Document:

Second Amendment to the Sixth Restated Credit Agreement

 Exhibit 10.3 
  
 SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT 
  
 This Second Amendment to Sixth Restated Credit Agreement (this “Second Amendment”) is effective as of
December 1, 2005 (the “Amendment Effective Date”), by and among CHAPARRAL ENERGY, INC., a Delaware corporation, successor by merger to Chaparral, L.L.C. (“Parent”), CHAPARRAL ENERGY, L.L.C., an Oklahoma limited
liability company (in its capacity as Borrower Representative for the Borrowers, “Borrower Representative”), JPMORGAN CHASE BANK, N.A., a national banking association, as Administrative Agent (“Administrative
Agent”), and each of the financial institutions a party to the Credit Agreement (as hereinafter defined) as Lenders (hereinafter collectively referred to as “Lenders”, and individually, “Lender”).

  
 W I T N E S S E T H: 
  
 WHEREAS, Parent, Borrowers, Administrative Agent and Lenders are parties to
that certain Sixth Restated Credit Agreement dated as of June 22, 2005 (as amended, the “Credit Agreement”) (unless otherwise defined herein, all terms used herein with their initial letter capitalized shall have the meaning
given such terms in the Credit Agreement); and 
  
 WHEREAS,
pursuant to the Credit Agreement, the Lenders have made revolving credit loans to Borrowers; and 
  
 WHEREAS, Parent and Borrowers have requested that Lenders (i) amend certain terms of the Credit Agreement in certain respects, (ii) affirm a
Borrowing Base of $172,500,000 (the “Amendment Redetermination”), to be effective as of the Amendment Effective Date and continuing until the next redetermination of the Borrowing Base thereafter, and (iii) waive the
requirement for Borrowers to deliver a Reserve Report by November 1, 2005; and 
  
 WHEREAS, subject to the terms and conditions set forth herein, the Lenders have agreed to Parent’s and Borrowers’ requests. 
  
 NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Parent, Borrower Representative (on behalf of Borrowers), Administrative Agent and Lenders hereby agree as follows: 
  
 SECTION 1. Amendments. In reliance on the representations, warranties,
covenants and agreements contained in this Second Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Credit Agreement is hereby amended effective as of the Amendment Effective Date
in the manner provided in this Section 1. 
  
 1.1.
Amendment to Definitions. The definitions of “Loan Documents” and “Subsidiary” contained in Section 1.02 of the Credit Agreement shall be amended to read in full as follows: 
  
 “Loan Documents” means this Agreement, the
First Amendment, the Second Amendment, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Certificate of Effectiveness, and the Security Instruments. 
  

 1 

 “Subsidiary” means: (a) any Person of which at least a majority of
the outstanding Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors, manager or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any
other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by Parent, a Borrower or one or more of their Subsidiaries or by
Parent, a Borrower and one or more of their Subsidiaries and (b) any partnership of which a Credit Party is a general partner. Unless otherwise indicated herein, (i) each reference to the term “Subsidiary” shall mean a
direct or indirect Subsidiary of Parent, and shall include, after the GE Loan Termination Date, CEI Acquisition and CEI Bristol, and (ii) Oklahoma Ethanol shall not be deemed a “Subsidiary” of any Credit Party hereunder.

  
 1.2. Additional Definitions. Section 1.02 of the
Credit Agreement shall be amended to add the following definitions to such Section: 
  
 “Oklahoma Ethanol” means Oklahoma Ethanol LLC (or such other entity name selected pursuant to the terms of the Oklahoma
Ethanol Agreement), an Oklahoma limited liability company formed pursuant to the terms of Section 1 of the Oklahoma Ethanol Agreement. 
  
 “Oklahoma Ethanol Agreement” means that certain Agreement dated as of April 29, 2005 by and between Oklahoma Farmers
Union Sustainable Energy LLC, an Oklahoma limited liability company, and Chaparral. 
  
 “Second Amendment” means that certain Second Amendment to Sixth Restated Credit Agreement dated effective as of
December 1, 2005, among Parent, Borrower Representative (on behalf of Borrowers), Administrative Agent and Lenders. 
  
 1.3. Investment Covenant. Section 9.05 of the Credit Agreement shall be amended to add a new clause (p) thereto which shall read in full
as follows: 
  
 “(p) Investments, not to
exceed $20,000,000 in the aggregate, made by Chaparral in Oklahoma Ethanol pursuant to the Oklahoma Ethanol Agreement.” 
  
 1.4. No Liability for Debt of Oklahoma Ethanol. Section 9.16 of the Credit Agreement shall be amended to read in full as follows: 

 
 “Section 9.16 Indebtedness and Preferred
Stock. Parent and the Borrowers will not, and will not permit any other Credit Party to, (a) issue preferred stock or create, incur or assume any Debt, except for Debt permitted under Section 9.02, or (b) without limiting the
foregoing, incur or assume any liability or obligation (whether by operation of law or otherwise) for, or with respect to, any Debt of Oklahoma Ethanol.” 
  

SECTION 2. Borrowing Base Redetermination. Pursuant to (a) Section 2.07(d) of the Credit Agreement, the Borrowing Base shall be
automatically reduced as of the Amendment Effective Date to an amount equal to $172,500,000, and (b) Section 2.07(c) of the Credit Agreement, the Borrowing Base shall be affirmed at $172,500,000 effective as of the 

  

 2 

 
Amendment Effective Date, and continuing until the next Scheduled Redetermination or Interim Redetermination of the Borrowing Base thereafter. Borrower
Representative (on behalf of each Borrower), Parent and Lenders agree that the redetermination of the Borrowing Base provided for in Section 2(b) hereof (i) shall be the December 1, 2005 Scheduled Redetermination, and
(ii) shall not be considered or deemed to be an Interim Redetermination. After giving effect to the Amendment Redetermination, the allocation of the Borrowing Base among the Lenders is as follows: 
  

				
	 JPMorgan Chase Bank, N.A.
	  	$	23,489,361.70
	 Bank of Scotland
	  	$	23,489,361.70
	 Comerica Bank
	  	$	23,489,361.70
	 Fortis Capital Corp.
	  	$	23,489,361.70
	 The Royal Bank of Scotland plc
	  	$	23,489,361.70
	 Bank of America, N.A.
	  	$	23,489,361.70
	 Compass Bank
	  	$	15,781,914.90
	 Sterling Bank
	  	$	15,781,914.90
	 	  	
	

	 Total
	  	$	172,500,000.00

  
 SECTION 3.
Waiver. Parent and Borrowers have requested that, in connection with the Amendment Redetermination, Lenders waive the provision contained in Section 8.12(a) of the Credit Agreement requiring Borrowers to deliver a Reserve Report on
or prior to November 1, 2005. In reliance on the representations, warranties, covenants and agreements contained in the Credit Agreement and this Second Amendment, and subject to the satisfaction of the conditions precedent set forth in
Section 4 hereof (and in the Credit Agreement, as amended by this Second Amendment, as applicable), Lenders hereby waive the provisions of Section 8.12(a) of the Credit Agreement to the extent such provisions require Borrowers to
deliver a Reserve Report on or prior to November 1, 2005. The waiver contained in this Section 3 is limited solely to the delivery of the November 1, 2005 Reserve Report and the applicable provisions of Section 8.12(a) of
the Credit Agreement. Nothing contained herein shall be deemed a waiver of any other provision of the Credit Agreement or any other Loan Document. 
  
