any Borrower or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions
of this Section 2.11 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or
must otherwise be restored or returned by Agent or any Lender upon the insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the provisions of this Section 2.11 will forthwith be reinstated in effect, as though such payment
had not been made. 

  
 9 

   (h)      Each Borrower hereby
agrees that it will not enforce any of its rights of contribution or subrogation against any other Borrower with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to Agent or Lenders
with respect to any of the Obligations or any collateral security therefor until such time as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to any
Agent or Lender hereunder or under any other Loan Documents are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full
in cash of the Obligations and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Loan Party, its debts or its assets, whether
voluntary or involuntary, all such Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Loan Party therefor. 

  (i)      Each of the Loan Parties hereby agrees that, after the occurrence and
during the continuance of any Default or Event of Default, the payment of any amounts due with respect to the indebtedness owing by any Loan Party to any other Loan Party is hereby subordinated to the prior payment in full in cash of the
Obligations. Each Loan Party hereby agrees that after the occurrence and during the continuance of any Default or Event of Default, such Loan Party will not demand, sue for or otherwise attempt to collect any indebtedness of any other Loan Party
owing to such Loan Party until the Obligations shall have been paid in full in cash. If, notwithstanding the foregoing sentence, such Loan Party shall collect, enforce or receive any amounts in respect of such indebtedness, such amounts shall be
collected, enforced and received by such Borrower as trustee for Agent, and such Loan Party shall deliver any such amounts to Agent for application to the Obligations in accordance with Section 2.4(b). 

 

	3.	 CONDITIONS; TERM OF AGREEMENT. 

 3.1      Conditions Precedent to Amendment and Restatement.    The amendment and restatement of the 2007 Credit Agreement and the obligation
of Wayzata to advance the full amount of the Commitments and convert such advance into the Term Loan as provided for hereunder, are subject to the fulfillment, to the satisfaction of Agent and Wayzata, of each of the conditions precedent set forth
on Schedule 3.1 (the making of such advance by Wayzata being conclusively deemed to be its satisfaction or waiver of the conditions precedent). Upon satisfaction or waiver of all the conditions set forth on Schedule 3.1, the 2007
Credit Agreement will be amended and restated by this Agreement (with all obligations outstanding thereunder being renewed and continued), and all Liens securing obligations under the 2007 Credit Agreement shall be automatically continued to secure
the Obligations under this Agreement and the other Loan Documents. 
 3.2
      Term.    The Term Loan shall be due and payable in full on the earlier of (a) March 15, 2012, and (b) the date that is 90 days prior to the earliest date on which
any principal amount of the Second Secured Notes is scheduled to become due and payable or is required to be prepaid or redeemed, in each case in accordance with the terms of the Second Secured Note Indenture (such earlier date, the
“Maturity Date”). The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to accelerate the Term 

  
 10 

 
Loan immediately and without notice upon the occurrence and during the continuation of an Event of Default. 

3.3      Effect of Maturity or Acceleration. On the Maturity Date or earlier
acceleration of the Term Loan, all Obligations (including all Bank Product Obligations) immediately shall become due and payable without notice or demand. No such event, however, shall relieve or discharge Loan Parties or their Subsidiaries of their
duties, Obligations, or covenants hereunder or under any other Loan Document and the Agent’s Liens in the Collateral shall remain in effect until all Obligations have been paid in full. When all of the Obligations have been paid in full, Agent
will, at Borrowers’ sole expense, without recourse, representation or warranty, execute and deliver any termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar
discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the Agent’s Liens and all notices of security interests and liens previously filed by Agent with respect to the
Obligations. 
  

	4.	 REPRESENTATIONS AND WARRANTIES. 

 In order to induce the Lender Group to enter into this Agreement, each Loan Party makes the following representations and warranties to the Lender Group which shall be true, correct, and complete, in all
material respects, as of the date hereof, and shall be true, correct, and complete, in all material respects, as of the Restatement Date, and such representations and warranties shall survive the execution and delivery of this Agreement: 

4.1      No Encumbrances.    Each Loan Party and its
Subsidiaries has good and indefeasible title to their personal property assets and good and marketable title to its Real Property (other than Oil and Gas Properties constituting Real Property) and good and defensible title to Oil and Gas Properties
constituting Real Property, in each case, free and clear of Liens except for Permitted Liens. 

4.2      Jurisdiction of Organization; Location of Chief Executive Office;
Organizational Identification Number; Commercial Tort Claims. 

  (a)      The name of (within the meaning of Section 9-503 of the Code)
and jurisdiction of organization of each Loan Party and each of its Subsidiaries is set forth on Schedule 4.2(a). 
   (b)      The chief executive office of each Loan Party and each of its Subsidiaries is located at the address indicated on Schedule 4.2(b). 

  (c)      Each Loan Party’s and each of its Subsidiaries’ tax
identification numbers and organizational identification numbers, if any, are identified on Schedule 4.2(c). 
   (d)      None of the Loan Parties and their Subsidiaries hold any commercial tort claims, except as set forth on Schedule 4.2(d). 

4.3      Due Organization and Qualification; Subsidiaries. 

  
 11 

   (a)      Each Loan Party is duly
incorporated or organized, as the case may be, and existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as the case may be, and qualified to do business in any state where the failure to be so
qualified reasonably could be expected to result in a Material Adverse Change. 

  (b)      Set forth on Schedule 4.3(b) is a complete and accurate
description of the authorized capital Stock of Parent, by class, and a description of the number of shares of each such class that are issued and outstanding. Other than as described on Schedule 4.3(b), there are no subscriptions, options,
warrants, or calls relating to any shares of Parent’s capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. The Parent is not subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock. 
   (c)      Set forth on Schedule 4.3(c) is a complete and accurate list of Parent’s direct and indirect Subsidiaries, showing: (i) the jurisdiction
of their organization, (ii) the number of shares of each class of common and preferred Stock authorized for each of such Subsidiaries, and (iii) the number and the percentage of the outstanding shares of each such class owned directly or
indirectly by the applicable Subsidiary. All of the outstanding capital Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable. 

  (d)      Except as set forth on Schedule 4.3(c), there are no
subscriptions, options, warrants, or calls relating to any shares of Parent’s Subsidiaries’ capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. No Loan Party or any of its
respective Subsidiaries is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of any Loan Party’s Subsidiaries’ capital Stock or any security convertible into or exchangeable for any
such capital Stock. 
 4.4      Due Authorization; No Conflict.

   (a)      As to each Loan Party, the execution, delivery, and
performance by such Loan Party of this Agreement and the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Loan Party. 

  (b)      As to each Loan Party, the execution, delivery, and performance by
such Loan Party of this Agreement and the other Loan Documents to which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of any Loan
Party, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Material
Contract of any Loan Party, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of any Loan Party, other than Liens in favor of Agent for the benefit of Lenders, or
(iv) require any approval of any Loan Party’s interest holders or any approval or consent of any Person under any Material Contract of any Loan Party, other than consents or approvals that have been obtained and that are still in force and
effect. 

  
 12 

   (c)      Other than the filing of
continuation statements and the recordation of Mortgages and other filings or actions necessary to perfect Liens granted to Agent in Collateral acquired after the Restatement Date, the execution, delivery, and performance by each Loan Party of this
Agreement and the other Loan Documents to which such Loan Party is a party do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than consents or
approvals that have been obtained and that are still in force and effect. 

  (d)      As to each Loan Party, this Agreement and the other Loan Documents to
which such Loan Party is a party, and all other documents contemplated hereby and thereby, when executed and delivered by such Loan Party, will be the legally valid and binding obligations of such Loan Party, enforceable against such Loan Party in
accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 

  (e)      The Agent’s Liens are validly created, perfected (other than
(i) in respect of motor vehicles and (ii) any Deposit Accounts and Securities Accounts not subject to a Control Agreement as permitted by Section 6.11, and subject only to the filing of continuation statements and the recordation of
Mortgages for future acquired Oil and Gas Properties), and first priority Liens, subject only to Permitted Liens. 
 4.5      Litigation.    Other than those matters disclosed on Schedule 4.5, there are no actions, suits, or proceedings pending or,
to the best knowledge of each Loan Party, threatened against any Loan Party or any of its Subsidiaries. There are no actions, suits or proceedings, pending, or to the best knowledge of each Loan Party, threatened, that relate to this Agreement or
any other Loan Document or any transaction contemplated hereby or thereby. 

4.6      No Material Adverse Change. All financial statements relating to
Parent and its Subsidiaries that have been delivered by Parent or any of its Subsidiaries to the Lender Group have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being
subject to year-end audit adjustments) and present fairly in all material respects, Parent’s and its Subsidiaries’ financial condition as of the date thereof and results of operations for the period then ended. Except as disclosed on
Schedule 4.6, there has not been a Material Adverse Change with respect to Parent and its Subsidiaries since December 31, 2009. 
 4.7      Fraudulent Transfer. 
   (a)      After giving effect to the financing transactions contemplated by this Agreement, each Loan Party and each Subsidiary of a Loan Party is Solvent.

   (b)      No transfer of property is being made by any Loan Party
or any Subsidiary of a Loan Party and no obligation is being incurred by any Borrower or any Subsidiary of a Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay,
or defraud either present or future creditors of Loan Parties or their Subsidiaries. 

  
 13 

 4.8      Employee
Benefits.  None of Loan Parties, any of their Subsidiaries, or any of their ERISA Affiliates maintains or contributes to any Benefit Plan. 
 4.9      Environmental Condition.    Except as set forth on Schedule 4.9, (a) to Loan Parties’ knowledge, none of Loan
Parties’ or their Subsidiaries’ properties or assets has ever been used by Loan Parties, their Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous
Materials, where such use, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any applicable Environmental Law, (b) to Loan Parties’ knowledge, none of Loan Parties’ nor their
Subsidiaries’ properties or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) none of Loan Parties nor any of their Subsidiaries have
received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned or operated by Loan Parties or their Subsidiaries, and (d) none of Loan Parties nor any of their Subsidiaries have
received a summons, citation, notice, or directive from the United States Environmental Protection Agency or any other federal or state governmental agency concerning any action or omission by any Loan Party or any Subsidiary of a Loan Party
resulting in the releasing or disposing of Hazardous Materials into the environment. 

4.10      Intellectual Property.    Each Loan Party and
each Subsidiary of a Loan Party owns, or holds licenses in, all trademarks, trade names, copyrights, patents, patent rights, and licenses that are necessary to the conduct of its business as currently conducted, and attached hereto as Schedule
4.10 is a true, correct, and complete listing of all material patents, patent applications, trademarks, trademark applications, copyrights, and copyright registrations as to which each Loan Party or one of its Subsidiaries is the owner or is an
exclusive licensee. 
 4.11      Leases.    Loan
Parties and their Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their business and to which they are parties or under which they are operating and all of such material leases are valid and subsisting and no
material default by Loan Parties or their Subsidiaries exists under any of them. There are no leases, subleases, contracts or other operating agreements that allocate operating expenses to any Loan Party in excess of its working interest of record
in the particular Oil and Gas Property subject to such lease, the sublease, contract or other operating agreement. 
 4.12      Deposit Accounts and Securities Accounts.    Set forth on Schedule 4.12 is a listing of all of Loan Parties’ and their
Subsidiaries’ Commodity Accounts, Deposit Accounts and Securities Accounts, including, with respect to each bank or commodity or securities intermediary (a) the name and address of such Person, and (b) the account numbers of the
Commodity Accounts, Deposit Accounts or Securities Accounts maintained with such Person. 

4.13      Complete Disclosure.  All factual information (taken as a
whole) furnished by or on behalf of Loan Parties or their Subsidiaries in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this
Agreement, the other Loan Documents, or any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Loan Parties or their Subsidiaries in writing to Agent or any
Lender will be, true and accurate in all material respects on the date as of which such 

  
 14 

 
information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in
light of the circumstances under which such information was provided. The most recent Projections delivered to Agent represent Loan Parties’ good faith estimate of their and their Subsidiaries’ future performance for the periods covered
thereby based upon assumptions believed by Loan Parties to be reasonable at the time of the delivery thereof to Agent (it being understood that such projections and forecasts are subject to uncertainties and contingencies, many of which are beyond
the control of Loan Parties and their Subsidiaries and no assurances can be given that such projections or forecasts will be realized). 
 4.14      Indebtedness.    None of the Loan Parties has any Indebtedness other than Indebtedness permitted under Section 6.1.

 4.15      Margin Stock. None of the Loan Parties is nor will be
engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System), and no Term Loan proceeds will be used to
purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. 
 4.16      Permits, Etc.. Each Loan Party has, and is in compliance with, all permits, licenses, authorizations, approvals, entitlements and accreditations
required for such Person lawfully to own, lease, manage or operate, or to acquire, each business and the Real Property currently owned, leased, managed or operated, or to be acquired, by such Person, except for such permits, licenses,
authorizations, approvals, entitlements and accreditations the absence of which could not reasonably be expected to result in a Material Adverse Change. No condition exists or event has occurred which, in itself or with the giving of notice or lapse
of time or both, would result in the suspension, revocation, impairment, forfeiture or non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, and to each Loan Party’s knowledge, there is no claim that
any thereof is not in full force and effect. 
 4.17      Material
Contracts. Set forth on Schedule 4.17 is a description of all Material Contracts of Parent and its Subsidiaries, showing the parties and principal subject matter thereof and amendments and modifications thereto. Except for matters
which, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, each Material Contract (a) is in full force and effect and is binding upon and enforceable against Parent or its Subsidiary
and, to the best of Loan Parties’ knowledge, each other Person that is a party thereto in accordance with its terms, (b) has not been otherwise amended or modified, and (c) is not in default due to the action or inaction of Parent or
any of its Subsidiaries. 
 4.18      Employee and Labor Matters.
Except as set forth on Schedule 4.18, there is (a) no unfair labor practice complaint pending or, to any Loan Party’s knowledge, threatened against any Loan Party before any Governmental Authority and no grievance or arbitration
proceeding pending or threatened against any Loan Party which arises out of or under any collective bargaining agreement, (b) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or, to the best knowledge of each
Loan Party, threatened against any Loan Party and (c) no union representation question existing with respect to the employees of any Loan Party and no union organizing activity taking place with respect to any of the employees of

  
 15 

 
any of them. Neither any Loan Party, nor any ERISA Affiliate of any Loan Party has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act
(“WARN”) or similar state law, which remains unpaid or unsatisfied. The hours worked and payments made to employees of each Loan Party have not been in violation of the Fair Labor Standards Act or any other applicable legal
requirements. All material payments due from any Loan Party on account of workers compensation, wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of such Loan Party. 

4.19      Customers and Suppliers.    There exists no
actual or threatened termination, cancellation or limitation of, or modification to or change in, the business relationship between (a) any Loan Party, on the one hand, and any customer or any group thereof, on the other hand, whose agreements
with any Loan Party are individually or in the aggregate material to the business or operations of such Loan Party, or (b) any Loan Party, on the one hand, and any material supplier thereof, on the other hand; and there exists no present state
of facts or circumstances that could give rise to or result in any such termination, cancellation, limitation, modification or change. 
 4.20      Taxes.  Each Loan Party, and each Person which has tax liabilities for which any Loan Party is liable (each, a “Tax
Party”) have filed, or caused to be filed, and will continue to file in a timely manner all foreign, federal, state and other material tax returns and reports required to be filed, and have paid, and will continue to pay, all foreign,
federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable. All information in such tax returns, reports and declarations is
complete and accurate in all material respects. Each Tax Party has paid or caused to be paid all taxes due and payable or claimed due and payable in any assessment received by it, and has collected, deposited and remitted in accordance with all
applicable laws, all sales, use and similar taxes applicable to the conduct of its business, except, in each case, to the extent that the validity of such assessment or tax is the subject of a Permitted Protest. There are no Liens on any properties
or assets of any Loan Party imposed or arising as a result of the delinquent payment or the nonpayment of any tax, assessment, fee or other governmental charge. 

4.21      Insurance.    Each Loan Party and each of its
Subsidiaries keeps its property adequately insured and maintains (a) insurance to such extent and against such risks, including fire, as is customary with companies in the same or similar businesses, (b) workers’ compensation
insurance in the amount required by applicable law, (c) public liability insurance, which shall include product liability insurance, in the amount customary with companies in the same or similar business against claims for personal injury or
death on properties owned, occupied or controlled by it, and (d) such other insurance as may be required by law or as may be reasonably required by Agent (including, without limitation, against larceny, embezzlement or other criminal
misappropriation). Schedule 4.21 sets forth a list of all insurance maintained by each Loan Party on the Restatement Date. 
 4.22      Investment Company Act.    None of the Loan Parties is an “investment company” or an “affiliated person” or
“promoter” of, or “principal underwriter” of or for, an 

  
 16 

 
“investment company”, as such terms are defined in the Investment Company Act of 1940, as amended. 

4.23      Brokerage Fees. Parent and its Subsidiaries have not utilized the
services of any broker or finder in connection with obtaining financing from the Lender Group under this Agreement and no brokerage commission or finders fee is payable by Parent or its Subsidiaries in connection herewith. 

4.24      Second Secured Debt Documents. As of the Restatement Date, the
outstanding principal balance of the Second Secured Notes is $300,000,000, and all agreements, instruments and documents executed or delivered pursuant to or in connection with the Second Secured Notes are described on Schedule 4.24 hereto.
All Obligations are and will be incurred in full compliance with the Second Secured Note Indenture. This Agreement and the other Loan Documents are the “Credit Agreement” as defined in the Second Secured Note Indenture. The full amount of
the Term Loan is being incurred pursuant to Section 4.12(a) of the Second Secured Note Indenture. All Liens securing the Second Secured Debt are subordinate and junior in priority to all Liens in favor of Agent, for the benefit of the Lenders,
securing the Obligations under the Intercreditor Agreement. No Liens securing the Second Secured Debt exist on any Collateral of the Loan Parties or any of their Subsidiaries on which Agent does not have an enforceable, perfected Lien under the Loan
Documents securing the Obligations. No event of default or event or condition which would become an event of default with notice or lapse of time or both, exists under the Second Secured Debt Documents and each of the Second Secured Debt Documents
is in full force and effect. 
 4.25      Compliance with the
Law.    No Loan Party has violated any laws or failed to obtain any material license, permit, franchise or other authorization from any Governmental Authority necessary for the ownership of any of its Oil and Gas
Properties or the conduct of its business. The Oil and Gas Properties of each Loan Party (and assets and properties utilized therewith) have been maintained, operated and developed in a good and workmanlike manner and in substantial conformity with
all applicable laws and all rules, regulations and orders of all Governmental Authorities having jurisdiction and in substantial conformity with the provisions of all leases, subleases or other contracts comprising a part of the Hydrocarbon
Interests and other contracts and agreements forming a part of such Oil and Gas Properties; specifically in this connection, (a) after the Restatement Date, no Oil and Gas Property of any Loan Party is subject to having allowable production
reduced below the full and regular allowable production (including the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) prior to the Restatement Date and (b) none of the wells
comprising a part of such Oil and Gas Properties (or assets and properties utilized therewith) is deviated from the vertical by more than the maximum permitted by applicable laws, regulations, rules and orders of any Governmental Authority, and such
wells are, in fact, bottomed under and are producing from, and the well bores are wholly within, such Oil and Gas Properties (or in the case of wells located on Real Property utilized therewith, such utilized Real Property) covered by the leases.

 4.26      Oil and Gas Imbalances.  Except as set forth
on Schedule 4.26, on a net basis there are no gas imbalances, take-or-pay oil and gas or other prepayments with respect to any Loan Party’s Oil and Gas Properties which would require such Person either to make cash

  
 17 

 
settlements for such production or deliver Hydrocarbons produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payments therefor exceeding two
percent (2%) of the current monthly production of oil and gas from the Oil and Gas Properties of the Loan Parties in the aggregate. 
 4.27      Hedge Agreements.  Schedule 4.27 sets forth, as of the Restatement Date, a true and complete list of all Hedge Agreements (including
any commodity price swap agreements, forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of Hydrocarbons or other commodities) of the Loan Parties, the material terms thereof (including the type,
term, effective date, termination date and notional amounts or volumes), all credit support agreements relating thereto (including any margin required or supplied), and the counterparty to each such agreement. 

4.28      Oil and Gas Properties. 

    (a)      Each Loan Party has good and defensible title to all of
its Oil and Gas Properties which constitute Real Property and good and indefeasible title to all of its Oil and Gas Properties which constitute personal property, except for (i) such imperfections of title which do not in the aggregate
materially detract from the value thereof to, or the use thereof in, the business of such Loan Party and (ii) Permitted Liens. The quantum and nature of the interest of such Loan Party in and to the Oil and Gas Properties as set forth in the
Restatement Date Reserve Report includes the entire interest of such Loan Party in such Oil and Gas Properties as of the Restatement Date, and are complete and accurate in all material respects as of the Restatement Date; and there are no
“back-in” or “reversionary” interests held by third parties which could materially reduce the interest of such Loan Party in such Oil and Gas Properties except as expressly set forth therein. The ownership of the Oil and Gas
Properties by each Loan Party do not in any material respect obligate any such Loan Party to bear the costs and expenses relating to the maintenance, development or operations of each such Oil and Gas Property in an amount in excess of the working
interest of record of such Loan Party in each Oil and Gas Property set forth in the Restatement Date Reserve Report. 
     (b)      Each Loan Party’s marketing, gathering, transportation, processing and treating facilities and equipment, together with any marketing,
gathering, transportation, processing and treating contracts in effect between and/or among such Loan Party and any other Person, are sufficient to gather, transport, process and/or treat, reasonably anticipated volumes of production of Hydrocarbons
from the Oil and Gas Properties of the Loan Party. 
 4.29      Bonds and
Insurance. Schedule 4.29 attached hereto contains an accurate and complete description of all performance bonds related to operations on or pertaining to the Oil and Gas Properties of the Loan Parties, and all material policies of
insurance owned or held by each Loan Party. Except as set forth on Schedule 4.29, all such policies are in full force and effect, all premiums with respect thereto covering all periods up to and including the Restatement Date have been paid,
and no notice of cancellation or termination has been received with respect to any such policy. Such bonds and policies are sufficient for compliance with all requirements of law and of all agreements to which any Loan Party is a party; are valid,
outstanding and enforceable policies; provide adequate coverage in at least such amounts and against at least such risks (but including in any event public liability) as are required by 

  
 18 

 
Governmental Authorities and/or usually insured or bonded against in the same general area by companies engaged in the same or a similar business for the assets and operations of the Loan
Parties; will remain in full force and effect through the respective dates set forth in Schedule 4.29 without the payment of additional premiums except as set forth on Schedule 4.29; and will not in any way be affected by, or terminate
or lapse by reason of, the transactions contemplated by this Agreement. No Loan Party has been refused any bonds or insurance with respect to its assets or operations, nor has its coverage been limited below usual and customary bond or policy
limits, by any bonding company or insurance carrier to which it has applied for any such bond or insurance or with which it has carried insurance during the last three years. 

4.30      Royalties.    Except as set forth on
Schedule 4.30, all royalties, overriding royalties, compensatory royalties and other payments due from or in respect of Hydrocarbon production from or allocable to the Oil and Gas Properties have been properly paid or provided for in all
material respects in accordance with the terms of the applicable Material Contracts and applicable law. 

4.31      Nature of Business. No Loan Party is engaged in any business other
than the Oil and Gas Business within the continental United States. 

4.32      Seismic Licenses. Schedule 4.32 identifies all of the
license agreements relating to the performance of seismic exploration on the Oil and Gas Properties (“Seismic Licenses”) to which Parent or its Subsidiaries is a party. With respect to the Seismic Licenses: (a) all
Seismic Licenses are in effect and have not expired or terminated; (b) neither Loan Parties nor their Subsidiaries are in material breach or material default, and there has occurred no event, fact, or circumstance, that, with the lapse of time
or the giving of notice, or both, would constitute such a material breach or material default by Loan Parties or their Subsidiaries, with respect to the terms of any Seismic License; and (c) neither Loan Parties nor their Subsidiaries nor, to
the knowledge of Loan Parties, any other party to any Seismic License has given written notice of any action to terminate, cancel, rescind, or procure a judicial reformation of any Seismic License or any provision thereof. To the extent not
prohibited by the terms of the Seismic Licenses or any confidential agreement, all of the transfer fees or similar amounts payable by Loan Parties under the terms of the Seismic Licenses upon the consummation of the transactions contemplated herein,
or the method of calculating same, are set forth in Schedule 4.32. 

4.33      Marketing of Production. Except for contracts listed and in effect
on the date hereof on Schedule 4.33, no material agreements exist that are not cancelable on 60 days notice or less without payment or detriment for the sale of production from of Loan Parties’ or their Subsidiaries’ Hydrocarbons
(including, without limitation, currently being exercised) that (a) pertains to the sale of production from any calls on or other rights to purchase, production at a fixed price and (b) have a maturity or expiry date of longer than six
(6) months from the date hereof. All proceeds from the sale of Loan Parties’ or their Subsidiaries’ Hydrocarbon Interests from their Oil and Gas Properties will be paid in full to the applicable party by the purchaser thereof on a
timely basis, and none of such proceeds are currently being held in suspense by such purchaser or any other Person. Except as set forth in Schedule 4.33, none of the Oil and Gas Properties of Loan Parties or their Subsidiaries are subject to
any contractual or other arrangement whereby payment for production therefrom is to be deferred for a substantial period 

  
 19 

 
of time after the month in which such production is delivered (i.e., in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days). 

 

	5.	 AFFIRMATIVE COVENANTS. 

 Each Loan Party covenants and agrees that, until payment in full of the Obligations, Loan Parties shall and shall cause each of their respective Subsidiaries to do all of the following: 

5.1      Accounting System.  Maintain a system of accounting that
enables Parent and its Subsidiaries to produce financial statements in accordance with GAAP and maintain records pertaining to the Collateral that contain information as from time to time reasonably may be requested by Agent. Loan Parties also shall
keep a reporting system that shows all additions, sales, claims, returns, and allowances with respect to their and their Subsidiaries’ sales. Loan Parties shall also maintain their billing systems/practices as approved by Agent prior to the
Restatement Date and shall only make material modifications thereto with notice to, and consent of, Agent. 

5.2      Collateral Reporting.  Provide Agent (and if so requested
by Agent, with copies for each Lender) with each of the reports set forth on Schedule 5.2 at the times specified therein. 
 5.3      Financial Statements, Reports, Certificates.  Deliver to Agent, with copies to each Lender, each of the financial statements, reports, or
other items set forth on Schedule 5.3 at the times specified therein. In addition, Parent agrees that no Subsidiary of Parent will have a fiscal year different from that of Parent. 

5.4      [Intentionally Deleted]. 

5.5      Inspection.    Permit Agent, each Lender, and
each of their duly authorized representatives or agents to visit any of its properties and inspect any of its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with,
and to be advised as to the same by, its officers and employees at such reasonable times and intervals as Agent or any such Lender may designate and, so long as no Default or Event of Default exists, with reasonable prior notice to Administrative
Borrower. 
 5.6      Maintenance of
Properties.  (a) Maintain and preserve all of their properties which are necessary or useful in the proper conduct of their business in good working order and condition, ordinary wear, tear, and casualty excepted (and except
where the failure to do so could not be expected to result in a Material Adverse Change), and comply at all times with the provisions of all material leases to which it is a party as lessee, so as to prevent any loss or forfeiture thereof or
thereunder. 
   (b)      Cause to be done all things necessary to
preserve and keep in good repair, working order and efficiency all the Oil and Gas Properties of each Loan Party and other material assets including, without limitation, all equipment, machinery, facilities, and marketing, gathering, transportation
and processing assets and, from time to time, will make all the reasonably necessary repairs, renewals and replacements so that at all times the state and conditions of such Oil and Gas Properties and other material assets will be fully preserved
and 

  
 20 

 
maintained, except to the extent a portion of such assets is no longer capable of producing Hydrocarbons in economically reasonable amounts. 

  (c)      Promptly: (i) pay and/or discharge or cause to be paid and/or
discharged, all rentals, royalties, expenses, taxes and Indebtedness accruing under the lease or other agreements affecting or pertaining to the Oil and Gas Properties of each Loan Party and do all other things necessary to keep unimpaired its
rights with respect thereto and prevent forfeiture thereof or default thereunder, (ii) perform, observe and comply or make reasonable and customary efforts to cause to be performed, observed and complied with, in accordance with usual and
customary industry standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in such Oil and Gas Properties and the accompanying elements therefrom and other
material properties so long as such properties are capable of producing Hydrocarbons and the accompanying elements in quantities and at prices providing for continued efficient and profitable operations of business and (iii) do all other things
necessary to keep unimpaired, except for Permitted Liens, its rights with respect thereto and prevent any forfeiture thereof or a default thereunder, except to the extent a portion of such properties is no longer capable of producing Hydrocarbons in
economically reasonable amounts. 
   (d)      Operate its Oil and Gas
Properties and other material properties or cause or make reasonable and customary efforts to cause such Oil and Gas Properties and other material properties to be operated on a continuous basis for the production of Hydrocarbons and in a careful
and efficient manner in accordance with the usual and customary practices of the industry and in substantial compliance with all applicable contracts and agreements and in compliance in all material respects with all material laws (including making
adequate provision for all plugging and abandonment liabilities). 

  (e)      Prudently operate and produce with respect to the Oil and Gas
Properties of the Loan Parties in accordance with good engineering practices. 

5.7      Taxes.  Cause all assessments and taxes, whether real,
personal, or otherwise, due or payable by, or imposed, levied, or assessed against Loan Parties, their Subsidiaries, or any of their respective assets to be paid in full, before delinquency or before the expiration of any extension period, except to
the extent that the validity of such assessment or tax shall be the subject of a Permitted Protest. Loan Parties will and will cause their Subsidiaries to make timely payment or deposit of all tax payments and withholding taxes required of them by
applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Agent with proof indicating that the applicable Loan Party or Subsidiary of a Loan
Party has made such payments or deposits. 
 5.8      Insurance.

   (a)        At Loan Parties’ expense, maintain
insurance respecting Loan Parties’ and their Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same
or similar businesses, provided that, the Loan Parties shall not be required to maintain business interruption insurance. Loan Parties also shall, and shall cause each of their Subsidiaries to,

  
 21 

 
maintain public liability and product liability insurance. All such policies of insurance shall be in such amounts and with such insurance companies as are reasonably satisfactory to Required
Lenders. Loan Parties shall deliver copies of all such policies to Agent with an endorsement naming Agent as the sole loss payee (under a satisfactory lender’s loss payable endorsement) or additional insured, as appropriate. Each policy of
insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever. During the period of the drilling of wells and
the construction of any other improvements comprising a part of the Oil and Gas Properties of any Loan Party, Borrowers shall, or, as applicable, shall cause their and their Subsidiaries’ contractors or subcontractors to, obtain and maintain
well control insurance (including coverage for costs and redrilling) and builder’s risk insurance, as applicable, in such form and amounts as is customary in the industry and worker’s compensation insurance covering all Persons employed by
any Loan Party or its agents or subcontractors of any tier in connection with any construction affecting such Oil and Gas Properties, including, without limitation, all agents and employees of any Loan Party and such Loan Party’s subcontractors
with respect to whom death or bodily injury claims could be asserted against any Loan Party. 

  (b)      Administrative Borrower shall give Agent prompt notice of any loss
exceeding $1,000,000 covered by such insurance. So long as no Event of Default has occurred and is continuing, Loan Parties shall have the exclusive right to adjust any losses payable under any such insurance policies which are less than $1,000,000.
Following the occurrence and during the continuation of an Event of Default, or in the case of any losses payable under such insurance exceeding $1,000,000, Agent shall have the exclusive right to adjust any losses payable under any such insurance
policies, without any liability to Borrowers whatsoever in respect of such adjustments. Any monies received as payment for any loss under any insurance policy mentioned above (other than liability insurance policies) or as payment of any award or
compensation for condemnation or taking by eminent domain, shall be applied to prepay the Term Loan. 

  (c)      Loan Parties will not, and will not suffer or permit its Subsidiaries
to, take out separate insurance concurrent in form or contributing in the event of loss with that required to be maintained under this Section 5.8, unless Agent is included thereon as an additional insured or loss payee under a lender’s
loss payable endorsement. Administrative Borrower shall notify Agent promptly whenever such separate insurance is taken out, specifying the insurer and the type and amount of insurance provided thereunder as to the policies evidencing the same, and
copies of such policies shall be provided to Agent promptly after receipt by Loan Parties thereof. 

5.9      Compliance with Laws.   Comply with the requirements
of all applicable laws, rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Change. 
 5.10    Leases.   Pay when due all
rents and other amounts payable under any material leases to which any Loan Party or any Subsidiary of a Borrower is a party or by which any Loan Party’s or any of its Subsidiaries’ properties and assets are bound, unless such payments are
the subject of a Permitted Protest. 

  
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5.11    Existence.    At all times preserve and keep in full force
and effect each Loan Party’s and each of its Subsidiaries’ (a) valid existence and good standing in the jurisdiction of its organization (to the extent such concept applies to such entity), (b) valid existence and good standing
in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of business makes such qualification necessary (to the extent such concept applies to such entity), except to the extent that the failure
to be so qualified could not reasonably be expected to result in a Material Adverse Change, and (c) except as could not reasonably be expected to result in a Material Adverse Change, any rights, franchises, permits, licenses, accreditations,
authorizations, or other approvals material to their businesses. 

5.12    Environmental.   (a) Keep any property either owned or
operated by any Loan Party or any Subsidiary of a Loan Party free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in
all material respects, with Environmental Laws and provide to Agent documentation of such compliance which Agent reasonably requests, (c) promptly notify Agent of any release of a Hazardous Material in any reportable quantity from or onto
property owned or operated by any Borrower or any Subsidiary of a Loan Party and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law, and (d) promptly, but in any event
within 5 days of its receipt thereof, provide Agent with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of any Loan Party or any Subsidiary of a Loan
Party, (ii) commencement of any Environmental Action or notice that an Environmental Action will be filed against any Loan Party or any Subsidiary of a Loan Party, and (iii) notice of a violation, citation, or other administrative order
which reasonably could be expected to result in a Material Adverse Change. 

5.13    Disclosure Updates.   Promptly and in no event later than 10
Business Days after obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any
material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy
the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 

5.14    Control Agreements.   Take all reasonable steps in order for
Agent to obtain control in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with respect to (subject to the proviso contained in Section 6.11) all of its Commodities Accounts, Securities Accounts, Deposit Accounts,
electronic chattel paper, investment property, and letter-of-credit rights. 

5.15    Formation of Subsidiaries.   At the time that any Borrower or
any Guarantor forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Restatement Date, such Loan Party shall (a) cause such new Subsidiary to provide to Agent a joinder to the Guaranty and the Security
Agreement, together with such other security documents (including Mortgages with respect to any Real Property of such new Subsidiary), as well as 

  
 23 

 
appropriate financing statements (and with respect to all property subject to a Mortgage, fixture filings), all in form and substance satisfactory to Agent and Required Lenders (including being
sufficient to grant Agent a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b) provide to Agent a pledge agreement and appropriate certificates and powers or financing
statements, hypothecating all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Agent and Required Lenders, and (c) provide to Agent and/or Lenders all other documentation, including
one or more opinions of counsel satisfactory to Agent and Required Lenders, which in their opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance or
other documentation with respect to all property subject to a Mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 5.15 shall be a Loan Document. 

5.16    Further Assurances.  At any time upon the request of Agent and/or
Required Lenders, Borrowers shall execute or deliver to Agent and Lenders, and shall cause their Subsidiaries to execute or deliver to Agent and Lenders, any and all financing statements, fixture filings, security agreements, pledges, assignments,
endorsements of certificates of title, mortgages, deeds of trust, opinions of counsel, and all other documents (collectively, the “Additional Documents”) that Agent and/or Required Lenders may reasonably request in form and
substance reasonably satisfactory to Agent and Required Lenders, to create, perfect, and continue perfected or to better perfect the Agent’s Liens in all of the properties and assets of Loan Parties and their Subsidiaries (whether now owned or
hereafter arising or acquired, tangible or intangible, real or personal), to create and perfect Liens in favor of Agent in any Real Property acquired by Loan Parties or their Subsidiaries after the Restatement Date, to create and perfect Liens in
favor of Agent in any properties and assets pledged by Loan Parties or their Subsidiaries under the Second Secured Debt Documents after the Restatement Date, and in order to fully consummate all of the transactions contemplated hereby and under the
other Loan Documents. To the maximum extent permitted by applicable law, Borrowers authorize Agent to execute any such Additional Documents in Loan Parties’ or their Subsidiaries’ names, as applicable, and authorizes Agent to file such
executed Additional Documents in any appropriate filing office. 

5.17    Organizational ID Number; Commercial Tort Claims.    As
promptly as practicable, but in any event within 5 days, (a) upon obtaining an organizational identification number (to the extent that any Loan Party has not been issued such number on or prior to the Restatement Date), notify Agent in writing
and deliver an updated Schedule 4.2(c), and (b) upon obtaining any commercial tort claim that would have been required to be disclosed to Agent under this Agreement and the other Loan Documents if it existed as of the Restatement Date,
deliver an updated Schedule 4.2(d) and the other documents required under the Security Agreement. 

5.18    Material Contracts.  Contemporaneously with the delivery of each
Compliance Certificate pursuant hereto, provide Agent with copies of (a) each Material Contract entered into since the delivery of the previous Compliance Certificate and (b) each amendment or modification of any Material Contract entered
into since the delivery of the previous Compliance Certificate. 

  
 24 

 5.19    Obtaining Permits,
Etc.  Obtain, maintain and preserve and take all necessary action to timely renew, all permits, licenses, authorizations, approvals, entitlements and accreditations that if not obtained, maintained or preserved could reasonably be
expected to result in a Material Adverse Change. 
 5.20    After Acquired
Properties.  With respect to any Oil and Gas Property of any Loan Party acquired after the Restatement Date by any Loan Party or any discovery and/or confirmation of the existence of Hydrocarbons in any property owned or leased by
any Loan Party, promptly (and in any event within 30 days after the acquisition thereof): (a) execute and deliver to Agent such amendments to the Mortgages or such other documents as Agent shall deem necessary or advisable to grant to Agent,
for the benefit of the Lenders, a perfected first priority Lien on such Oil and Gas Property; and (b) take all actions necessary or advisable to cause such Lien to be duly perfected in accordance with all applicable law, including, without
limitation, the filing of Mortgages, or UCC financing statements in such jurisdictions as may be requested by Agent. 
 5.21    Ad Valorem and Severance Taxes; Royalties.  (a) Cause all ad valorem taxes assessed against their Oil and Gas Properties or any part thereof and
all production, severance and other taxes assessed against, or measured by, production or the value, or proceeds, of the production therefrom, that are due or payable by, or imposed, levied, or assessed against any Loan Parties, their Subsidiaries,
or any of their respective assets, to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of any such tax or assessment shall be the subject of a Permitted Protest and
(b) cause all royalties, overriding royalties, compensatory royalties and other payments due from or in respect of Hydrocarbon production from or allocable to the Oil and Gas Properties of Parent or any of its Subsidiaries, that are due or
payable by any Loan Parties or their Subsidiaries, to be paid in full, before delinquency, in accordance with the terms of the applicable Material Contracts and applicable law, except to the extent that the validity of any such royalty or other
payment shall be the subject of a Permitted Protest. 
 5.22    Interest
Reserve.  Beginning on the Restatement Date and continuing until such time as Agent releases such funds in accordance with this Section 5.22, Borrowers shall maintain $15,750,000 in a Deposit Account as an interest reserve
with respect to the Second Secured Notes (the “Interest Reserve”).    The Interest Reserve shall be cash Collateral for the Obligations, and the Deposit Account therefor shall be subject to a Control
Agreement that grants sole control to Agent. Provided that no Default or Event of Default has occurred and is continuing, Agent will, upon the request of Administrative Borrower, disburse to the trustee for the Second Secured Notes all or such
portion of the Interest Reserve as may be needed to make the interest payment thereunder due on June 1, 2011. If any funds remain in the Interest Reserve following June 1, 2011 (whether as a result of a Default or Event of Default,
Administrative Borrower’s failure to request disbursement thereof, the Interest Reserve exceeding the amount of interest due on the Second Secured Notes or otherwise), all such funds shall be applied as a mandatory prepayment of the Term Loan.

 5.23    Post-Closing Deliveries.  On or before December 17,
2010, the Loan Parties shall deliver to Agent and the Lenders (i) a Schedule 4.28 which lists (and delivery thereof shall constitute a representation and warranty by the Loan Parties that such Schedule so lists)

  
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completely and correctly as of the Restatement Date all Oil and Gas Properties that are Real Property, whether leased or owned by any Loan Party, and the respective addresses (if any), counties
and states thereof, and (ii) an additional or amended Control Agreement entered into by the applicable Loan Parties that are account holders and the Cash Management Bank such that all Deposit Accounts listed on Schedule 4.12 will be
subject to Agent’s duly perfected Lien for the benefit of the Lender Group. 
  

	6.	 NEGATIVE COVENANTS. 

 Each Loan Party covenants and agrees that, until payment in full of the Obligations, Loan Parties will not and will not permit any of their respective Subsidiaries to do any of the following: 

6.1      Indebtedness.    Create, incur, assume, suffer
to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except: 
   (a)      Indebtedness evidenced by this Agreement and the other Loan Documents, 

  (b)      Indebtedness set forth on Schedule 6.1 and any Refinancing
Indebtedness in respect of such Indebtedness, 
   (c)      Permitted
Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such Indebtedness, 

  (d)      endorsement of instruments or other payment items for deposit,

   (e)      Indebtedness composing Permitted Investments. 

  (f)      Indebtedness consisting of unsecured intercompany loans and advances
among Loan Parties, subject to the terms and provisions of the Intercompany Subordination Agreement, 

  (g)      Subordinated Indebtedness, 

  (h)      the Second Secured Debt in an aggregate principal amount not to
exceed $300,000,000 owing by Parent and any Refinancing Indebtedness in respect of such Indebtedness, 

  (i)      Indebtedness in respect of obligations under Acceptable Commodity
Hedging Agreements entered into in accordance with this Agreement; 

  (j)      Indebtedness associated with plugging and abandonment liabilities,
including reimbursement obligations in respect of letters of credit and performance and surety bonds issued to support plugging and abandonment liabilities, in each case as required by applicable law in connection with the operation of Parent’s
and its Subsidiaries’ Oil and Gas Properties; 

  
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   (k)      Indebtedness solely
represented by premium financing or similar payment obligations incurred with respect to insurance policies purchased in the ordinary course of business and consistent with past practices; and 

  (l)       unsecured Indebtedness of any Loan Party in addition to the
Indebtedness set forth in clauses (a) through (k) above in an aggregate principal amount not to exceed $3,500,000 at any time outstanding. 
 6.2      Liens.  Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind,
whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. 

6.3      Restrictions on Fundamental Changes. 

  (a)      Other than a Permitted Merger or in order to consummate a Permitted
Acquisition, enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its Stock, 
   (b)      Other than as a result of a Permitted Merger, liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), 

  (c)      Other than as a result of a Permitted Merger, suspend or go out of a
substantial portion of its or their business. 
 6.4      Disposal of
Assets.    Other than Permitted Dispositions and Permitted Mergers, convey, sell, lease, license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey, sell, lease, license, assign, transfer, or
otherwise dispose of) any of the assets of any Loan Party or any Subsidiary of a Loan Party. 

6.5      Change Name.    Change any Loan Party’s or
any of its Subsidiaries’ name, organizational identification number, state of organization or organizational identity; provided, however, that a Loan Party or a Subsidiary of a Loan Party may change its name upon at least 30 days prior written
notice by Administrative Borrower to Agent of such change and so long as, at the time of such written notification, such Loan Party or such Subsidiary provides any financing statements necessary to perfect and continue perfected the Agent’s
Liens. 
 6.6      Nature of Business.  Engage in any
business other than oil and gas exploration and production and activities reasonably related thereto, or acquire any properties or assets that are not reasonably related to the conduct of such business activities. 

6.7      Prepayments and Amendments. 

  (a)      Except in connection with Refinancing Indebtedness permitted by
Section 6.1, optionally or mandatorily prepay, redeem, defease, purchase (including, without limitation, any offer to repurchase or other payment based on excess cash flow or any similar terms, whether optional or mandatory, it being
acknowledged and agreed that any such payment based on excess cash flow or any similar terms that is mandatory may be prohibited by the terms of this Agreement), or otherwise acquire any Subordinated Indebtedness, Second Secured Debt

  
 27 

 
or other Indebtedness of any Loan Party or any Subsidiary of a Loan Party, other than (i) the Obligations in accordance with this Agreement, and (ii) any optional payment, redemption or
defeasance or open-market purchase of any Subordinated Indebtedness, Second Secured Debt or other Indebtedness solely with the proceeds of common stock of Parent or with Subordinated Indebtedness of Loan Parties. 

  (b)      Except in connection with Refinancing Indebtedness permitted by
Section 6.1, make any payment on account of Indebtedness that has been contractually subordinated in right of payment to the Obligations if such payment is not permitted at such time under the applicable subordination terms and conditions,

   (c)      Except in connection with Refinancing Indebtedness
permitted by Section 6.1, directly or indirectly, amend, modify, alter, increase, or change (other than Permitted Changes) any of the terms or conditions of any agreement, instrument, document, indenture, or other writing evidencing or
concerning Indebtedness permitted under Section 6.1(b), (c), (f), (g), (h), or (l), or 

  (d)      (i)  Amend, modify or otherwise change its Governing
Documents, including, without limitation, by the filing or modification of any certificate of designation, or (ii) amend, modify or otherwise change any Material Contract, except that such amendment, modification, alteration, increase, or
change pursuant to this paragraph (d) could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. 
 6.8      Change of Control.  Cause, permit, or suffer, directly or indirectly, any Change of Control. 

6.9      Distributions.    Other than Permitted
Distributions, make any distribution or declare or pay any dividends (in cash or other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of any Loan Party’s Stock, of any class, whether now or hereafter
outstanding. 
 6.10    Accounting Methods.    Modify or
change their fiscal year or their method of accounting (other than as may be required to conform to GAAP). 

6.11    Investments.  Except for Permitted Investments, directly or
indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided, however, that Administrative Borrower and its Subsidiaries shall not have Permitted
Investments (other than in the Cash Management Accounts) in Commodities Accounts, Deposit Accounts or Securities Accounts in an aggregate amount in excess of $50,000 at any one time unless Administrative Borrower or its Subsidiary, as applicable,
and the applicable commodities or securities intermediary or bank have entered into Control Agreements governing such Permitted Investments in order to perfect (and further establish) the Agent’s Liens in such Permitted Investments. Subject to
the foregoing proviso, Loan Parties shall not and shall not permit their Subsidiaries to establish or maintain any Commodities Account, Deposit Account or Securities Account unless Agent shall have received a Control Agreement in respect of such
Commodities Account, Deposit Account or Securities 

  
 28 

 
Account. 
 6.12    Transactions
with Affiliates.  Directly or indirectly enter into or permit to exist any transaction with any Affiliate of any Loan Party or any Subsidiary of a Loan Party except for: 

  (a)      transactions (other than the payment of management, consulting,
monitoring, or advisory fees) between Loan Parties or their Subsidiaries, on the one hand, and any Affiliate of Loan Parties or their Subsidiaries, on the other hand, so long as such transactions (i) are upon fair and reasonable terms,
(ii) are fully disclosed to Agent if they involve one or more payments by any Borrower or any Subsidiary of a Loan Party in excess of $250,000 for any single transaction or series of transactions, and (iii) are no less favorable to Loan
Parties or their Subsidiaries, as applicable, than would be obtained in an arm’s length transaction with a non-Affiliate; and 
   (b)      the payment of reasonable fees, compensation, or employee benefit arrangements to, and any indemnity provided for the benefit of, outside directors of
Parent in the ordinary course of business and consistent with industry practice. 

6.13    Use of Proceeds.  Use the proceeds of the Term Loan for any purpose
other than (a) on the Restatement Date, to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, (b) on the Restatement Date,
to fund the Interest Reserve, (c) on the Restatement Date and thereafter, to cash collateralize letters of credit and/or any surety bonds permitted hereunder, and (d) thereafter, consistent with the terms and conditions hereof, for working
capital, Capital Expenditures, general corporate needs of the Loan Parties and for other lawful and permitted purposes. 
 6.14    Hedging Agreements.  Loan Parties shall not enter into any Hedging Agreements other than Acceptable Commodity Hedging Agreements. Loan Parties shall use
such Acceptable Commodity Hedging Agreements solely as a part of their normal business operations as a risk management strategy and/or hedge against changes resulting from market conditions related to their oil and gas operations and not as a means
to speculate for investment purposes on trends and shifts in financial or commodities markets. 

6.15    Farm-Out Agreements.  No Loan Party may enter into any farm-out
agreement except for Permitted Farm-Out Agreements. 
 6.16    Financial
Covenant.  As of the last day of each fiscal month, Borrowers will not permit the ratio of Total Proved Developed PV-10 to the principal amount of the Obligations (excluding Bank Product Obligations) to be less than 2.0 to 1.0.

 6.17    Forward Sales.  Except in accordance with the ordinary
course of the Oil and Gas Business, enter into or permit to exist any advance payment agreement or other arrangement pursuant to which any Loan Party, having received full or substantial payment of the purchase price for a specified quantity of
Hydrocarbons upon entering such agreement or arrangement, is required to deliver, in one or more installments subsequent to the date of such agreement or 

  
 29 

 
arrangement, such quantity of Hydrocarbons pursuant to and during the terms of such agreement or arrangement. 

6.18    Oil and Gas Imbalances.  Enter into any contracts or agreements which
warrant production of Hydrocarbons (other than Hedge Agreements otherwise permitted hereunder) and shall not hereafter allow gas imbalances, take-or-pay or other prepayment with respect to its Oil and Gas Properties which would require any Loan
Party to deliver Hydrocarbons produced on Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor to exceed, during any monthly period, two percent (2%) of the current aggregate monthly gas
production for such monthly period from the Oil and Gas Properties of any Loan Party. 

6.19    Environmental.  Permit the use, handling, generation, storage,
treatment, Release or disposal of Hazardous Materials at any Real Property owned, operated or leased by any Loan Party, except in compliance with all material Environmental Laws. 

6.20    Marketing Activities. 

  (a)      Loan Parties will not, and will not permit any of its Subsidiaries
to, engage in marketing activities for any Hydrocarbons or enter into any contracts related thereto other than (i) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from their proved Oil and Gas Properties
during the period of such contract, (ii) contracts for the sale of Hydrocarbons scheduled or reasonable estimated to be produced from proved Oil and Gas Properties of third parties during the period of such contract associated with the Oil and
Gas Properties of Loan Parties and their Subsidiaries that Loan Parties or one of their Subsidiaries have the right to market pursuant to joint operating agreements, unitization agreements or other similar contracts that are usual and customary in
the oil and gas business and (iii) other contracts for the purchase and/or sale of Hydrocarbons of third parties (A) that have generally offsetting provisions (i.e. corresponding pricing mechanics, delivery dates and points and volumes)
such that no “position” is taken and (B) for which appropriate credit support has been taken to alleviate the material credit risks of the counterparty thereto. 

  (b)      All Hydrocarbon produced from the Oil and Gas Properties of Loan
Parties and their Subsidiaries shall be marketed on an arms length basis using one or more Persons that are not Affiliates of Loan Parties. 
  

	7.	 EVENTS OF DEFAULT. 

 Any one or more of the following events shall constitute an event of default (each, an “Event of Default”) under this Agreement: 

7.1      If Borrowers fail to pay when due and payable, or when declared due and payable,
(a) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof constituting principal) constituting Obligations
and such failure continues for a period of 3 Business Days, or (b) all or any portion of the principal of the Obligations (in each case, including any portion thereof that accrues after the commencement of an Insolvency Proceeding,

  
 30 

 
regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding); 

7.2      If any Loan Party or any Subsidiary of any Loan Party 

  (a)      fails to perform or observe any term, provision, condition, covenant
or other agreement contained in any of Sections 2.7, 5.2, 5.3, 5.5, 5.8, 5.11, 5.13, 5.15, 5.16, 5.20, 5.21, 5.22, 5.23 and 6.1 through 6.20 of this Agreement or Section 6 of the Security Agreement; 

  (b)      fails to perform or observe any covenant or other agreement contained
in any of Sections 5.6, 5.7, 5.9, 5.10, 5.14, 5.17, 5.18 and 5.19 of this Agreement and such failure continues for a period of 15 days after the earlier of (i) the date on which such failure shall first become known to any officer of any Loan
Party or (ii) written notice thereof is given to Administrative Borrower by Agent; or 

  (c)      fails to perform or observe any covenant or other agreement contained
in this Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of another provision of this Section 7 (in which event such other provision of this Section 7 shall
govern), and such failure continues for a period of 30 days after the earlier of (i) the date on which such failure shall first become known to any officer of any Loan Party or (ii) written notice thereof is given to Administrative
Borrower by Agent; 
 7.3      If any material portion of any Loan Party’s or
any of its Subsidiaries’ assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any third Person and the same is not discharged before the earlier of 30 days after the date it
first arises or 5 days prior to the date on which such property or asset is subject to forfeiture by such Loan Party or the applicable Subsidiary; 
 7.4      If an Insolvency Proceeding is commenced by any Loan Party or any Subsidiary of a Loan Party; 

7.5      If an Insolvency Proceeding is commenced against any Loan Party or any Subsidiary
of a Loan Party, and any of the following events occur: (a) the applicable Borrower or Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely
controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the
properties or assets of, or to operate all or any substantial portion of the business of, any Loan Party or any Subsidiary of a Loan Party, or (e) an order for relief shall have been issued or entered therein; 

7.6      If any Loan Party or any Subsidiary of a Loan Party is enjoined, restrained, or in
any way prevented by court order from continuing to conduct all or any material part of its business affairs; 

7.7      If one or more judgments, orders, or awards involving an aggregate amount of
$5,000,000, or more (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing) shall be entered or filed against any Loan Party 

  
 31 

 
or any Subsidiary of any Loan Party or with respect to any of their respective assets, and the same is not released, discharged, bonded against, or stayed pending appeal before the earlier of 30
days after the date it first arises or 5 days prior to the date on which such asset is subject to being forfeited by the applicable Loan Party or the applicable Subsidiary; 

7.8      If there is a default in one or more agreements to which any Loan Party or any
Subsidiary of a Loan Party is a party with one or more third Persons relative to Indebtedness of any Loan Party or any Subsidiary of any Loan Party involving an aggregate amount of $5,000,000 or more, and such default (a) occurs at the final
maturity of the obligations thereunder, or (b) results in a right by such third Person(s), irrespective of whether exercised, to accelerate the maturity of the applicable Loan Party’s or Subsidiary’s obligations thereunder;

 7.9      If any warranty, representation, statement, or Record made herein or
in any other Loan Document or delivered to Agent or any Lender in connection with this Agreement or any other Loan Document proves to be untrue in any material respect (except that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date of issuance or making or deemed making thereof; 

7.10    If the obligation of any Guarantor under the Guaranty is limited or terminated by operation
of law or by such Guarantor; 
 7.11    If the Security Agreement or any other Loan Document
that purports to create a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security interest in the Collateral covered hereby or
thereby, except as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement; 
 7.12    Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by any Loan
Party or any Subsidiary of a Loan Party, or a proceeding shall be commenced by any Loan Party or any Subsidiary of a Loan Party, or by any Governmental Authority having jurisdiction over any Loan Party or any Subsidiary of a Loan Party, seeking to
establish the invalidity or unenforceability thereof, or any Loan Party or any Subsidiary of a Loan Party shall deny that it has any liability or obligation purported to be created under any Loan Document; 

7.13    The loss, suspension or revocation of, or failure to renew, any license or permit now held or
hereafter acquired by any Loan Party, if such loss, suspension, revocation or failure to renew could reasonably be expected to result in a Material Adverse Change; or 

7.14    The indictment of any Loan Party or any of its Subsidiaries under any criminal statute, or
commencement of criminal or civil proceedings against any Loan Party or any of its Subsidiaries, pursuant to which statute or proceedings the penalties or remedies sought or available include forfeiture to any Governmental Authority of any portion
of the property of such Person which would result in a Material Adverse Change. 

  
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	8.	 THE LENDER GROUP’S RIGHTS AND REMEDIES. 

8.1      Rights and Remedies.  Upon the occurrence, and during the
continuation, of an Event of Default, the Required Lenders (at their election but without notice of their election and without demand) may authorize and instruct Agent to do any one or more of the following on behalf of the Lender Group (and Agent,
acting upon the instructions of the Required Lenders, shall do the same on behalf of the Lender Group), all of which are authorized by Loan Parties: 
   (a)      Declare all or any portion of the Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable; 
   (b)      Agent, on behalf of the Lender Group, may
foreclose any or all of the Mortgages and sell the Real Property Collateral or Oil and Gas Properties or cause the Real Property Collateral or Oil and Gas Properties to be sold in accordance with the provisions of the Mortgages and applicable law,
and exercise any and all other rights or remedies available to Agent, on behalf of the Lender Group, under the Mortgages, any of the other Loan Documents, at law or in equity with respect to the Collateral encumbered by the Mortgages; and

   (c)      The Lender Group shall have all other rights and remedies
available at law or in equity or pursuant to any other Loan Document. 
 The foregoing to the contrary
notwithstanding, upon the occurrence of any Event of Default described in 7.4 or Section 7.5, in addition to the remedies set forth above, without any notice to any Loan Party or any other Person or any act by the Lender Group, the Obligations
then outstanding, together with all accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and the other Loan Documents, shall automatically and immediately become due and payable, without presentment,
demand, protest, or notice of any kind, all of which are expressly waived by each Loan Party. 

8.2      Remedies Cumulative.  The rights and remedies of the
Lender Group under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No
exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or
acquiescence by it. 
  

	9.	 TAXES AND EXPENSES. 

 If any Loan Party fails to pay any monies (whether taxes, assessments, insurance premiums, or, in the case of leased properties or assets, rents or other amounts payable under such leases) due to third
Persons, or fails to make any deposits or furnish any required proof of payment or deposit, all as required under the terms of this Agreement, then, Agent, in its sole discretion and without prior notice to any Loan Party, may do any or all of the
following: (a) make payment of the same or any part thereof, or (b) in the case of the failure to comply with Section 5.8 hereof, obtain and maintain insurance policies of the type described in Section 5.8 and take any action
with respect to such policies as Agent deems prudent. Any such amounts paid by Agent shall constitute Lender Group Expenses and any such payments shall not 

  
 33 

 
constitute an agreement by the Lender Group to make similar payments in the future or a waiver by the Lender Group of any Event of Default under this Agreement. Agent need not inquire as to, or
contest the validity of, any such expense, tax, or Lien and the receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due and owing. 

 

	10.	 WAIVERS; INDEMNIFICATION. 

 10.1     Demand; Protest; etc.  Each Loan Party waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment,
nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which any such Loan Party may in any way be liable. 

10.2     The Lender Group’s Liability for Collateral.  Each Loan
Party hereby agrees that: (a) so long as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss
or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and
(b) all risk of loss, damage, or destruction of the Collateral shall be borne by Loan Parties. 

10.3     Indemnification.  Each Loan Party shall pay, indemnify, defend,
and hold the Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits,
actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in
connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of
or related to the execution, delivery, enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or
the monitoring of Loan Parties’ and their Subsidiaries’ compliance with the terms of the Loan Documents, (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan Document, or the use
of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any
presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by Parent or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities and Costs or Remedial Actions
related in any way to any such assets or properties of Parent or any of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Loan Parties shall have
no obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such
Indemnified Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. 

  
 34 

 
If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Loan Parties were required to indemnify the Indemnified Person
receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Loan Parties with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO
INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  

	11.	 NOTICES. 

 Unless otherwise provided in this Agreement, all notices or demands by Loan Parties or Agent to the other relating to this Agreement or any other Loan Document shall be in writing and (except for
financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier,
electronic mail (at such email addresses as Administrative Borrower or Agent, as applicable, may designate to each other in accordance herewith), or facsimile to Loan Parties in care of Administrative Borrower or to Agent, as the case may be, at its
address set forth below: 
  

			
	   If to Administrative Borrower:
	  	 Dune Energy, Inc.

		  	 Two Shell Plaza

		  	 777 Walker Street, Suite 2300

		  	 Houston, Texas 77002

		  	 Attn: Chief Financial Officer

		  	 Fax No.: 713-888-0899

		
	   with copies to:
	  	 Andrews Kurth LLP

		  	 600 Travis, Suite 4200

		  	 Houston, Texas 77002

		  	 Attn: Rob Taylor

		  	 Fax No.: 713-238-7273

		
	   If to Agent:
	  	 Wells Fargo Capital Finance, Inc.

		  	 1100 Abernathy Road, Suite 1600

		  	 Atlanta, Georgia 30328

		  	 Attn: Business Finance Manager

		  	 Fax No.: 770-508-1375

		
	   with copies to:
	  	 Schulte Roth & Zabel LLP

		  	 919 Third Avenue

		  	 New York, NY 10022

		  	 Attn: Kirby Chin, Esq.

		  	 Fax No.: 212-593-5955

 Agent and Loan Parties may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices or

  
 35 

 
demands sent in accordance with this Section 11, other than notices by Agent in connection with enforcement rights against the Collateral under the provisions of the Code, shall be deemed
received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail. Each Loan Party acknowledges and agrees that notices sent by the Lender Group in connection with the exercise of enforcement rights
against Collateral under the provisions of the Code shall be deemed sent when deposited in the mail or personally delivered, or, where permitted by law, transmitted by facsimile or any other method set forth above. 

 

	12.	 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

(a)      THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY
PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING
HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

(b)      THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH LOAN PARTY
AND EACH MEMBER OF THE LENDER GROUP WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH
THIS SECTION 12(b). 
 (c)      EACH LOAN PARTY AND EACH MEMBER OF THE
LENDER GROUP HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH LOAN APRTY AND EACH MEMBER OF THE LENDER GROUP REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

  
 36 

  

	13.	 ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 

13.1     Assignments and Participations. 

  (a)      Any Lender may assign and delegate to one or more assignees (each an
“Assignee”) that are Eligible Transferees all or any portion, of the Obligations and the other rights and obligations of such Lender hereunder and under the other Loan Documents, in a minimum amount (unless waived by the
Agent) of $5,000,000 (except such minimum amount shall not apply to (x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any Lender or (y) a group of new Lenders, each of whom is an Affiliate of each other
or a fund or account managed by any such new Lender or an Affiliate of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000); provided, however, that Borrowers and Agent may continue
to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment instructions, addresses, and related information with respect to the
Assignee, have been given to Administrative Borrower and Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have delivered to Administrative Borrower and Agent an Assignment and Acceptance and Agent has notified the
assigning Lender of its receipt thereof in accordance with Section 13.1(b), and (iii) unless waived by the Agent, the assigning Lender or Assignee has paid to Agent for Agent’s separate account a processing fee in the amount of
$3,500. Anything contained herein to the contrary notwithstanding, the payment of any fees shall not be required and the Assignee need not be an Eligible Transferee if such assignment is in connection with any merger, consolidation, sale, transfer,
or other disposition of all or any substantial portion of the business or loan portfolio of the assigning Lender. 
   (b)      From and after the date that Agent notifies the assigning Lender (with a copy to Administrative Borrower) that it has received an executed Assignment and
Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3 hereof) and be released from any future obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto); provided, however, that nothing contained herein shall release any
assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under Section 15 and Section 18.9(a) of this Agreement. 

  (c)      By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value

  
 37 

 
of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the
financial condition of Loan Parties or the performance or observance by Loan Parties of any of their obligations under this Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that it has received a copy
of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such Assignee will, independently and without
reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement,
(v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement as are delegated to Agent, by the terms hereof, together with such powers as are reasonably incidental thereto, and
(vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 

  (d)      Immediately upon Agent’s receipt of the required processing fee,
if applicable, and delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee. 

  (e)      Any Lender may at any time sell to one or more commercial banks,
financial institutions, or other Persons (a “Participant”) participating interests in all or any portion of its Obligations and the other rights and interests of that Lender (the “Originating Lender”)
hereunder and under the other Loan Documents; provided, however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating
interest in the Obligations and the other rights and interests of the Originating Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under this
Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Loan Parties, Agent, and the Lenders shall continue to deal solely and directly with the
Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the
right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would
(A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release
all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment
of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or (E) change the amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by Loan
Parties hereunder shall be determined as if such Lender had not sold such participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall be deemed to have the right of set off in respect of its 

  
 38 

 
participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. The
rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other
Lenders, Agent, Loan Parties, the Collections of Loan Parties or their Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in the making of decisions by the Lenders
among themselves. The provisions of this Section 13.1(e) are solely for the benefit of the Lender Group and Loan Parties shall not have any rights as third party beneficiaries of any such provisions. 

  (f)       In connection with any such assignment or participation or
proposed assignment or participation, a Lender may, subject to the provisions of Section 18.9, disclose all documents and information which it now or hereafter may have relating to Loan Parties and their Subsidiaries and their respective
businesses. 
   (g)      Any other provision in this Agreement
notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve
Bank or U.S. Treasury Regulation 31 CFR § 203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 

13.2    Successors.  This Agreement shall bind and inure to the benefit of
the respective successors and assigns of each of the parties; provided, however, that Loan Parties may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent and any prohibited assignment shall be
absolutely void ab initio. No consent to assignment by the Lenders shall release any Loan Party from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to
Section 13.1 hereof and, except as expressly required pursuant to Section 13.1 hereof, no consent or approval by any Loan Party is required in connection with any such assignment. 

 

	14.	 AMENDMENTS; WAIVERS. 

 14.1    Amendments and Waivers.  No amendment or waiver of any provision of this Agreement or any other Loan Document (other than Bank Product Agreements or the
Fee Letter), and no consent with respect to any departure by Loan Parties therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the written request of the Required Lenders) and
Administrative Borrower (on behalf of all Loan Parties) and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or
consent shall, unless in writing and signed by all of the Lenders directly affected thereby and Administrative Borrower (on behalf of all Loan Parties), do any of the following: 

  (a)      increase or extend the Term Loan, 

  
 39 

   (b)      postpone or delay any
date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, 

  (c)      reduce the principal of, or the rate of interest on, any loan or
other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document, 
   (d)      change the Pro Rata Share that is required to take any action hereunder, 

  (e)      amend or modify this Section or any provision of this Agreement
providing for consent or other action by all Lenders, 

  (f)       other than as permitted by Section 15.11, release
Agent’s Lien in and to any of the Collateral, 
   (g)      change
the definition of “Required Lenders” or “Pro Rata Share”, 

  (h)      contractually subordinate any of the Agent’s Liens, 

  (i)       other than in connection with a merger, liquidation,
dissolution or sale of such Person expressly permitted by the terms hereof or the other Loan Documents, release any Loan Party from any obligation for the payment of money, 

  (j)       amend any of the provisions of Section 2.4(b)(ii),

   (k)      change the definitions of Total Proved Developed PV-10,
Proved Developed Non-Producing Reserves, Proved Developed Producing Reserves or Proved Developed Reserves, or 

  (l)       amend any of the provisions of Section 15. 

and, provided further, however, that no amendment, waiver or consent shall, unless in writing and signed by Agent,
affect the rights or duties of Agent under this Agreement or any other Loan Document. The foregoing notwithstanding, any amendment, modification, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any
other Loan Document that relates only to the relationship of the Lender Group among themselves, and that does not affect the rights or obligations of Loan Parties, shall not require consent by or the agreement of Loan Parties. 

14.2    No Waivers; Cumulative Remedies.  No failure by Agent or any Lender
to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in
writing, and then only to the extent specifically stated. No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict performance by Loan Parties of any provision
of this Agreement. Agent’s and each Lender’s rights under this 

  
 40 

 
Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have. 

 

	15.	 AGENT; THE LENDER GROUP. 

 15.1    Appointment and Authorization of Agent.  Each Lender hereby designates and appoints WFCF as its representative under this Agreement and the other Loan
Documents and each Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Agent agrees to act as such on the express
conditions contained in this Section 15. The provisions of this Section 15 are solely for the benefit of Agent, and the Lenders, and Loan Parties and their Subsidiaries shall have no rights as a third party beneficiary of any of the
provisions contained herein. Any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall
Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist
against Agent; it being expressly understood and agreed that the use of the word “Agent” is for convenience only, that WFCF is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as
expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly
is entitled to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree
that Agent shall have the right to exercise the following powers as long as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the
Collateral, the Collections of Loan Parties and their Subsidiaries, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim,
notices and other written agreements with respect to the Loan Documents, (c) exclusively receive, apply, and distribute the Collections of Loan Parties and their Subsidiaries as provided in the Loan Documents, (d) open and maintain such
bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the Collateral and the Collections of Loan Parties and their Subsidiaries,
(e) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to Loan Parties, the Obligations, the Collateral, the Collections of Loan Parties and their Subsidiaries, or otherwise related to any of
same as provided in the Loan Documents, and (f) incur and pay such Lender Group Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 

15.2    Delegation of Duties.  Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall not be

  
 41 

 
responsible for the negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct. 

15.3    Liability of Agent.  None of the Agent Related Persons shall
(a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct),
or (b) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by any Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or
in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Borrower or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
books and records or properties of Loan Parties or their Subsidiaries. 

15.4    Reliance by Agent.  Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile or other electronic method of transmission, telex or telephone message, statement or other document or conversation
believed by it to be genuine and correct and to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Loan Parties or counsel to any Lender), independent accountants
and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems
appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the requisite Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
 15.5    Notice of Default or Event of Default.  Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default,
except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for the account of the Lenders and, except with respect to Events of Default of which Agent has actual knowledge, unless Agent
shall have received written notice from a Lender or Administrative Borrower referring to this Agreement, describing such Default or Event of Default, and stating that such notice is a “notice of default.” Agent promptly will notify the
Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of
Default. Each Lender shall be solely responsible for giving any notices to its Participants, if any. Subject to Section 15.4, 

  
 42 

 
Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 8; provided, however, that unless and
until Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable. 

15.6    Credit Decision.  Each Lender acknowledges that none of the Agent
Related Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Loan Parties and their Subsidiaries or Affiliates, shall be deemed to constitute any representation or
warranty by any Agent-Related Person to any Lender. Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of Loan Parties or any other Person party to a Loan Document, and all applicable bank regulatory laws relating to
the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Loan Parties. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based
on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Loan Parties or any other Person party to a Loan Document. Except for notices, reports,
and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of Loan Parties or any other Person party to a Loan Document that may come into the possession of any of the Agent Related Persons. 

15.7    Costs and Expenses; Indemnification.  Agent may incur and pay Lender
Group Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys fees and expenses, fees and
expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether
or not Loan Parties are obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient amounts from the Collections of Loan Parties and their
Subsidiaries received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not reimbursed for such costs and expenses by Loan Parties or their Subsidiaries,
each Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Agent-Related
Persons (to the extent not reimbursed by or on behalf of Loan Parties and without limiting the obligation of Loan Parties to do so), according to their Pro Rata Shares, from and against any and all Indemnified Liabilities; provided, however, that no
Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such 

  
 43 

 
Person’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such Lender’s Pro Rata Share of any costs or out
of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Agent is not
reimbursed for such expenses by or on behalf of Loan Parties. The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent. 

15.8    Agent in Individual Capacity.  WFCF and its Affiliates may make loans
to, issue letters of credit for the account of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Loan Parties and their Subsidiaries and
Affiliates and any other Person party to any Loan Documents as though WFCF were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that,
pursuant to such activities, WFCF or its Affiliates may receive information regarding Loan Parties or their Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Loan Parties or such
other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable
best efforts to obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include WFCF in its individual capacity. 