 SECTION 4. Conditions Precedent. The effectiveness of (a) the amendments to the Credit Agreement contained in Section 1 hereof,
and (b) the waiver contained in Section 3 hereof, is subject to the satisfaction of each of the following conditions precedent: 
  
 4.1. No Default. No Default or Event of Default shall have occurred which is continuing. 
  
 4.2. Other Documents. Administrative Agent shall have been provided
with such other documents, instruments and agreements (including, without limitation, a true, correct and 

  

 3 

 
complete executed copy of the Operating Agreement of Oklahoma Ethanol), and Parent and Borrowers shall have taken such actions, as Administrative Agent may
reasonably require in connection with this Second Amendment and the transactions contemplated hereby. 
  
 SECTION 5. Representations and Warranties of Borrowers. To induce the Lenders and Administrative Agent to enter into this Second Amendment, Parent
and Borrower Representative (on behalf of Borrowers) hereby jointly and severally represent and warrant to the Lenders and Administrative Agent as follows: 
  
 5.1. Reaffirm Existing Representations and Warranties. Each representation and warranty of each Credit Party contained in the Credit Agreement and
the other Loan Documents is true and correct on the date hereof and will be true and correct after giving effect to the amendments set forth in Section 1 hereof and the waiver set forth in Section 3 hereof. 
  
 5.2. Due Authorization; No Conflict. The execution, delivery and
performance by Parent and Borrower Representative (on behalf of Borrowers) of this Second Amendment are within Parent’s and Borrower Representative’s corporate and limited liability company powers (as applicable), have been duly authorized
by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default under any provision of applicable law or any material agreement binding upon Parent,
any Borrower or any other Credit Party or result in the creation or imposition of any Lien upon any of the assets of Parent, any Borrower or any other Credit Party except Permitted Liens. Borrower Representative is duly authorized to execute this
Second Amendment on behalf of Borrowers, and upon such execution and delivery, this Second Amendment shall be binding and enforceable against each such Borrower as if this Second Amendment had been executed by each such Borrower. 
  
 5.3. Validity and Enforceability; Extension of Liens. This Second
Amendment constitutes the valid and binding obligation of Parent and Borrowers enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s
rights generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general application. 
  
 5.4. No Default or Event of Default. No Default or Event of Default has occurred which is continuing. 
  
 SECTION 6. Miscellaneous. 
  
 6.1. Reaffirmation of Loan Documents. Any and all of the terms and
provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect. The amendments contemplated hereby shall not limit or impair any Liens securing the Indebtedness, each of which
are hereby ratified, affirmed and extended to secure the Indebtedness as they may be increased pursuant hereto. 
  
 6.2. Parties in Interest. All of the terms and provisions of this Second Amendment shall bind and inure to the benefit of the parties hereto and
their respective successors and assigns. 
  

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 6.3. Legal Expenses. Parent and Borrower Representative (on behalf of Borrowers) hereby jointly
and severally agree to pay on demand all reasonable fees and expenses of counsel to Administrative Agent incurred by Administrative Agent in connection with the preparation, negotiation and execution of this Second Amendment and all related
documents. 
  
 6.4. Counterparts. This Second Amendment may
be executed in counterparts, and all parties need not execute the same counterpart; however, no party shall be bound by this Second Amendment until Parent, Borrower Representative and Required Lenders have executed a counterpart. Facsimiles shall be
effective as originals. 
  
 6.5. Complete Agreement. THIS
SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN OR AMONG THE PARTIES. 
  
 6.6. Headings.
The headings, captions and arrangements used in this Second Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Second Amendment, nor affect the meaning thereof.

  
 6.7. Effectiveness. This Second Amendment shall be
effective automatically and without necessity of any further action by Parent, Borrower Representative, Borrowers, Administrative Agent or Lenders when counterparts hereof have been executed by Parent, Borrower Representative, Administrative Agent
and Required Lenders, and all conditions to the effectiveness hereof set forth herein have been satisfied. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed by their respective Responsible Officers on the date and year
first above written. 
  
 [Signature pages to follow] 
  

 5 

			
	 CHAPARRAL ENERGY, INC.

	 a Delaware corporation

		
	 By:
	 	 /s/ Mark A. Fischer

	 	 	

	 	 	 Mark A. Fischer,

	 	 	 Chief Executive Officer and President

	
	 CHAPARRAL ENERGY, L.L.C.,
 an Oklahoma
limited liability company,
as Borrower Representative

		
	 By:
	 	 /s/ Mark A. Fischer

	 	 	

	 	 	 Mark A. Fischer,

	 	 	 Manager

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 ADMINISTRATIVE AGENT:

	
	 JPMORGAN CHASE BANK, N.A.,
 as
Administrative Agent

		
	 By:
	 	 /s/ J. Scott Fowler

	 	 	

	 	 	 J. Scott Fowler,

	 	 	 Vice President

	
	 LENDERS:

	
	 JPMORGAN CHASE BANK, N.A.

		
	 By:
	 	 /s/ J. Scott Fowler

	 	 	

	 	 	 J. Scott Fowler,

	 	 	 Vice President

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 BANK OF SCOTLAND

		
	 By:
	 	 /s/ Karen Weich

	 	 	

	 Name:
	 	 Karen Weich

	 	 	

	 Title:
	 	 Assistant Vice President

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 COMERICA BANK

		
	 By:
	 	 /s/ Mark Fuqua

	 	 	

	 Name:
	 	 Mark Fuqua

	 	 	

	 Title:
	 	 Senior Vice President

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 FORTIS CAPITAL CORP.