15.9    Successor Agent.  Agent may resign as Agent upon 45 days notice to
the Lenders (unless such notice is waived by the Required Lenders); provided, that such resignation may not be effective until April 1, 2011 at the earliest unless (a) an Insolvency Proceeding is commenced by or against any Loan Party or
any Subsidiary of a Loan Party or (b) the Required Lenders direct Agent to exercise remedies against all or a material portion of the Collateral and, in the case of clause (a) or (b) above, such resignation shall be effective
immediately upon the passage of such notice period (including, without limitation, even if such notice period ends prior to April 1, 2011). If Agent resigns under this Agreement, the Required Lenders shall appoint a successor Agent for the
Lenders. If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with the Lenders, a successor Agent. In addition, the Required Lenders may agree in writing to remove and
replace Agent with a successor Agent at any time. In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term
“Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of this
Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is 45 days following a retiring
Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Agent 

  
 44 

 
hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above. 
 15.10  Lender in Individual Capacity.  Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of, accept deposits from,
acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Loan Parties and their Subsidiaries and Affiliates and any other Person party to any Loan Documents as though
such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may receive
information regarding Loan Parties or their Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrowers or such other Person and that prohibit the disclosure of such information to
the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any
obligation to provide such information to them. 
 15.11  Collateral Matters.

   (a)      The Lenders hereby irrevocably authorize Agent, at its
option and in its sole discretion, to release any Lien on any Collateral (i) upon the payment and satisfaction in full by Loan Parties of all Obligations, (ii) constituting property being sold or disposed of if a release is required or
desirable in connection therewith and if Administrative Borrower certifies to Agent that the sale or disposition is permitted under Section 6.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively on any such
certificate, without further inquiry), (iii) constituting property in which no Borrower or its Subsidiaries owned any interest at the time the Agent’s Lien was granted nor at any time thereafter, or (iv) constituting property leased
to a Loan Party or its Subsidiaries under a lease that has expired or is terminated in a transaction permitted under this Agreement. Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the
prior written authorization of (y) if the release is of all or substantially all of the Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Administrative Borrower at any time, the Lenders will
confirm in writing Agent’s authority to release any such Liens on particular types or items of Collateral pursuant to this Section 15.11; provided, however, that (A) Agent shall not be required to execute any document necessary to
evidence such release on terms that, in Agent’s opinion, would expose Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (B) such
release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of Loan Parties in respect of) all interests retained by Loan Parties, including, the proceeds
of any sale, all of which shall continue to constitute part of the Collateral. 

  (b)      Agent shall have no obligation whatsoever to any of the Lenders to
assure that the Collateral exists or is owned by Loan Parties or their Subsidiaries or is cared for, protected, or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected,
protected, or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or 

  
 45 

 
fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that in respect
of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in the Collateral in
its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided herein. 

15.12  Restrictions on Actions by Lenders; Sharing of Payments. 

  (a)      Each of the Lenders agrees that it shall not, without the express
written consent of Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender to any Loan Party or its Subsidiaries or any deposit
accounts of any Loan Party or its Subsidiaries now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action,
including, the commencement of any legal or equitable proceedings to enforce any Loan Document against Loan Parties or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 

  (b)      If, at any time or times any Lender shall receive (i) by
payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement, or
(ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may be required to negotiate the
same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase, without recourse or
warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to
the extent that such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid
therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 

15.13  Agency for Perfection.  Agent hereby appoints each other Lender as its agent
(and each Lender hereby accepts such appointment) for the purpose of perfecting the Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected only by possession or control.
Should any Lender obtain possession or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver possession or control of such Collateral to Agent or in accordance with
Agent’s instructions. 
 15.14  Payments by Agent to the Lenders.  All
payments to be made by Agent to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such 

  
 46 

 
wire transfer instructions as each party may designate for itself by written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment (or any portion
thereof) represents principal, premium, fees, or interest of the Obligations. 

15.15  Concerning the Collateral and Related Loan Documents.  Each member of the Lender
Group authorizes and directs Agent to enter into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating
to the Collateral and the exercise by Agent of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 

15.16  Reports; Confidentiality; Disclaimers by Lenders; and Information.  By becoming
a party to this Agreement, each Lender: 
   (a)      expressly agrees
and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information contained in any Report, 

  (b)      expressly agrees and acknowledges that the Reports are not
comprehensive audits or examinations, that Agent or other party performing any audit or examination will inspect only specific information regarding Loan Parties or their Subsidiaries and will rely significantly upon Loan Parties and their
Subsidiaries’ books and records, as well as on representations of Loan Parties’ personnel, 

  (c)      agrees to keep all Reports and other material, non-public information
regarding Loan Parties and their Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 18.9, and 

  (d)      without limiting the generality of any other indemnification
provision contained in this Agreement, agrees: (i) to hold Agent and any such other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw
from any Report in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to Loan Parties, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan
or loans of Loan Parties; and (ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts
(including, attorneys fees and costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 

In addition to the foregoing:  (x) any Lender may from time to time request of Agent in writing that Agent provide to such
Lender a copy of any report or document provided by Loan Parties or their Subsidiaries to Agent that has not been contemporaneously provided by Loan Parties or their Subsidiaries to such Lender, and, upon receipt of such request, Agent promptly
shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Loan Parties

  
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or their Subsidiaries, any Lender may, from time to time, reasonably request Agent to exercise such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall
request of Administrative Borrower the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Administrative Borrower, Agent promptly shall provide a copy of same to such Lender, and (z) any time
that Agent renders to Administrative Borrower a statement regarding the Loan Account, Agent shall send a copy of such statement to each Lender. 
 15.17  Several Obligations; No Liability.  Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in
respect of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be
required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the
Lender Group. No Lender shall be responsible to any Loan Party or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to take any other action on its behalf hereunder or in
connection with the financing contemplated herein. 
  

	16.	 WITHHOLDING TAXES. 

   (a)      All payments made by any Loan Party hereunder or under any Note or other Loan Document will be made without setoff, counterclaim, or other defense. In
addition, all such payments will be made free and clear of, and without deduction or withholding for, any present or future Taxes, and in the event any deduction or withholding of Taxes is required, each Loan Party shall comply with the penultimate
sentence of this Section 16(a). “Taxes” shall mean, any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision
or taxing authority thereof or therein with respect to such payments (but excluding any tax imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein measured by or based on the net income or net profits of
any Lender) and all interest, penalties or similar liabilities with respect thereto. If any Taxes are so levied or imposed, each Loan Party agrees to pay the full amount of such Taxes and such additional amounts as may be necessary so that every
payment of all amounts due under this Agreement, any Note, or Loan Document, including any amount paid pursuant to this Section 16(a) after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for
herein; provided, however, that Loan Parties shall not be required to increase any such amounts if the increase in such amount payable results from Agent’s or such Lender’s own willful misconduct or gross negligence (as finally determined
by a court of competent jurisdiction). Each Loan Party will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable law certified copies of tax receipts evidencing such payment by any Loan Party.

   (b)      If a Lender claims an exemption from United States
withholding tax, such Lender agrees with and in favor of Agent and any Loan Party, to deliver to Agent: 

    (i)      if such Lender claims an exemption from United States
withholding tax pursuant to its portfolio interest exception, (A) a statement of the Lender, signed 

  
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under penalty of perjury, that it is not (1) a “bank” as described in Section 881(c)(3)(A) of the IRC, (2) a 10% shareholder of any Loan Party (within the meaning of
Section 871(h)(3)(B) of the IRC), or (3) a controlled foreign corporation related to any Loan Party within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS Form W-8BEN, before receiving
its first payment under this Agreement and at any other time reasonably requested by Agent or any Loan Party; 

    (ii)      if such Lender claims an exemption from, or a reduction
of, withholding tax under a United States tax treaty, properly completed and executed IRS Form W-8BEN before receiving its first payment under this Agreement and at any other time reasonably requested by Agent or any Loan Party; 

    (iii)      if such Lender claims that interest paid under this
Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, two properly completed and executed copies of IRS Form W-8ECI before receiving its first payment under
this Agreement and at any other time reasonably requested by Agent or any Loan Party; or 

    (iv)      such other form or forms, including IRS Form W-9, as may
be required under the IRC or other laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax before receiving its first payment under this Agreement and at any other time
reasonably requested by Agent or any Loan Party. 
 Lender agrees promptly to notify Agent and Administrative Borrower of any
change in circumstances which would modify or render invalid any claimed exemption or reduction. 

  (c)      If a Lender claims an exemption from withholding tax in a
jurisdiction other than the United States, Lender agrees with and in favor of Agent and Loan Parties, to deliver to Agent any such form or forms, as may be required under the laws of such jurisdiction as a condition to exemption from, or reduction
of, foreign withholding or backup withholding tax before receiving its first payment under this Agreement and at any other time reasonably requested by Agent or Administrative Borrower. 

Lender agrees promptly to notify Agent and Administrative Borrower of any change in circumstances which would modify or render invalid
any claimed exemption or reduction. 
   (d)      If any Lender claims
exemption from, or reduction of, withholding tax and such Lender sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of Loan Parties to such Lender, such Lender agrees to notify Agent and Administrative
Borrower of the percentage amount in which it is no longer the beneficial owner of Obligations of Loan Parties to such Lender. To the extent of such percentage amount, Agent and Loan Parties will treat such Lender’s documentation provided
pursuant to Sections 16(b) or 16(c) as no longer valid. With respect to such percentage amount, Lender may provide new documentation, pursuant to Sections 16(b) or 16(c), if applicable. 

  (e)      If any Lender is entitled to a reduction in the applicable
withholding tax, Agent may withhold from any interest payment to such Lender an amount equivalent to the 

  
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applicable withholding tax after taking into account such reduction. If the forms or other documentation required by subsections (b) or (c) of this Section 16 are not delivered to
Agent, then Agent may withhold from any interest payment to such Lender not providing such forms or other documentation an amount equivalent to the applicable withholding tax. 

  (f)      If the IRS or any other Governmental Authority of the United States
or other jurisdiction asserts a claim that Agent did not properly withhold tax from amounts paid to or for the account of any Lender due to a failure on the part of the Lender (because the appropriate form was not delivered, was not properly
executed, or because such Lender failed to notify Agent of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless for
all amounts paid, directly or indirectly, by Agent, as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Agent under this Section 16, together with all costs and
expenses (including attorneys fees and expenses). The obligation of the Lenders under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent. 

 

	17.	 GUARANTY 

 17.1    Guarantied Obligations.      Each Guarantor hereby irrevocably and unconditionally guaranties to Agent, for the benefit of the
Lender Group, as and for its own debt, until final payment in full thereof has been made, (a) the prompt payment of the Guarantied Obligations, when and as the same shall become due and payable, whether at maturity, pursuant to a mandatory
prepayment requirement, by acceleration, or otherwise; it being the intent of each Guarantor that the guaranty set forth herein shall be a guaranty of payment and not a guaranty of collection; and (b) the punctual and faithful performance,
keeping, observance, and fulfillment by Borrowers of all of the agreements, conditions, covenants, and obligations of Borrowers contained in this Agreement and under each of the other Loan Documents. 

17.2    Continuing Guaranty.  This Guaranty includes Guarantied Obligations
arising under successive transactions, in accordance with this Agreement and the Loan Documents, continuing, compromising, extending, increasing, modifying, releasing, or renewing the Guarantied Obligations, changing the interest rate, payment
terms, or other terms and conditions thereof, or creating new or additional Guarantied Obligations after prior Guarantied Obligations have been satisfied in whole or in part. To the maximum extent permitted by law, each Guarantor hereby waives any
right to revoke this Guaranty as to future Guaranteed Obligations. If such a revocation is effective notwithstanding the foregoing waiver, each Guarantor acknowledges and agrees that (a) no such revocation shall be effective until written
notice thereof has been received by Agent, (b) no such revocation shall apply to any Guarantied Obligations in existence on such date (including any subsequent continuation, extension, or renewal thereof, or change in the interest rate, payment
terms, or other terms and conditions thereof in accordance with this Agreement and the other Loan Documents), (c) no such revocation shall apply to any Guarantied Obligations made or created after such date to the extent made or created
pursuant to a legally binding commitment of a Lender in existence on the date of such revocation, (d) no payment by any Guarantor, any Borrower, or from any other source, prior to the date of such revocation shall reduce the maximum obligation
of Guarantors hereunder, and (e) any payment by Borrowers or from any source other than a Guarantor 

  
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subsequent to the date of such revocation shall first be applied to that portion of the Guarantied Obligations as to which the revocation is effective and which are not, therefore, guarantied
hereunder, and to the extent so applied shall not reduce the maximum obligation of Guarantors hereunder. 

17.3    Performance Under this Guaranty.  In the event that Borrowers fail to
make any payment of any Guarantied Obligations, on or prior to the due date thereof, or if Borrowers shall fail to perform, keep, observe, or fulfill any other obligation referred to in clause (b) of Section 17.1 of this Guaranty in the
manner provided in this Agreement or any other Loan Document, each Guarantor immediately shall cause, as applicable, such payment to be made or such obligation to be performed, kept, observed, or fulfilled. 

17.4    Primary Obligations.  This Guaranty is a primary and original
obligation of each Guarantor, is not merely the creation of a surety relationship, and is an absolute, unconditional, and continuing guaranty of payment and performance which shall remain in full force and effect without respect to future changes in
conditions. Each Guarantor hereby agrees that it is directly, jointly and severally with each other Guarantor and any other guarantor of the Guarantied Obligations, liable to Agent, for the benefit of the Lender Group, that the obligations of such
Guarantor hereunder are independent of the obligations of Borrowers or any other guarantor, and that a separate action may be brought against each Guarantor, whether such action is brought against Borrowers or any other Guarantor or whether
Borrowers or any other Guarantor is joined in such action. Each Guarantor hereby agrees that its liability hereunder shall be immediate and shall not be contingent upon the exercise or enforcement by any member of the Lender Group of whatever
remedies they may have against Borrowers or any other Guarantor, or the enforcement of any Lien or realization upon any security by any member of the Lender Group. Each Guarantor hereby agrees that any release which may be given by Agent to
Borrowers or any other Guarantor shall not release such Guarantor. Each Guarantor consents and agrees that no member of the Lender Group shall be under any obligation to marshal any property or assets of Borrowers or any other Guarantor in favor of
such Guarantor, or against or in payment of any or all of the Guarantied Obligations. 

17.5    Waivers. 

  (a)      To the fullest extent permitted by applicable law, each Guarantor
hereby waives: (i) notice of acceptance hereof; (ii) notice of any loans or other financial accommodations made or extended under this Agreement, or the creation or existence of any Guarantied Obligations; (iii) notice of the amount
of the Guarantied Obligations, subject, however, to such Guarantor’s right to make inquiry of Agent to ascertain the amount of the Guarantied Obligations at any reasonable time; (iv) notice of any adverse change in the financial condition
Borrowers or of any other fact that might increase such Guarantor’s risk hereunder; (v) notice of presentment for payment, demand, protest, and notice thereof as to any instrument among the Loan Documents; (vi) notice of any Default
or Event of Default under this Agreement or any other Loan Document; and (vii) all other notices (except if such notice is specifically required to be given to such Guarantor under this Guaranty or any other Loan Documents to which such
Guarantor is a party) and demands to which such Guarantor might otherwise be entitled. 

  
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   (b)      To the fullest extent
permitted by applicable law, each Guarantor hereby waives the right by statute or otherwise to require any member of the Lender Group, to institute suit against any Borrower or to exhaust any rights and remedies which any member of the Lender Group,
has or may have against any Borrower. In this regard, each Guarantor agrees that it is bound to the payment of each and all Guarantied Obligations, whether now existing or hereafter arising, as fully as if the Guarantied Obligations were directly
owing to Agent or the Lender Group, as applicable, by such Guarantor. Each Guarantor further waives any defense arising by reason of any disability or other defense (other than the defense that the Guarantied Obligations shall have been performed
and paid in the manner provided for in the applicable Loan Documents, to the extent of any such payment) of Borrowers or by reason of the cessation from any cause whatsoever of the liability of Borrowers in respect thereof. 

  (c)      To the fullest extent permitted by applicable law, each Guarantor
hereby waives: (i) any right to assert against any member of the Lender Group, any defense (legal or equitable), set-off, counterclaim, or claim which such Guarantor may now or at any time hereafter have against any Borrower or any other party
liable to any member of the Lender Group; (ii) any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the
Guarantied Obligations or any security therefor; (iii) any right or defense arising by reason of any claim or defense based upon an election of remedies by any member of the Lender Group; (iv) the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay the operation of any statute of limitations applicable to the Guarantied Obligations shall similarly operate to defer or delay the
operation of such statute of limitations applicable to such Guarantor’s liability hereunder. 

  (d)      Until such time as all of the Guarantied Obligations have been
finally paid in full, each Guarantor hereby waives and postpones (i) any right of subrogation such Guarantor has or may have as against Borrowers with respect to the Guarantied Obligations; (ii) any right to proceed against Borrowers or
any other Person, now or hereafter, for contribution, indemnity, reimbursement, or any other suretyship rights and claims (irrespective of whether direct or indirect, liquidated or contingent), with respect to the Guarantied Obligations; and
(iii) any right to proceed or to seek recourse against or with respect to any property or asset of Borrowers. 
 17.6    Releases.  Each Guarantor consents and agrees that, without notice to or by such Guarantor and without affecting or impairing the obligations of such
Guarantor hereunder, any member of the Lender Group may, by action or inaction, compromise or settle, extend the period of duration or the time for the payment, or discharge the performance of, or may refuse to, or otherwise not enforce, or may, by
action or inaction, release all or any one or more parties to, any one or more of the terms and provisions of this Agreement or any other Loan Document or may grant other indulgences to Borrowers in respect thereof, or may amend or modify in any
manner and at any time (or from time to time) any one or more of the Loan Documents, or may, by action or inaction, release or substitute any other guarantor, if any, of the Guarantied Obligations, or may enforce, exchange, release, or waive, by
action or inaction, any security for the Guarantied Obligations or any other guaranty of the Guarantied Obligations, or any portion thereof. 

  
 52 

 17.7    No Election.  The Lender
Group shall have the right to seek recourse against each Guarantor to the fullest extent provided for herein and no election by any member of the Lender Group to proceed in one form of action or proceeding, or against any party, or on any
obligation, shall constitute a waiver of the Lender Group’s right to proceed in any other form of action or proceeding or against other parties unless Agent, on behalf of the Lender Group, has expressly waived such right in writing.
Specifically, but without limiting the generality of the foregoing, no action or proceeding by the Lender Group under any document or instrument evidencing the Guarantied Obligations shall serve to diminish the liability of any Guarantor under this
Guaranty except to the extent that the Lender Group finally and unconditionally shall have realized payment in full of the Guarantied Obligations by such action or proceeding. 

17.8    Financial Condition of Borrowers.  Each Guarantor represents and
warrants to the Lender Group that it is currently informed of the financial condition of Borrowers and of all other circumstances which a reasonably diligent inquiry would reveal and which bear upon the risk of nonpayment of the Guarantied
Obligations. Each Guarantor further represents and warrants to the Lender Group that it has read and understands the terms and conditions of this Agreement and each other Loan Document. Each Guarantor hereby covenants that it will continue to keep
itself informed of Borrowers’ financial condition, the financial condition of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Guarantied Obligations. 

17.9    Payments; Application.  All payments to be made hereunder by each
Guarantor shall be made in Dollars, in immediately available funds, and without deduction (whether for taxes or otherwise) or offset and shall be applied to the Guarantied Obligations in accordance with the terms of this Agreement. 

17.10  Attorneys Fees and Costs.    Each Guarantor agrees to pay, on demand,
all reasonable attorneys fees and all other costs and expenses which may be incurred by Agent or any other member of the Lender Group in connection with the enforcement of this Guaranty or in any way arising out of, or consequential to, the
protection, assertion, or enforcement of the Guarantied Obligations (or any security therefor), irrespective of whether suit is brought. 
  

	18.	 GENERAL PROVISIONS. 

 18.1    Effectiveness.    This Agreement shall be binding and deemed effective when executed by Loan Parties, Agent, and each Lender whose signature
is provided for on the signature pages hereof. 

18.2    Section Headings.    Headings and numbers have been
set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement. 

18.3    Interpretation.  Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed against the Lender Group or Loan Parties, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to
the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 

  
 53 

 18.4    Severability of
Provisions.  Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

18.5    Bank Product Providers.  Each Bank Product Provider shall be deemed a
party hereto for purposes of any reference in a Loan Document to the parties for whom Agent is acting; it being understood and agreed that the rights and benefits of such Bank Product Provider under the Loan Documents consist exclusively of such
Bank Product Provider’s right to share in payments and collections out of the Collateral as more fully set forth herein. In connection with any such distribution of payments and collections, Agent shall be entitled to assume no amounts are due
to any Bank Product Provider unless such Bank Product Provider has notified Agent in writing of the amount of any such liability owed to it prior to such distribution. 

18.6    Lender-Creditor Relationship.    The relationship between
the Lenders and Agent, on the one hand, and Loan Parties, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to Loan Parties arising out of or
in connection with, and there is no agency or joint venture relationship between the members of the Lender Group, on the one hand, and Loan Parties on the other hand, by virtue of any Loan Document or any transaction contemplated therein.

 18.7    Counterparts; Electronic Execution.  This Agreement may
be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same
Agreement. Delivery of an executed counterpart of this Agreement by facsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an
executed counterpart of this Agreement by facsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 
 18.8    Revival and Reinstatement of Obligations.  If the incurrence or payment of the Obligations or the Guarantied Obligations by any Loan Party or the
transfer to the Lender Group of any property should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or restore, in whole or in part, any such
Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses,
and attorneys fees of the Lender Group related thereto, the liability of Loan Parties automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 

18.9    Confidentiality; Public Lenders. 

  
 54 

 (a)        Agent and Lenders each
individually (and not jointly or jointly and severally) agree that material, non-public information regarding Loan Parties and their Subsidiaries, their operations, assets, and existing and contemplated business plans shall be treated by Agent and
the Lenders in a confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to any member of
the Lender Group, (ii) to Subsidiaries and Affiliates of any member of the Lender Group (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to
the terms of this Section 18.9, (iii) as may be required by statute, decision, or judicial or administrative order, rule, or regulation, (iv) as may be agreed to in advance by Administrative Borrower or its Subsidiaries or as
requested or required by any Governmental Authority pursuant to any subpoena or other legal process, (v) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent
or the Lenders), (vi) in connection with any assignment, prospective assignment, sale, prospective sale, participation, prospective participation or pledge or prospective pledge of any Lender’s interest under this Agreement, provided that
any such assignee, prospective assignee, purchaser, prospective purchaser, participant, prospective participant, pledge or prospective pledgee shall have agreed in writing to receive such information hereunder subject to the terms of this Section,
and (vii) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other
Loan Documents. The provisions of this Section 18.9(a) shall survive for 2 years after the payment in full of the Obligations. 
 (b)        Anything in this Agreement to the contrary notwithstanding, Agent may provide information concerning the terms and conditions of this Agreement and the
other Loan Documents to loan syndication and pricing reporting services. 

(c)        Loan Parties hereby acknowledges that (i) Agent will make
available to the Lenders materials and/or information provided by or on behalf of Loan Parties hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (ii) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to Loan Parties and
their Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market related activities with respect to such Persons’ securities. Loan Parties hereby agree that (1) all Borrower
Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (2) by
marking Borrower Materials “PUBLIC,” Loan Parties shall be deemed to have authorized Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to Loan Parties or their
securities for purposes of United States Federal and state securities laws; (3) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and
(4) Agent shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor”. 

  
 55 

 18.10  Lender Group Expenses.  Loan
Parties agree to pay any and all Lender Group Expenses promptly after demand therefor by Agent and agrees that their obligations contained in this Section 18.10 shall survive payment or satisfaction in full of all other Obligations. 

18.11  USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA
Patriot Act (Title 111 of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies Borrowers that pursuant to the requirements of the Act, it is required to obtain, verify and record information
that identifies Loan Parties, which information includes the name and address of Loan Parties and other information that will allow such Lender to identify Loan Parties in accordance with the Act. 

18.12  Integration.  This Agreement, together with the other Loan Documents, reflects
the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 

18.13  Parent as Agent for Borrowers.  Each Borrower hereby irrevocably appoints Parent
as the borrowing agent and attorney-in-fact for all Borrowers (the “Administrative Borrower”) which appointment shall remain in full force and effect unless and until Agent shall have received prior written notice signed by
each Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (a) to provide Agent with all
notices and instructions under this Agreement and (b) to take such action as the Administrative Borrower deems appropriate on its behalf to carry out the purposes of this Agreement. It is understood that the handling of the Term Loan and
Collateral of Borrowers in a combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their
request, and that Lender Group shall not incur liability to any Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Term Loan and the Collateral in a combined fashion since the
successful operation of each Borrower is dependent on the continued successful performance of the integrated group. To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify
each member of the Lender Group and hold each member of the Lender Group harmless against any and all liability, expense, loss or claim of damage or injury, made against the Lender Group by any Borrower or by any third party whosoever, arising from
or incurred by reason of (i) the handling of the Term Loan and Collateral of Borrowers as herein provided, (ii) the Lender Group’s relying on any instructions of the Administrative Borrower, or (iii) any other action taken by the
Lender Group hereunder or under the other Loan Documents, except that Borrowers will have no liability to the relevant Agent-Related Person or Lender-Related Person under this Section 18.13 with respect to any liability that has been finally
determined by a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Agent-Related Person or Lender-Related Person, as the case may be. 

18.14  Ratification of Loan Documents.  Each Loan Party hereby ratifies and affirms its
obligations under the Loan Documents (as amended, restated or otherwise modified on the 

  
 56 

 
Restatement Date), each of which (as amended, restated or otherwise modified on the Restatement Date) shall continue in full force and effect. 

[Signature pages to follow.] 

  
 57 

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

			
	BORROWERS:
	
	 DUNE ENERGY, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ James A. Watt

	 Name:
	 	 James A. Watt

	 Title:
	 	President and Chief Executive Officer
	
	 DUNE PROPERTIES, INC.,
 a Texas corporation

		
	 By:
	 	 /s/ James A. Watt

	 Name:
	 	 James A. Watt

	 Title:
	 	 President

	
	GUARANTOR:
	
	 DUNE OPERATING COMPANY,
 a Texas corporation

		
	 By:
	 	 /s/ James A. Watt

	 Name:
	 	 James A. Watt

	 Title:
	 	 President

Signature Page 

  

			
	AGENT AND LENDERS:
	
	WELLS FARGO CAPITAL FINANCE, INC.,
	 a California corporation, as Agent

		
	 By:
	 	 /s/ Gary Forlenza

	 Name:
	 	 Gary Forlenza

	 Title:
	 	 VP

	
	WAYZATA OPPORTUNITIES FUND II, L.P.,
	 a Delaware limited partnership, as sole Lender

	 By:  WOF II GP, L.P., its General Partner

	 By:  WOF II GP, LLC, its General Partner

		
	 By
	 	 /s/ Blake Carlson

	 Name:
	 	 Blake Carlson

	 Title:
	 	 Authorized Signatory

 Signature Page 

 EXHIBITS AND SCHEDULES 

 

			
	 Exhibit A-1
	  	 Form of Assignment and Acceptance

	 Exhibit C-1
	  	 Form of Compliance Certificate

	 Schedule A-1
	  	 Agent’s Account

	 Schedule A-2
	  	 Authorized Persons

	 Schedule C-1
	  	 Commitments

	 Schedule P-1
	  	 Permitted Holders

	 Schedule P-2
	  	 Permitted Liens

	 Schedule P-3
	  	 Permitted Investments

	 Schedule P-4
	  	 Permitted Dispositions

	 Schedule R-1
	  	 Real Property Collateral

	 Schedule 1.1
	  	 Definitions

	 Schedule 2.7(a)
	  	 Cash Management Banks

	 Schedule 3.1
	  	 Conditions Precedent

	 Schedule 4.2(a)
	  	 Jurisdictions of Organization

	 Schedule 4.2(b)
	  	 Chief Executive Offices

	 Schedule 4.2(c)
	  	 Organizational Identification Numbers

	 Schedule 4.2(d)
	  	 Commercial Tort Claims

	 Schedule 4.3(b)
	  	 Capitalization of Parent

	 Schedule 4.3(c)
	  	 Capitalization of Parents’ Subsidiaries

	 Schedule 4.3(d)
	  	 Subscriptions, Options and Warrants

	 Schedule 4.5
	  	 Litigation

	 Schedule 4.6
	  	 Material Adverse Change

	 Schedule 4.9
	  	 Environmental Matters

	 Schedule 4.10
	  	 Intellectual Property

	 Schedule 4.12
	  	 Commodities Accounts, Deposit Accounts and Securities Accounts

	 Schedule 4.17
	  	 Material Contracts

	 Schedule 4.18
	  	 Employee and Labor Matters

	 Schedule 4.21
	  	 Insurance

	 Schedule 4.24
	  	 Second Secured Debt Documents

	 Schedule 4.26
	  	 Oil and Gas Imbalances

	 Schedule 4.27
	  	 Hedge Agreements

	 Schedule 4.29
	  	 Bonds and Insurance

	 Schedule 4.30
	  	 Royalties

	 Schedule 4.32
	  	 Seismic Licenses

	 Schedule 4.33
	  	 Marketing of Production

	 Schedule 5.2
	  	 Collateral Reporting

	 Schedule 5.3
	  	 Financial Statements, Reports, Certificates

	 Schedule 6.1
	  	 Permitted Indebtedness

	 Schedule 6.15
	  	 Permitted Farm-Out Agreements

 Exhibits and Schedules - 1 

 EXHIBIT A-1 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT 

This ASSIGNMENT AND ACCEPTANCE AGREEMENT (“Assignment Agreement”) is entered into as of
                                     between
                                         
                        (“Assignor”) and
                                         
                        (“Assignee”). Reference is made to the Agreement described in Annex I hereto (the
“Credit Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement. 
 1.        In accordance with the terms and conditions of Section 13 of the Credit Agreement, the Assignor hereby sells and assigns to the Assignee, and
the Assignee hereby purchases and assumes from the Assignor, that interest in and to the Assignor’s rights and obligations under the Loan Documents as of the date hereof with respect to the Obligations owing to the Assignor, and Assignor’s
portion of the Commitments, all to the extent specified on Annex I. 

2.        The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and to consummate the transactions contemplated hereby; (b) makes no representation or warranty and assumes no responsibility with respect to (i) any statements, representations or warranties made in or in connection
with the Loan Documents, or (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument or document furnished pursuant thereto; (c) makes no representation or
warranty and assumes no responsibility with respect to the financial condition of any Borrower or any Guarantor or the performance or observance by any Borrower or any Guarantor of any of their respective obligations under the Loan Documents or any
other instrument or document furnished pursuant thereto, and (d) represents and warrants that the amount set forth as the Purchase Price on Annex I represents the amount owed by Borrowers to Assignor with respect to Assignor’s share
of the Obligations assigned hereunder, as reflected on Assignor’s books and records. 

3.        The Assignee (a) confirms that it has received copies of the
Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this
Assignment Agreement; (b) agrees that it will, independently and without reliance upon Agent, Assignor, or any other Lender, based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking any action under the Loan Documents; (c) confirms that it is an Eligible Transferee; (d) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under the
Loan Documents as are delegated to Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (e) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan
Documents are required to be performed by it as a Lender; [and (f) attaches the forms 

  
 1 

 
prescribed by the Internal Revenue Service of the United States certifying as to the Assignee’s status for purposes of determining exemption from United States withholding taxes with respect
to all payments to be made to the Assignee under the Credit Agreement or such other documents as are necessary to indicate that all such payments are subject to such rates at a rate reduced by an applicable tax treaty.] 

4.        Following the execution of this Assignment Agreement by the Assignor
and Assignee, the Assignor will deliver this Assignment Agreement to the Agent for recording by the Agent. The effective date of this Assignment (the “Settlement Date”) shall be the latest to occur of (a) the date of the
execution and delivery hereof by the Assignor and the Assignee, (b) the receipt by Agent for its sole and separate account a processing fee in the amount of $3,500 (if required by the Credit Agreement), (c) the receipt of any required
consent of the Agent, and (d) the date specified in Annex I. 

5.        As of the Settlement Date (a) the Assignee shall be a party to the
Credit Agreement and, to the extent of the interest assigned pursuant to this Assignment Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents, and (b) the Assignor shall, to the extent of the
interest assigned pursuant to this Assignment Agreement, relinquish its rights and be released from its obligations under the Credit Agreement and the other Loan Documents, provided, however, that nothing contained herein shall release
any assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under Article 15 and Section 18.9 of the Credit Agreement. 

6.        Upon the Settlement Date, Assignee shall pay to Assignor the Purchase
Price (as set forth in Annex I). From and after the Settlement Date, Agent shall make all payments that are due and payable to the holder of the interest assigned hereunder (including payments of principal, interest, fees and other amounts)
to Assignor for amounts which have accrued up to but excluding the Settlement Date and to Assignee for amounts which have accrued from and after the Settlement Date. On the Settlement Date, Assignor shall pay to Assignee an amount equal to the
portion of any interest, fee, or any other charge that was paid to Assignor prior to the Settlement Date on account of the interest assigned hereunder and that are due and payable to Assignee with respect thereto, to the extent that such interest,
fee or other charge relates to the period of time from and after the Settlement Date. 

7.        This Assignment Agreement may be executed in counterparts and by the
parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. This Assignment Agreement may be executed and delivered by telecopier
or other facsimile transmission all with the same force and effect as if the same were a fully executed and delivered original manual counterpart. 
 8.        THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

  
 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement
and Annex I hereto to be executed by their respective officers, as of the first date written above. 
  

			
	 [NAME OF ASSIGNOR]

	
	 as Assignor

		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 [NAME OF ASSIGNEE]

	
	 as Assignee

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  

			
	ACCEPTED        THIS                 
    DAY    OF
	
                 
	 	
	
	 WELLS FARGO CAPITAL FINANCE,
 INC.,
 a California corporation, as
Agent

			
		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 DUNE ENERGY, INC.,

	 as Administrative Borrower1

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  

 

1 If required by Credit Agreement 

  
 3 

 ANNEX FOR ASSIGNMENT AND ACCEPTANCE 

ANNEX I 
  

			
	 Borrowers: Dune Energy, Inc. and certain of its Subsidiaries

	
	 Name and Date of Credit Agreement:

	
	 Amended and Restated Credit Agreement, dated as of December 7, 2010, by and among Dune Energy, Inc., the other Borrowers, the Guarantors, the
lenders from time to time a party thereto (the “Lenders”), and Wells Fargo Capital Finance, Inc., a California corporation, as the administrative agent for the Lenders.

		
	 Date of Assignment Agreement:
	 	 _______________

		
	 Amounts:
	 	
		
	 Assigned Amount of Commitment
	 	$                          
  
		
	 Assigned Amount of Loan
	 	$                          
  
		
	 Settlement Date:
	 	_______________

		
	 Purchase Price
	 	$                          
  

			
	
	 Notice and Payment Instructions, etc.

		
	 Assignee:
	  	 Assignor:

		
	  
	  	  

		
	  
	  	  

		
	  
	  	  

  
 Annex I-1

 EXHIBIT C-1 

FORM OF COMPLIANCE CERTIFICATE 
 [on Parent’s letterhead] 
 To:    Wells Fargo Capital
Finance, Inc. 
           1100 Abernathy Road, Suite 1600 

          Atlanta, Georgia 30328 

          Attn: Business Finance Division Manager 

Re:    Compliance Certificate dated
                             
 Ladies and Gentlemen: 
 Reference is made to that certain
AMENDED AND RESTATED CREDIT AGREEMENT (the “Credit Agreement”) dated as of December 7, 2010, by and among the lenders identified on the signature pages thereof (such lenders, together with their respective successors and
permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO CAPITAL FINANCE, INC., a California corporation, as the administrative agent for
the Lenders (“Agent”), DUNE ENERGY, INC., a Delaware corporation (“Parent”), and each of its Subsidiaries party thereto. Capitalized terms used in this Compliance Certificate have the meanings set forth in
the Credit Agreement unless specifically defined herein. 
 Pursuant to Schedule 5.3 of the Credit
Agreement, the undersigned officer of Parent hereby certifies that: 

1.        [The financial information of Parent and its Subsidiaries furnished in
Schedule 1 attached hereto, has been prepared in accordance with GAAP (except for year-end adjustments and the lack of footnotes), and fairly presents in all material respects the financial condition of Parent and its Subsidiaries.]
[Include if required to report financials] 
 2.        [Such
officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review in reasonable detail of the transactions and condition of Parent and its Subsidiaries during the accounting period covered
by the financial statements delivered pursuant to Schedule 5.3 of the Credit Agreement.] [Include if required to report financials] 
 3.        [Such review has not disclosed the existence on and as of the date hereof, and] the undersigned does not have knowledge of the existence as of the date
hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed on Schedule 2 attached hereto, specifying the nature and period of existence thereof and what action Parent and its
Subsidiaries have taken, are taking, or propose to take with respect thereto. 

  
 1 

 4.        The representations and
warranties of Parent and its Subsidiaries set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof (except to the extent they relate to a specified date), except as set
forth on Schedule 3 attached hereto. 
 5.        Parent and its
Subsidiaries are in compliance with the applicable financial covenant contained in Section 6.16 of the Credit Agreement as demonstrated on Schedule 4 hereof. 
 [Signature Page Follows] 

  
 2 

 IN WITNESS WHEREOF, this Compliance Certificate is executed by the
undersigned this      day of                     ,         .

  

			
	 DUNE ENERGY, INC.

			
		
	 By:
	 	
 

			
	 Name:
	 	
 

			
	 Title:
	 	  

  
 3 

 SCHEDULE 1 

Financial Information 

  
 Schedule 1-1

 SCHEDULE 2 

Default or Event of Default 

  
 Schedule 2-1

 SCHEDULE 3 

Representations and Warranties 

  
 Schedule 3-1

 SCHEDULE 4 

Financial Covenant 
 Borrowers’ ratio of Total Proved Developed PV-10 to the principal amount of the Obligations (excluding Bank Product Obligations) as of the end of
             [month] is $             to
$            , which [is/is not] equal to or greater than 2.0 to 1.0. 

  
 Schedule 4-1

 Schedule A-1 

Agent’s Account 
 An account at a bank designated by Agent from time to time as the account into which Borrowers shall make all payments to Agent for the benefit of the Lender Group and into which the Lender Group shall
make all payments to Agent under the Agreement and the other Loan Documents; unless and until Agent notifies Administrative Borrower and the Lender Group to the contrary, Agent’s Account shall be that certain deposit account described as
follows: 
 Wells Fargo Bank 
 San Francisco, CA 
 ABA# 121-000-248 

Wells Fargo Capital Finance, Inc. 
 A/C #4121345094 
 Swift: WFBIUS6S 

REF: Dune 

 A-2 
 Authorized Persons 
 James A. Watt, as President and CEO 

Frank T. Smith, Jr., as Chief Financial Officer 

 Schedule C-1 

Commitments 
  

			
	 Lender
	  	 Commitment

	 Wayzata Opportunities Fund II, L.P.    
	  	$40,000,000

 P-1 
 Permitted Holders 
 Itera Holdings, BV 

Natural Gas Partners 
 Alan Gaines 
 James Watt 

 P-2 
 Permitted Liens 
  

	 Dune Energy Inc. 
	 A lien on all of the movable personal property located at its Houston office headquarters at Two Shell Plaza, 777 Walker Street, Suite 2300, Houston, Texas 77002 pursuant to
the office space lease agreement as described on Schedule 4.17 and various lease and/or purchase agreements for any such movable personal property. 

  

	 Dune Operating Company 
	 None 

  

	 Dune Properties, Inc. 
	 None 

 P-3 
 Permitted Investments 
  

			
	 Dune Energy Inc.
	  	None
		
	 Dune Operating Company
	  	None
		
	 Dune Properties, Inc.
	  	None

 Schedule P-4 

Permitted Sales of Oil and Gas Properties 
  

	1.	 Leeville: Sale of 60% of Dune’s leasehold interest and related facilities and equipment in Leeville Field, Lafourche Parish, Louisiana
to Manti Equity Partners, LP and Manti Exploration & Production, Inc. in exchange for a cash payment in the amount of $5,000,000 and termination for the Exploration Agreement dated February 2, 2004, between Manti and Dune (as successor
to Enervest). 

  

	2.	 Chocolate Bayou: Sale of the 240 acre Wilson “B” Lease in Chocolate Bayou Field, Brazoria County, Texas to Elliott Oil &
Gas Company in exchange for a cash payment in the amount of $100,000, retained 10% overriding royalty interest and assumption by Elliott of all P&A and environmental liabilities, past, present and future, associated with such lease.

 R-1 
 Real Property Collateral 
  

			
	 Dune Energy Inc.
	  	None
		
	 Dune Operating Company
	  	None
		
	 Dune Properties, Inc.
	  	None

 Schedule 1.1 

As used in the Agreement, the following terms shall have the following definitions: 

“2007 Credit Agreement” has the meaning given to it in the preamble to this Agreement.

 “Acceptable Commodity Hedging Agreement” means a Commodity Hedging Agreement
(i) with a (x) Bank Product Provider or (y) a counterparty approved by Required Lenders, (ii) pursuant to an agreement the terms of which are acceptable to Agent and (iii) which are otherwise approved by Agent and Required
Lenders. 
 “Account” means an account (as that term is defined in the Code).

 “Account Debtor” means any Person who is obligated on an Account, chattel paper, or
a general intangible. 
 “ACH Transactions” means any cash management or related
services (including the Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product Provider for the account of Administrative Borrower or its Subsidiaries.

 “Act” has the meaning specified therefor in Section 18.11. 

“Activation Instruction” has the meaning specified therefor in Section 2.7(b). 

“Additional Documents” has the meaning specified therefor in Section 5.16. 

“Administrative Borrower” has the meaning specified therefor in Section 18.13. 

“Affiliate” means, as applied to any Person, any other Person who controls, is controlled by, or
is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether
through the ownership of Stock, by contract, or otherwise; provided, however, that, for purposes of Section 6.11 of the Agreement: (i) any Person which owns directly or indirectly 10% or more of the Stock having ordinary voting power for
the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an Affiliate of such Person,
(ii) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (iii) each partnership in which a Person is a general partner shall be deemed an Affiliate of such Person. 

“Agent” has the meaning specified therefor in the preamble to the Agreement. 

“Agent-Related Persons” means Agent, together with its Affiliates, officers, directors,
employees, attorneys, and agents. 

  
 Schedule 1.1 -
1 

 “Agent’s Account” means the Deposit Account of
Agent identified on Schedule A-1. 
 “Agent’s Liens” means the Liens granted by
Loan Parties or their Subsidiaries to Agent under the Loan Documents. 
 “Agreement”
means the Amended and Restated Credit Agreement to which this Schedule 1.1 is attached. 

“Application Event” means the occurrence of (i) a failure by Loan Parties to repay all of
the Obligations on the Maturity Date, or (ii) an Event of Default and the election by the Required Lenders to declare all or any portion of the Obligations to be due and payable or to exercise remedies against the Collateral. 

“Asset Acquisition” means the purchase or other acquisition by a Person or its Subsidiaries of
all or substantially all of the assets of any other Person. 
 “Assignee” has the
meaning specified therefor in Section 13.1(a). 
 “Assignment and Acceptance”
means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1. 

“Authorized Person” means any one of the individuals identified on Schedule A-2. 

“Bank Product” means any financial accommodation extended to Administrative Borrower or its
Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (i) credit cards, (ii) credit card processing services, (iii) debit cards, (iv) purchase cards, (v) ACH Transactions, (vi) cash
management, including controlled disbursement, accounts or services, or (vii) transactions under Hedge Agreements. 
 “Bank Product Agreements” means those agreements entered into from time to time by Administrative Borrower or its Subsidiaries with a Bank Product Provider in connection with the
obtaining of any of the Bank Products. 
 “Bank Product Obligations” means all
obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by Administrative Borrower or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of whether
for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that Administrative Borrower or its Subsidiaries are obligated to reimburse to
Agent or any member of the Lender Group as a result of Agent or such member of the Lender Group purchasing participations from, or executing indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products
provided by such Bank Product Provider to Administrative Borrower or its Subsidiaries. 
 “Bank
Product Provider” means Wells Fargo, any Lender or any of their respective Affiliates. 

  
 Schedule 1.1 -
2 

 “Bankruptcy Code” means title 11 of the United
States Code, as in effect from time to time. 
 “Benefit Plan” means a “defined
benefit plan” (as defined in Section 3(35) of ERISA) for which any Loan Party or any Subsidiary or ERISA Affiliate of any Loan Party has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years.

 “Board of Directors” means the board of directors (or comparable managers) of Parent
or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers). 

“Borrower” and “Borrowers” have the respective meanings specified
therefor in the preamble to the Agreement. 
 “Business Day” means any day that is not
a Saturday, Sunday, or other day on which banks are authorized or required to close in the state of New York or Georgia. 
 “Capital Expenditures” means, with respect to any Person for any period, the aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital
expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed. 

“Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that
is required to be capitalized in accordance with GAAP. 
 “Capital Lease” means a lease
that is required to be capitalized for financial reporting purposes in accordance with GAAP. 

“Cash Equivalents” means (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued by
any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days from
the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within 1 year from the date of
acquisition thereof issued by any bank organized under the laws of the United States or any state thereof having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained with
(i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so long as the amount maintained with any such other bank is less than
or equal to $100,000 and is insured by the Federal Deposit Insurance Corporation, and (f) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through
(d) above. 

  
 Schedule 1.1 -
3 

 “Cash Management Account” has the meaning specified
therefor in Section 2.7(a). 
 “Cash Management Agreements” means those certain
cash management agreements, in form and substance satisfactory to Agent, each of which is among Administrative Borrower or one of its Subsidiaries, Agent, and one of the Cash Management Banks. 

“Cash Management Bank” has the meaning specified therefor in Section 2.7(a). 

“Change of Control” means (a) that any “person” or “group” (within the
meaning of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders or Wayzata and its Affiliates, becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 35%, or more, of the
Stock of Parent having the right to vote for the election of members of the Board of Directors, (b) that a majority of the members of the Board of Directors do not constitute Continuing Directors, (c) that Parent ceases to own and control,
directly or indirectly, 100% of the outstanding Stock of each other Loan Party, (d) either James Watt or Frank Smith shall cease to be involved in the day to day operations and management of the business of Parent, and a successor reasonably
acceptable to Agent and Lenders is not appointed on terms reasonably acceptable to Agent and Lenders within 60 days of such cessation of involvement, or (e) any “Change of Control” or similar term, as defined in the Second Secured
Debt Documents. 
 “Code” means the New York Uniform Commercial Code, as in effect from
time to time. 
 “Collateral” means all assets and interests in assets and proceeds
thereof now owned or hereafter acquired by Administrative Borrower or its Subsidiaries in or upon which a Lien is granted under any of the Loan Documents. 
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession
of, having a Lien upon, or having rights or interests in Administrative Borrower’s or its Subsidiaries’ books and records, Equipment, or Inventory, in each case, in form and substance satisfactory to Agent. 

“Collateral Assignment of Rights” means the Collateral Assignment of Stock Purchase Agreement
executed and delivered by Parent in favor of Agent, in form and substance satisfactory to Agent. 

“Collections” means all cash, checks, notes, instruments, and other items of payment (including
insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds). 

“Commitment” means, with respect to each Lender, its revolver commitment, and, with respect to
all Lenders, their revolver commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1. The Commitments will terminate following advancement of the Term Loan.

  
 Schedule 1.1 -
4 

 “Commodities Account” means any commodities account
(as that term is defined in the Code). 
 “Commodity Hedging Agreement” means a
commodity hedging or purchase agreement or similar arrangement entered into with the intent of protecting against fluctuations in commodity prices or the exchange of notional commodity obligations, either generally or under specific contingencies.

 “Compliance Certificate” means a certificate substantially in the form of
Exhibit C-1 delivered by the chief financial officer of Parent to Agent. 
 “Continuing
Director” means (i) any member of the Board of Directors who was a director (or comparable manager) of Parent on the Restatement Date, and (ii) any individual who becomes a member of the Board of Directors after the
Restatement Date if such individual was appointed or nominated for election to the Board of Directors by a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of
Directors in office at the Restatement Date in an actual or threatened election contest relating to the election of the directors (or comparable managers) of Parent and whose initial assumption of office resulted from such contest or the settlement
thereof. 
 “Contribution Agreement” means the Contribution Agreement dated as of
May 15, 2007, among Loan Parties. 
 “Control Agreement” means a control
agreement, in form and substance satisfactory to Agent, executed and delivered by the Administrative Borrower or one of its Subsidiaries, Agent, and the applicable commodities intermediary (with respect to a Commodities Account), securities
intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account). 

“Default” means an event, condition, or default that, with the giving of notice, the passage of
time, or both, would be an Event of Default. 
 “Deposit Account” means any deposit
account (as that term is defined in the Code). 
 “Disbursement Letter” means an
instructional letter executed and delivered by Loan Parties to Agent and Lenders regarding the extension of the Term Loan to be made on the Restatement Date, the form and substance of which is satisfactory to Lenders. 

“Dollars” or “$” means United States dollars. 

“Eligible Transferee” means (i) a commercial bank organized under the laws of the United
States, or any state thereof, and having total assets in excess of $250,000,000, (ii) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development or a political
subdivision of any such country and which has total assets in excess of $250,000,000, provided that such bank is acting through a branch or agency located in the United States, (iii) a finance company, insurance company, or other financial
institution, or fund that is engaged in making, purchasing, or 

  
 Schedule 1.1 -
5 

 
otherwise investing in commercial loans in the ordinary course of its business and having (together with its Affiliates) total assets in excess of $250,000,000, (iv) any Affiliate (other
than individuals) of a Lender, (v) so long as no Event of Default has occurred and is continuing, any other Person approved by Agent and Administrative Borrower (which approval of Administrative Borrower shall not be unreasonably withheld,
delayed, or conditioned), and (vi) during the continuation of an Event of Default, any other Person approved by Agent. 
 “Environmental Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter,
or other communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials from (i) any assets, properties, or businesses of any Loan Party, any Subsidiary of a Loan
Party, or any of their predecessors in interest, (ii) from adjoining properties or businesses, or (iii) from or onto any facilities which received Hazardous Materials generated by any Loan Party, any Subsidiary of a Loan Party, or any of
their predecessors in interest. 
 “Environmental Law” means any applicable federal,
state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any
judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the extent binding on any Loan Party or any Subsidiary of a Loan Party, relating to the environment, the
effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time. 
 “Environmental Liabilities” means all liabilities, monetary obligations, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required,
by any Governmental Authority or any third party, and which relate to any Environmental Action. 

“Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental
Liabilities. 
 “Equipment” means equipment (as that term is defined in the Code).

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and
any successor statute thereto. 
 “ERISA Affiliate” means (i) any Person subject
to ERISA whose employees are treated as employed by the same employer as the employees of a Loan Party or a Subsidiary of a Loan Party under IRC Section 414(b), (ii) any trade or business subject to ERISA whose employees are treated as
employed by the same employer as the employees of a Loan Party or a Subsidiary of a Loan Party under IRC Section 414(c), (iii) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to
ERISA that is a member of an affiliated service group of which a Loan Party or a Subsidiary of a Loan Party is a member under 

  
 Schedule 1.1 -
6 

 
IRC Section 414(m), or (iv) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with a Loan
Party or a Subsidiary of a Loan Party and whose employees are aggregated with the employees of a Loan Party or a Subsidiary of a Loan Party under IRC Section 414(o). 

“Event of Default” has the meaning specified therefor in Section 7. 

“Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time.

 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day;
provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Agent on such day on such transactions as
determined by Agent. 
 “Fee Letter” means that certain fee letter dated as of
May 15, 2007 between Borrowers and Agent, as amended on the Restatement Date and as it may be further amended, supplemented or otherwise modified from time to time. 

“GAAP” means generally accepted accounting principles as in effect from time to time in the
United States, consistently applied. 
 “Governing Documents” means, with respect to
any Person, the certificate or articles of incorporation, by-laws, or other organizational documents of such Person. 
 “Governmental Authority” means any federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal,
administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body. 

“Guarantied Obligations” means (i) the due and punctual payment of the principal of, and
interest (including any interest that, but for the commencement of an Insolvency Proceeding, would have accrued) on, any and all premium on, and any and all fees, costs, indemnities, and expenses incurred in connection with, the Indebtedness owed by
Borrowers to any member of the Lender Group pursuant to the terms of the Agreement or any other Loan Document and (ii) the due and punctual payment of all other present or future Indebtedness owing by Borrowers to any member of the Lender Group
in connection with any Loan Document. 
 “Guarantors” means each Person that guarantees
pursuant to Section 17, Section 5.15 or otherwise, all or any part of the Obligations, and “Guarantor” means any one of them. 

  
 Schedule 1.1 -
7 

 “Guaranty” means (i) the guaranty of each
Guarantor party to the Agreement contained in Section 17 and (ii) each guaranty (if any) executed and delivered by each Guarantor in favor of Agent, for the benefit of the Lender Group and the Bank Product Providers, in form and substance
satisfactory to Agent and Required Lenders. 
 “Hazardous Materials” means
(i) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic
substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”,
(ii) Hydrocarbons, including, without limitation, oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development,
or production of crude oil, natural gas, or geothermal resources, (iii) any flammable substances or explosives or any radioactive materials, and (iv) asbestos in any form or electrical equipment that contains any oil or dielectric fluid
containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
 “Hedge
Agreement” means any and all agreements, or documents now existing or hereafter entered into by Administrative Borrower or any of its Subsidiaries that provide for an interest rate, credit, commodity or equity swap, cap, floor, collar,
forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Administrative Borrower’s or any of its
Subsidiaries’ exposure to fluctuations in interest or exchange rates, loan, credit exchange, security, or currency valuations or commodity prices, including without limitation, any Commodity Hedging Agreement. 

“Hydrocarbon Interests” means all rights, titles, interests and estates now owned or hereafter
acquired in and to oil and gas leases, oil, gas and mineral leases, oil, gas and casinghead gas leases, or other liquid or gaseous hydrocarbon leases, mineral fee or lease interests, farm-outs, overriding royalty and royalty interests, net profit
interests, oil payments, production payment interests and similar mineral interests, including any reserved or residual interest of whatever nature. 
 “Hydrocarbons” means, collectively, oil, gas, coal seam gas, casinghead gas, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons, all products and byproducts refined,
separated, settled and dehydrated therefrom and all products and byproducts refined therefrom, including, without limitation, kerosene, liquefied petroleum gas, refined lubricating oils, diesel fuel, drip gasoline, natural gasoline, helium, sulfur,
geothermal steam, water, carbon dioxide, and all other minerals. 
 “Indebtedness”
means (i) all obligations for borrowed money, (ii) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances,
interest rate swaps, hedges, derivatives or other financial products, (iii) all obligations as a lessee under Capital Leases, (iv) all obligations or liabilities of others secured by a Lien on any asset of a Person or its Subsidiaries,
irrespective of whether such obligation or liability is assumed, (v) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary 

  
 Schedule 1.1 -
8 

 
course of business and repayable in accordance with customary trade practices), (vi) all obligations owing under Hedge Agreements, and (vii) any obligation guaranteeing or intended to
guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses (i) through (vi) above. 

“Indemnified Liabilities” has the meaning specified therefor in Section 10.3. 

“Indemnified Person” has the meaning specified therefor in Section 10.3. 

“Insolvency Proceeding” means any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking
reorganization, arrangement, or other similar relief. 
 “Intercompany Subordination
Agreement” means a subordination agreement executed and delivered by Loan Parties, each of Loan Parties’ Subsidiaries, and Agent, the form and substance of which is satisfactory to Agent. 

“Intercreditor Agreement” means the Intercreditor Agreement among Loan Parties, Agent and the
trustee for the holders of the Second Secured Debt, dated as of May 15, 2007, as amended, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Interest Reserve” has the meaning specified therefor in Section 5.22. 

“Inventory” means all of each Borrower’s now owned or hereafter acquired right, title, and
interest with respect to inventory (as that term is defined in the Code), including extracted Hydrocarbons, and other goods held for sale or lease or to be furnished under a contract of service, goods that are leased by any Borrower as lessor, goods
that are furnished by any Borrower under a contract of service, and raw materials, work in process, or materials used or consumed in any Borrower’s business. 

“Investment” means, with respect to any Person, any investment by such Person in any other
Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (i) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and
(ii) bona fide Accounts arising in the ordinary course of business consistent with past practice), purchases or other acquisitions of Indebtedness, Stock, or all or substantially all of the assets of such other Person (or of any division or
business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
 “Investment Related Property” has the meaning specified therefor in the Security Agreement. 

“IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 

  
 Schedule 1.1 -
9 

 “Lender” and “Lenders” have
the respective meanings set forth in the preamble to the Agreement, and shall include any other Person made a party to the Agreement in accordance with the provisions of Section 13.1. 

“Lender Group” means, individually and collectively, each of the Lenders and Agent. 

“Lender Group Expenses” means all (i) costs or expenses (including taxes, and insurance
premiums) required to be paid by a Loan Party or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (ii) fees or charges paid or incurred by Agent in connection with the Lender
Group’s transactions with Loan Parties or their Subsidiaries, including, fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record searches (including tax lien, litigation, and UCC searches and
including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication, appraisal (including periodic collateral appraisals or business valuations to the extent of the fees
and charges (and up to the amount of any limitation) contained in the Agreement, the Fee Letter or the other Loan Documents), real estate surveys, real estate title policies and endorsements, and environmental audits, (iii) costs and expenses
incurred by Agent in the disbursement of funds to Loan Parties or other members of the Lender Group (by wire transfer or otherwise), (iv) charges paid or incurred by Agent resulting from the dishonor of checks, (v) reasonable costs and
expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to
sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (vi) audit fees and expenses (including travel, meals and lodging) of Agent related to any inspections or audits to the extent of the fees and charges
(and up to the amount of any limitation) contained in the Agreement or the Fee Letter, (vii) reasonable costs and expenses of third party claims or any other suit paid or incurred by the Lender Group in enforcing or defending the Loan Documents
or in connection with the transactions contemplated by the Loan Documents or the Lender Group’s relationship with any Loan Party or any Subsidiary of a Loan Party, (viii) Agent’s and each Lender’s reasonable costs and expenses
(including attorneys fees) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals and lodging), syndicating, or amending the Loan Documents, and (ix) Agent’s and each Lender’s reasonable costs
and expenses (including attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a
“workout,” a “restructuring,” or an Insolvency Proceeding concerning any Loan Party or any Subsidiary of a Loan Party or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of
whether suit is brought, or in taking any Remedial Action concerning the Collateral. 

“Lender-Related Person” means, with respect to any Lender, such Lender, together with such
Lender’s Affiliates, officers, directors, employees, attorneys, and agents. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit
arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of 

  
 Schedule 1.1 -
10 

 
any kind or nature whatsoever, including any conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing
lease having substantially the same economic effect as any of the foregoing. 
 “Loan
Account” has the meaning specified therefor in Section 2.9. 
 “Loan
Documents” means the Agreement, the Bank Product Agreements, the Cash Management Agreements, the Collateral Assignment of Rights, the Control Agreements, the Contribution Agreement, the Disbursement Letter, the Fee Letter, any Guaranty,
the Intercompany Subordination Agreement, the Mortgages, the Security Agreement, any Note or Notes executed by a Loan Party in connection with the Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in
the future, by any Loan Party or any of their Subsidiaries, and the Lender Group in connection with the Agreement. 
 “Loan Parties” means Borrowers and Guarantors, and “Loan Party” means any one of them. 

“Material Adverse Change” means (i) a material adverse change in the business, prospects,
operations, results of operations, assets, liabilities or condition (financial or otherwise) of Loan Parties, taken as a whole, (ii) a material impairment of a Loan Party’s ability to perform their obligations under the Loan Documents to
which it is a party or of the Lender Group’s ability to enforce the Obligations or realize upon the Collateral, or (iii) a material impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as a
result of an action or failure to act on the part of a Loan Party. 
 “Material
Contract” means, with respect to any Person, (i) the Second Secured Debt Documents, (ii) each contract or agreement to which such Person or any of its Subsidiaries is a party involving aggregate consideration payable to or by
such Person or such Subsidiary of $5,000,000 or more (other than purchase orders in the ordinary course of the business of such Person or such Subsidiary and other than contracts that by their terms may be terminated by such Person or Subsidiary in
the ordinary course of its business upon less than 60 days’ notice without penalty or premium) and (iii) all other contracts or agreements material to the business, operations, condition (financial or otherwise), performance, prospects or
properties of such Person or such Subsidiary. 
 “Maturity Date” has the meaning
specified therefor in Section 3.2. 
 “Moody’s” has the meaning specified
therefor in the definition of Cash Equivalents. 
 “Mortgages” means, individually and
collectively, one or more mortgages, deeds of trust, or deeds to secure debt, executed and delivered by a Borrower or a Subsidiary of a Loan Party in favor of Agent, in form and substance satisfactory to Agent, that encumber the Real Property.

 “Negotiable Collateral” has the meaning specified therefor in the Security
Agreement. 

  
 Schedule 1.1 -
11 

 “Net Cash Proceeds” means: 

(a) with respect to any sale or disposition by Loan Parties or any of their Subsidiaries of assets, the amount of cash
proceeds received (directly or indirectly) from time to time (whether as initial consideration or through the payment of deferred consideration) by or on behalf of Loan Parties or their Subsidiaries, in connection therewith after deducting therefrom
only (i) the amount of any Indebtedness secured by any Permitted Lien on any asset (other than (A) Indebtedness owing to Agent or any Lender under the Agreement or the other Loan Documents and (B) Indebtedness assumed by the purchaser
of such asset) which is required to be, and is, repaid in connection with such sale or disposition, (ii) reasonable fees, commissions, and expenses related thereto and required to be paid by Loan Parties or their Subsidiaries in connection with
such sale or disposition and (iii) taxes paid or payable to any taxing authorities by Loan Parties or their Subsidiaries in connection with such sale or disposition, in each case to the extent, but only to the extent, that the amounts so
deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of Loan Parties, and are properly attributable to such transaction; and 

(b) with respect to the issuance or incurrence of any Indebtedness by Loan Parties or any of their Subsidiaries, or the
issuance by Loan Parties or any of their Subsidiaries of any shares of Stock, the aggregate amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred
consideration) by or on behalf of Loan Parties or their Subsidiaries in connection with such issuance or incurrence, after deducting therefrom only (i) reasonable fees, commissions, and expenses related thereto and required to be paid by Loan
Parties or their Subsidiaries in connection with such issuance or incurrence, (ii) taxes paid or payable to any taxing authorities by Loan Parties or their Subsidiaries in connection with such issuance or incurrence, in each case to the extent,
but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of Loan Parties, and are properly attributable to such transaction. 

“Note” means one or more promissory notes executed by Borrowers evidencing the Term Loan.

 “Obligations” means (i) all loans (including the Term Loan), debts, principal,
interest (including any interest that accrues after the commencement of an Insolvency Proceeding regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), premiums, liabilities (including all
amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification obligations), fees (including the fees provided for in the Fee Letter), charges, costs, Lender Group Expenses (including any fees or expenses
that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), lease payments, guaranties, covenants, and duties of any kind and
description owing by Loan Parties to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all interest not paid when due and all other expenses or other amounts that Loan Parties are required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and
(ii) all 

  
 Schedule 1.1 -
12 

 
Bank Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or
alterations thereof, both prior and subsequent to any Insolvency Proceeding. 
 “Oil and Gas
Business” means (i) the acquisition, exploration, exploitation, development, operation and disposition of interests in Oil and Gas Properties and Hydrocarbons, (ii) the gathering, marketing, treating, processing, storage,
selling and transporting of any production from such interests or properties, including, without limitation, the marketing of Hydrocarbons obtained from unrelated Persons, (iii) any business relating to or arising from exploration for or
development, production, treatment, processing, storage, transportation or marketing of oil, gas and other minerals and products produced in association therewith, (iv) any business relating to oilfield sales and service, and (v) any
activity that is ancillary or necessary or desirable to facilitate the activities described in clauses (i) through (iv) of this definition. 
 “Oil and Gas Liens” means (i) Liens on any specific property or any interest therein, construction thereon or improvement thereto to secure all or any part of the costs
incurred for surveying, exploration, drilling, extraction, development, operation, production, construction, alteration, repair or improvement of, in, under or on such property and the plugging and abandonment of wells located thereon (it being
understood that, in the case of oil and gas producing properties, or any interest therein, costs incurred for “development” shall include costs incurred for facilities relating to such properties or to projects, ventures or other
arrangements of which such properties form a part or which relate to such properties or interests); (ii) Liens on an oil or gas producing property to secure obligations incurred or guarantees of obligations incurred in connection with or
necessarily incidental to commitments for the purchase or sale of, or the transportation or distribution of, the products derived from such property; (iii) Liens arising under partnership agreements, oil and gas leases, overriding royalty
agreements, net profits agreements, production payment agreements, royalty trust agreements, incentive compensation programs for geologists, geophysicists and other providers of technical services to the Loan Parties or their Subsidiaries, master
limited partnership agreements, farm-out agreements, farm-in agreements, division orders, contracts for the sale, purchase, exchange, transportation, gathering or processing of oil, gas or other hydrocarbons, utilizations and pooling designations,
declarations, orders and agreements, development agreements, operating agreements, production sales contracts, area of mutual interest agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements,
salt water or other disposal agreements, seismic or geophysical permits or agreements, and other agreements which are customary in the Oil and Gas Business; provided, however, in all instances that such Liens are limited to the assets that are the
subject of the relevant agreement, program, order or contract; and (iv) Liens on pipelines or pipeline facilities that arise by operation of law. 
 “Oil and Gas Properties” means all Hydrocarbon Interests; personal property and/or real property now or hereafter pooled or unitized with Hydrocarbon Interests; presently existing
or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including without limitation all units created under orders, regulations and rules of any Governmental Authority having jurisdiction) which may
affect all or any portion of the Hydrocarbon Interests; pipelines, gathering lines, compression facilities, tanks and processing plants; oil wells, gas wells, water wells, injection wells, platforms, spars or other offshore facilities, casings,
rods, tubing, pumping units and engines, Christmas trees, derricks, separators, 

  
 Schedule 1.1 -
13 

 
gun barrels, flow lines, gas systems (for gathering, treating and compression), and water systems (for treating, disposal and injection); interests held in royalty trusts whether presently
existing or hereafter created; Hydrocarbons in and under and which may be produced, saved, processed or attributable to the Hydrocarbon Interests, the lands covered thereby and all Hydrocarbons in pipelines, gathering lines, tanks and processing
plants and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; tenements, hereditaments, appurtenances and personal property and/or real property in any way appertaining,
belonging, affixed or incidental to the Hydrocarbon Interests, and all rights, titles, interests and estates described or referred to above, including any and all real property, now owned or hereafter acquired, used or held for use in connection
with the operating, working or development of any of such Hydrocarbon Interests or personal property and/or Real Property and including any and all surface leases, rights-of-way, easements and servitudes together with all additions, substitutions,
replacements, accessions and attachments to any and all of the foregoing; oil, gas and mineral leasehold, fee and term interests, overriding royalty interests, mineral interests, royalty interests, net profits interests, net revenue interests, oil
payments, production payments, carried interests, leases, subleases, farmouts and any and all other interests in Hydrocarbons; in each case whether now owned or hereafter acquired directly or indirectly. 

“Originating Lender” has the meaning specified therefor in Section 13.1(e). 

“Parent” has the meaning specified therefor in the preamble to the Agreement. 

“Participant” has the meaning specified therefor in Section 13.1(e). 

“Permitted Acquisition” means (a) a Permitted Cash Acquisition, or (b) a Permitted
Non-Cash Acquisition, as the context requires. 
 “Permitted Cash Acquisition” means
any Acquisition as to which each of the following is applicable: 
 (a)      such
Acquisition qualifies as a Permitted Non-Cash Acquisition except that the consideration payable in respect of the proposed Acquisition also includes cash; 
 (b)      Parent has provided Agent with forecasted balance sheets, profit and loss statements, and cash flow statements of the Person to be acquired, all prepared on a basis
consistent with such Person’s historical financial statements, together with appropriate supporting details and a statement of underlying assumptions for the 3-year period following the date of the proposed Acquisition (on a year by year basis,
and for the 1-year period following the date of the proposed Acquisition, on a month by month basis), in form and substance (including as to scope and underlying assumptions) reasonably satisfactory to Required Lenders; 

(c)      Parent shall have Qualified Cash in an amount equal to at least $10,000,000
immediately after giving effect to the consummation of the proposed Acquisition; 

(d)      the assets being acquired (other than a de minimis amount of assets in
relation to the assets being acquired) are located within the United States or the Person whose Stock is being acquired is organized in a jurisdiction located within the United States, 

  
 Schedule 1.1 -
14 

 (e)      the purchase consideration payable
in respect of all Permitted Cash Acquisitions, in the aggregate (including the proposed Acquisition and including deferred payment obligations) shall not exceed $5,000,000 in the aggregate; provided, however, that the purchase price of any single
Permitted Cash Acquisition or series of related Permitted Cash Acquisitions shall not exceed $2,500,000 in the aggregate, 
 (f)      in the case of an Asset Acquisition (and notwithstanding any contrary provisions of Section 5.15 or any other contrary provision of the Agreement), the
applicable Loan Party shall have executed and delivered any and all documentation reasonably requested by Agent in order to provide Agent with a first priority perfected security interest, subject to Permitted Liens, in such assets, and 

(g)      in the case of a Stock Acquisition (and notwithstanding any contrary provisions
of Section 5.15 or any other contrary provision of the Agreement), (i) the Person whose Stock is being acquired shall have executed and delivered any and all documentation reasonably requested by Agent in order to become a Guarantor,
(ii) the Person whose Stock is being acquired shall have executed and delivered any and all documentation reasonably requested by Agent in order to provide Agent with a first priority perfected security interest, subject to Permitted Liens, in
the assets of such Person, and (iii) the owner of the Stock subject to such Stock Acquisition shall have executed and delivered any and all documentation reasonably requested by Agent in order to provide Agent with a first priority perfected
security interest in such Stock. 
 “Permitted Changes” means amendments,
modifications, refinancings, renewals, or extensions of Indebtedness so long as: (i) the terms and conditions of such amendments, modifications, refinancings, renewals, or extensions do not materially impair the prospects of repayment of the
Obligations by Borrowers or materially impair Borrowers’ creditworthiness, (ii) such amendments, modifications, refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so amended,
modified, refinanced, renewed, or extended (other than increases not exceeding the unused amounts permitted under Section 6.1(l), (iii) such amendments, modifications, refinancings, renewals, or extensions do not result in an increase in
the interest rate in excess of market rate of interests for the Loan Parties with respect to the Indebtedness so amended, modified, refinanced, renewed, or extended, (iv) (a) in the case of the Second Secured Debt, such amendments,
modifications, refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so amended, modified, refinanced, renewed, or extended, nor (b) in the case of all Indebtedness, are such
amendments, modifications, refinancings, renewals, or extensions on terms or conditions that, taken as a whole, are materially more burdensome or restrictive to Borrowers, (v) if the Indebtedness that is amended, modified, refinanced, renewed,
or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the amendment, modification, refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to
the Lender Group as those that were applicable to the amended, modified, refinanced, renewed, or extended Indebtedness, and (vi) the Indebtedness that is amended, modified, refinanced, renewed, or extended is not recourse to any Person that is
liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was amended, modified, refinanced, renewed, or extended. 