		
	 By:
	 	 /s/ David Montgomery

	 	 	

	 Name:
	 	 David Montgomery

	 	 	

	 Title:
	 	 Senior Vice President

	 	 	

		
	 By:
	 	 /s/ Darrell Holley

	 	 	

	 Name:
	 	 Darrell Holley

	 	 	

	 Title:
	 	 Managing Director

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 THE ROYAL BANK OF SCOTLAND plc

		
	 By:
	 	 /s/ Scott L. Joyce

	 	 	

	 Name:
	 	 Scott L. Joyce

	 	 	

	 Title:
	 	 Vice President

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 /s/ Gregory B. Hanson

	 	 	

	 Name:
	 	 Gregory B. Hanson

	 	 	

	 Title:
	 	 Vice President

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 COMPASS BANK

		
	 By:
	 	 /s/ Kathleen J. Bowen

	 	 	

	 Name:
	 	 Kathleen J. Bowen

	 	 	

	 Title:
	 	 Senior Vice President

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT] 

			
	 STERLING BANK

		
	 By:
	 	 /s/ Allen D. Brown

	 	 	

	 Name:
	 	 Allen D. Brown

	 	 	

	 Title:
	 	 Regional CEO

	 	 	

  
 [SIGNATURE PAGE TO SECOND AMENDMENT TO SIXTH RESTATED CREDIT AGREEMENT]Form of Mortgage

 Exhibit 10.4 
  
 FORM OF 
 MORTGAGE, DEED OF TRUST, 
 SECURITY AGREEMENT, FINANCING STATEMENT AND 
 ASSIGNMENT OF PRODUCTION 
 FROM
_________________ , AS MORTGAGOR, 
 TO JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT FOR THE LENDERS, 
 AS MORTGAGEE, 
 OR, ALTERNATIVELY, TO

 J. SCOTT FOWLER, TRUSTEE, 
 FOR THE BENEFIT OF 
 JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT FOR THE LENDERS 
 DATED EFFECTIVE AS OF _____________ 
  
 THIS MORTGAGE IS, AMONG OTHER THINGS, A FINANCING STATEMENT UNDER THE UNIFORM COMMERCIAL CODE COVERING MINERALS, AS-EXTRACTED COLLATERAL AND THE LIKE (INCLUDING OIL AND
GAS), ACCOUNTS RESULTING FROM THE SALE OF MINERALS, AS-EXTRACTED COLLATERAL AND THE LIKE (INCLUDING OIL AND GAS), AND GOODS WHICH ARE, OR ARE TO BECOME, FIXTURES ON THE REAL/IMMOVABLE PROPERTY HEREIN DESCRIBED. THE OIL AND GAS INTERESTS OR ACCOUNTS
INCLUDED IN THE MORTGAGED PROPERTY WILL BE FINANCED AT THE WELLHEADS LOCATED ON THE REAL/IMMOVABLE PROPERTY DESCRIBED IN EXHIBIT A ATTACHED HERETO. THIS MORTGAGE IS TO BE RECORDED IN THE REAL ESTATE OR COMPARABLE RECORDS OF THE COUNTY OR PARISH
RECORDER OF EACH COUNTY OR PARISH IN EACH STATE IN WHICH IS SITUATED ANY OF THE COLLATERAL COVERED HEREBY. THE REAL/IMMOVABLE PROPERTY SUBJECT HERETO IS DESCRIBED IN EXHIBIT A ATTACHED HERETO. 
  
 THIS MORTGAGE CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS. 
  
 MORTGAGOR OWNS A RECORD INTEREST IN THE MORTGAGED PROPERTY. 
  
 A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE, WHERE PERMITTED BY
LAW, MAY ALLOW MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS MORTGAGE. 
  

			
	 EMPLOYER IDENTIFICATION NUMBER OF MORTGAGOR:
	  	 
		
	 ORGANIZATIONAL IDENTIFICATION NUMBER OF MORTGAGOR:
	  	NONE
		
	 EMPLOYER IDENTIFICATION NUMBER OF MORTGAGEE:
	  	36-0899825

 MORTGAGE, DEED OF TRUST, 
 SECURITY AGREEMENT, FINANCING STATEMENT  
 AND ASSIGNMENT OF
PRODUCTION 
  
 THIS MORTGAGE, DEED OF TRUST, SECURITY
AGREEMENT, FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION (this “Mortgage”) is from _____________________, a _____________, as Mortgagor (“Mortgagor”), to JPMORGAN CHASE BANK, N.A.,
successor by merger to Bank One, NA (Main Office Chicago), a national banking association, as Administrative Agent (“Administrative Agent”) for the Lenders (as hereinafter defined), or, alternatively, to J. SCOTT FOWLER, an
individual resident of Dallas County, Texas, as Trustee (“Trustee”) for the benefit of JPMORGAN CHASE BANK, N.A., a national banking association, as Administrative Agent for the Lenders. In its capacity as
Administrative Agent for the Lenders, JPMorgan Chase Bank, N.A., is hereinafter referred to as “Mortgagee”. The addresses of Mortgagor and Mortgagee are set forth in Section 7.14 hereof. 
  
 RECITALS: 
  
 WHEREAS, pursuant to the terms of the Credit Agreement (defined below),
Mortgagor is required to execute and deliver this Mortgage pursuant to which, among other things, the Mortgaged Property (defined below) is granted and assigned by Mortgagor to Mortgagee to further secure the Secured Indebtedness (defined below).

  
 NOW, THEREFORE, in consideration of the sum of $10.00 and
other good and valuable consideration, in hand paid by Mortgagee, the receipt and adequacy of which are hereby acknowledged and confessed by Mortgagor, Mortgagor hereby agrees as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 1.1 Certain Defined
Terms. For all purposes of this Mortgage, unless the context otherwise requires: 
  
 “Accounts and Contract Rights” shall mean all accounts (including accounts in the form of joint interest billings
under applicable operating agreements), contract rights and general intangibles of Mortgagor now or hereafter existing, or hereafter acquired by, or on behalf of, Mortgagor, or Mortgagor’s successors in interest, relating to or arising from the
ownership, operation and development of the Mortgaged Property and to the production, processing, treating, sale, purchase, exchange or transportation of Hydrocarbons (defined below) produced or to be produced from or attributable to the Mortgaged
Property or any units or pooled interest units in which all or a portion of the Mortgaged Property forms a part, together with all accounts and proceeds accruing to Mortgagor attributable to the sale of Hydrocarbons produced from the Mortgaged
Property or any units or pooled interest units in which all or a portion of the Mortgaged Property forms a part. 
  
 “Article” shall mean and refer to an Article of this Mortgage, unless specifically indicated otherwise.

  

 2 

 “Code” shall mean the Uniform Commercial Code in effect in each
of the jurisdictions where the Mortgaged Property or a portion thereof is situated. 
  
 “Credit Agreement” shall mean that certain Sixth Restated Credit Agreement dated as of June 22, 2005, by and
among Mortgagor, certain affiliates of Mortgagor, and the Lenders, as the same may be amended or restated from time to time. 
  
 “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time
or both would, unless cured or waived, become an Event of Default. 
  
 “Effective Date” shall mean ___________. 
  
 “Event of Default” shall mean any event of default under the Credit Agreement. 
  