  
 Schedule 1.1 -
15 

 “Permitted Discretion” means a determination made
in the exercise of reasonable (from the perspective of a secured lender) business judgment. 

“Permitted Dispositions” means (i) sales or other dispositions of Equipment that is
substantially worn, damaged, or obsolete in the ordinary course of business, (ii) sales of Inventory, including Hydrocarbons, to buyers in the ordinary course of business, (iii) the use or transfer of money or Cash Equivalents in a manner
that is not prohibited by the terms of the Agreement or the other Loan Documents, (iv) the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, and
(v) sales or other dispositions of the Investments set forth on Schedule P-3 and of the Oil and Gas Properties set forth on Schedule P-4, provided, that the terms and conditions of the sales or other dispositions of such Oil and Gas
Properties must be satisfactory to Required Lenders. 
 “Permitted Distributions” means
(i) such dividends, payments or other distributions to the extent payable solely in shares of Stock of Parent, and (ii) dividends and distributions by a Loan Party to another Loan Party. 

“Permitted Farm-Out Agreements” means those certain farm-out agreements identified on
Schedule 6.15 and other farm-out agreements entered into following the Restatement Date with the prior written consent of Required Lenders. 
 “Permitted Holder” means the Person identified on Schedule P-1. 
 “Permitted Investments” means (i) Investments in cash and Cash Equivalents, (ii) Investments in negotiable instruments for collection, (iii) advances made in
connection with purchases of goods or services in the ordinary course of business, (iv) Investments received in settlement of amounts due to a Loan Party or any Subsidiary of a Loan Party effected in the ordinary course of business or owing to
a Loan Party or any Subsidiary of a Loan Party as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or any Subsidiary of a Loan Party, (v) Investments made
in the ordinary course of, and of a nature that is customary in, the Oil and Gas Business as a means of actively exploiting, exploring for, acquiring, developing, processing, gathering, marketing or transporting oil and gas through agreements,
transactions, interests or arrangements which permit one to share risks or costs, comply with regulatory requirements regarding local ownership or satisfy other objectives customarily achieved through the conduct of the Oil and Gas Business jointly
with third parties, including, without limitation, the entry into operating agreements, working interests, royalty interests, mineral leases, processing agreements, farm-in agreements, division orders, contracts for the sale, transportation or
exchange of oil or natural gas, unitization and pooling declarations and agreements and area of mutual interest agreements, production sharing agreements or other similar or customary agreements, transactions, properties, interests, and investments
and expenditures in connection therewith; provided that for purposes of this clause (v), an investment in capital Stock, partnership interests, joint venture interests, limited liability company interests or other similar equity interests in a
Person shall not constitute a Permitted Investment, (vi) Permitted Acquisitions and (vii) Investments set forth on Schedule P-3. 

  
 Schedule 1.1 -
16 

 “Permitted Liens” means (a) Liens held by
Agent to secure the Obligations, (b) Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or (ii) do not have priority over the Agent’s Liens and the underlying
taxes, assessments, or charges or levies are the subject of Permitted Protests, (c) judgment Liens that do not constitute an Event of Default under Section 7.7 of the Agreement, (d) Liens set forth on Schedule P-2, provided that any
such Lien only secures the Indebtedness that it secures on the Restatement Date and any Refinancing Indebtedness in respect thereof, (e) the interests of lessors under operating leases, (f) purchase money Liens or the interests of lessors
under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only
secures the Indebtedness that was incurred to acquire the asset purchased or acquired or any Refinancing Indebtedness in respect thereof, (g) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics,
materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests,
(h) Liens on amounts deposited in connection with obtaining worker’s compensation or other unemployment insurance, (i) Liens on amounts deposited in connection with the making or entering into of bids, tenders, or leases in the
ordinary course of business and not in connection with the borrowing of money, (j) Liens on amounts deposited as security for letters of credit and performance or surety bonds in connection with obtaining or maintaining such letters of credit
and bonds for plugging and abandonment liabilities in the ordinary course of business, (k) with respect to any Real Property, easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation
thereof, (l) Liens securing the Second Secured Debt, provided, that such Liens are subject to the Intercreditor Agreement, (m) Liens that are replacements of Permitted Liens to the extent the original Indebtedness is refinanced, renewed,
or extended pursuant to Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness, and (n) Oil and Gas Liens which are not incurred in connection with the borrowing of money.

 “Permitted Merger” means the merger of (i) any Borrower with and into any other
Borrower, (ii) any Guarantor with and into any other Guarantor, or (ii) any Subsidiary that is not a Loan Party with and into any other Subsidiary that is not a Loan Party, in each case, so long as no Default or Event of Default has
occurred and is continuing or would result from such merger. 
 “Permitted Non-Cash
Acquisition” means any Acquisition so long as: 
 (a)      no
Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition and the proposed Acquisition is consensual, 

(b)      the consideration payable in respect of the proposed Acquisition shall be
composed solely of common Stock of Parent; 
 (c)      no Indebtedness will be
incurred, assumed, or would exist with respect to Parent or its Subsidiaries as a result of such Acquisition, other than Indebtedness permitted under clause (c) of Section 6.1 and no Liens will be incurred, assumed, or would exist with
respect to 

  
 Schedule 1.1 -
17 

 
the assets of Parent or its Subsidiaries as a result or such Acquisition other than Liens permitted under clause (vi) of the definition of Permitted Liens; 

(d)      Parent has provided Agent with written confirmation, supported by reasonably
detailed calculations, that on a pro forma basis, created by adding the historical combined financial statements of Parent (including the combined financial statements of any other Person or assets that were the subject of a prior Permitted
Acquisition during the relevant period) to the historical consolidated financial statements of the Person to be acquired (or the historical financial statements related to the assets to be acquired) pursuant to the proposed Acquisition (adjusted to
eliminate expense items that would not have been incurred and to include income items that would have been recognized, in each case, if the combination had been accomplished at the beginning of the relevant period; such eliminations and inclusions
to be mutually and reasonably agreed upon by Parent and Agent), Parent and its Subsidiaries (i) would have been in compliance with the financial covenant in Section 6.16 for the 12 month period ended immediately prior to the proposed date
of consummation of such proposed Acquisition, and (ii) are projected to be in compliance with the financial covenant in Section 6.16 for the 12 month period ended one year after the proposed date of consummation of such proposed
Acquisition, together with copies of all such historical financial statements of the Person or assets being acquired, 
 (e)      Parent has provided Agent with written notice of the proposed Acquisition at least 30 Business Days prior to the anticipated closing date of the proposed Acquisition
and, not later than 5 Business Days prior to the anticipated closing date of the proposed Acquisition, copies of the acquisition agreement and other material documents relative to the proposed Acquisition, which agreement and documents must be
reasonably acceptable to Agent, 
 (f)      the assets being acquired (other than
a de minimis amount of assets in relation to Parent and its Subsidiaries’ total assets), or the Person whose Stock is being acquired, are useful in or engaged in, as applicable, the business of Parent and its Subsidiaries or a business
reasonably related thereto, and 
 (g)      the subject assets or Stock, as
applicable, are being acquired directly by Borrowers or one of their Subsidiaries that is a Guarantor, and (i) in the case of an Asset Acquisition, the applicable Loan Party shall have executed and delivered or authorized, as applicable, any
and all documentation reasonably requested by the Agent in order to include the newly acquired assets within the collateral hypothecated under the Loan Documents, and (ii) in the case of a Stock Acquisition, the applicable Loan Party shall have
complied with Section 5.15 of the Agreement. 
 “Permitted Protest” means the
right of Administrative Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental
payment, provided that (i) a reserve with respect to such obligation is established on a Borrower’s or any of its Subsidiaries’ books and records in such amount as is required under GAAP, (ii) any such protest is instituted
promptly and prosecuted diligently by Administrative Borrower or any of its Subsidiaries, as applicable, in good faith, and (iii) Agent is satisfied that, 

  
 Schedule 1.1 -
18 

 
while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of the Agent’s Liens. 

“Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase Money
Indebtedness incurred after May 15, 2007 in an aggregate principal amount outstanding at any one time not in excess of $10,000,000. 
 “Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land
trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 

“Petroleum Engineers” means such petroleum engineers of recognized national standing as may be
selected by Loan Parties with the prior consent of Agent. 
 “Platform” has the meaning
specified therefor in Section 18.9. 
 “Preferred Stock” means the Series A
Preferred Stock of Parent. 
 “Projections” means Parent’s forecasted
(i) balance sheets, (ii) profit and loss statements, and (iii) cash flow statements, all prepared on a consistent basis using a successful efforts methodology, together with appropriate supporting details and a statement of underlying
assumptions. 
 “Pro Rata Share” means, as of any date of determination, the percentage
obtained by dividing (i) the outstanding principal amount of the Term Loan held by such Lender by (ii) the outstanding principal amount of the total Term Loan. 

“Proved Developed Non-Producing Reserves” means those Oil and Gas Properties designated as
“proved developed non-producing” (in accordance with the rules promulgated by the SEC from time to time) in the Reserve Report. 
 “Proved Developed Producing Reserves” means those Oil and Gas Properties designated as “proved developed producing” (in accordance with the rules promulgated by the SEC
from time to time) in the Reserve Report. 
 “Proved Developed Reserves” means the
Proved Developed Non-Producing Reserves and the Proved Developed Producing Reserves. 
 “Public
Lender” has the meaning specified therefor in Section 18.9. 
 “Purchase Money
Indebtedness” means Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any
part of the acquisition cost thereof. 
 “Qualified Cash” means, as of any date of
determination, the amount of unrestricted cash and Cash Equivalents of Loan Parties and their Subsidiaries that is in Deposit 

  
 Schedule 1.1 -
19 

 
Accounts or in Securities Accounts, or any combination thereof, and which such Deposit Account or Securities Account is the subject of a Control Agreement and is maintained by a branch office of
the bank or securities intermediary located within the United States. 
 “Real
Property” means any estates or interests in real property now owned or hereafter acquired by any Loan Party or a Subsidiary of any Loan Party and the improvements thereto. 

“Real Property Collateral” means the Real Property identified on Schedule R-1 and any Real
Property hereafter acquired by a Borrower or any Subsidiary of a Borrower. 
 “Record”
means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. 
 “Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as the only amendments, modifications or other changes to such Indebtedness are
Permitted Changes. 
 “Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any Hazardous Material (including the abandonment or discarding of barrels, containers and other closed receptacles containing any Hazardous
Material) into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Materials through or in the ambient air, soil, surface or ground water, or property. 

“Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (ii) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to
endanger public health or welfare or the indoor or outdoor environment, (iii) restore or reclaim natural resources or the environment, (iv) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance
activities, or (v) conduct any other actions with respect to Hazardous Materials authorized by Environmental Laws. 
 “Report” means any report, audit or exam respecting Borrowers or their Subsidiaries prepared by or at the request of Agent. 

“Required Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares exceed 50%;
provided, that, if at any date of determination, there are less than three unaffiliated Lenders, the “Required Lenders” shall mean all of the Lenders. 

“Reserve Report” means a report of the Petroleum Engineers (or in the case of the report dated
June 30, of the chief engineer of Borrowers) in the form of the Restatement Date Reserve Report, setting forth, as of June 30 or December 31 of any calendar year (i) the volumetric quantity and the Total Proved Developed PV-10 of
the oil and gas reserves attributable to the Oil and Gas Properties of Borrowers, together with a projection of the rate of production and future net income, taxes, operating expenses and Capital Expenditures with

  
 Schedule 1.1 -
20 

 
respect thereto as of such date, and (ii) such other information as Agent may reasonably request, all in form and substance satisfactory to Required Lenders. 

“Restatement Date” means the date that the Term Loan is advanced hereunder. 

“Restatement Date Reserve Report” means the reserve report prepared by the chief engineer of
Borrowers dated June 30, 2010 with respect to the Oil and Gas Properties of Borrowers. 

“SEC” means the United States Securities and Exchange Commission and any successor thereto.

 “Second Secured Debt” means all current and future Indebtedness and other
liabilities owing pursuant to the Second Secured Notes or any other Second Secured Debt Documents and any Refinancing Indebtedness in respect of such Indebtedness. 

“Second Secured Debt Documents” means the Second Secured Note Indenture, the Second Secured
Notes and all agreements and documents executed in connection therewith at any time, including without limitation those agreements and documents listed on Schedule 4.24 hereto. 

“Second Secured Notes” means the 10 1/2% Senior Secured Notes issued by the Parent in the
original principal amount of $300,000,000 due June 1, 2012 issued pursuant to the Second Secured Note Indenture and any other securities issued pursuant to the Second Secured Note Indenture at any time. 

“Second Secured Note Indenture” means the Senior Secured Indenture between the Parent, the
Subsidiary guarantors named therein and The Bank of New York, as trustee, dated as of May 15, 2007, as amended, supplemented or otherwise modified from time to time in accordance with Section 6.7 of this Agreement. 

“Securities Account” means a securities account (as that term is defined in the Code).

 “Security Agreement” means a security agreement, in form and substance satisfactory
to Agent, executed and delivered by Loan Parties to Agent. 
 “Seismic Licenses” has
the meaning specified therefor in Section 4.32. 
 “Solvent” means, with respect
to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is greater than all of such Person’s debts. 
 “S&P” has the meaning specified therefor in the definition of Cash Equivalents. 
 “Stock” means all shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting,
including common stock, preferred stock, or any other “equity security” (as such term is defined 

  
 Schedule 1.1 -
21 

 
in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). 
 “Subordinated Indebtedness” means Indebtedness of any Loan Party the terms of which are reasonably satisfactory to the Required Lenders and which has been expressly subordinated in
right of payment to all Indebtedness of such Loan Party under the Loan Documents (i) by the execution and delivery of a subordination agreement, in form and substance reasonably satisfactory to the Required Lenders, or (ii) otherwise on
terms and conditions (including, without limitation, subordination provisions, payment terms, interest rates, covenants, remedies, defaults and other material terms) reasonably satisfactory to the Required Lenders. 

“Subsidiary” of a Person means a corporation, partnership, limited liability company, or other
entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited
liability company, or other entity. 
 “Taxes” has the meaning specified therefor in
Section 16(a). 
 “Term Loan” has the meaning specified therefor in
Section 2.2. 
 “Total Proved Developed PV-10” means, as of any date of
determination, the sum of the present values of the amounts of net revenues before income taxes expected to be received by Borrowers following the date of determination on the basis of estimated production from Proved Developed Reserves (as set
forth in the most recent Reserve Report) determined utilizing the average price as of the first day of each month for the 12 months preceding the date of determination for the appropriate category of oil or gas and assuming that such average price
and production costs thereafter remain constant, then discounted at the rate of 10% per year to obtain the present value, and otherwise applying the financial accounting and reporting standards prescribed by the SEC for application of the
successful efforts method of accounting under Rule 4-10 and Regulation S-X as promulgated by the SEC from time to time. 
 “United States” means the United States of America. 
 “Voidable Transfer” has the meaning specified therefor in Section 18.8. 
 “Wayzata” has the meaning specified therefor in the preamble to this Agreement. 
 “Wells Fargo” means Wells Fargo Bank, National Association, a national banking association. 

“WFCF” means Wells Fargo Capital Finance, Inc., a California corporation formerly known as Wells
Fargo Foothill, Inc. 

  
 Schedule 1.1 -
22 

 Schedule 2.7(a) 

Cash Management Bank 
 BBVA Compass Bank 
 24 Greenway Plaza 

Houston, TX 77046 

 Schedule 3.1 

The amendment and restatement of the 2007 Credit Agreement and advance of the Term Loan are subject to the fulfillment,
to the satisfaction of Wayzata (the extension of the Term Loan by Wayzata being conclusively deemed to be its satisfaction or waiver of the following), of each of the following conditions precedent: 

(a)      the Restatement Date shall occur on or before December 15, 2010; 

(b)      a summary of the Restatement Date Reserve Report shall have been filed of public
record pursuant to Form 8-K with the SEC; 
 (c)      the representations and
warranties of Loan Parties and their Subsidiaries contained in this Agreement or in the other Loan Documents shall be true and correct; 
 (d)      no Default or Event of Default shall have occurred and be continuing; 
 (e)      no Material Adverse Change shall have occurred since December 31, 2009. 

(f)      Wayzata shall have received evidence that appropriate financing statements have
been duly filed in such office or offices as may be necessary or, in the opinion of Wayzata, desirable to perfect the Agent’s Liens in and to the Collateral, and Wayzata shall have received searches reflecting the filing of all such financing
statements, and evidencing the absence of any other Liens on the Collateral, other than Liens acceptable to Wayzata; 
 (g)      Wayzata shall have received each of the following documents, in form and substance satisfactory to Wayzata, duly executed, and each such document shall be in full
force and effect: 
   (i)      the Agreement, 

  (ii)     the Note, and 

  (iii)    the Disbursement Letter. 

(h)      Wayzata shall have received a certificate from the Secretary of each Loan Party
(i) attesting to the resolutions of such Loan Party’s Board of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which such Loan Party is a party, (ii) authorizing
specific officers of such Loan Party to execute the same, and (iii) attesting to the incumbency and signatures of such specific officers of such Loan Party; 

(i)      Wayzata shall have received copies of each Loan Party’s Governing Documents,
as amended, modified, or supplemented to the Restatement Date, certified by the Secretary of such Loan Party; 

  
 Schedule 3.1 -
1 

 (j)      Wayzata shall have received a
certificate of status with respect to each Loan Party, dated within 10 days of the Restatement Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Loan Party, which certificate shall indicate
that such Loan Party is in good standing in such jurisdiction; 
 (k)     Wayzata
shall have received certificates of status with respect to each Loan Party, each dated within 30 days of the Restatement Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of
organization of such Loan Party) in which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that such Loan Party is in good standing in such jurisdictions; 

(l)      Agent shall have received a certificate of insurance, together with the
endorsements thereto (including loss payable endorsements), as are required by Section 5.8, the form and substance of which shall be satisfactory to Wayzata; 

(m)    Wayzata shall have received legal opinions, in form and substance satisfactory to Wayzata,
from Andrews Kurth LLP, special New York and Texas counsel to Loan Parties; 

(n)     Wayzata shall have received a certificate of the chief financial officer of Parent
certifying (i) as to the truth and accuracy of the representations and warranties of each Loan Party contained in Section 4 of the Agreement, (ii) the absence of any Defaults or Events of Default, and (iii) that after giving
effect to the incurrence of Indebtedness under the Agreement, each Loan Party is Solvent, on and as of the date of such extension of credit; 
 (o)     Borrowers shall have paid all Lender Group Expenses incurred in connection with the transactions evidenced by this Agreement; 

(p)     Administrative Borrower shall have established a Deposit Account subject to a Control
Agreement for purposes of the Interest Reserve; and 
 (q)     all letters of credit
issued under the 2007 Credit Agreement shall have been cancelled and/or returned on terms satisfactory to Wayzata. 

  
 Schedule 3.1 -
2 

 Schedule 4.2(a) 

Jurisdictions of Organization 
 Delaware for Dune Energy, Inc. 
 Texas for Dune Properties, Inc. and Dune Operating Company

 Schedule 4.2(b) 

Chief Executive Offices 
  

					
	 Dune Energy, Inc.
	 		  	Two Shell Plaza, 777 Walker Street, Suite 2300, Houston, Texas 77002
			
	 Dune Properties, Inc.
	 		  	Two Shell Plaza, 777 Walker Street, Suite 2300, Houston, Texas 77002
			
	 Dune Operating Company
	 		  	Two Shell Plaza, 777 Walker Street, Suite 2300, Houston, Texas 77002

 Schedule 4.2(c) 

Organizational Identification Numbers 
  

					
	 Entity
	 	 EIN/TIN
	 	 Organization Identification Numbers

			
	 Dune Energy Inc.
	 	95-4737507	 	2969625
			
	 Dune Operating Company
	 	20-2379750	 	800447859
			
	 Dune Properties, Inc.
	 	62-1759062	 	149826000

 Schedule 4.2(d) 

Commercial Tort Claims 
  

							
	 Dune Energy Inc.
	  	None	  		  	
				
	 Dune Operating Company
	  	None	  		  	
				
	 Dune Properties, Inc.
	  	None	  		  	

 Schedule 4.3(b) 

Capitalization of Parent 
  

																	
	 Name
	  	Jurisdiction	 	  	 	 	  	Authorized	 	 	  	Issued	 
						
	 Dune Energy, Inc.
	  	 	Delaware	  	  				  	300,000,000
 common shares
	 		  	 	41,271,945	  
						
	 Dune Energy, Inc
	  	 	Delaware	  	  				  	100,000,000
 preferred shares1
	 		  	 	213,480	  

  

									
	 Dune Energy Inc.
	  		  		  	 1.      Options – 210,000

				
		  		  		  	 2.      Warrants – 291,635

 
  

	1	 The preferred shares are convertible to common shares for a conversion price of $8.75/share. 

 Schedule 4.3(c) 

Capitalization of Parents’ Subsidiaries 
  

															
	 Name
	  	Jurisdiction	  	Authorized	 	  	Issued	 	  	Subsidiary owns	 
	 Dune Operating Company
	  	Texas	  	 	10,000	  	  	 	100	  	  	 	0	% 
	 Dune Properties, Inc.
	  	Texas	  	 	1,000,000	  	  	 	100	  	  	 	0	%

 Schedule 4.3(d) 

Subscriptions, Options and Warrants 
  

					
	 Dune Operating Company
	  	 	None	  
		
	 Dune Properties, Inc.
	  	 	None	  

 Schedule 4.5 
 Litigation 
  

	1.	 Dune Properties, Inc. (“DPI”), as successor to Goldking Operating Company, has been named a responsible party by the United States Coast
Guard (“USCG”) for an intermittent release of oil into inland waters that occurred in the Garden Island Bay Field in Louisiana following the impact of Hurricane Katrina in 2005. This release is referred to by the USCG as the “mystery
sheen.” Further investigation by the USCG and DPI has revealed that Shell Pipeline Company owns an abandoned pipeline which runs through the impacted area. That pipeline was shut in by Shell Pipeline prior to the hurricane because of ruptures
and buckling due to subsidence. Based on its investigation and analysis, which includes coring samples in the impacted area, DPI believes that the abandoned Shell Pipeline is a likely source of the release. Further investigation by the USCG and DPI
also indicates the presence of a production pit at the location which was constructed by Texaco, DPI’s predecessor in title, and possibly improperly closed prior to DPI’s acquisition of its interest in the Garden Island Bay Field. DPI is
in preliminary discussions with the USCG concerning possible remediation of the site, as an alternative to federalization, and the USCG has indicated that it intends to include Shell and Texaco in those discussions. 

 

	2.	 DPI was named as a defendant in the matter entitled, D&D Cajun Ventures, LLC and Eileen H. Baur v. Atlantic Richfield Company, et al.,
bearing Civil Action No. 87,694, “L” on the docket of the 15th Judicial District Court in and for Vermilion Parish, Louisiana. Plaintiff seeks an unspecified amount of money damages “equal to the cost to conduct a comprehensive
and expedited environmental assessment of all present and yet unidentified pollution and contamination of the property” and for “continuous and ongoing migration of . . oilfield waste . causing new and ever increasing damage ...” to
its property. It also seeks remediation costs and exemplary damages in unspecified amounts. Finally, plaintiff further seeks an undisclosed amount of unpaid royalties. The Court has ordered plaintiff to amend its petition twice to identify its
claims with sufficient particularity to permit preparation of a defense, plaintiff has failed to do so. No discovery has been conducted in this matter and, given its preliminary stage, it is impossible at this point to reasonably estimate the
likelihood of an unfavorable outcome or the amount or range of any potential loss. 

  

	3.	 DPI was named as a defendant in the matter entitled Emerald Land Corporation v. Dune Properties, Inc., bearing Civil Action No. 120-467
on the docket of the 16th Judicial District Court in and for St. Mary Parish, Louisiana. Plaintiff seeks a judgment declaring that certain mineral leases in the Bateman Lake Field have terminated and for alleged damages sustained by Emerald Land as
a result of Dune’s refusal to release the leases in accordance with the provisions of La. Rev. Statutes La. R.S. 31:122. DPI asserts that said leases have been maintained and remain in full force and effect. No discovery has been conducted in
this matter and, given its preliminary stage, it is impossible at this point to reasonably estimate the likelihood of an unfavorable outcome or the amount or range of any potential loss. 

 

	4.	 Dune Energy, Inc. (“DEI”) was named a defendant in Wesley J. Deshotels, Jr. and Melissa Deshotels v. Terrebonne Wireline Services Inc.,
Dune Energy Inc., Wood Group Production Services, Inc., and Blaine Portier, bearing Civil Action No. 09-3230, Section “F” on the docket of the United States District Court for the Eastern District of Louisiana. The plaintiff
Deshotels and his wife sought damages for injuries sustained by Wesley Deshotels in the Bayou Couba Field when a small boat, owned by DEI and operated by a Terrebonne Wireline Services employee, ran aground and threw Wesley Deshotels into the
bulkhead of the boat, injuring his head. 

 DEI was dismissed on summary judgment and
thereafter the claims of the plaintiffs were settled by Terrebonne Wireline for $200,000.00. At present, Terrebonne Wireline Services is seeking indemnity from Dune in the forgoing amount, plus attorney’s fees in the approximate amount of an
additional $100,000.00, pursuant to the terms and conditions of the Master Service Agreement in force at the time of the casualty. The MSA required Dune to name Terrebonne Wireline Services as additional insured on the Dune insurance policy with
Travelers Insurance Company. Travelers has asserted a defense to the indemnity claim, arguing the application of Louisiana law which would preclude such indemnity. Preliminary 

 
settlement discussions are in progress, but we believe that the Travelers position has merit and can be successfully maintained. 

 

	5.	 In the case of Troy Daigle v. Texaco, Inc., The Texas Company, St. Michael’s Hunting & Fishing Club, L.L.C., Fred & Edna
W. Land Corporation, Eula Mae B. Williams, and Meryle E. Williams, 16th Judicial District Court for the Parish of St. Mary, Case No. 120341, Division “D” plaintiff alleges personal injuries sustained on or about July 10, 2008
when he was traveling in a fishing boat that struck a submerged metal sign in Bateman Lake in St. Mary Parish, Louisiana. Texaco Co., Inc. and/or The Texas Company made demand upon EnerVest Energy, L.P. which had acquired the mineral lease.
EnerVest, in turn, made demand on August 19, 2010 upon Dune GC Holdings, Inc. f/k/a Goldking Energy Corporation (which has since been merged into DPI) which had acquired the property from EnerVest pursuant to a July 1, 2005 Purchase and
Sale Agreement. Specifically, EnerVest invoked paragraph 8.5 of the PSA which specified that the purchaser, Dune, would indemnify EnerVest. The indemnity obligation was underwritten by Travelers Insurance Company which has appointed counsel to
defend. The extent of plaintiff’s damages is unclear at this time and, likewise, it is uncertain whether EnerVest can perfect its indemnity claim. An analysis from Travelers counsel is anticipated in the coming weeks.

  

	6.	 In Dan S. Collins, Marrian L. Pyle, and Dan S. Collins, CPL & Associates, Inc. versus Dune Energy, Inc., Dune Properties, Inc., and Dune
Operating Company, bearing Civil Action No. 89,523 on the docket of the 15th Judicial District Court for the Parish of Vermillion plaintiffs are seeking a judgment for loss of royalties and interest thereon, attorney’s fees and all
general and equitable relief. Specifically, plaintiffs claim to own specific percentages of royalty interests in different producing wells located in Vermillion Parish for which defendants have failed to pay timely. No discovery has been conducted
in this matter and, given its preliminary stage, it is impossible at this point to reasonably estimate the likelihood of an unfavorable outcome or the amount or range of any potential loss. 

 

	7.	 DEI was named as a defendant in a lawsuit styled Santiago Solis v. Goldking Energy, Corporation, Goldking Energy Holdings, L.P., Goldking Energy
Partners I, LP, Goldking Energy Partners II, LLC, Dune Energy, Inc. and Benny Garza, numbered 2009 CVT000520-D1, and filed in the 49th Judicial District Court of Webb County, Texas. The suit was filed on March 30, 2009, and makes claims for
personal injuries alleged to have been sustained by the plaintiff. We are unable to assess the likelihood of an unfavorable outcome or to estimate the amount or range of any possible loss to DEI. 

THREATENED CLAIM 
  

	1.	 By letter dated April 21, 2009, the Edward Wisner Donation Advisory Committee for the City of New Orleans made demand, as lessor, upon Dune
Properties, Inc., Dune Energy, Inc, EnerVest Energy, LP, and Hunt Oil Company for a release of that certain oil and gas mining lease from the City of New Orleans, as trustee under the Edward Wisner Donation, et al, as lessor, to The Texas Company,
as lessee, dated June 15, 1945, registered in the Conveyance Records of Lafourche Parish, Louisiana, in COB 177, at page 347, et seq., under Entry No. 67465, alleging a cessation of production sufficient to terminate the lease under its
terms particularly attributable to the CNO well Nos. 17 and 28, Leeville Field, Lafourche Parish, Louisiana. 

 Through counsel, Dune Properties, Inc. and Dune Energy, Inc. responded to said demand for a release by letter dated May 19, 2009, explaining that the temporary shutdown of production in Leeville
Field arose as a consequence of mandatory evacuation ordered by the Governor of the State of Louisiana to avoid certain environmental damage which would have occurred had production continued during both Hurricane Gustav and Hurricane Ike. Dune
further asserted that it has fully complied with its obligations under the referenced lease and that the two hurricanes, which were completely fortuitous acts of God, caused by no fault on Dune’s part, rendered Dune’s performance of its
production obligations temporarily impossible without violation of the Louisiana and federal statutes, rules, and regulations governing the same. No litigation has been instituted to date by either party and the parties continue to attempt to
negotiate a mutually satisfactory lease amendment in the circumstances. 

 Schedule 4.6 

No Material Adverse Change 
 None. 

 Schedule 4.9 

Environmental Matters 
 Dune Properties, Inc. (“DPI”), as successor to Goldking Operating Company, has been named a responsible party by the United States Coast Guard (“USCG”) for an intermittent release of
oil into inland waters that occurred in the Garden Island Bay Field in Louisiana following the impact of Hurricane Katrina in 2005. This release is referred to by the USCG as the “mystery sheen.” Further investigation by the USCG and DPI
has revealed that Shell Pipeline Company owns an abandoned pipeline which runs through the impacted area. That pipeline was shut in by Shell Pipeline prior to the hurricane because of ruptures and buckling due to subsidence. Based on its
investigation and analysis, which includes coring samples in the impacted area, DPI believes that the abandoned Shell Pipeline is a likely source of the release. Further investigation by the USCG and DPI also indicates the presence of a production
pit at the location which was constructed by Texaco, DPI’s predecessor in title, and possibly improperly closed prior to DPI’s acquisition of its interest in the Garden Island Bay Field. DPI is in preliminary discussions with the USCG
concerning possible remediation of the site, as an alternative to federalization, and the USCG has indicated that it intends to include Shell and Texaco in those discussions. 

 Schedule 4.10 
 Intellectual Property 
  

					
	 Dune Energy Inc.
	 		  	None, except as to the Website disclosed on Schedule 2 of the Security Agreement.
			
	 Dune Operating Company
	 		  	None.
			
	 Dune Properties, Inc.
	 		  	None, except as to the Website disclosed on Schedule 2 of the Security Agreement

 Schedule 4.12 

Commodities Accounts, Deposit Accounts and Securities Accounts 
 Deposit Account List: 
  

											
	 Bank
	  	 ABA
	 	  	 Name
	  	 Account No.
	 
	 BBVA Compass Bank

24 Greenway Plaza

Houston, Texas 77046
	  	 	113010547	  	  	 Dune Operating Company
 General
- Master Account
	  	 	29200572	  
				
		  				  	 Dune Operating Company

Intermediary Operations Account
	  	 	2521127298	  
				
		  				  	 Dune Operating Company
 ZBA
Payables Account
	  	 	29200580	  
				
		  				  	 Dune Operating Company
 ZBA
Revenue Account
	  	 	29200599	  
				
		  				  	 Dune Operating Company
 ZBA
Payroll Account
	  	 	29200602	  
				
		  				  	 Dune Operating Company
 ZBA
Insurance Account
	  	 	2511289028	  
				
		  				  	 Dune Energy, Inc
 ZBA
Checking Account
	  	 	29200629	  
				
		  				  	 Dune Operating Company

Blocked Collateral Account
	  	 	2527428370	  
				
	Wells Fargo Bank, N.A
San Francisco, CA	  	 	121-000-248	  	  	 Dune Operating Company

(Credit to: Wells Fargo Capital Finance, Inc.)
	  	 	4121345094	  

 Commodities Accounts:
None 
 Securities Accounts: None 

 Schedule 4.17 

Material Contracts 
 Dune Operating Company Material Contracts 
 Live Oak Field 

Crude Oil Purchase Contract dated January 15, 2004 by and between Dunhill Exploration & Production, LLC and Plains Marketing, EP.

 Hilcorp Properties Acquisition-General 
 Purchase and Sale Agreement, by and among Grantor, Hilcorp Energy I, L.P. and Hilcorp Energy IV, L.P., as Seller, and Grantee, as Buyer, dated September 1, 2006, as it may have been amended

 Bateman Lake Field 
 Amended and Restated Bateman Lake Field Exploration Agreement dated as of November 15, 2010, among Dune Properties, Inc., Texana Resources Partners, Ltd., Richard B. Beard and George A. Alcorn, Inc.,
covering the acreage comprising the Bateman Lake Unit. 
 Bayou Choctaw Field 
 LA21701             OA 10/25/71 Carl O&GILVO 
 JOA dated 10/2517 1 between Carl Oil & Gas Ltd (operator) and LVO Corp (non-operator) covering SF/4 Section 53, all Section 42, SW/4 Section 39 and NW/4 Section 53 all in T8S,
R11E, Iberville Parish, LA. 
 Chocolate Bayou Field 
 Sharing Agreement dated September 1, 1993, among Texaco Exploration and Production, Inc, Phillips Petroleum Company and the various affected mineral owners, as amended by Ratification and Amendment
to Sharing Agreement dated December 19, 1995. 
 Participation Agreement dated as of August 12, 2009, between Thorp
Petroleum Corporation and Dune Properties, Inc, granting the right to participate in the drilling of a test well targeting the 12,000’ S sand formation in the A.M. Wieting No. 32 Well and to earn an undivided fifty percent (50%) of
8/8ths working interest in the S Sand production from the wellbore of such well and the right to participate in any development wells thereto to earn a similar wellbore interest in such development wells. 

Participation Agreement dated as of June 9, 2010, between Thorp Petroleum Corporation and Dune Properties, Inc, granting the right
to participate in the drilling of a test well to the base of the IP Farms formation in the A.M. Wieting No. 33 well and to earn an undivided fifty percent (50%) of 8/8ths working interest in the production from the wellbore of such well
and the right to participate in any development wells thereto to earn a similar wellbore interest in such development wells. 

Operating Agreement dated August 1, 2009, by and among Dune Operating Company, as Operator, and Thorp Petroleum Corporation and Dune
Properties, Inc, as Non-Operators, covering the A.M. Wieting No. 32 well 
 Operating Agreement dated June 9, 2010, by
and among Dune Operating Company, as Operator, and Thorp Petroleum Corporation and Dune Properties, Inc, as Non-Operators, covering the A.M. Wieting No. 33 well 

 Compression, Dehydration, Liquid Handling, and Salt Water Disposal Agreement dated August,
2009, by and between Dune Operating Company and Thorp Petroleum Corporation regarding the AM Wieting No. 32 well. 

Compression, Dehydration, Liquid Handling, and Salt Water Disposal Agreement dated June 9, 2010, by and between Dune Operating
Company and Thorp Petroleum Corporation regarding the AM Wieting No. 33 well. 
 Columbus Field 

TX22806 JOA             11/01/93 Quintana/SG Interests 

Joint Operating Agreement dated 11/01/1993 between Quintana Petroleum Corp (operator) and Isaac Arnold Jr. et al (non-operators) covering certain lands in
the James Cummins League A-13 (all depths) and Cohn Dc Bland Svy A-178 (surface to 8400’) (HR Cullen wells). 
 TX22807
JOA             11/01/93 Quintana/SG Interests 
 Joint Operating
Agreement dated 11/01/1993 between Quintana Petroleum Corp (operator) and Isaac Arnold Jr. et al (non-operators) covering certain lands in the James Cummins League A-13 (all depths) and Cohn Dc Bland Svy A-178 (depths below 8400’) (Hastedt
“B” wells). 
 Comite Field 
 LA 19301             JOA 04-20-81 (Strain #1) 
 Joint Operating Agreement dated 04-20-81 between Exxon Corporation, operator and Grace Petroleum Corp et al, non-operator, covering the 18,000’ TUSC RA SUA, as ratified by Samedan Oil Corporation.

 LA19311             JOA 01-01-86 for the Cobb #1 

Joint Operating Agreement dated 01-01-86 covering the 18,000’ TUSC RB SUD (Cobb #1). 
 Garden Island Bay Field 
 Participation Agreement dated as of
September 30, 2010, among Repsol Louisiana Corp., Dune Properties, Inc., and ORX Exploration, Inc. covering 9,000 acres surrounding the Garden Island Bay salt dome and covered by State of Louisiana Lease No. 214 and State of Louisiana
Lease 1393, limited to depths below 12,000’ subsea and targeted sands whose uppermost structural and stratigraphic limits are overlain or structurally truncated by salt. 
 Auxiliary Agreement dated as of September 30, 2010, by and between Dune Properties, Inc. and ORX Exploration, Inc. 
 Operating Agreement dated September 30, 2010, by and among ORX Exploration, Inc., as Operator, and Repsol Louisiana Corp. and Dune Properties, Inc., as Non-Operators, covering the initial 1280 acre
drilling block designated under the September 30, 2010 Participation Agreement described above. 
 Malo Domingo Field 

TX09701             JOA 04-07-80 Talk #1, #2, Samsel #1 

JOA dated 04-07-80, amended effective 11-04-80 between Hanson Minerals Co, operator and Alfawood et al, non-ops, covering Koehler Area.

 N. Broussard Field 
 Agreement to Market dated March 19, 2010, among Dune Properties, Inc., Houston Energy, LP, and Raymond Fontenot pursuant to which Houston Energy and Fontenot have the right, until March 31,
2011, to market a farmout, upon terms acceptable to Dune, for participation in the drilling of a well to test the Bol Perc formation within Dune’s leasehold containing approximately 320 acres to earn an interest in such leasehold with Dune
retaining an override equal to the difference between 21% and leasehold burdens and an additional 2.0 % override convertible at payout to an undivided 20% working interest; and the right to farmout an additional approximately 377 acres.

 EnerVest Bayou Properties Acquisition—General 

Purchase and Sale Agreement between EnerVest Energy, LP and Goldking Energy Corporation dated effective as of July 1, 2005

 LA009—CO21A Consent Judgment dated September 3, 1992, in the matter of Sierra Club vs. Texaco Exploration and
Production, Inc., United States District Court for the Eastern District of Louisiana, Civil Action No. 92-2253, Section K. 

LA009-CO21B     Amendment to Consent Judgment dated September 20, 1994, of that certain Consent Judgment dated
September 3, 1992, in the matter of Sierra Club vs. Texaco Exploration and Production, Inc., United States District Court for the Eastern District of Louisiana, Civil Action No. 92-2253, Section K. 

LA009-G001     Global Settlement Agreement by and among Texaco Inc., The Louisiana Land and Exploration Company, and
the State of Louisiana (‘Global Settlement’) dated February 22, 1994, and effective February 1, 1994, recorded in the records of Plaquemines Parish, Louisiana, in Book 830, Page 590, a complete copy of which is recorded in the
records of Terrebonne Parish, Louisiana, in Conveyance Book 1413, under Entry No. 935,497, as amended by that certain Amendment to the Global Settlement dated April 3, 1998 and recorded in the records of Plaquemines Parish, Louisiana in C
0 B 928 at Folio 593. 
 Leeville Field 
 LAO13-C003     Operating Agreement dated December 1, 1995, by and between Texaco Exploration and Production, inc., as Operator, and Mobil Oil Exploration & Producing
Southeast Inc. and The Louisiana Land and Exploration Company, as Non-Operators, covering 5870.463 acres located in Sections 3, 4, 5, 7, 8, 9, 10, 15, 16, 17, 18, 19, 20 and 21, Township 21 South, Range 22 East, Lafourche Parish, Louisiana, limited
in depth from the surface down to 20,600 feet. 
 Omnibus Agreement dated as of November 1, 2010, among Manti Equity
Partners LP, Manti Exploration & Production, Inc., Manti Exploration Operating, LLC and Dune Properties, Inc. 

Contract Operating Agreement dated effective November 1, 2010, between Manti Exploration Operating, LLC and Dune Properties, Inc.,
covering various wells in Leeville Field in which Dune owns 100% working interest. 
 Operating Agreement dated November 1,
2010, by and among Manti Exploration Operating, LLC, as Operator, and Manti Equity Partners LP, Manti Exploration & Production, Inc., and Dune Properties, Inc., as Non-Operators, covering approximately 30 square miles located in portions of
Township 21 South, Range 22 East, Township 22 South, Range 22 East, and Township 21 South, Range 23 East, Lafourche Parish, Louisiana, excluding wells covered by February 2, 2004 Operating Agreement (described below). 

Operating Agreement dated February 2, 2004, by and among EnerVest Operating L.L.C., as Operator, and Manti Resources Inc., as
Non-Operator, covering approximately 30 square miles located in portions of Township 21 South, Range 22 East, Township 22 South, Range 22 East, and Township 21 South, Range 23 East, Lafourche Parish, Louisiana, limited in depth from the surface down
to the top of the CIB CAR formation as encountered at induction election log depth of 12,570' in the Texaco LL&E Well No. 197, and limited to wells drilled under the terms of the Exploration Agreement dated effective February 2,
2004, by and between EnerVest Energy, L.P. and Manti-EnerVest, Ltd. 
 Other Material Contracts/Agreements: 

Office Space Lease Agreement by and between Hines Louisiana Walker One, L.P., as successor in interest to Hines Interests Limited
Partnership and Goldking Energy Corp. (predecessor of Dune) dated March 16, 1998, as amended. 
 Letter Agreement by and
between Hines Louisiana Walker One, L.P., as successor in interest to Hines Interests Limited Partnership and Goldking Energy Corp. (predecessor of Dune) dated December 12, 2006. 

 Natural Gas Marketing, Transportation and Processing Agency Agreement dated November 1,
2006, among Upstream Energy Services, L.P., and Dune Operating Company (successor of Goldking Operating Company), as amended. 

Purchase Agreement (Contract No. CPE50033) dated effective August 15, 2007, between Texon Operating, LLC., as Buyer, and Dune
Operating Company, as Seller, as amended. 
 Purchase Agreement (Contract No. CPE6813) dated effective August 15, 2007,
between Texon L.P., as Buyer, and Dune Operating Company, as Seller, as amended. 

 Schedule 4.18 

Employee and Labor Matters 
  

			
	 Dune Energy, Inc
	  	None.
		
	 Dune Operating Company
	  	None.
		
	 Dune Properties, Inc.
	  	None

 Schedule 4.21 

Insurance 

[See attached Certificates] 

  

	
	 

ACORD CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY ) 12/2/2010 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY
OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this
certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER USI Southwest 840 Gessner Suite 600 Houston TX 77024 CONTACT NAME: PHONE (A/C, No. Ext): 713-490-4600 FAX (A/C, No): 713-490-4700 E-MAIL ADDRESS:
Nikki.Labonte@usi.biz PRODUCER CUSTOMER ID #: INSURER(S) AFFORDING COVERAGE NAIC # INSURED Dune Energy, Inc. 777 Walker St. Suite 2450 Houston TX 77002 INSURER A: St. Paul Surplus Lines Insurance Co 30481 INSURER B: St Paul Fire and Marine Insurance
C 24767 INSURER C: New York Marine & General Insurance 16608 INSURER D: SeaBright Insurance Company 15563 INSURER E: Certain Underwriters at Lloyds 9999 INSURER F: COVERAGES CERTIFICATE NUMBER: 1175403775 REVISION NUMBER: THIS IS TO CERTIFY
THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR
WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS A GENERAL LIABILITY Y Y MU05541828 10/31/2010 10/31/2011 EACH OCCURRENCE $1,000,000 X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES (Ea occurrence) $100,000
CLAIMS-MADE X OCCUR MED EXP (Any one person) $5,000 X BI/PD $100,000 PERSONAL & ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN’L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $1,000, 000 POLICY PROJECT LOC $ AUTOMOBILE
LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO BODILY INJURY (Per person) $ ALL OWNED AUTOS BODILY INJURY (Per accident) $ SCHEDULED AUTOS PROPERTY DAMAGE (Per accident) $ HIRED AUTOS NON-OWNED AUTOS $ $ B X UMBRELLA LIAB X OCCUR Y Y
MU05578902 10/31/2010 10/31/2011 EACH OCCURRENCE $10,000,000 C C EXCESS LIAB CLAIMS-MADE ML10102910 10/31/2010 10/31/2011 ML10103010 10/31/2010 10/31/2011 AGGREGATE $10,000,000 DEDUCTIBLE 10,000,000 $xs 10,000,000 RETENTION $ 30,000,000 $xs
20,000,000 D WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY Y BB1103142 3/3/2010 3/3/2011 X WC STATUTORY LIMITS OTHER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? N/A E.L. EACH ACCIDENT $1,000,000 (Mandatory in NH) E.L. DISEASE
- EA EMPLOYEE $1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $1,000,000 E Energy Package B0901BM1002651000 10/31/2010 10/31/2011 See Attached DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach
ACORD 101, Additional Remarks Schedule. If more space is required) In respect of General and Excess Liabilities, Certificate Holder is named as an Additional Insured as required by written contract. In respect to the General Liability, Excess
Liability and Workers Compensation, Waiver of Subrogation is granted in favor of Certificate Holder as required by written See Attached. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Wells Fargo CapitalFinance, Inc. agents for Wayzata Opportunities Fund II, L.P. AUTHORIZED REPRESENTATIVE © 1988-2009 ACORD CORPORATION. All rights reserved. ACORD
25 (2009/09) The ACORD name and logo are registered marks of ACORD

 

AGENCY CUSTOMER ID: LOC#: 
 ACORD ADDITIONAL REMARKS SCHEDULE

 Page 1 of 1 

AGENCY 
 USI Southwest NAMED INSURED 
 Dune
Energy, Inc. 777 Walker St. Suite 2450 Houston TX 77002 
 POLICY NUMBER 

CARRIER NAIC CODE 
 EFFECTIVE DATE: 
 ADDITIONAL
REMARKS 
 THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, 

FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE 

contract. 
 RE: Named Insured includes: Dune Energy, Inc., Dune Operating Company, Dune Properties, Inc. 
 Certificate Holder: Wells Fargo Capital Finance, Inc. agents for Wayzata Opportunities Fund II, L.P. is granted 30 Day Notice of Cancellation as required by written contract. 

ACORD 101 (2008/01) 

© 2008 ACORD CORPORATION. All rights reserved. 

The ACORD name and logo are registered marks of ACORD 

 DUNE ENERGY, INC. 

CERTIFICATE ADDENDUM 
  

 
  

			
	 Company E
	    	 Underwriters at Lloyd’s London and Certain Insurance Companies
 Energy Package Policy
 Policy # B0901BM1002651000

Term: 10/31/10 – 10/31/11

SECTION I – ALL RISKS PHYSICAL DAMAGE 
 As per scheduled values, totaling $45,171,280 
 SECTION II – CONTROL OF WELL /
OPERATOR’R EXTRA EXPENSE 

	 	•	 	 Control of Well 

	 	•	 	 Unlimited Redrill/Extra Expense in respect to active wells only 

	 	•	 	 Extended Coverage Endorsement 

	 	•	 	 Plugging and Abandonment Expenses Endorsement 

	 	•	 	 Underground Control of Well 

	 	•	 	 Evacuation Expenses 

	 	•	 	 Contingent Joint Venture 

	 	•	 	 Equipment in the Care, Custody and Control of the Insured 

	 	•	 	 Turnkey Wells Endorsement 

	 	•	 	 Deliberate Well Firing 

	 	•	 	 Seepage and Pollution 

LIMITS OF LIABILITY: 

	 	•	 	 $5,000,000 (100%) any one Occurrence, combined single limit in respect of all shut-in and/or temporarily abandoned wells.

	 	•	 	 $10,000,000 (100%) any one Occurrence, combined single limit in respect of Area I & II Producing, Workover and Drilling Wells.

	 	•	 	 $20,000,000 (100%) any one Occurrence, combined single limit in respect of Area II Wet Producing, Workover and Drilling Wells.

	 	•	 	 $100,000,000 (100) any one occurrence, combined single limit in respect Garden Island Bay ORX State Lease 214 No. 1

	 	•	 	 $20,000,000 (100%) any one Occurrence, combined single limit in respect of Area III – High Island Block 30L #2U 

	 	•	 	 $2,000,000 (100%) limit any one Occurrence in respect of Care, Custody and Control. 

NOTE: Subject to an overall annual aggregate limit of: 

 

	 	•	 	 $10,000,000 for Assured’s interest with respect to all losses arising out of Named Windstorm in Areas IIW and III all Sections combined.

  

	 	•	 	 However, in respect of Section II coverages for all other wells, the maximum limit of liability in respect of Extended Redrilling, Extended Coverages
and Resultant Plugging and Abandonment is $7,500,000 for the Insured’s Interest any one occurrence part of the Named Windstorm Limit(s) listed above 

 
  

 
 USI Southwest 

 ADDITIONAL PROTECTED PERSONS ENDORSEMENT – PERSONS OR 

ORGANIZATIONS REQUIRED BY WRITTEN CONTRACT FOR INSURANCE – 
 OIL AND GAS COMMERCIAL GENERAL LIABILITY 
 This endorsement changes your Oil And Gas 

Commercial General Liability Protection. 
  

 

 

 How Coverage Is Changed 
 There are three changes that are explained below. 
  

	1.	The following is added to the Who Is Protected For Injury Or Damage section. This change adds certain protected persons and limits their protection.

 Additional protected persons required by written contract for insurance. All persons or organizations that
you agree in a written contract for insurance to add as additional protected persons under this agreement are protected persons only for covered bodily injury or property damage that results from your work, to which that written contract for
insurance applies, for any of those persons or organizations. 
 However, all persons or organizations that you agree in a written
contract for insurance to add as additional protected persons under this agreement are also protected persons for the following bodily injury, property damage, or personal injury, but only if that written contract for insurance specifically requires
those persons or organizations to be covered for such bodily injury, property damage, or personal injury: 
  

	 	•	 	 Covered personal injury that results from your work, to which such written contract for insurance applies, for any of those persons or organizations.

  

	 	•	 	 Covered bodily injury or property damage that results from your completed work, to which such written contract for insurance applies, for any of those
persons or organizations if such bodily injury or property damage happens before the end of the period of time for which the written contract for insurance specifically requires that coverage or before this agreement ends, whichever is earlier.

  

	 	•	 	 Covered bodily injury, property damage, or personal injury that results from the

	 	 	 
ownership, maintenance, or use of a premises, site, or location, to which such written contract for insurance applies, if that premises, site, or location is owned by, or rented or leased from,
any of those persons or organizations and is part of your oil or gas operations at, on, or in any oil or gas lease site. 

  

	 	•	 	 Covered bodily injury, property damage, or personal injury that results from your maintenance, operation, or use of machinery or equipment, to which such
written contract for Insurance applies, if that machinery or equipment is rented or leased from any of those persons or organizations. 

  

	 	•	 	 Covered bodily injury, property damage, or personal injury that results from your work, to which such written contract for insurance applies, that any of
those persons or organizations are performing for you. 

  

	 	•	 	 Covered bodily injury or property damage that results from your work which is completed, to which such written contract for insurance applies, that any of
those persons or organizations performed for you if such bodily injury or property damage happens before the end of the period of time for which the written contract for insurance specifically requires that coverage or before this agreement ends,
whichever is earlier. 

 But no person or organization that you agree in a written contract for insurance to add
as an additional protected person under this agreement and that is an architect, engineer, or surveyor is a protected person for bodily injury, property damage, or personal injury that results from the performance of or failure to perform architect,
engineer, or surveyor professional services. 
 In addition, all persons or organizations that you agree in a written contract for
insurance to add as additional protected 

  
  

					
	 OG037 Rev. 3-06
	  	Endorsement	  	
	 © 2006 The St. Paul Travelers Companies, Inc. All Rights Reserved
	  	Page 1 of 2

 
persons under this agreement are protected persons only for the lesser of: 
  

	 	•	 	 the limits of coverage required by that written contract for insurance; or 

 

	 	•	 	 the limits of coverage available under this agreement. 

 Written contract for insurance means that part of any written contract or agreement in which you agree to purchase or maintain insurance provided by this agreement if such contract or agreement:

  

	 	•	 	 was made before; and 

  

	 	•	 	 is in effect when; 

 the event begins or the offense is committed. 
 Additional protected person may
also be called an additional insured in the written contract for insurance. 
  

	2.	The following replaces the fifth paragraph of the Pollution injury or damage exclusion, but only for this endorsement. This change excludes coverage.

 Also, we won’t apply this exclusion to bodily injury or property damage that results from a sudden and
accidental pollution incident which: 
  

	 	•	 	 begins while this agreement is in effect; 

  

	 	•	 	 takes place at, on, in, or from a protected person’s premises or a protected person’s work site, other than a waste site;

  

	 	•	 	 doesn’t result from pollution work by or for any protected person or others, other than pollution work for which the pollution clean-up costs are
covered under the Pollution clean-up costs section of this agreement; and 

  

	 	•	 	 doesn’t result from any intentional and willful violation of any governmental

	 	 	 
law, regulation, or rule by you, any person or organization that you agree in a written contract for insurance to add as an additional protected person under this agreement, or anyone acting on
your or that person’s or organization’s behalf. 

  

	3.	The following replaces the third paragraph of the Primary or excess other insurance section, but only for this endorsement. This change limits coverage for certain
additional protected persons. 

 We’ll also apply this agreement as excess insurance over the part or parts of
any primary or excess other insurance that provide coverage for any person or organization that you agree in a written contract for insurance to add as an additional protected person under this agreement. However, if you specifically agree in that
written contract for insurance that this insurance must be primary to, or non-contributory with, other insurance issued directly to that person or organization, we’ll apply this agreement as primary insurance for damages for injury or damage
covered by the Additional Protected Persons Endorsement - Persons Or Organizations Required By Written Contract For Insurance that are incurred by that person or organization, and we won’t share those damages with that other insurance. But
we’ll still apply this agreement as excess insurance over the part or parts of any primary or excess other insurance that provide control of well pollution bodily injury or property damage coverage and apply to those damages. 

Other Terms 
 All other terms of your policy
remain the same. 

  
  

					
	 OG037 Rev. 3-06
	  		  	
	Page 2 of 2	  	© 2006 The St. Paul Travelers Companies, Inc. All Rights Reserved

 Dune Energy, Inc. 
 2010-11 Physical Damage Schedule 
  

															
	  Land/
  Wet
	  	Field Name	 	County	 	State	  	Gross Value	 	    	Net Value	 
	  Land
	  	  Abbeville	 	  Vermillion	 	LA	  	 	$309,000	  	    	 	$309,000  	  
	  Land
	  	  Bayou Choctaw	 	  Iberville	 	LA	  	 	$1,112,000	  	    	 	$1,112,000  	  
	  Land
	  	  Broussard North	 	  St. Martin	 	LA	  	 	$1,256,000	  	    	 	$1,256,000  	  
	  Land
	  	  Chocolate Bayou	 	  Brazoria	 	TX	  	 	$4,854,000	  	    	 	$4,854,000  	  
	  Land
	  	  Columbus	 	  Colorado	 	TX	  	 	$1,130,400	  	    	 	$1,130,400  	  
	  Land
	  	  Comite	 	  E Baton Rouge	 	LA	  	 	$745,500	  	    	 	$745,500  	  
	  Land
	  	  Hitchcock	 	  Galveston	 	TX	  	 	$300,000	  	    	 	$300,000  	  
	  Land
	  	  Live Oak	 	  Vermillion	 	LA	  	 	$2,837,000	  	    	 	$2,837,000  	  
	  Land
	  	  Malo Domingo	 	  Karnes	 	TX	  	 	$313,500	  	    	 	$313,500  	  
	  Land
	  	  Manchester, SW	 	  Calcasieu	 	LA	  	 	$350,000	  	    	 	$350,000  	  
	  Land
	  	  Thornwell	 		 	LA	  	 	$50,000	  	    	 	$50,000  	  
	  Land
	  	  Toro Grande	 	  Jackson	 	TX	  	 	$423,100	  	    	 	$423,100  	  
	  Total Onshore:
	 	 	 	 	  	 	$13,680,500	  	    	 	$13,680,500  	  
		 		 		  				    			
	  Wet
	  	  Bateman Lake	 	  St. Mary	 	LA	  	 	$7,255,000	  	    	 	$7,255,000  	  
	  Wet
	  	  Garden Island Bay	 	  Plaquemines	 	LA	  	 	$9,725,500	  	    	 	$9,725,500  	  
	  Wet
	  	  High Island Block 30L	 	  Jefferson	 	TX	  	 	$2,888,000	  	    	 	$534,858  	  
	  Wet
	  	  Leeville	 	  Lafourche	 	LA	  	 	$6,971,000	  	    	 	$2,788,400  	  
	  Total Wet / Offshore:
	 	 	 	 	  	 	$26,839,500	  	    	 	$20,303,758  	  
		 		 		  				    			
	  Field Totals:
	 	 	 	 	  	 	$40,520,000	  	    	 	$33,984,258  	  
		 		 		  				    			
	  DIC Compressors
	 	 	 	 	  	 	$1,701,465	  	    	 	$1,701,465  	  
		 		 		  				    			
	 	 
	  Grand Total:
	 		 		  	 	$42,221,465	  	    	 	$35,685,723  	  
	 	 

  

			
	As of: 12/10/2010	  	 Dune Energy, Inc.
 Energy Package Estimated Premiums
 100% @ $10M Named Windstorm Limit

 Dune Energy, Inc. 
 2010-11 Physical Damage Schedule 
  

													
	 Field	  	Land / Wet	    	State	  	Description	 	Values      	 	 	 
	 	 	 	
	  Abbeville
	  	Land	    	LA	  	Tanks	 	 	$24,000 	  	 	
	  Abbeville
	  	Land	    	LA	  	Compressors	 	 	$250,000 	  	 	
	  Abbeville
	  	Land	    	LA	  	Facilities and Well Heads	 	 	$35,000 	  	 	
	 	 	 	
	  Abbeville Subtotal:
	 	 	$309,000 	  	 	
	 	 	 	
		 				 	
	 	 	 	
	  Bateman Lake
	  	Wet	    	LA	  	Production Barge	 	 	$3,435,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Tanks	 	 	$205,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Equipment	 	 	$228,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Universal Compressor	 	 	$1,000,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Construction crew barge crane	 	 	$787,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Pump	 	 	$400,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Electrical & Gen	 	 	$200,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Engr. & Proj Man	 	 	$500,000 	  	 	
	  Bateman Lake
	  	Wet	    	LA	  	Contingency	 	 	$500,000 	  	 	
	 	 	 	
	  Bateman Lake Subtotal:
	 	 	$7,255,000 	  	 	
	 	 	 	
		 				 	
	 	 	 	
	  Bayou Choctaw
	  	Land	    	LA	  	Facilities Value	 	 	$387,000 	  	 	
	  Bayou Choctaw
	  	Land	    	LA	  	Equipment Value	 	 	$475,000 	  	 	
	  Bayou Choctaw
	  	Land	    	LA	  	Well Heads	 	 	$250,000 	  	 	
	 	 	 	
	  Bayou Choctaw Subtotal:
	 	 	$1,112,000 	  	 	
	 	 	 	
		 				 	
	 	 	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 1 Facilities	 	 	$14,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 1 Well Heads	 	 	$45,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 4 Facilities	 	 	$14,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 4 Well Heads	 	 	$45,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 6 Facilities	 	 	$14,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 6 Well Heads	 	 	$45,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 9 Facilities	 	 	$14,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 9 Well Heads	 	 	$45,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 1 SWD Facilities	 	 	$112,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Baldwin Lumber Co. Fee No. 1 SWD Tanks	 	 	$320,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Facilities and Well Heads	 	 	$157,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field 355 bbl stock tank, lease tank	 	 	$21,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Miscellaneous Materials & Piping	 	 	$80,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Transportation	 	 	$50,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Electrical	 	 	$40,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Engineering & Project Mgmt	 	 	$120,000 	  	 	
	  Broussard, North
	  	Land	    	LA	  	Field Miscellaneous Equipment	 	 	$120,000 	  	 	
	 	 	 	
	  Broussard, North Subtotal:
	 	 	$1,256,000 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Comite
	  	Land	    	LA	  	Facilities Value	 	 	$589,500 	  	 	
	  Comite
	  	Land	    	LA	  	Equipment Value	 	 	$71,500 	  	 	
	  Comite
	  	Land	    	LA	  	Well Heads	 	 	$84,500 	  	 	
	 	 	 	
	  Comite Subtotal:
	 	 	$745,500 	  	 	
	 	 	 	
		 				 	
	 	 	 	
	  Columbus
	  	Land	    	TX	  	H. R. Cullen Lease Facilities and Equipment	 	 	$76,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease 20" x 17' glycol tower w/20"x6'6" reboiler	 	 	$15,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease Ajax engine w/gardner denver comp	 	 	$75,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease Tanks	 	 	$12,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease 25 hp electric motor	 	 	$75,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease 3 stage ariel compressor.	 	 	$190,000 	  	 	
	  Columbus
	  	Land	    	TX	  	H.R. Cullen Lease 4'x20' Smith Industries heater treator	 	 	$20,000 	  	 	
	  Columbus
	  	Land	    	TX	  	Emma Hastedt Lease Facilities & Equipment	 	 	$594,100 	  	 	
	  Columbus
	  	Land	    	TX	  	Emman Hastedt Lease Tanks	 	 	$35,300 	  	 	
	  Columbus
	  	Land	    	TX	  	Emma Hastedt Lease Compressors	 	 	$38,000 	  	 	
	 	 	 	
	  Columbus Subtotal:
	 	 	$1,130,400 	  	 	
	 	 	 	
		 				 	
	 	 	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #6 BATTERY Facilities	 	 	$35,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #6 BATTERY Tank	 	 	$25,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #6 BATTERY Equipment	 	 	$50,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #11 Facilities	 	 	$40,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #25 Facilities & Well Heads	 	 	$240,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #4 Facilities & Well Heads	 	 	$325,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #4 Tank	 	 	$3,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	A.M. WEITING #5 Well Heads	 	 	$155,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	SWD Tank Battery cover over pumps 23' x 36'	 	 	$5,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	Pumps	 	 	$200,000 	  	 	
	  Chocolate Bayou
	  	Land	    	TX	  	Tanks	 	 	$350,000 	  	 	

  

			
	As of: 12/10/2010	  	 Dune Energy, Inc.
 Energy Package Estimated Premiums
 100% @ $10M Named Windstorm Limit

 Dune Energy, Inc. 
 2010-11 Physical Damage Schedule 
  

  

													
	 Field	  	Land / Wet	    	State	  	Description	  	Values      	 	  	 
	 	 	  	
	 Chocolate Bayou	  	Land	    	TX	  	Compressor Area Storage & Compressor Covers	  	 	$84,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Separators	  	 	$129,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Storage Tanks	  	 	$15,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	NCT 1 B BATTERY 30" x 9' SEP OOS	  	 	$200,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	NCT 1 B BATTERY 6' x 27.5' lin heater OOS	  	 	$75,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON GU 1 WELL #1 Tank	  	 	$35,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON GU 1 WELL #1 Facility & Well Heads	  	 	$80,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Gas Sales Point (Glycol Unit, Reboiler, Contactor)	  	 	$250,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON 1 WELL #7 Well Heads	  	 	$200,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON 1 WELL #7 Tank	  	 	$5,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON 1 WELL #7 48" x 10'6" OOS Line Heater	  	 	$50,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	R.K. WILSON 1 WELL #7 18" x 48" Suppl SCB	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	AM WEITING #25 Facilities & Well Heads	  	 	$250,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WILSON B 13 10 x 10' LP sep = 125#	  	 	$20,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WILSON B-204 24" x 7'6" LP SEP 125#	  	 	$20,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Heater Treater	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Line Heater	  	 	$37,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Hi-Low Separators	  	 	$70,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Meter Runs	  	 	$20,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Well Head	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #28 Tanks	  	 	$40,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Heater Treater	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Line Heater	  	 	$37,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Hi-Low Separators	  	 	$70,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Meter Runs	  	 	$20,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Well Head	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #29 Tanks	  	 	$40,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Dehy	  	 	$55,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Compressor	  	 	$80,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Tanks	  	 	$82,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Heater Treater	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Line Heater	  	 	$37,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Hi-Low Separators	  	 	$70,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Meter Runs	  	 	$20,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Well Head	  	 	$10,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	WEITING #30 Tank	  	 	$40,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Miscellaneous Material & Pipe	  	 	$300,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Transportation	  	 	$100,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Electrical	  	 	$125,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Engineering & Project Management	  	 	$350,000 	  	  	
	 Chocolate Bayou	  	Land	    	TX	  	Contingency	  	 	$350,000 	  	  	
	 	 	  	
	  Chocolate Bayou Subtotal:
	  	 	$4,854,000 	  	  	
	 	 	  	
		  				  	
	 	 	  	
	 Garden Island Bay	  	Wet	    	LA	  	Walkway and Handrails	  	 	$350,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	TB No. 49 landings & platforms	  	 	$200,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	TB No. 160 landings & platforms	  	 	$200,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	West TB landings and platform	  	 	$200,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	TB No. 414 landings and platform	  	 	$200,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Facilities and Equipment	  	 	$2,410,500 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Tanks	  	 	$415,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Transportation	  	 	$300,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Construction Barge with crane and barge	  	 	$1,050,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Miscellaneous Material & Pipe	  	 	$700,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Engr $ Management	  	 	$600,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	It is noted living quarters are not on inventory	  	 	$650,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Electrical	  	 	$250,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Contingency	  	 	$700,000 	  	  	
	 Garden Island Bay	  	Wet	    	LA	  	Universal Compressor	  	 	$1,500,000 	  	  	
	 	 	  	
	  Garden Island Bay Subtotal:
	  	 	$9,725,500 	  	  	
	 	 	  	
		  				  	
	 	 	  	
	 Hitchcock	  	Land	    	TX	  	Huff Gun Barrel 750 bbls	  	 	$45,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Stock Tank: 32295 / 400 bbls / 17' x 12'	  	 	$5,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Stock Tank: 32296 / 400 bbls/ 17' x 12' / SN 15504	  	 	$5,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Suction Tank	  	 	$5,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Settling Tank / SN 29733 / 350 bbls / 24'H x 14'W	  	 	$5,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Emergency Overflow Tank / SN 2462 / 350 bbls	  	 	$5,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Pump: Oilwell / SN P150-506 LH / Type A316/5650	  	 	$85,000 	  	  	
	 Hitchcock	  	Land	    	TX	  	Huff Motor: Waukesha / SN 197285	  	 	$40,000 	  	  	

  

			
	As of: 12/10/2010	  	 Dune Energy, Inc.
 Energy Package Estimated Premiums
 100% @ $10M Named Windstorm Limit

 Dune Energy, Inc. 
 2010-11 Physical Damage Schedule 
  

													
	 Field	  	Land / Wet	    	State	  	Description	 	Values	 	 	 
	 	 	 	
	  Hitchcock
	  	Land	    	TX	  	Huff High Pressure Separator: 48 X 14	 	 	$15,000 	  	 	
	  Hitchcock
	  	Land	    	TX	  	Huff Compresor	 	 	$90,000 	  	 	
	 	 	 	
	  Hitchcock Subtotal:
	 	 	$300,000 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  High Island
	  	Wet	    	TX	  	Platform	 	 	$2,888,000 	  	 	
	 	 	 	
	  High Island Subtotal:
	 	 	$2,888,000 	  	 	
	 	 	 	
		  		    		  		 				 	NET
	 	 	 	
	  Leeville
	  	Wet	    	LA	  	Walkways & Handrails	 	 	$140,000 	  	 	$56,000 
	  Leeville
	  	Wet	    	LA	  	Landings & Platforms (Incl Sunken Barge, Treater, Indirect Heater)	 	 	$980,000 	  	 	$392,000 
	  Leeville
	  	Wet	    	LA	  	Living Quarters office (Portable Bldg on Tidewater dock)	 	 	$125,000 	  	 	$50,000 
	  Leeville
	  	Wet	    	LA	  	Facilities and Equipment	 	 	$1,811,000 	  	 	$724,400 
	  Leeville
	  	Wet	    	LA	  	Tanks	 	 	$420,000 	  	 	$168,000 
	  Leeville
	  	Wet	    	LA	  	Miscellaneous Piping & material	 	 	$400,000 	  	 	$160,000 
	  Leeville
	  	Wet	    	LA	  	Indirect heater not on inventory with platform	 	 	$20,000 	  	 	$8,000 
	  Leeville
	  	Wet	    	LA	  	Electrical	 	 	$200,000 	  	 	$80,000 
	  Leeville
	  	Wet	    	LA	  	Construction crew, barge crane	 	 	$875,000 	  	 	$350,000 
	  Leeville
	  	Wet	    	LA	  	Engr & management	 	 	$500,000 	  	 	$200,000 
	  Leeville
	  	Wet	    	LA	  	Transportation	 	 	$500,000 	  	 	$200,000 
	  Leeville
	  	Wet	    	LA	  	Contingency	 	 	$500,000 	  	 	$200,000 
	  Leeville
	  	Wet	    	LA	  	Universal Compressor	 	 	$500,000 	  	 	$200,000 
	 
	  Leeville Subtotal:
	 	 	$6,971,000 	  	 	$2,788,400 
	 
	     
	 				 	
	 	 	 	
	  Live Oak
	  	Land	    	LA	  		 	 	$2,837,000 	  	 	
	 	 	 	
	  Live Oak Subtotal:
	 	 	$2,837,000 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #1 Equipment & Facilities	 	 	$24,500 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #1 Tanks	 	 	$22,000 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #1 Ajax Compressor	 	 	$60,000 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #2 Equipment & Facilities	 	 	$18,500 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #2 Oil Tank	 	 	$10,000 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Gordon Talk #2 Gas Jack Compressor at Well Head	 	 	$51,000 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Samsel #1 Equipment & Facilities	 	 	$25,500 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Samsel #1 Tanks	 	 	$52,000 	  	 	
	  Malo Domingo
	  	Land	    	TX	  	Samsel #1 Rental Compressor	 	 	$50,000 	  	 	
	 	 	 	
	  Malo Domingo Subtotal:
	 	 	$313,500 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Manchester, SW
	  	Land	    	LA	  	Facilities Value	 	 	$187,500 	  	 	
	  Manchester, SW
	  	Land	    	LA	  	Equipment Value	 	 	$57,000 	  	 	
	  Manchester, SW
	  	Land	    	LA	  	Well Heads	 	 	$105,500 	  	 	
	 	 	 	
	  Manchester, SW Subtotal:
	 	 	$350,000 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Thornwell South
	  	Land	    	LA	  	SWD Well Head	 	 	$50,000 	  	 	
	 	 	 	
	  Thornwell South Subtotal:
	 	 	$50,000 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #2 Tanks	 	 	$30,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #2 4 cylinder water pump	 	 	$5,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #2 Well Heads & facilities	 	 	$69,500 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #1 436 bbl steel tk	 	 	$20,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #1 Well Heads & Equipment	 	 	$86,500 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Tittizer #1 cat engine & Gemini compressor (rental)	 	 	$125,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Toro Grande Sales Pt Facilities & Equipment	 	 	$43,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Toro Grande Sales Pt Tanks	 	 	$8,800 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Meeks 400 bbl fiberglass tk	 	 	$20,300 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Meeks Triple 3 phase motor	 	 	$10,000 	  	 	
	  Toro Grande
	  	Land	    	TX	  	Meeks 2000psi wellhead	 	 	$5,000 	  	 	
	 	 	 	
	  Toro Grande Subtotal:
	 	 	$423,100 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Total Onshore Physical Damage:
	 	 	$13,680,500 	  	 	
	 	 	 	
	  Total Offshore Physical Damage:
	 	 	$26,839,500 	  	 	
	 	 	 	
	     
	 				 	
	 	 	 	
	  Grand Total:
	 	 	$40,520,000 	  	 	
	 	 	 	

  

			
	As of: 12/10/2010	  	 Dune Energy, Inc.
 Energy Package Estimated Premiums
 100% @ $10M Named Windstorm Limit

 Dune Energy, Inc. 
 2010-2011 DIC Compressors 
  

									
	     Unit #    

 
	 	
Description
  
	 	 Location

 
	  	Replacement Cost /
Insurance Value	 
	 60010
	 	 CATERPILLAR_G399TA,668_HHP,ARIEL_JGR,3-

STAGE,CYL:11,8.375,11,5.125,8;;64147
	 	Live Oak Field, Vermilion Parish, Louisiana	  	 	$575,575	  
	 73911
	 	 WAUKESHA_L7042G,730_HHP,WORTHINGTON_

OF5H,3-STAGE,CYL:10,5.5,12;;64145
	 	Chocolate Bayou Field, Brazoria County, Texas	  	 	$664,165	  
	 76271
	 	WAUKESHA_145GZ,75_HHP,ARIEL_JGM,3-STAGE,CYL:6.5,2.75,4.75;;64146	 	North Broussard Field, Lafayette and St. Martin Parishes, Louisiana	  	 	$139,150	  
	 76266
	 	CATERPILLAR_3306 NA / HHP,ARIEL_JGM	 	Live Oak Field (Broussard Landing), Vermilion Parish, Louisiana	  	 	$132,825	  
	 75066
	 	CATERPILLAR 3306TA / Ariel JGQ	 	  

Columbus (Cullen Field), Colorado County, Texas
	  	 	$189,750	  
		 		 	  
 Subtotal
	  	 	$1,701,465.00	  

  

			
	As of: 12/10/2010	  	 Dune Energy, Inc.
 Energy Package Estimated Premiums
 100% @ $10M Named Windstorm Limit

					
	

	  	CONTRACT ENDORSEMENT	  	 901
 JLT

			
	Unique Market Reference	  	             B0901BM1002651000
	  	
	Endorsement Reference	  	             3
	  	
			
	Insured	  	             Dune Energy Inc
	  	

  
  

CONTRACT CHANGES 
 This
contract is amended as follows: 
  

			
	ENDORSEMENT	  	
		
	EFFECTIVE DATE:	  	     00:01 hours 29 November 2010 Local Standard Time at the address of the Insured

Underwriters hereby note and agree to include the following as an Additional Named Insured and Sole Loss Payee:- in so far as their
interests may appear as scheduled. 
 Wells Fargo Capital Finance, Inc. agents for Wayzata Capital Management, Inc. 