 “Excepted Liens” shall mean with
respect to the Mortgaged Property: 
  
 (a) Liens
securing the payment of the Obligations; 
  
 (b)
Liens for Taxes, assessments or other governmental charges or levies which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; 

 
 (c) Liens in connection with workers’ compensation,
unemployment insurance or other social security, old age pension or public liability obligations which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in
accordance with GAAP; 
  
 (d) statutory
landlord’s liens, operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, suppliers’, workers’, materialmen’s, construction or other like Liens arising by operation of law in the
ordinary course of business or incident to the exploration, development operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties each of which is in respect
of obligations that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; 
  
 (e) contractual Liens that arise in the ordinary course of business under operating agreements, joint
venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of
mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling
agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business and are for claims which are not delinquent or which are being
maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair 

  

 3 

 
the use of the Mortgaged Property for the purposes for which the Mortgaged Property is held by Mortgagor or materially impair the value of the Mortgaged
Property; 
  
 (f) easements, restrictions,
servitudes, permits, conditions, covenants, exceptions or reservations in the Mortgaged Property for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or
timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, which in the aggregate do not materially impair the use of the Mortgaged Property for the purposes of which the Mortgaged
Property is held by Mortgagor or materially impair the value of the Mortgaged Property; and 
  
 (g) Liens arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by any Credit Party in
the ordinary course of business covering only the Mortgaged Property under lease. 
  
 “Exhibit A” shall mean, unless specifically indicated otherwise, Exhibit A attached hereto and incorporated
herein by reference for all purposes. 
  
 “Gas Balancing Agreement” means any agreement or arrangement whereby Mortgagor, or any other party having an interest in any Hydrocarbons to be produced from Hydrocarbon Interests in which Mortgagor or any other
Credit Party owns an interest, has a right to take more or less than its proportionate share of production therefrom. 
  
 “Hydrocarbons” shall mean oil, gas, casinghead gas, drip gasolines, natural gasoline, condensate, distillate,
as-extracted collateral and all other liquid or gaseous hydrocarbons produced or to be produced in conjunction therewith, and all products, by-products and all other substances derived therefrom or the processing thereof, and all other minerals and
substances, including, but not limited to, sulphur, lignite, coal, uranium, thorium, iron, geothermal steam, water, carbon dioxide, helium and any and all other minerals, ores, or substances of value and the products and proceeds therefrom,
including, without limitation, all gas resulting from the in-situ combustion of coal or lignite. 
  
 “Lands” shall mean the lands described in Exhibit A and shall include any lands, the description of which
is contained in Exhibit A or incorporated in Exhibit A by reference to another instrument or document, including, without limitation, all lands described in the Oil and Gas Leases, and shall also include any lands now or hereafter
unitized, pooled, spaced or otherwise combined, whether by statute, order, agreement, declaration or otherwise, with lands the description of which is contained in Exhibit A or is incorporated in Exhibit A by reference. 
  
 “Lenders” shall mean the lending
institutions (i) listed on Annex I of the Credit Agreement as having a Commitment, and/or (ii) which may hereafter become a party to the Credit Agreement pursuant to the provisions of Section 12.04 thereof, and their
respective successors and assigns. 
  
 “Lien” shall mean any lien, pledge, charge or security interest. 
  
 “Loan” shall mean, with respect to a Lender, such Lender’s loan made pursuant to Article II of
the Credit Agreement (or any conversion or continuation thereof). 
  

 4 

 “Loan Documents” shall have the meaning ascribed to such term in
the Credit Agreement. 
  
 “Material
Adverse Effect” shall mean a material adverse effect on (i) the business, Property, condition (financial or otherwise), results of operations, or prospects of the Mortgagor, individually, or Borrowers and their Subsidiaries taken
as a whole, (ii) the ability of any Borrower to fully, completely and timely perform its obligations under the Loan Documents, or (iii) the validity or enforceability of any of the Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders thereunder. 
  
 “Material Gas Imbalance” means, with respect to all Gas Balancing Agreements to which Mortgagor or any other Credit Party is a party or by which any Hydrocarbon Interests owned by Mortgagor or any other Credit Party
is bound, a net gas imbalance to the Credit Parties in excess of 50 mmcf equivalent in the aggregate. 
  
 “Mortgaged Property” shall have the meaning stated in Article 2 of this Mortgage. 
  
 “Net Revenue Interest” shall mean
Mortgagor’s share of all Hydrocarbons produced from the Lands, after deducting the appropriate proportionate part of all lessors’ royalties, overriding royalties, production payments and other payments out of or measured by production
which burden Mortgagor’s share of all such production, subject to non-consent provisions contained in joint operating agreements. 
  
 “Notes” shall mean the revolving promissory notes issued or to be issued under the Credit Agreement to each
Lender, respectively, to evidence the indebtedness to such Lender arising by reason of the Loans, together with all modifications, renewals, restatements and extensions thereof or any part thereof. 
  
 “Obligations” shall mean all present
and future indebtedness, obligations and liabilities, and all renewals and extensions thereof, or any part thereof, of Mortgagor or any other Credit Party to any Lender or any Affiliate of any Lender arising pursuant to the Loan Documents, or
arising pursuant to any commodity, interest rate, currency or other swap, option, collar, futures contract or other contract pursuant to which a Person hedges risks related to commodity prices, interest rates, currency exchange rates, securities
prices or financial market conditions and any other commodity price hedging agreements by and between Mortgagor and any Lender or any Affiliate of any Lender and all interest accrued on any of the foregoing, and reasonable costs, expenses, and
attorneys’ fees incurred in the enforcement or collection thereof, regardless of whether such indebtedness, obligations and liabilities are direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several or joint and several.

  
 “Oil and Gas Leases”
shall mean oil, gas and mineral leases, oil and gas leases, oil leases, gas leases, other mineral leases, subleases, top leases, any rights resulting in an ownership interest in Hydrocarbons and all operating rights relating to any of the foregoing
(whether operated by virtue of such leases, or assignments or applicable operating agreements), and all other interests pertaining to any of the foregoing, including, without limitation, all royalty and overriding royalty interests, production
payments and net profit interests, mineral fee interests, and all reversionary, remainder, carried and contingent interests relating to any of the 

  

 5 

 
foregoing and all other rights therein which are described and/or to which reference may be made on Exhibit A and/or which cover or relate to any of
the Lands. 
  
 “Operating
Equipment” shall mean all Personal Property and fixtures affixed or situated upon all or any part of the Mortgaged Property, including, without limitation, all surface or subsurface machinery, equipment, facilities or other property of
whatsoever kind or nature now or hereafter located on any of the Lands which are useful for the production, treatment, storage or transportation of oil or gas, including, but not by way of limitation, all oil wells, gas wells, water wells, injection
wells, casing, tubing, rods, pumping units and engines, Christmas trees, derricks, separators, gun barrels, flow lines, tanks, gas systems (for gathering, treating and compression), water systems (for treating, disposal and injection), power plants,
poles, lines, transformers, starters and controllers, machine shops, tools, storage yards and equipment stored therein, buildings and camps, telegraph, telephone and other communication systems, roads, loading racks and shipping facilities.

  
 “Person” shall mean
any individual, corporation, partnership, limited liability company, association, trust, other entity or organization, or any court or governmental department, commission, board, bureau, agency, or instrumentality of any nation or of any province,
state, commonwealth, nation, territory, possession, county, parish, or municipality, whether nor or hereafter constituted or existing. 
  
 “Revolving Commitment” shall mean (a) for all Lenders, the lesser of (i) $450,000,000 or (ii) the
Borrowing Base in effect from time to time, in each case as reduced from time to time pursuant to Section 2.07 of the Credit Agreement, and (b) as to any Lender, its obligation to make Loans under the Credit Agreement and purchase
participations in Letters of Credit issued thereunder by the Issuing Bank in amounts not exceeding, in the aggregate, an amount equal to such Lender’s Applicable Percentage times the total Commitments for all Lenders as of any date. The
Commitment of each Lender under the Credit Agreement shall be adjusted from time to time to reflect assignments made by such Lender pursuant to Section 12.04 of the Credit Agreement. Each reduction in the Commitments shall result in a pro rata
reduction in each Lender’s Commitment. 
  
 “Revolving Loan” shall mean a loan or loans made under the Revolving Commitment pursuant to Article II of the Credit Agreement. 
  
 “Personal Property” shall mean that portion of the Mortgaged Property that is
personal property. 
  
 “Section” shall mean and refer to a section of this Mortgage, unless specifically indicated otherwise. 
  
 “Secured Indebtedness” shall have the meaning stated in Article 3 of this Mortgage. 
  
 “Subject Interests” shall have the
meaning stated in Article 2 of this Mortgage. 
  
 “Well Data” shall mean all logs, drilling reports, division orders, transfer orders, operating agreements, contracts and other agreements, abstracts, title opinions, files, records, 

  

 6 

 
seismic data, memoranda and other information in the possession or control of Mortgagor or to which Mortgagor has access relating to the Lands and/or any
wells located thereon. 
  
 1.2 Other Terms. Unless
otherwise defined herein, all terms with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement. 
  
 1.3 Terms Generally, Rules of Construction. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. 
  
 ARTICLE 2 
 GRANTING CLAUSE; MORTGAGED PROPERTY 
  
 Mortgagor, for and in consideration of the sum of $10.00 and other good and valuable consideration, in hand paid by Mortgagee, the receipt and adequacy of
which are hereby acknowledged and confessed by Mortgagor, and for and in consideration of the debt and purposes hereinafter set forth, to secure the full and complete payment and performance of the Secured Indebtedness and to secure the performance
of the covenants, obligations, agreements and undertakings of Mortgagor hereinafter described, has GRANTED, BARGAINED, WARRANTED, MORTGAGED, ASSIGNED, TRANSFERRED and CONVEYED, and by these presents does GRANT, BARGAIN, WARRANT, MORTGAGE, ASSIGN,
TRANSFER and CONVEY (1) unto Trustee and Trustee’s substitutes or successors, and its and their assigns, or (2) alternatively, to the extent that any particular jurisdiction wherein a portion of the Mortgaged Property is situated does
not recognize, permit or require Mortgagor to mortgage or convey the Mortgaged Property to Trustee for the benefit of Mortgagee, then, with respect to the Mortgaged Property located in such particular jurisdiction, unto Mortgagee and
Mortgagee’s successors in title and assigns, with power of sale (to the extent permitted by applicable law), as herein provided, for the uses and purposes herein set forth, with warranties and covenants of title only to the extent provided
herein and in the Credit Agreement, all of Mortgagor’s right, title and interest, whether now owned or hereafter acquired, in all of the hereinafter described properties, rights and interests; and, insofar as such properties, rights and
interests consist of equipment, general intangibles, accounts, contract rights, inventory, goods, chattel paper, instruments, documents, money, fixtures, as-extracted collateral, proceeds and products of collateral or any other Personal Property of
a kind or character defined in or subject to the applicable provisions of the Code, Mortgagor hereby grants to Mortgagee a security interest therein, whether now owned or hereafter acquired, namely: 
  
 (a) all of those certain Oil and Gas Leases and Lands (all
such Oil and Gas Leases and Lands being herein called the “Subject Interests,” as hereinafter further defined) which are described in Exhibit A and/or to which reference may be made in Exhibit A and/or which are
covered by any of the leases described on Exhibit A, which Exhibit A is made a part of this Mortgage for all purposes, and is incorporated herein by reference as fully as if copied at length in the body of this Mortgage at this point;

  
 (b) all rights, titles, interests and estates
now owned or hereafter acquired by Mortgagor in and to (i) any and all properties now or hereafter pooled or unitized with any of the Subject Interests, and (ii) all presently existing or future operating agreements and unitization,
communitization and pooling agreements and the units operated thereby to the extent the same relate to all or any part of the Subject Interests, including, without limitation, all units formed 

  

 7 

 
under or pursuant to any applicable laws (the rights, titles, interests and estates described in this clause (b) also being included within the term
“Subject Interests” as used herein); 
  
 (c) all presently existing and future agreements entered into between Mortgagor and any third party that provide for the acquisition by Mortgagor of any interest in any of the properties or interests specifically described in Exhibit
A or which relate to any of the properties and interests specifically described in Exhibit A; 
  
 (d) the Hydrocarbons (including inventory) which are in, under, upon, produced or to be produced by or attributable to the Lands;

  
 (e) the Accounts and Contract Rights;

  
 (f) the Operating Equipment; 
  
 (g) the Well Data; 
  
 (h) the rights and security interests of Mortgagor held by
Mortgagor to secure the obligation of the first purchaser to pay the purchase price of the Hydrocarbons; 
  
 (i) all surface leases, rights-of-way, franchises, easements, servitudes, licenses, privileges, tenements, hereditaments and appurtenances
now existing or in the future obtained in connection with any of the aforesaid, and all other items of value and incident thereto which Mortgagor may, at any time, have or be entitled; and 
  
 (j) all and any different and additional rights of any
nature, of value or convenience in the enjoyment, development, operation or production, in any wise, of any property or interest included in any of the foregoing clauses, and in all revenues, income, rents, issues, profits and other benefits arising
therefrom or from any contract now in existence or hereafter entered into pertaining thereto, and in all rights and claims accrued or to accrue for the removal by anyone of Hydrocarbons from, or other act causing damage to, any of such properties or
interests. 
  
 All the aforesaid properties,
rights and interests, together with any and all substitutions, replacements, corrections or amendments thereto, or renewals, extensions or ratifications thereof, or of any instrument relating thereto, and together with any additions thereto which
may be subjected to the Lien of this Mortgage by means of supplements hereto, being hereinafter called the “Mortgaged Property”. 
  
 Subject, however, to (i) Excepted Liens, and (ii) the condition that Mortgagee shall not be liable in any respect for the
performance of any covenant or obligation of Mortgagor with respect to the Mortgaged Property. 
  