			
		  	
 

 All other terms and conditions remain unchanged. 

 

 

  
 Page 1 of 3

 J6s/30 November 2010 

 

 

  

					
	  Internal  	  	        r45        	  	

 901 
 JLT 
  

			
	

	 	 CONTRACT ENDORSEMENT

		
	Unique Market Reference	 	 B0901BM1002651000

		
	Endorsement Reference	 	 3

		
	Insured	 	 Dune Energy Inc

  

 
 CONTRACT ADMINISTRATION AND
ADVISORY SECTION 
  

					
	 SETTLEMENT
 DUE
DATE
	 	 

  
 In the absence of an
insurer specified Settlement Due Date, the Settlement Due Date will be calculated by applying the terms of trade for the original premium to whichever is the later of either:

1.      the latest effective date of the subject matter of the
contract endorsement; or
 2.      the date on which the
final insurer agreement is obtained.
  

		
	 ALLOCATION OF
 PREMIUM
TO CODING:
	 	 Additional premium allocated 100% to code 

 

 

  
 Page 2 of 3

 j6s/30 November 2010 

 901 
 JLT 
  

			
	

	  	CONTRACT ENDORSEMENT
		
	 Unique Market Reference
	  	 B0901BM1002651000

		
	 Endorsement Reference
	  	 3

		
	 Insured
	  	 Dune Energy Inc

  

 
 AGREEMENT 

 

					
	GENERAL
UNDERWRITERS AGREEMENT (GUA)
	Each Underwriter’s proportion is several not
joint
	Slip Leader Only	 	 Slip Leader

And Agreement Parties
	  	All Insurers
	Box 1  	 	Box 2  	  	Box 3  
	Notification to followers	 	
 

	  	 
	
 

	 	  	 
	 	Within                  working
days	  	 

  

									
	 	  	 	  	 	  	 	  	 
	 	  	 	  		  	 	  	 
	 	  	 	  		  	 	  	 
	     
	  	 	  	 	  	 	  	 
	     
	  	 	  	 	  	 	  	 

  

									
	 	  	 	  	 	  	 	  	 
	 	  	 	  		  	 	  	 
	 	  	 	  		  	 	  	 
	     
	  	 	  	 	  	 	  	 
	     
	  	 	  	 	  	 	  	 

  

									
	 	  	 	  	 	  	 	  	 
	 	  	 	  		  	 	  	 
	 	  	 	  		  	 	  	 
	     
	  	 	  	 	  	 	  	 
	     
	  	 	  	 	  	 	  	 

  
 Page 3 of 3

 j6s/30 November 2010 

 DUNE ENERGY, INC. 

CERTIFICATE ADDENDUM 
  

 
  

			
	 Company E
	    	 Underwriters at Lloyd’s London and Certain Insurance Companies

Energy Package Policy

Policy # B0901BM1002651000
 Term: 10/31/10 – 10/31/11

 SECTION I – ALL RISKS PHYSICAL DAMAGE

 As per scheduled values, totaling $45,171,280 
 SECTION II – CONTROL OF WELL / OPERATOR’S EXTRA EXPENSE 

	 	•	 	 Control of Well 

	 	•	 	 Unlimited Redrill/Extra Expense in respect to active wells only 

	 	•	 	 Extended Coverage Endorsement 

	 	•	 	 Plugging and Abandonment Expenses Endorsement 

	 	•	 	 Underground Control of Well 

	 	•	 	 Evacuation Expenses 

	 	•	 	 Contingent Joint Venture 

	 	•	 	 Equipment in the Care, Custody and Control of the Insured 

	 	•	 	 Turnkey Wells Endorsement 

	 	•	 	 Deliberate Well Firing 

	 	•	 	 Seepage and Pollution 

LIMITS OF LIABILITY: 

	 	•	 	 $5,000,000 (100%) any one Occurrence, combined single limit in respect of all shut-in and/or temporarily abandoned wells.

	 	•	 	 $10,000,000 (100%) any one Occurrence, combined single limit in respect of Area I & II Producing, Workover and Drilling Wells.

	 	•	 	 $20,000,000 (100%) any one Occurrence, combined single limit in respect of Area II Wet Producing, Workover and Drilling Wells.

	 	•	 	 $100,000,000 (100) any one occurrence, combined single limit in respect Garden Island Bay ORX State Lease 214 No. 1

	 	•	 	 $20,000,000 (100%) any one Occurrence, combined single limit in respect of Area III – High Island Block 30L #2U 

	 	•	 	 $2,000,000 (100%) limit any one Occurrence in respect of Care, Custody and Control. 

NOTE: Subject to an overall annual aggregate limit of: 

 

	 	•	 	 $10,000,000 for Assured’s interest with respect to all losses arising out of Named Windstorm in Areas IIW and III all Sections combined.

  

	 	•	 	 However, in respect of Section II coverages for all other wells, the maximum limit of liability in respect of Extended Redrilling, Extended
Coverages and Resultant Plugging and Abandonment is $7,500,000 for the Insured’s Interest any one occurrence part of the Named Windstorm Limit(s) listed above 

Wells Fargo Capital Finance, Inc., as Agent for Wayzata Capital Management, Inc. is listed as the Sole Loss Payee under
Section I (Property) and Additional Insured under Section II (Liabilities). 
  

 
  

USI Southwest 

 

 

 WORKER’S COMPENSATION PROPOSAL 

Prepared for: 

Dune Energy, Inc. 
 Presented by: 
 Nigel Gladwell 

USI Southwest 

840 Gessner 
 Suite 600

 Houston, Texas 77024 
 713-490-4600 
 www.usi.biz 

Effective Date: March 3, 2010 
 This is a coverage summary, not a legal contract. This
summary is provided to assist in your understanding of your insurance program. Please refer to the actual policies for specific terms, conditions, limitations and exclusions that will govern in the event of a loss. Specimen copies of all policies
are available for review prior to the binding of coverage. 

Higher limits and additional coverage may be available. Please contact us if you are interested in additional quotes. 

 About USI 
  

 
 THE POWER OF ONE 
 What makes USI different from other 

traditional brokers and consultants? 

 

 

 A single source. 
 One point of contact. One service administrator. 
 One source for all of your insurance
and financial services. 
 USI’s unique delivery design gives you unparalleled single-source access to 

a complete array of linked solutions from our nationwide network of strategic 

partnerships – and a corresponding, cohesive service program that is not just 

convenient, but responsive to your risk management profile. 

  

 

 

 USI Southwest 
 USI develops and implements competitive and creative property/casualty and
human resources risk management and insurance programs. 
 The Mission of USI is to achieve increasing profits and growth through the professional marketing of innovative risk management
and insurance services for our clients. 

Our corporate culture is based on stability and integrity that is surrounded by associates with a strong desire for self-improvement and professional growth. 

 

							
		 	BROKER SERVICES	  	 RISK MANAGEMENT
SERVICES
	  	
		 	 Ÿ    Property/Casualty Programs
	  	         Ÿ    Risk Control
	  	
		 	 Ÿ    Employee Benefit Programs
	  	         Ÿ    Risk Financing
	  	
		 	 Ÿ    Global Program Capabilities
	  	         Ÿ    Claim Management
	  	
		 	 Ÿ    Wealth Accumulation Programs
	  	         Ÿ    Information Services
	  	
		 	 Ÿ    Direct Worldwide Market Access
	  	         Ÿ    Licensed Third
Party
                Administrator

 PRODUCTS 

					
		  	 Ÿ    Proprietary Insurance Products
	  	
		  	 Ÿ    Self-Insured and Self-Funded Programs
	  	
		  	 Ÿ    Association Programs
	  	
		  	 Ÿ    Captive Formation and Management
	  	
		  	 Ÿ    Specialized Programs for Commercial,

      Financial, Institutional, and Governmental Risks

USI Southwest is the Southwest hub for USI Insurance Services Corp., the ninth largest insurance broker in the U.S. 

  

 

 

 3 of 16 

  

 Table of Contents 

 
  
  

			
	 	  	  Page No.  
	 Service Team
	  	5
		
	 Workers Compensation
	  	6
		
	 Premium Summary
	  	8

  

 

 

 4 of 16 

 USI Service Team 

 
  
  

					
	 Nigel Gladwell
	  		  	 713-490-4592 Direct

	 Sr. Vice President – Sales Executive
	  	 713-614-2036 Cell

	 Nigel.Gladwell@usi.biz
	  	 484-652-5186 Fax

			
	 Dennis O’Donnell
	  		  	
	 Vice President – Account Executive (LA)
	  	 504-210-0638 Direct

	 Dennis.O’Donnell@usi.biz
	  		  	 610-537-4143 Fax

			
	 Katie Gaudet
	  		  	 713-490-4541 Direct

	 Account Manager
	  		  	 484-652-5163 Fax

	 Katie.Gaudet@usi.biz
	  		  	
		
	 Sandy Bayless
	  	 713-490-4594 Direct

	 Energy & Marine Claims Manager
	  	 484-652-5211 Fax

	 Stanley.Bayless@usi.biz
	  	
			
	 Jim Skopal
	  		  	 713-490-4562 Direct

	 Property & Casualty Claims Manager
	  	 484-652-5145 Fax

	 James.Skopal@usi.biz
	  	

 840 Gessner, Suite 600 
 Houston, TX 77024 
 Houston Main Line: 713-490-4600 

Houston Main Fax: 484-652-5200 

  

 

 

 5 of 16 

 Workers’ Compensation 

 
  

			
	 Insurer:
	  	 Seabright Insurance Company

		  	 Best’s Rating: A- IX

		
	 Policy Period:
	  	 March 3, 2010 to March 3, 2011

	
	Schedule of Exposures:

  

																																	
	 	  	Class Code	  	10-11 Est.  
Payroll  	 	  	08-09
Rate	 	  	08-09
Premium	 	  	09-10
Rate	 	  	09-10  
Premium  	 	  	10-11
Rate	 	  	10-11  
Premium  	 
										
	 TX
	  	8809	  	 Executive Officers NOC -
 Performing Clerical or Outside
 Salespersons Duties Only
	  	 	$312,000	  	  	 	0.59%	  	  	 	$1,841	  	  	 	0.48%	  	  	 	$1,498	  	  	 	0.47%	  	  	 	$1,466	  
										
	 TX
	  	8810	  	 Clerical Office Employees NOC
	  	 	$3,425,800	  	  	 	0.42%	  	  	 	$14,388	  	  	 	0.34%	  	  	 	$11,648	  	  	 	0.34%	  	  	 	$11,648	  
										
	 TX
	  	8601	  	 Oil or Gas Well: Drilling
 Consultants
	  	 	if any	  	  	 	0.79%	  	  	 	$0	  	  	 	63.00%	  	  	 	$0	  	  	 	0.00%	  	  	 	$0	  
										
	 TX
	  	8601F	  	 Oil or Gas Well: Drilling
 Consultants - USL&H
	  	 	$1,000	  	  	 	1.27%	  	  	 	$0	  	  	 	1.01%	  	  	 	$0	  	  	 	1.04%	  	  	 	$10	  
										
	 TX
	  	5606	  	 Field Service Employees
	  	 	$81,200	  	  	 	2.65%	  	  	 	$2,152	  	  	 	2.12%	  	  	 	$1,721	  	  	 	3.17%	  	  	 	$2,574	  
										
	 LA
	  	8601	  	 Oil or Gas Well: Drilling
 Consultants
	  	 	if any	  	  	 	1.19%	  	  	 	$0	  	  	 	0.94%	  	  	 	$0	  	  	 	0.00%	  	  	 	$0	  
										
	 LA
	  	8601F	  	 Oil or Gas Well: Drilling
 Consultants - USL&H
	  	 	$1,000	  	  	 	2.75%	  	  	 	$28	  	  	 	2.12%	  	  	 	$21	  	  	 	1.57%	  	  	 	$16	  
										
	 LA
	  	5606	  	 Field Service Employees

 
	  	   
	$436,000  
	    
	  	   
	4.10%  
	    
	  	   
	$17,876  
	    
	  	   
	3.14%  
	    
	  	   
	$13,690  
	    
	  	   
	4.85%  
	    
	  	   
	$21,146  
	    

	  
 Unmodified Premiums:
  
	  	   
	$4,257,000  
	    
	  	 	 	 	  	   
	$36,284  
	    
	  	 	 	 	  	   
	$28,578  
	    
	  	 	 	 	  	   
	$36,860  
	    

 

							
	 Limits:
	  				 	
		
		  	 	 Workers Compensation:

		  	 	 Statutory
	  	 	
		
		  	 	 Employers Liability:

		  	 	 $1,000,000
	  	 	 Bodily Injury by Accident / Each Accident

		  	 	 $1,000,000
	  	 	 Bodily Injury by Disease / Each Employee

		  	 	 $1,000,000
	  	 	 Bodily Injury by Disease / Policy Limits

		
	 Terms &

Conditions:
	  	       
	 —     Longshore & Harbor Workers’ Comp Act Coverage

		  	       
	 —     Waiver of Subrogation (blanket)

		  	       
	 —     TX Premium Discount

		  	       
	 —     Payroll Reporting/Billing Schedule

		  	       
	 —     WC & EL Insurance Policy

		  	       
	 —     Policy Information Page

  

 

 

 6 of 16 

 Workers’ Compensation 

 
  

			
	Terms & Conditions (cont):	  	 —       Named Insured Schedule

		  	 —       Notification of Change in Ownership

		  	 —       Premium Due Date

		  	 —       Catastrophe (other than Certified Acts of Terrorism) Premium

		  	 —       Terrorism Risk Ins Program Reauthorization Act Disclosure

		  	 —       LA Duty to Defend

		  	 —       LA Anniversary Rating Date

		  	 —       LA Amendatory Endorsement

		  	 —       LA Cost Containment Act

		  	 —       TX Amendatory Endorsement

		  	 —       Texas Audit Premium & Retro Premium

		  	 —       TX Terrorism Risk Ins Program Reauthorization Act

		  	 —       TX Terrorism Premium

		  	 —       Partners, Officers Coverage

		  	 —       TX Partners, Officers Coverage

Policy Premium: 
  

													
	  Coverages	  	Term    
Premium    	 	  	Texas	 	  	Louisiana    	 
	   Class Premium
	  	 	$36,860	  	  	 	  $15,699	  	  	 	$21,162	  
				
	   Waiver of Subrogation (2.0%)
	  	 	$671	  	  	 	$314	  	  	 	$357	  
	   Increased Limits
	  	 	$907	  	  	 	$314	  	  	 	$593	  
		  				  				  			
	   Undiscounted Premium
	  	 	$38,438	  	  	 	  $16,327	  	  	 	$22,112	  
				
	   Experience Mod Premium (0.82)
	  	 	-$6,855	  	  	 	  -$2,939	  	  	 	-$3,916	  
	   Premium Discount
	  	 	-$950	  	  	 	-$950	  	  	 	$0	  
	   Expense Constant
	  	 	$160	  	  	 	$160	  	  	 	$0	  
	   Foreign Terrorism/TRIA
	  	 	$44	  	  	 	$19	  	  	 	$25	  
	   Domestic Terrorism, et al
	  	 	$44	  	  	 	$19	  	  	 	$25	  
		  				  				  			
	 	 
	   Estimated Premium
	  	 	$30,881	  	  	 	$12,635	  	  	 	$18,246	  
	 	 

  

			
	Premium:	 	$            30,881.00
	
	Sent Premium Payment to:
		
		 	 Seabright Insurance Company

		 	 Lockbox #774268

		 	 4268 Solutions Center

		 	 Chicago, IL 60677-4002

  

 

 

 7 of 16 

 Premium Summary 

 
  

																									
	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 
	  	 	Coverage	 	  	  	Carrier	 	  	  	        AM        

Best	 	  	  	 08-09

Premium
	 	 	  	  	09-10
Premium	 	 	  
	 	 	 	 		  	 	 		  	 	 		  				 		  				 	 
	 	 	Workers’ Compensation    	 	 	  	  
 Seabright
Insurance
 Company
  
	 	 	  	A XV	 		  	$	26,559.00	  	 		  	$	30,881.00	  	 	 
	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	  	 	 	 	 	 

 This is a coverage summary, not a legal contract. This summary is provided to assist in your understanding of your insurance program. Please refer to the actual policies for specific terms, conditions,
limitations and exclusions that will govern in the event of a loss. Specimen copies of all policies are available for review prior to the binding of coverage. 
 In evaluating your exposure to loss, we have been dependent upon information provided by you. If there are other areas that need to be evaluated prior to binding of coverage, please bring these areas to our
attention. Should any of your exposures change after coverage is bound, such as your beginning new operation, hiring employees in new states, buying additional property, etc., please let us know so proper coverage(s) can be discussed. 

Higher limits may be available. Please contact us if you would like a quote for higher limits. 

Information Concerning Our Fees: Unless otherwise specifically negotiated and agreed to with our client, our
professional fees are customarily based on commission calculated as a percentage of the premium collected by the insurer and are paid to us by the insurer. We may also receive from insurers and insurance intermediaries additional compensation
(monetary and non-monetary), which is contingent on volume, profitability or other factors pursuant to agreements we may have with them relating to all or part of the business we place with those insurers or through those intermediaries. Such
agreements may be in effect with one or more of the insurers with whom your insurance is placed, or with the insurance intermediary we use to place your insurance. We will be pleased to discuss with you further details of any contingent compensation
agreements pertinent to your placement upon your request. 

  

 

 

 8 of 16 

 USI Privacy Notice 

 
 Our Privacy Promise to You 

USI provides this notice to you, our customer, so that you will know what we will do with the personal information, personal financial and
health information (collectively referred to as the “protected information”) that we may receive from you directly or receive from your health care provider or receive from another source that you have authorized to send us your protected
information. We at USI are concerned about your privacy and assure you that we will do what is required of us to safeguard your protected information. 
 What types of information will we be collecting? 
 USI collects information
from you required both for our business and pursuant to regulatory requirements. Without it, we cannot provide our products and services for you. We will be collecting protected information about you from: 

	•	 	 Applications or other forms, such as name, address, Social Security number, assets and income, employment status and dependent information;

	•	 	 Your transactions with us or your transactions with others, such as account activity, payment history, and products and services purchased;

	•	 	 Consumer reporting agencies, such as credit relationships and credit history. These agencies may retain their reports and share them with others who
use their services; 

	•	 	 Other individuals, businesses and agencies, such as medical and demographic information; and 

	•	 	 Visitors to our websites, such as information from on-line forms, site visitorship data and on-line information collection devices, commonly called
“cookies.” 

 What will we do with your protected information? 

The information USI gathers is shared within our company to help us maximize the services we can provide to our customers. We will only
disclose your protected information as is necessary for us to provide the insurance products and services you expect from us. USI does not sell your protected information to third parties, nor does it sell or share customer lists. 

We may also disclose all of the information described above to third parties with which we contract for services. In addition, we may
disclose your protected information to medical care institutions or medical professionals, insurance regulatory authorities, law enforcement or other government authorities, or to affiliated or nonaffiliated third parties as is reasonably necessary
to conduct our business or as otherwise permitted by law. 
 Our Security Procedures 

At USI, we have put in place the highest measures to ensure the security and confidentiality of customer information. We will handle the
protected information we receive by restricting access to the protected information about you to those employees and agents of ours who need to know that information to provide you with our products or services or to otherwise conduct our business,
including actuarial or research studies. Our computer database has multiple levels of security to protect against threats or hazards to the integrity of customer records, and to protect against unauthorized access to records that may harm or
inconvenience our customers. We maintain physical, electronic, and procedural safeguards that comply with federal and state regulations to safeguard all of your protected information. 
 Our Legal Use of Information 
 We retain the right to use ideas, concepts,
know-how, or techniques contained in any nonpublic personal information you provide to us for our own purposes, including developing and marketing products and services. 
 Your Right to Review Your Records 
 You have the right to review the
protected information about you relating to any insurance or annuity product issued by us that we could reasonably locate and retrieve. You may also request that we correct, amend or delete any inaccurate information by writing to us at the above
address. 

  

 

 

 9 of 16 

 Financial Ratings 

 
 As a service to our clients, USI
Insurance Services of Texas is furnishing an assessment by a financial rating service of the insurance companies included in our proposal. We are including the legends used by this service. 

All ratings are subject to periodic review; therefore, it is important to obtain updated ratings from each service. Should you desire
further information concerning the financial statements of any of the insurance companies being proposed, so that you can make your own assessment of the financial strength of the companies being offered, it is available from USI Insurance Services
of Texas at your request. 
 USI Insurance Services of Texas has made no attempt to determine independently the financial capacity
of the insurance companies that we are including in our proposal as we believe the nationally recognized services are better equipped to comment. 

  

 

 

 10 of 16 

 Financial Ratings - continued 

 
  

 BEST’S RATINGS 

 

									
	A+ and A++	  	Superior	  	B and B-	  	Adequate	  	
	A and A-	  	Excellent	  	C++, C+	  	Fair	  	
	B++, B+	  	Very Good	  	C and C-	  	Marginal	  	

 FINANCIAL SIZE CATEGORY 
 (In $ Thousands) 
  

									
	 Class
	  	I    	    	Up to	  		  	1,000
	 Class
	  	II    	    	1,000	  	 to
	  	 2,000

	 Class
	  	III    	    	2,000	  	 to
	  	5,000
	 Class
	  	IV    	    	5,000	  	 to
	  	10,000
	 Class
	  	V    	    	10,000	  	 to
	  	25,000
	 Class
	  	VI    	    	25,000	  	 to
	  	50,000
	 Class
	  	VII    	    	50,000	  	 to
	  	100,000
	 Class
	  	VIII    	    	100,000	  	 to
	  	250,000
	 Class
	  	IX    	    	250,000	  	 to
	  	500,000
	 Class
	  	X    	    	500,000	  	 to
	  	750,000
	 Class
	  	XI    	    	750,000	  	 to
	  	1,000,000
	 Class
	  	XII    	    	1,000,000	  	 to
	  	1,250,000
	 Class
	  	XIII    	    	1,250,000	  	 to
	  	1,500,000
	 Class
	  	XIV    	    	1,500,000	  	 to
	  	2,000,000
	 Class
	  	XV    	    	2,000,000	  	 or more
	  	

 RATING “NOT ASSIGNED” CLASSIFICATIONS 

 

					
		  	NR-1	  	 Limited Data Filing

		  	NR-2	  	 Less than Minimum Size

		  	NR-2	  	 Insufficient Operating Experience

		  	NR-3	  	 Rating Procedure Inapplicable

		  	NR-3	  	 Significant Change

		  	NR-3	  	 Reinsured by Unrated Reinsurer

		  	D	  	 Below Minimum Standards

		  	NR-3	  	 Incomplete Financial Information

		  	NR-4	  	 Company Request

		  	E	  	 Under State Supervision

		  	S	  	 Rating Suspended

  

 

 

 11 of 16 

 Optional Coverages 

 
 Umbrella (Excess) Liability

 Umbrella (Excess) Liability is designed to provide liability coverage when the loss exceeds the limits of the primary
liability insurance or retained limit. This coverage is available in $1,000,000 increments to whatever limit you require or prefer. 

Flood Insurance 
 Flood
Insurance provides protection for buildings and contents against financial loss from flooding. 
 Boiler & Machinery and
Electrical Equipment Coverage 
 Boiler and Machinery insures against damage to property (Owner’s as well as property of
others) caused by explosion of specific boilers, machinery, pressure vessels and certain electrical objects. Coverage may also be provided to reimburse for loss of income resulting from the inability to carry on business because of an accident to
insured boilers or machinery. 
 Accounts Receivable Insurance 

Accounts Receivable Insurance insures against loss on accounts receivable, which may be uncollectible through loss or damage to records
caused by insured hazards. 
 Pattern Floater 
 Pattern Floaters cover loss of damage by named perils to insured’s patterns, molds and dies when in transit and on property of others. 

Valuable Paper and Records Policy 
 A Valuable Paper and Records policy indemnifies for loss, destruction, or damages to valuable papers or records while on insured’s premises, while being conveyed outside the premises, or while
temporarily within the premises of others, except for storage. The policy insures on a comprehensive basis, including misplacement or mysterious or unexplained disappearance. 

  

 

 

 12 of 16 

 Optional Coverages - continued 

 
  

 Employee Dishonesty 

Protection for money and securities on and off premises caused by dishonesty, mysterious disappearance or destruction. Provides insurance
against loss due to dishonesty of employees, loss of money and securities within or outside of the premises, damage done to premises and equipment, loss of property other than money and securities by robbery or safe burglary. 

Business Interruption Coverage 
 If a business is forced to suspend operations because of a fire or some other insured peril, which damages the building or the contents of the building, there will be reduced income, although many expenses
will continue. In addition, profit will be reduced or eliminated during the period of interruption. It is the purpose of business interruption insurance to pay the continuing expenses and indemnify for profits lost during this period of
interruption. 
 Business Interruption provides coverage to indemnify for loss of income during the period of time that it takes to
restore property to a useful condition after a loss. It is designed to replace income, minus expenses, which do not continue, which would have been earned if the property had not been damaged. 

We will be happy to provide a premium quotation for this valuable protection upon your request. It will be necessary that a worksheet be
completed by your accountant, which determines the amounts of insurance needed based on the actual earnings and expenses of your business. 
 Crime Coverage 
 This coverage provides protection for loss of money, securities,
and other property, which the insured may sustain through a fraudulent or dishonest act or acts committed by any of the insider’s employees, acting alone or in collusion with others. 

Employment Practices Liability Coverage 
 This program provides errors and omissions coverage to indemnify the insured for a loss incurred as a result of a “Wrongful Act of Discrimination”. A wrongful act shall include but not be limited
to discrimination on the basis of race, religion, sex, sexual orientation, national origin, physical/mental disability or age. This coverage includes discrimination arising out of sexual harassment and/or wrongful termination. 

  

 

 

 13 of 16 

 Optional Coverages, continued 

 
  

 Employee Benefits Liability (EBL) 

This coverage is designed to insure against negligence caused by clerical errors committed in administration of a plan, such as enrolling,
terminating, counseling or changing status of employees and their dependents. EBL coverage applies to most benefit plans and typically features a low deductible. 
 Fiduciary Liability 
 Also known as “ERISA” insurance, it is designed
to provide protection for “wrongful acts” committed directly by the insured in the mismanagement of employee benefit plans. Clerical errors coverage is also included. Please note that ERISA can hold executive officers personally liable for
mismanagement of plan assets, denial of benefits, failure to comply with COBRA guidelines or failure to provide investment choices to employees. 
 Section 125 
 Pre-tax deduction for employees’ expenses, including
health care coverage. 
 Disability 
 Short Term (15-180 Days); Long Term (30 Days to Life) 
 Estate Planning

 Both business and personal. 
 Annuities 
 Single payment, flexible, fixed, deferred. 

Foreign Credit Liability 

Insuring of receivables from foreign sources (banks or companies) 
 Retirement & Deferred Compensation 
 401K, Keogh, Pension Plans, IRA. 

  

 

 

 14 of 16 

 Optional Coverages, continued 

 
  

 Buy-Sell Agreements 

Cross-purchase, cluster purchase, ESOP’s and Stock Redemption. 
 Personal Lines 
 Homeowners, Boats, Auto, Ranch, Recreational Equipment, Excess
Liability and Collector’s coverage. 
 Life Insurance 

Single premium, term, whole-life, universal and flexible life. 

  

 

 

 15 of 16 

 Additional Services 

 
 Engineering Services

 Provides compliance with OSHA, appeal of fines, loss investigation and safety training, program development, inspections,
industrial hygiene and hiring practices. 
 Claims Management 

Provides management for claims, loss analysis, claim review meetings, custom claims reports and claims adjustment management when we are not
the agent. 
 Bonds 
 Type of Bonds: contract, supplies, permit, payment, performance, loss instrument. Expanding the bond line, both the total bond line and the per job limit. 

Group Benefits 
 Health,
Dental, Life 

  

 

 

 16 of 16 

 

ACORD CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YY) 1/19/2010 

PRODUCER 
 TRUITT INSURANCE AGENCY 
 3415
Carthwright Rd 
 Missouri City, TX 77459-2401 

(281) 499-5499 
 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
POLICIES BELOW. 
 INSURERS AFFORDING COVERAGE NAIC# 

INSURED DUNE OPERATING COMPANY 

777 WALKER ST, SUITE 2450 

HOUSTON, TX 77002 
 713-229-6300 
 INSURER A: FARMERS
INS EXCHANGE 
 INSURER B: 

INSURER C: 
 INSURER D: 
 INSURER E: 

COVERAGES 
 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR
OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN
REDUCED BY PAID CLAIMS. 
 INSR LTR ADD’L. INSRD TYPE OF INSURANCE POLICY NUMBER POLICY
EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) LIMITS 
 GENERAL LIABILITY EACH
OCCURRENCE $ 
  ̈ COMMERCIAL GENERAL LIABILITY
DAMAGE TO RENTED PREMISES (Ea occurrence) $ 
  ̈
CLAIMS MADE  ̈ OCCUR MED EXP (Any one person) $ 

PERSONAL & ADV INJURY $ 

GENERAL AGGREGATE $ 

GEN’L AGGREGATE LIMIT APPLIES PER PRODUCTS - COMP/OP AGG $ 

 ̈ POLICY  ̈
PROJECT  ̈ LOC 
 AUTOMOBILE LIABILITY COMBINED
SINGLE LIMIT (EA accident) $ 1,000,000 
  ̈ ANY
AUTO 
  ̈ ALL OWNED AUTOS BODILY INJURY (Per
Person) $ 
 x SCHEDULED AUTOS 

x HIRED AUTOS 06948-35-23 01/05/10 01/05/11 BODILY INJURY
(Per accident) $ 
 x NON-OWNED AUTOS PROPERTY
DAMAGE (Per accident) $ 
 GARAGE LIABILITY AUTO ONLY EA-ACCIDENT $ 

ANY AUTO OTHER THAN AUTO ONLY EA ACC $ AGG $ 

EXCESS/UMBRELLA LIABILITY 

 ̈ OCCUR  ̈
CLAIMS MADE 
 EACH OCCURRENCE $ 

AGGREGATE $ 
 $ 
 RETENTION $ 

DEDUCTIBLE $ 
 WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY 
 ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? 
 If yes, describe under SPECIAL PROVISIONS below 
 WC STATUTORY LIMITS OTHER 
 E.L
EACH ACCIDENT $ 
 E.L DISEASE - EA EMPLOYEE $ 

E.L DISEASE - POLICY LIMIT $ 

OTHER 
 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS 

Certificate holder is also named as LOSS PAYEE 

CERTIFICATE HOLDER CANCELLATION 

WELLS FARGO FOOTHILL 

ATTN: PRECIOUS ATKINSON 

1100 ABERNATHY ROAD, STE 1600 

ATLANTA, GA 30328 
 via fax: 866.303.3911 
 SHOULD ANY
OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR
LIABILITY OF ANY KIND UPON THE INSURER ITS AGENTS OR REPRESENTATIVES AUTHORIZED REPRESENTATIVE 

ACORD25(2001/08) ACORD CORPORATION 1988 

 

PREMIUM FINANCE AGREEMENT Texas 
 P.O. BOX 218060 

HOUSTON, TX 77218-8060 

***A847355*** 
 Phone 713-490-4600 
  ̈ PERSONAL x COMMERCIAL  ̈ NEW x AGENCY RENEWAL  ̈ ADD’L PREMIUM 
 THIS AGREEMENT, made effective
the 31 day of October 2010 , between 
 DUNE ENERGY INC 

(Name of Borrower/Insured exactly as it appears in financed policies) SSN OR TAX # 

ADDRESS STE 2300 TWO SHELL PLAZA 777 WALKER 

CITY HOUSTON STATE TX ZIP 77002 PHONE # (713) 229-6300 

hereinafter called the Borrower, and MERIDIAN CREDIT SERVICES, INC., A DELAWARE CORPORATION hereinafter
called Lender, for the purpose of financing the purchase of insurance policies described in the Scheduled Policies of Insurance listed in page 3 to this Agreement. 

TOTAL PRICE OF PREMIUMS 

2,391,834.38 
 - CASH DOWN PAYMENT 
 597,958.60

 = PRINCIPAL BALANCE OWED ON PREMIUMS 

1,793,875.78 
 + DOC STAMPS & SERVICE FEE 

(if applicable) 
 0.00 
 = TOTAL AMOUNT FINANCED

 1,793,875.78 

+ FINANCE CHARGE 
 (Amount credit costs over term of loan) 
 33,803.09 
 = TOTAL OF PAYMENTS

 (Amount paid if all payments made as scheduled) 

1,827,678.87 
 ANNUAL PERCENTAGE RATE 
 4.50

 SELECT BILLING OPTION:  ̈Payment Book x Monthly Invoice YOUR PAYMENT SCHEDULE WILL BE: 

Each monthly payment due on same day of each succeeding month until paid in full. 