 TO HAVE AND TO HOLD the Mortgaged Property unto Mortgagee and its successors, legal representatives and assigns, forever, subject to Section 7.3 hereof, to secure, in each such instance, the payment and
performance of the Secured Indebtedness and the Obligations. 
  

 8 

 ARTICLE 3 
 SECURED INDEBTEDNESS 
  
 This Mortgage is given to secure, on a pro rata basis, the Loan and all of the Obligations under and as described in the Credit Agreement, including, without limitation: 
  
 (a) interest on all credit outstanding under the Credit Agreement at the rates provided in the Credit
Agreement; 
  
 (b) the Obligations, including,
without limitation, the indebtedness evidenced by the Notes executed by Mortgagor and the other Borrowers, and described as follows: 
  
 (i) that/those certain Notes in the aggregate face amount of Four Hundred and Fifty Million and No/100 Dollars ($450,000,000.00), executed
by Borrowers payable to the order of the Lenders, each having a final maturity date of June 22, 2009, bearing interest as provided in the Credit Agreement and containing usual and customary provisions for collection and attorneys’ fees,
and any and all renewals, increases, refundings, substitutions, replacements, consolidations and/or extensions thereof or therefor, or any part thereof (including any other promissory notes made at any time representing all or any part of the
Revolving Commitment). 
  
 (c) any sums advanced
as expenses or costs incurred by, or on behalf of, Mortgagee or any Lender (or any receiver appointed hereunder) which are made or incurred pursuant to the terms of this Mortgage or any other Loan Documents, plus interest thereon at the rate set
forth in Section 3.02 of the Credit Agreement from the date of advance or expenditure until reimbursed; 
  
 (d) payment and performance of any and all present and future obligations of Mortgagor according to the terms of any present or future
Swap Agreement, including, without limitation, any present or future commodity, interest rate, currency or other swap, option, collar, futures contract or other contract pursuant to which a Person hedges risks related to commodity prices, interest
rates, currency exchange rates, securities prices or financial market conditions and any other commodity price hedging agreements by and between Mortgagor and any Lender or any Affiliate of any Lender, now existing or hereafter entered into between
Mortgagor, on the one hand, and Mortgagee, any Lender, or any Affiliate of Mortgagee or any Lender, on the other hand; and 
  
 (e) all other and additional debts, obligations and liabilities of every kind and character of Mortgagor now existing or hereafter arising
in connection with any of the Loan Documents (all of the obligations and indebtedness referred to in this Article 3 and all renewals, extensions and modifications thereof, and all substitutions therefor, in whole or in part, are herein
sometimes referred to as the “Secured Indebtedness”). 
  

 9 

 ARTICLE 4 
 COVENANTS, REPRESENTATIONS, 
 WARRANTIES AND AGREEMENTS OF MORTGAGOR 

 
 Mortgagor hereby covenants, represents, warrants and agrees that:

  
 4.1 Payment of Indebtedness. Mortgagor will duly
and punctually pay or cause to be paid when due all of the Secured Indebtedness. 
  
 4.2 Warranties. (a) Mortgagor, to the extent of the interests specified in Exhibit A, has good and defensible title, subject to Excepted Liens to each property right or interest constituting
the Mortgaged Property, and has a good and legal right to make the grant and conveyance made in this Mortgage; (b) Mortgagor’s present Net Revenue Interest in the Mortgaged Property is not less than that specified in Exhibit A; and
if no interest is specified, includes all its interests however specified in and to the Oil and Gas Leases and Lands described on Exhibit A; and (c) the Mortgaged Property is free from all Liens other than Excepted liens. Mortgagor will
warrant and forever defend the Mortgaged Property unto Mortgagee and Mortgagee’s successors, legal representatives and assigns, and Trustee and Trustee’s successors, legal representatives and assigns, against every Person whomsoever
lawfully claiming the same or any part thereof, and Mortgagor will maintain and preserve the Lien hereby created so long as any of the Secured Indebtedness remains unpaid, except where such failure to comply would not have a Material Adverse Effect.

  
 4.3 Further Assurances. Mortgagor will execute
and deliver such other and further instruments and will do such other and further acts as in the reasonable discretion of Mortgagee may be necessary or desirable to carry out more effectively the purposes of this Mortgage, including, without
limiting the generality of the foregoing, (a) prompt correction of any material defect which may hereafter be discovered in the title to the Mortgaged Property or in the execution and acknowledgment of this Mortgage, any Notes, or any other
document used in connection herewith or at any time delivered to Mortgagee in connection with any Obligations, and (b) prompt execution and delivery of all division or transfer orders that in the reasonable discretion of Mortgagee are needed to
transfer effectively the assigned proceeds of production from the Mortgaged Property to Mortgagee. 
  
 4.4 Taxes. To the extent and in the manner required by the Credit Agreement, Mortgagor will promptly pay, or cause to be paid, all Taxes
legally imposed upon this Mortgage or upon the Mortgaged Property or upon the interest of Mortgagee therein, or upon the income, profits, proceeds and other revenues thereof. 
  
 4.5 Operation of the Mortgaged Property. So long as the Secured Indebtedness or any part thereof remains
unpaid: 
  
 (a) Mortgagor shall maintain, develop
and operate the Subject Interests in a good and workmanlike manner and will observe and comply with all of the terms and provisions, express or implied, of all Oil and Gas Leases relating to the Subject Interests so long as such Oil and Gas Leases
are capable of producing Hydrocarbons in paying quantities, except where such failure to comply would not have a Material Adverse Effect; 
  
 (b) Mortgagor shall comply with all contracts and agreements applicable to or relating to the Mortgaged Property or the production and
sale of Hydrocarbons therefrom, except to the extent a failure to so comply would not have a Material Adverse Effect; 
  
 (c) Mortgagor shall, at all times, maintain, preserve and keep all Operating Equipment used with respect to the Mortgaged Property in
proper repair, working order and condition, and make all necessary or appropriate repairs, renewals, replacements, additions and 

  

 10 

 
improvements thereto so that the efficiency of such Operating Equipment shall at all times be properly preserved and maintained, except where such failure to
comply would not have a Material Adverse Effect; provided that no item of Operating Equipment need be so repaired, renewed, replaced, added to or improved, if Mortgagor shall in good faith determine that such action is not necessary or desirable for
the continued efficient and profitable operation of the Subject Interests; 
  
 (d) Mortgagor shall cause the Mortgaged Property to be kept free and clear of all Liens other than Excepted Liens; 
  
 (e) Mortgagor shall keep adequately insured by insurers of recognized responsibility, all of the Mortgaged Property of an insurable nature
and of a character usually insured by Persons engaged in the same or similar business, against all risks customarily insured against by such Persons. Without limiting the foregoing, Mortgagor will maintain (i) operator’s extra expense
insurance, liability insurance against claims for personal injury or death or property damage suffered by members of the public or others in or about the Mortgaged Property or occurring by reason of Mortgagor’s ownership, maintenance, use or
operation of any Operating Equipment, automobiles, trucks or other vehicles, or other facilities on or in connection with the Mortgaged Property, (ii) all such workmen’s compensation or similar insurance as may be required under the laws
of any jurisdiction in which any of the Mortgaged Property may be situated, and (iii) well control insurance. All such insurance shall be maintained in such amounts as is usually carried by Persons engaged in the same or a similar business and
shall be effected under a valid and enforceable policy or policies issued by insurers of recognized responsibility. The character, coverage, amount and insurers of all such insurance shall be satisfactory to and approved by Mortgagee. All loss
payable clauses or provisions in said policy or policies shall be endorsed in favor of and made payable to Mortgagee for the ratable benefit of the Lenders, as their interests may appear. Mortgagee, for the ratable benefit of the Lenders, shall have
the right to collect, and Mortgagor hereby assigns to Mortgagee for the ratable benefit of the Lenders, any and all monies that may become payable under any such policies of insurance by reason of damage, loss or destruction of any of the Mortgaged
Property, and Mortgagee may, at its election, either apply for the ratable benefit of the Lenders all or any part of the sums so collected toward payment of the Secured Indebtedness, whether or not such Secured Indebtedness, or any portion thereof,
is then due and payable, in such manner as Mortgagee may elect, or release same to Mortgagor; and 
  
 (f) Mortgagor shall not sell, lease, transfer, abandon or otherwise dispose of any portion of the Mortgaged Property or any of
Mortgagor’s rights, titles or interests therein or thereto, except as specifically permitted in the Credit Agreement. 
  
 4.6 Recording. Mortgagor will promptly and at Mortgagor’s sole cost and expense, record, register, deposit and file this Mortgage and
every other instrument in addition or supplemental hereto in such offices and places and at such times and as often as may be necessary to preserve, protect and renew the Lien hereof as a first Lien on real or personal property, as the case may be,
subject to Excepted Liens, and the rights and remedies of Mortgagee, and otherwise will do and perform all matters or things necessary or expedient to be done or observed by reason of any law or regulation of any state or of the United States or of
any other competent authority, for the purpose of effectively operating, maintaining and preserving the Lien hereof on the Mortgaged Property. 
  

 11 

 4.7 Records, Statements and Reports. Mortgagor will keep proper books of record and account
in which complete and correct entries will be made of Mortgagor’s transactions in accordance with sound accounting principles consistently applied and will, to the extent required by the Credit Agreement, furnish or cause to be furnished to
Mortgagee (a) all reports required under the Loan Documents, and (b) such other information concerning the business and affairs and financial condition of Mortgagor as Mortgagee may from time to time reasonably request. 
  
 4.8 No Government Approvals. Mortgagor warrants that no
approval or consent of any Person is necessary to authorize the execution and delivery of this Mortgage, or any of the other Loan Documents or the Notes, or to authorize the observance or performance by Mortgagor of the covenants herein or therein
contained. 
  
 4.9 Right of Entry. To the extent
required by the Credit Agreement, Mortgagor will permit Mortgagee, or the Administrative Agents or designated representatives of Mortgagee, to enter upon the Mortgaged Property, and all parts thereof, for the purposes of investigating and inspecting
the condition and operation thereof. 
  
 The representations and
warranties set forth in Article VII of the Credit Agreement are incorporated herein by reference as if set forth herein, and each such representation and warranty is true and correct. 
  
 ARTICLE 5 
 ADDITIONS TO MORTGAGED PROPERTY 
  
 It is understood and agreed that Mortgagor may periodically subject additional properties to the Lien of this Mortgage. In the event that additional
properties are to be subjected to the Lien hereof, the parties hereto agree to execute a supplemental mortgage, satisfactory in form and substance to Mortgagee, together with any security agreement, financing statement or other security instrument
required by Mortgagee, all in form and substance satisfactory to Mortgagee and in a sufficient number of executed (and, where necessary or appropriate, acknowledged) counterparts for recording purposes. Upon execution of such supplemental mortgage,
all additional properties thereby subjected to the Lien of this Mortgage shall become part of the Mortgaged Property for all purposes. 
  
 ARTICLE 6 
 ENFORCEMENT OF THE
SECURITY 
  
 6.1 General Remedies. Upon the
occurrence and during the continuance of an Event of Default, Mortgagee may, or may direct Trustee to do, any one or more of the following, subject to and in accordance with any applicable provision of the Credit Agreement and to any mandatory
requirements or limitations of applicable law then in force: 
  
 (a) exercise all of the rights, remedies, powers and privileges of Mortgagor with respect to the Mortgaged Property or any part thereof, give or withhold all consents required therein which, with respect to the
Mortgaged Property or any part thereof, Mortgagor would otherwise be entitled to give or withhold, and perform or attempt to perform any covenants in this Mortgage which Mortgagor is obligated to perform; provided that, no payment or performance by
Mortgagee shall constitute a waiver of any Event of Default, and Mortgagee shall be subrogated to all rights and Liens securing the payment of any debt, claim, tax or 

  

 12 

 
assessment for the payment of which Mortgagee may make an advance, or which Mortgagee may pay. 
  
 (b) execute and deliver to such Person or Persons as may be designated by Mortgagee appropriate powers of
attorney to act for and on behalf of Mortgagor in all transactions with any federal, state or local agency with respect to any of the Mortgaged Property. 
  
 (c) exercise any and all other rights or remedies granted to Mortgagee pursuant to the provisions of any of the Loan Documents.

  
 (d) if Mortgagor has failed to keep or
perform any covenant whatsoever contained in any Loan Document, Mortgagee may, at its option, perform or attempt to perform such covenant. Any payment made or expense incurred in the performance or attempted performance of any such covenant shall be
a part of the Secured Indebtedness, and Mortgagor promises, upon demand, to pay to Mortgagee, at the place where the Notes are payable, or at such other place as Mortgagee may direct by written notice, all sums so advanced or paid by Mortgagee, with
interest at the rate set forth in Section 3.02 of the Credit Agreement from the date when paid or incurred by Mortgagee or any such Lender. No such payment by Mortgagee shall constitute a waiver of any Event of Default. In addition to the Liens
hereof, Mortgagee shall be subrogated to all rights and Liens securing the payment of any debt, claim, tax or assessment for the payment of which Mortgagee may make an advance, or which Mortgagee may pay. 
  
 (e) Mortgagee shall, if requested by the Lenders as provided
in the Credit Agreement, without notice, demand, presentment, notice of intent to accelerate or of acceleration, or notice of protest, all of which are hereby expressly waived by Mortgagor and all other parties obligated in any manner whatsoever on
the Secured Indebtedness, declare the entire unpaid balance of the Secured Indebtedness, or any part thereof, immediately due and payable, and upon such declaration, it shall be immediately due and payable, and the Liens hereof shall then be subject
to foreclosure in accordance with applicable law. 
  