Amount of Monthly Payment 

203,075.43 
 Number of Payments 
 9 

Date First Payment is Due 

11/30/2010 
 FOR VALUE RECEIVED, BORROWER PROMISES TO PAY to the order of Lender at the address given at the top of this page, the Total Amount Financed and all sums shown above, including interest at
the Annual Percentage Rate and other charges as described hereinafter, pursuant to the terms stated below and in page 2 of this Agreement. 
 1. SECURITY FOR PAYMENT: To secure payment of all sums due under this Agreement, Borrower grants Lender a security interest in any unearned premiums or other sums which may become payable
under the Scheduled Policies of Insurance shown on page 3. 
 2. LIMITED POWER OF ATTORNEY:
BORROWER IRREVOCABLY APPOINTS LENDER AS ATTORNEY-IN-FACT TO CANCEL THE SCHEDULED POLICIES OF INSURANCE AFTER BORROWER DEFAULTS IN MAKING PAYMENTS UNDER THIS AGREEMENT. 

3. NOTICE TO BORROWER: (1) Do not sign this Agreement before you read it, or if it contains any blank
space (other than as provided on the next page), (2) You are entitled to have and should retain a completely filled in copy of this Agreement, and (3) BY SIGNING BELOW BORROWER AGREES TO THE PROVISIONS ABOVE AND ALL OF THE TERMS WHICH APPEAR ON THE
SECOND PAGE OF THIS AGREEMENT AND ACKNOWLEDGES RECEIPT OF COPIES OF PAGES 1, 2 AND 3 OF THIS AGREEMENT and (4) The undersigned Agency may receive compensation from Lender for aiding in the preparation of this Agreement and payment of the financed
premiums. 
 SIGNATURE OF ALL INSURED[S] NAMED IN POLICIES OR AUTHORIZED AGENT OF INSURED[S], AS
PERMITTED BY LAW: 
 10-28-2010 X 

Date Name and Title: Frank T. Smith Jr. Chief Financial Officer Date Name and Title: 

PRODUCER’S REPRESENTATIONS & WARRANTIES: 

The undersigned Producer represents and warrants that: (A) The Cash Down Payment shown above has been paid
by or on behalf of the Borrower. (B) The Total Price of Premiums shown above has been or will be used to purchase insurance policies shown in the Scheduled Policies of Insurance on page 3 of this Agreement. Any portion of the Total Price of Premiums
received by Producer that is not used to purchase such insurance policies, as well as any refunds or credits on such policies, shall be promptly paid to Lender. (C) To the best of the undersigned’s knowledge and belief, Borrower is not subject
to any bankruptcy or insolvency proceedings and Producer has no reason to believe that Borrower is insolvent. (D) The Borrower’s signature(s) is (are) genuine and authorized, or to the extent permitted by applicable law, the Producer has been
authorized by Borrower to sign this Agreement on Borrower’s behalf. (E) Producer has delivered or will deliver a copy of this Agreement to Borrower. Producer agrees that the Representations & Warranties above, as well as those on page 3 of
this Agreement, are a binding contract between Producer and Lender. 
 PRODUCER/AGENCY

 Name USI SOUTHWEST - HOUSTON 

Address PO BOX 218060 

HOUSTON, TX 77218 
 10/28/2010 Date 
 PRODUCER’S
SIGNATURE 
 Special Comments 

This agreement assigned to Premium Assignment Corporation. 

Page 1 of 4 

 

 

 IN CONSIDERATION of the payment by Lender of the Principal Balance Owed on Premiums shown on page 1
to the insurance companies named in the Scheduled Policies of Insurance shown on page 3 (or the agents of such companies), the Borrower agrees: 
 4. ACCEPTANCE DATE This Agreement is binding upon its acceptance by Lender. Acceptance shall occur upon payment of the Principal Balance Owed on Premiums to the insurance companies named in the
Scheduled Policies of Insurance, or the agents of such companies. 
 5. PAYMENTS Borrower shall make payments directly to
Lender in the amounts and at the same time specified on page 1 of this Agreement. Payments shall be made at Lender’s address given at the top of page 1 or such other address as Lender may direct in writing. Payments made to any other address,
person, firm, corporation or insurance agency (including but not limited to the Producer) shall not constitute payment to Lender. Payments received after cancellation of the Scheduled Policies of Insurance shall be credited to the unpaid balance due
under this Agreement and shall not constitute reinstatement of the cancelled policies, nor shall it constitute a waiver by Lender of any rights. 
 6. LATE CHARGES If a payment is more than 10 days late, Borrower agrees to pay a late charge of 5% of each delinquent or unpaid installment, unless prohibited by applicable law. 

7. DEFAULT/CANCELLATION A default shall occur if Borrower fails to pay any sums required by this Agreement in a timely manner,
including interest and Late Charges, or if Borrower fails to carry out any other obligations under this Agreement. After default, any unpaid balance of the Total Amount Financed may become immediately due and payable in full at the option of Lender,
and Lender may enforce its security interest and its rights under the Limited Power of Attorney. Interest will continue to accrue on the unpaid balance at the Annual Percentage Rate or maximum rate allowed by applicable law, at the option of Lender,
until all balances owed under this Agreement are paid. Lender may request cancellation of all or any of the Scheduled Policies of Insurance at the earliest time after default permitted by applicable law. 

8. EXCESS INTEREST OR FEES It is the intent of the Lender that no interest, fee or charge in excess of that permitted by
applicable law will be charged, taken or become payable under this Agreement. In the event it is determined that Lender has taken, charged or accrued interest, fees or charges in excess of that permitted under law, such excess shall be returned to
Borrower or credited against the sum due Lender hereunder. 
 9. REFUNDS The Borrower will receive a refund of the
finance charge if the account is prepaid in full prior to the last installment due date. The refund shall be computed according to applicable law (Rule of 78’s). 
 10. SHORTAGE OR OVERAGE OF RETURNED PREMIUM If Lender does not receive unearned premiums or other funds after cancellation or expiration of the Scheduled Policies of Insurance in an amount
sufficient to pay the unpaid balance due under this Agreement, Borrower agrees to pay the deficiency to Lender on demand. Interest shall accrue on the deficiency at the Annual Percentage Rate, or the maximum rate allowed by applicable law, at the
option of Lender. If the unearned premiums received by Lender are more than the amount due under this Agreement, the excess shall be returned to Borrower within the time allowed by applicable law. Borrower has no right to any excess of less than the
minimum amount inquired to be paid by applicable law. 
 11. ATTORNEYS FEES/COURT COSTS Borrower agrees to pay all
attorneys fees, expenses and costs incurred by Lender in collecting amounts due from Borrower under this Agreement, including attorneys fees incurred on appeal and in bankruptcy, unless prohibited or limited by applicable law. 

12. LENDER RELATIONSHIP Borrower acknowledges that: (a) Lender is not an insurance agent nor an insurance company,
(b) This Agreement is a financing agreement and not an insurance policy or guarantee of insurance coverage, (c) Lender has played no part in the selection or structuring of the financed insurance policies, (d) Lender has no obligation
to request reinstatement of any insurance policies properly cancelled after a default under this Agreement, and (e) The decision of whether to reinstate insurance coverage is made solely by the insurance companies providing coverage, not
Lender. 
 13. ADDITIONAL PREMIUMS Lender may advance to Producer, as Borrower’s agent, or to an insurance company
any additional premiums that may become due, less normal down payment, adding the advanced amount, plus any finance charge, to Borrower’s balance under this Agreement. However, any additional premium which is owed to the insurance company(ies))
named in the Scheduled Policies of Insurance as a result of any misclassification of risk which is not paid in full or financed in this Agreement may result in cancellation of the coverage by the insurance company for nonpayment of premium.
Lender’s payment shall not be applied by the insurer to pay for any additional premium owed by Borrower as a result of any misclassification of risk. 
 14. LENDER LIABILITY Lender is not responsible for any damages resulting from cancellation of the Scheduled Policies of Insurance by Lender, as long as the cancellation was done in accordance with
applicable law. Borrower shall be responsible for Lender’s reasonable attorneys fees and expenses for any unsuccessful action filed by Borrower seeking damages for improper cancellation. Lender’s liability for breach of this Agreement
shall be limited to the Principal Balance Financed under this Agreement, if permitted by applicable law. 
 15. RETURNED
CHECKS Borrower agrees to pay a returned check fee of $20, as allowed by applicable law, for each of Borrower’s checks returned to Lender for Insufficient funds or because the insured has no account in the payor bank. 

16. WARRANTIES OF BORROWER Borrower warrants that: (a) Each of the Scheduled Policies of Insurance have been issued or a
binder has been issued; (b) Borrower has not and will not assign or encumber any unearned premium of the Scheduled Policies of Insurance or grant a power of attorney to cancel the Scheduled Policies of Insurance to anyone other than Lender
until all sums due under this Agreement are paid in full; (c) Lender may assign all its rights under this Agreement as allowed by applicable law; (d) No proceeding in bankruptcy or insolvency has been instituted by or against Borrower or
is contemplated by Borrower, and (c) No insurance financed by this Agreement was purchased for personal, family or household purposes, unless so indicated on page 1. 
 17. INTEREST CALCULATION Interest is computed on an annual basis of 12 months of 30 days on the balance of the policy Amount Financed, from the effective date of each insurance policy for which
premiums are being advanced to the date when all sums due under this Agreement are paid. 
 18. BLANK SPACES Borrower
agrees that if any policy financed by this Agreement has not been issued at the time the Agreement is signed, the names of the insurance companies issuing the financed policies, the policy numbers and the due date of the first installment may be
inserted in the Agreement after it is signed. 
 19. GOVERNING LAW The Parties agree that the law of the state in which
this Agreement is executed shall control the interpretation of the Agreement and the rights of the parties, unless the Agreement is executed in a state without premium finance laws, in which case the law of the State of Florida shall govern.

 20. SAVINGS AND MERGER CLAUSE The Parties agree that if one or more portions of this Agreement are found to be invalid
or unenforceable for any reason, the remaining portions shall remain fully enforceable. The parties also agree that this Agreement contains the entire agreement between the parties regarding the subject matter herein and supersedes any prior
discussions. 
 21. FINANCING OPTION Entry into this financing arrangement is not a condition of obtaining insurance. You
may opt to pay the premium for such insurance without financing such premium, or to obtain financing from some other source if you choose. 

  
 Page 2 of 4

  

													
	

	  	 State: TX

SCHEDULED POLICIES OF INSURANCE

 

																	
	 DUNE ENERGY INC
	  		  	 USI SOUTHWEST - HOUSTON
	  	 V8(30)G22272I1.59
 11785

	 STE 2300
	  		  	 PO BOX 218060

	 TWO SHELL PLAZA 777 WALKER
	  		  	 HOUSTON, TX 77218-8060

	 HOUSTON, TX 77002
 (713) 229-6300
	  	 ***A847355***
	  	 (713) 490-4600

 

													
	Premium	 	Down Payment    	 	Unpaid Balance	 	Doc Stamps/Fees	 	Amt. Financed	 	Finance Charges	 	Total / 
Payments
	2,391,834.38	 	 597,958.60
 (25.00%)
	 	1,793,875.78	 	0.00	 	1,793,875.78	 	33,803.09	 	1,827,678.87
	 	 	 	 	 	 	 
	Payment	 	Payments	 	Rate	 	First Due	 	Type	 	Status	 	Contract Type
	203,075.43	 	9	 	4.50%	 	11/30/2010	 	INVOICE	 	RENEW	 	COMMERCIAL

  

																			
	 EFF DATE    
EXP DATE    
	 	 	  	COMPANY / BROKER	  	
CITY
	  	  ST  	  	
CO.

#
	  	TYPE MEP	  	
POLICY

NO.
	  	  
 
	 TOTAL
PREMIUM
	
  
  

									
	 10/31/2010
	 	  CO:	  	SAINT PAUL SURPLUS LINES	  	 ST PAUL
	  	MN	  	82884	  	GL	  		  	 	161,391.00	  
	 10/31/2011
	 	MGA:	  	J H BLADES & CO INC	  	 HOUSTON
	  	TX	  	63038	  	0.00  %	  		  			
		 		  		  		  		  		  		  	 Taxes/Fees
	  	  
	 8,448.85
	   

	 	 	 	  	 	  	 	  	 	  	 	  	 	  	Total	  	 	169,839.85	  
									
	 10/31/2010
	 	  CO:	  	WATER QUALITY INS SYN	  	 NEW YORK
	  	NY	  	84045	  	POLL	  		  	 	8,660.64	  
	 10/31/2011
	 	MGA:	  	 	  	 	  	 	  	 	  	4.00  %	  	 	  	 	 	 
									
	 10/31/2010
	 	   CO:
	  	STATE NATL INS INC 	  	 FT WORTH
	  	TX 	  	85027	  	 P&I
	  		  	 	128,719.00	  
	 10/31/2011
	 	 MGA:
	  	WFT INC	  	 CHARLOTTE
	  	NC	  	62762	  	25.00  %	  	 	  	 	 	 
									
	 10/31/2010
	 	  CO:	  	 FEDERAL INS
	  	HOUSTON	  	TX	  	86136	  	P&I	  		  	  
	 27,350.00
	   

	 10/31/2011
	 	MGA:	  	 AXIOM INS MGMT LTD
	  	ATLANTA	  	GA	  	62070	  	0.00  %	  		  			
		 		  		  		  		  		  		  	Taxes/Fees	  	  
	 671.45
	   

	 	 	 	  	 	  	 	  	 	  	 	  	 	  	Total	  	  
	 28,021.45
	   

 

									
	 Created By:
	  	 ufls110
	  		 	 Auth Code:
	 	  

 
  
  

ADDITIONAL REPRESENTATIONS & WARRANTIES OF PRODUCER 

(F) All information provided above is complete and correct in all respects and the policies listed above are or will be in force on the
stated Effective Date and delivered by Producer to the Borrower, except for assigned risk or residual market policies. 
 (G) If
any information listed above is or becomes incomplete or inaccurate, Producer shall promptly provide correct information to Lender. 
 (H) The Producer is an authorized policy issuing agent of the companies issuing the policies listed above or is the authorized agent of the MGA or broker placing the coverage directly with the insuring
company, except those policies indicated with an “X”. 
 (I) None of the policies listed above are subject to
reporting or retrospective rating provisions. All policies subject to audit, minimum or fully earned premium provisions are indicated below: 

Policy No and Prefix No:                  
                                         
                                         
                                         
                                         
                           
 (J) Except as indicated above, all Scheduled Policies of Insurance can be cancelled by Borrower or Lender on 10 days notice and the unearned premiums will be computed pro rata or on the standard short
rate table. 
 (K) If any Scheduled Policies of Insurance are subject to audit, Producer and Borrower have made good faith
determination that the deposit, provisional or initial premiums are not less than the anticipated premiums to be earned for the full term of the policy(ies). 
 (L) Upon cancellation of any of the Scheduled Policies of Insurance, Producer shall remit to Lender the full amount of the unearned premium, including unearned commission, as well as any other payments or
credits received by Producer, up to the unpaid balance due under this Agreement, within 15 days of receipt from the insuring company. 
 DOCUMENTARY STAMPS REQUIRED BY LAW IF ANY ARE AFFIXED TO MONTHLY JOURNAL AND CANCELLED. 

  

Page  3  of  4 

  

							
	

	  	 State: TX

SCHEDULED POLICIES OF INSURANCE

 

																	
	 DUNE ENERGY INC
	  		  	 USI SOUTHWEST - HOUSTON
	  	 V8(30)G22272I1.59
 11785

	 STE 2300
	  		  	 PO BOX 218060

	 TWO SHELL PLAZA 777 WALKER
	  		  	 HOUSTON, TX 77218-8060

	 HOUSTON, TX 77002
 (713) 229-6300
	  	 ***A847355***
	  	 (713) 490-4600

 

																			
	 EFF DATE    
EXP DATE    
	  	 	  	COMPANY / BROKER	  	
CITY
	  	ST  	  	
CO.

#
	  	TYPE MEP	  	
POLICY

NO.
	  	  
 
	 TOTAL
PREMIUM
	
  
  

									
	 10/31/2010
	  	  CO:	  	SAINT PAUL SURPLUS LINES	  	 ST PAUL
	  	MN	  	82884	  	P&I	  		  	 	82,090.00	  
	 10/31/2011
	  	MGA:	  	J H BLADES & CO INC	  	 HOUSTON
	  	TX	  	63038	  	0  %	  		  			
		  		  		  		  		  		  		  	 Taxes/Fees
	  	  
	 4,555.17
	   

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Total	  	 	86,645.17	  
									
	 10/31/2010
	  	  CO:	  	NEW YORK MARINE & GENERAL	  	 NEW YORK
	  	NY	  	84277	  	EXCS	  		  	 	66,500.00	  
	 10/31/2011
	  	MGA:	  	 MUTUAL MARINE OFFICE OF MID
	  	 CHICAGO
	  	 IL
	  	 65316
	  	0  %	  	 	  	 	 	 
									
	 10/31/2010
	  	   CO:
	  	NEW YORK MARINE & GENERAL	  	 NEW YORK
	  	NY 	  	84277	  	 EXCS
	  		  	 	67,500.00	  
	 10/31/2011
	  	 MGA:
	  	MUTUAL MARINE OFFICE OF MID	  	 CHICAGO
	  	IL	  	65316	  	0.00  %	  		  			
		  		  		  		  		  		  		  	Taxes/Fees	  	 	1,657.13	  
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Total	  	 	69,157.13	  
									
	 10/31/2010
	  	  CO:	  	 LLOYDS OF LONDON
	  	TALLAHASSEE	  	FL	  	82864	  	PKG	  		  	 
	1,729,439.00
	  

	 10/31/2011
	  	MGA:	  	 USI SOUTHWEST - HOUSTON
	  	HOUSTON	  	TX	  	64460	  	0  %	  		  			
		  		  		  		  		  		  		  	Taxes/Fees	  	  
	 71,092.14
	   

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	Total	  	  
	 1,800,531.14
	   

									
	 10/31/2010
	  	  CO:	  	LLOYDS OF LONDON	  	 TALLAHASSEE
	  	FL	  	82864	  	POLL	  		  	 	33,760.00	  
	 10/31/2011
	  	MGA:	  	 USI SOUTHWEST - HOUSTON
	  	 HOUSTON
	  	 TX
	  	 64460
	  	0  %	  	 	  	 	 	 

  

									
	 Created By:
	  	 ufls110
	  		 	 Auth Code:
	 	  

 
  
  

ADDITIONAL REPRESENTATIONS & WARRANTIES OF PRODUCER 
 F) All information provided above is complete and correct in all respects and the policies listed above are or will be in force on the stated Effective Date and delivered by Producer to the Borrower,
except for assigned risk or residual market policies. 
 (G) If any information listed above is or becomes incomplete or
inaccurate, Producer shall promptly provide correct information to Lender. 
 (H) The Producer is an authorized policy issuing
agent of the companies issuing the policies listed above or is the authorized agent of the MGA or broker placing the coverage directly with the insuring company,        except those policies indicated with an
“X”. 
 (I) None of the policies listed above are subject to reporting or retrospective rating provisions.
All policies subject to audit, minimum or fully earned premium provisions are indicated below: 

Policy No and Prefix No:               
                                         
                                         
                                         
                                         
                              

(J) Except as indicated above, all Scheduled Policies of Insurance can be cancelled by Borrower or Lender on 10 days notice and the
unearned premiums will be computed pro rata or on the standard short rate table. 
 (K) If any Scheduled Policies of Insurance
are subject to audit, Producer and Borrower have made good faith determination that the deposit, provisional or initial premiums are not less than the anticipated premiums to be earned for the full term of the policy(ies). 

(L) Upon cancellation of any of the Scheduled Policies of Insurance, Producer shall remit to Lender the full amount of the unearned
premium, including unearned commission, as well as any other payments or credits received by Producer, up to the unpaid balance due under this Agreement, within 15 days of receipt from the insuring company. 

DOCUMENTARY STAMPS REQUIRED BY LAW IF ANY ARE AFFIXED TO MONTHLY JOURNAL AND CANCELLED. 

  
 Page
4  of  4 

 Schedule 4.24 

Second Secured Debt Documents 
 (Balance $300,000,000) 
  

	 	—	 	 Security Agreement, dated May 15, 2007, among The Bank of New York Trust Company, NA, as collateral agent, and each of Dune Energy, Inc.,
Goldking Operating Company and Vaquero Partners LLC, as grantors, and Dune Operating Company and Goldking Energy Corporation, as guarantors; 

  

	 	—	 	 Notations of Guarantee, dated May 15, 2007, from Dune Operating Company, Vaquero Partners LLC, Goldking Energy Corporation and Goldking
Operating Company, as attached to each of Rule 144, Regulation S and IAI global forms of 10th% Senior Secured Note due 2012; and 

  

	 	—	 	 Intercreditor Agreement, dated May 15, 2007, among Wells Fargo Foothills, Inc., The Bank of New York Trust Company, NA and Dune Energy, Inc.,
among others 

  

	 	—	 	 Indenture, dated as of May 15, 2007, by and among Dune Energy, Inc. and each of Dune Operating Company and Vaquero Partners LLC, as guarantors,
and The Bank of New York, as trustee and collateral agent; 

  

	 	—	 	 Deed of Trust or other mortgage documents related to Texas and Louisiana property interests 

 Schedule 4.26 

Oil and Gas Imbalances 

None 

 Schedule 4.27 

Hedge Agreements 
 None

 Schedule 4.29 

Bonds and Insurance 
  

	(a)	 Bonds - See table on next page 

  

	(e)	 Insurance - See Schedule 4.21 

 BOND SUMMARY 

 

																							
	  	  	Principal	  	BOND NO.	 	  	BOND
AMOUNT	 	  	TO	  	 Bond

Form
	  	 Coverage

Dates
	 	  	Expiration
Date	 
	 1
	  	Dune Operating Company	  	 	B004285	  	  	 	50,000.00	  	  	“Continuation of RRC Blanket Bond”	  	State - TX RR Commission	  	 	05/10 - 05/11	  	  	 	10/1/2011	  
	 2
	  	Dune Operating Company	  	 	B001956	  	  	 	20,293,000.00	  	  	Plugging Bond (Enervest)	  	Private - Chevron	  	 	10/10 - 11/11	  	  	 	10/31/2011	  
	 3
	  	Dune Operating Company	  	 	B005023	  	  	 	100,000.00	  	  	Alvin GU No. 1	  	Local - TX Permit Bond Alvin GU	  	 	07/10 - 07/11	  	  	 	7/1/2011	  
	 4
	  	Dune Operating Company	  	 	B003134	  	  	 	100,000.00	  	  	Lacassane	  	Private - Lacassane	  	 	09/10 - 09/11	  	  	 	9/28/2011	  
	 5
	  	Dune Operating Company	  	 	B003133	  	  	 	4,300,000.00	  	  	Plugging Bond (Hilcorp)	  	Private - Hilcorp	  	 	09/10 - 09/11	  	  	 	9/28/2011	  
	 6
	  	Dune Operating Company	  	 	B004920	  	  	 	100,000.00	  	  	Permit Bond	  	Local - TX Permit Bond Brazoria Road Permit	  	 	04/10 - 04/11	  	  	 	4/22/2011	  
	 7
	  	Dune Operating Company	  	 	B003716	  	  	 	1,250,000.00	  	  	LA Office of Conservation Drill Permit	  	State - LA Blanket Plugging	  	 	06/10 - 06/11	  	  	 	06/1/2011	  
	 8
	  	Dune Operating Company	  	 	B006171	  	  	 	500,000.00	  	  	Charles R. Godchaux Trustee for Live Oak Plantation Trust	  	Private - Lease Obligations for damages	  	 
  
	12/01/10 -
 12/01/11
	  
   
	  	 	12/01/11	  
		  		  				  	 	 	 	  		  		  				  			
		  		  				  	 	26,693,000.00	  	  		  		  				  			
		  		  				  	 	 	 	  		  		  				  			

 Schedule 4.30 

Royalties 
  

					
	Dune Energy, Inc.	  	 	N/A	  
		
	Dune Operating Company	  	 	N/A	  
		
	Dune Properties, Inc.	  	 	None	  

  

 Schedule 4.32 

Seismic Licenses 
  

											
	Property	  	Licensor	  	Licensee	  	Sq.
Miles 3D	 	  	 Line

Miles 2D

	 Garden Island Bay
	  	Seitel Data Ltd.	  	Dune Operating Company	  	 	64.8130	  	  	11.8750
					
	 Chocolate Bayou
	  	Conoco Phillips	  	Dune Operating Company	  	 	66.0000	  	  	
					
	 North Broussard
	  	Seitel Data Ltd	  	Dune Operating Company	  	 	43.3490	  	  	
					
	 Live Oak
	  	Seismic Exchange, Inc.	  	Goldking Operating Company	  	 	9.8940	  	  	
					
	 Bayou Couba
	  	Seismic Exchange, Inc.	  	Dune Operating Company	  	 	65.3763	  	  	Gheens Survey
					
		  		  	Dune Operating Company	  	 	25.0000	  	  	Bayou Couba Survey
					
	 Leeville
	  	Seitel Data Ltd.	  	Dune Operating Company	  	 	32.3540	  	  	
					
	 Bateman Lake
	  	Western Geco	  	Dune Operating Company	  	 	55.3460	  	  	
					
	 Comite
	  	Seismic Exchange, Inc.	  	Dune Operating Company	  	 	1.8976	  	  	6.4500
					
	 South Florence
	  	Seismic Exchange, Inc.	  	Dune Energy Inc.	  	 	7.6237	  	  	

 Schedule 4.33 

Marketing of Production 

None. 

 Schedule 5.2 

Provide Agent and each Lender with each of the documents set forth below at the following times in form satisfactory to
Required Lenders: 
  

					
	 Monthly (as soon as possible and in any
event within 30 days of each fiscal month):
	 	 	 	 (a)      a report setting forth as of the last Business Day of such month, a summary of its hedging positions under all Hedge Agreements (including commodity price swap
agreements, forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of Hydrocarbons of Borrowers, including the type, term, effective date, termination date and notional principal amounts or volumes,
the hedged price(s), interest rate(s) or exchange rate(s), as applicable, the net market to marked value thereof and any credit support agreements relating thereto (including any margin required or supplied), and the counterparty to each such
agreement;
  

	 Quarterly (as soon as possible and in any event not later than 45 days
after end of each quarter):
	 	 	 	
(b)      a report:    (i) setting forth the total amount actually paid by each Loan
Party during the preceding quarter for: (A) plugging and abandonment costs for previous or ongoing plugging and abandonment operations pertaining to such Loan Party’s Oil and Gas Properties, and (B) general bond and supplemental bond payments
pertaining to plugging and abandonment costs; and (ii) estimating the future payments for (A) and (B), above, for each of the succeeding two quarters;

 

	 Annually (not later than 75 days after June 30th of each
year):
	 	 	 	 (c)      a Reserve Report, prepared
under the supervision of the chief engineer of each Borrower in accordance with the procedures used in the last Reserve Report prepared by the Petroleum Engineers prior to the Restatement Date, and together with each such Reserve Report, a
certificate of an Authorized Person of each Borrower certifying that, to the best of his or her knowledge that: (i) such Borrower owns good and defensible title to its Oil and Gas Properties evaluated in such Reserve Report and such Properties are
free and clear of all Liens except for Permitted Liens, (ii) except as

  
 Schedule 5.2 -
1 

  

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

 

	 Annually (not later than 90 days after December 31st of each
year):
	 	 	 	 (d)      a Reserve Report, prepared
by the Petroleum Engineers in accordance with the procedures used in the last Reserve Report prepared by the Petroleum Engineers prior to the Restatement Date, and together with each such Reserve Report, a certificate of an Authorized Person of each
Borrower certifying that, to the best of his or her knowledge that: (i) such Borrower owns good and defensible title to its Oil and Gas Properties evaluated in

  
 Schedule 5.2 -
2 

  

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

	 Upon request by Agent:
	 	 	 	 (e)      as soon as practicable,
notification of prepayment of Hydrocarbons by any customer of any Loan Party, together with a reasonably detailed summary of the terms of such transaction, including, without limitation, the amount of such prepayment, the quantity of Hydrocarbons to
be delivered, the delivery

  
 Schedule 5.2 -
3 

  

					
	 	 	 	 	 schedule of such Hydrocarbons and such other information as may be reasonably requested by Agent;
  

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

	 	 	 	 	
(g)      proof of payment of applicable Taxes, including Real Property, ad valorem and production
taxes;
  

	 	 	 	 	 (h)      up to once a year at Loan
Parties’ expense (in addition to the Reserve Reports required to be delivered pursuant to clauses (c) and (d) above), a Reserve Report, prepared by the Petroleum Engineers in accordance with the procedures used in the last Reserve
Report prepared by the Petroleum Engineers prior to the Restatement Date, and together with each such Reserve Report, a certificate of an Authorized Person of each Borrower certifying that, to the best of his or her knowledge that: (i) such
Borrower owns good and defensible title to its Oil and Gas Properties evaluated in such Reserve Report and such Properties are free and clear of all Liens except for Permitted Liens, (ii) except as set forth on an exhibit to the certificate, on
a net basis there are no gas imbalances, take-or-pay or other prepayments with respect to its Oil and Gas Properties evaluated in such Reserve Report which would require such Borrower to deliver Hydrocarbons produced from such Oil and Gas Properties
or make cash payments at some future time without then or thereafter receiving full payment therefor, (iii) except as set forth on an exhibit to the certificate, none of such Borrower’s Oil and Gas Properties have been sold since the date
of the Reserve Report, which exhibit shall list all of such Borrower’s

  
 Schedule 5.2 -
4 

  

					
	 	 	 	 	 Oil and Gas Properties sold and in such detail as is reasonably required by Agent, (iv) attached as an exhibit to the certificate is a list of its Oil and Gas Properties added to and deleted from the
Reserve Report most recently delivered and a list of all Persons disbursing proceeds to such Borrower, as applicable, from its Oil and Gas Properties, (v) attached to the certificate as an exhibit is a list of all of the Oil and Gas Properties of
such Borrower evaluated by such Reserve Report that are subject to a Mortgage, a Security Agreement and UCC financing statements, that in each case create a perfected, first priority Lien in such Oil and Gas Properties in favor of Agent, and (vi)
except as set forth and explained on an exhibit to such certificate, there has not been any change in the working interest or net revenue interest of such Borrower in any of the Oil and Gas Properties included on such Reserve Report since the date
of the last certificate delivered; and
  

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

  
 Schedule 5.2 -
5 

 Schedule 5.3 

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

					
	
as soon as available, but in any event within 45 days after the end of each month during each of Parent’s fiscal years

 
	 	 	 	 (a)      a
Compliance Certificate.

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

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

(e)      a Compliance Certificate.

 

	 as soon as available, but in any event within 30 days prior to the start
of each of Parent’s fiscal years,
	 	 	 	 (f)      copies of Parent’s
Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Required Lenders, in their Permitted

  
 Schedule 5.3 -
1 

  

					
	 	 	 	 	 Discretion, for the forthcoming fiscal year, month by month, certified by the chief financial officer of Parent as being such officer’s good faith estimate of the financial performance of Parent
during the period covered thereby.
  

	 if and when filed by any Borrower,
	 	 	 	
(g)      Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,

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

 

	 promptly, but in any event within 10 days after a Borrower has knowledge
of any event or condition that constitutes a Default or an Event of Default,
	 	 	 	
(j)      notice of such event or condition and a statement of the curative action that Loan Parties propose
to take with respect thereto.
  

	 promptly, but in any event
within 10 days after a Loan Party has knowledge of any labor negotiations or strikes or termination or cancellation of any Material Contract,
  
	 	 	 	
(k)      notice of such event or condition and a statement of the curative action that Loan Parties propose
to take with respect thereto.
  

	 promptly after the commencement thereof, but in any event within 10 days
after the service of process with respect thereto on any Borrower or any Subsidiary of a Borrower,
	 	 	 	
(l)      notice of all actions, suits, or proceedings brought by or against any Loan Party or any Subsidiary
of a Loan Party before any Governmental Authority which reasonably could be expected to result in a Material Adverse Change.
  

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

 

	 promptly after receipt or delivery thereof,
	 	 	 	 (n)      (i) copies of any material
notices that any Loan Party receives from or sends to any person in connection with any Material Contract and (ii) at least 3 Business Days prior

  
 Schedule 5.3 -
2 

  

					
	 	 	 	 	 to the effective date thereof, any amendments, modifications, waivers or other changes to any such documents.

 

	 upon the request of Agent,
	 	 	 	
(o)      any other information reasonably requested relating to the financial condition of Loan Parties or
their Subsidiaries.
  

  
 Schedule 5.3 -
3 

 Schedule 6.1 

Permitted Indebtedness 
 None. 

 Schedule 6.15 

Permitted Farm-Out Agreements 
 EXISTING AGREEMENTS 
  

	 	1.	 Garden Island Bay, Plaquemines Parish, LA: Participation Agreement dated as of September 30, 2010, among Repsol Louisiana Corp., Dune
Properties, Inc., and ORX Exploration, Inc. covering 9,000 acres surrounding the Garden Island Bay salt dome and covered by State of Louisiana Lease No. 214 and State of Louisiana Lease 1393, limited to depths below 12,000’ subsea and
targeted sands whose uppermost structural and stratigraphic limits are overlain or structurally truncated by salt. 

  

	 	2.	 Chocolate Bayou Field, Brazoria County, TX: 

Participation Agreement dated as of August 12, 2009, between Thorp Petroleum Corporation and Dune Properties, Inc,
granting the right to participate in the drilling of a test well targeting the 12,000’ S sand formation in the Wieting #32 Well and to earn an undivided fifty percent (50%) of 8/8ths working interest in the S Sand production from the
wellbore of such well and the right to participate in any development wells thereto to earn a similar wellbore interest in such development wells. 
 Participation Agreement dated as of June 9, 2010, between Thorp Petroleum Corporation and Dune Properties, Inc, granting the right to participate in the drilling of a test well to the base of the IP
Farms formation in the Wieting #33 Well and to earn an undivided fifty percent (50%) of 8/8ths working interest in the production from the wellbore of such well and the right to participate in any development wells thereto to earn a similar
wellbore interest in such development wells. 
  

	 	3.	 Bateman Lake Field, St Mary Parish, LA: Amended and Restated Bateman Lake Field Exploration Agreement dated as of November 15, 2010,
among Dune Properties, Inc., Texana Resources Partners, Ltd., Richard B. Beard and George A. Alcorn, Inc., covering the acreage comprising the Bateman Lake Unit. 

 

	 	4.	 N Broussard Field, St. Martin Parish, LA: Agreement to Market dated March 19, 2010, among Dune Properties, Inc., Houston Energy, LP, and
Raymond Fontenot pursuant to which Houston Energy and Fontenot have the right, until March 31, 2011, to market a farmout, upon terms acceptable to Dune, for participation in the drilling of a well to test the Bol Perc formation within
Dune’s leasehold containing approximately 320 acres to earn an interest in such leasehold with Dune retaining an override equal to the difference between 21% and leasehold burdens and an additional 2.0 % override convertible at payout to
an undivided 20% working interest; and the right to farmout an additional approximately 377 acres. 

 PENDING AGREEMENTS

  

	 	5.	 Columbus Field, Colorado County, TX: Farmout Agreement between Dune Properties, Inc. and Strand Energy, L.C. covering 160 acres granting the
right to drill a test well to a minimum depth of 10,000 feet with Dune retaining a 15% interest carried to the tanks, escalating to 20% at payout. This agreement is currently in the negotiation process.

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