 (f) Upon the occurrence of an Event of Default, this Mortgage may be foreclosed as to the Mortgaged Properties, or any part thereof, in any manner permitted by applicable law. 
  
 A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. WHERE PERMITTED BY LAW, A POWER OF SALE MAY ALLOW
MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS MORTGAGE. 
  
 Mortgagee may, where permitted by law, request Trustee to proceed with foreclosure, and in such event Trustee is hereby authorized and
empowered, and it shall be his or her special duty, upon such request of Mortgagee, and to the extent permitted by applicable law, to sell all or any part of the Mortgaged Property at one or more sales, as an entirety or in parcels, at such place or
places and otherwise in such manner and upon such notice as may be required by applicable law, or, in the absence of any such requirement, as Trustee or Mortgagee may deem appropriate, and to make conveyance to the purchaser or purchasers thereof.
Any such sale shall 

  

 13 

 
be made to the highest bidder or bidders for cash, at the courthouse door of the county wherein the Mortgaged Property is situated; provided that, if the
Mortgaged Property is situated in more than one county, such sale of the Mortgaged Property, or part thereof, may be made in any county wherein any part of the Mortgaged Property is situated. If the Mortgaged Property to be sold is situated in
Texas, any such sale shall be made at public outcry, between the hours of ten o’clock a.m. and four o’clock p.m. on the first Tuesday in any month, after having given notice of such sale by posting, or causing to be posted, written or
printed notice at the courthouse door in the county, or if more than one, then in each of the counties, where the Subject Interests then subject to the Liens of this Mortgage are situated, which notice shall designate the county where the Mortgaged
Property (or the part thereof to be sold) will be sold, and which notice shall be posted for at least three consecutive weeks before the day of sale, and Mortgagee shall, at least 21 calendar days preceding the date of sale, serve written notice of
the proposed sale by certified mail on Mortgagor or other Person obligated to pay the Secured Indebtedness according to the records of Mortgagee; and if the Mortgaged Property to be sold is not situated in Texas, then such sale shall be made at
public outcry, on the day of any month, during the hours of such day, and after written notices thereof have been publicly posted in such places and for such time periods and all Persons entitled to notice thereof have been sent such notice, all as
required by applicable law. If the applicable law in force as of the Effective Date hereof should hereafter be amended to require a different notice of sale applicable to sales of property of the nature of the Mortgaged Property under powers of sale
conferred by deeds of trust, Trustee may, in his or her sole discretion, to the extent permitted by applicable law, give either the notice of sale required by applicable law in effect on the Effective Date or the notice of sale prescribed by the
amended law; and nothing herein shall be deemed to require Mortgagee or Trustee to do, and Mortgagee and Trustee shall not be required to do, any act other than as required by applicable law in effect at the time of any such sale. After such sale,
Trustee shall make to the purchaser or purchasers thereunder good and sufficient deeds, assignments or bills of sale in the name of Mortgagor, conveying or transferring the Mortgaged Property, or any part thereof, so sold to the purchaser or
purchasers containing such warranties of title as are customarily given, which warranties shall be binding upon Mortgagor. 
  
 Sale of a part of the Mortgaged Property shall not exhaust the power of sale granted hereby, but sales may be made from time to time until the Secured
Indebtedness is paid and performed in full. It shall not be necessary to have present or to exhibit at any such sale any of the Personal Property. In addition to the rights and other powers of sale granted under the preceding provisions of this
Section 6.1(f), if default is made in the payment of any installment of the Obligations, Mortgagee may, subject to, and in accordance with, the applicable provisions of the Credit Agreement, at its option, at once or at any time thereafter
while any matured installment remains unpaid, without declaring the entire Secured Indebtedness to be due and payable, orally or in writing, enforce, or direct Trustee to enforce (as provided by applicable law), the Liens created by this Mortgage
and sell the Mortgaged Property subject to such matured indebtedness and the Liens securing its payment, in the same manner, on the same terms, at the same place and time and after having given notice in the same manner, all as provided in the
preceding provisions of this Section 6.1(f). After such sale, Mortgagee or Trustee (as provided by applicable law) shall make due conveyance to the purchaser or purchasers. Sales made without maturing the Secured Indebtedness may be made
hereunder whenever there is a default in the payment of any installment of the Secured Indebtedness without exhausting the power of sale granted hereby and without affecting in any way the power of sale granted under this Section 6.1(f), the
unmatured balance of the Secured Indebtedness 

  

 14 

 
(except as to any proceeds of any sale which Mortgagee may apply as prepayment of the Secured Indebtedness), or the Liens securing payment of the Secured
Indebtedness. The sale or sales of less than the whole of the Mortgaged Property shall not exhaust the power of sale herein granted, and Mortgagee or Trustee (as provided by applicable law) is specifically empowered to make successive sale or sales
under such power until the whole of the Mortgaged Property shall be sold. It is intended by each of the foregoing provisions of this Section 6.1(f) that Mortgagee may, and if applicable, Trustee may, after any request or direction by
Mortgagee, sell not only the Subject Interests but also all other items constituting a part of the Mortgaged Property along with the Subject Interests, or any part thereof, all as a unit and as a part of a single sale, or may sell any part of the
Mortgaged Property separately from the remainder of the Mortgaged Property. If the proceeds of such sale or sales of less than the whole of such Mortgaged Property shall be less than the aggregate of the Secured Indebtedness and the expense of
enforcing the trust created by this Mortgage, the Liens of this Mortgage shall remain in full force and effect as to the unsold portion of the Mortgaged Property just as though no sale or sale of less than the whole of the Mortgaged Property had
occurred, but Mortgagee shall have the right, at its sole election, to sell, or as applicable request Trustee to sell, less than the whole of the Mortgaged Property. In the event any questions should be raised as to the regularity or validity of any
sale hereunder, Mortgagee or Trustee (as provided by applicable law) shall have the right and is hereby authorized to make resale of said property so as to remove any questions or doubt as to the regularity or validity of the previous sale, and as
many resales may be made as may be appropriate. It is agreed that, in any deed or deeds given by Mortgagee or Trustee (as provided by applicable law), any and all statements of fact or other recitals therein made as to the identity of Mortgagee, or
as to the occurrence or existence of any Default or Event of Default, or as to the request to sell, notice of sale, time, place, terms, and manner of sale, and receipt, distribution, and application of the money realized therefrom, or as to the due
and proper appointment of a substitute trustee, and, without being limited by the foregoing, as to any other act or thing having been duly done by Mortgagee or by Trustee, shall be taken by any Governmental Authority as prima facie evidence that the
said statements or recitals are true and correct and are without further question to be so accepted, and Mortgagor does hereby ratify and confirm any and all acts that Trustee or Mortgagee may lawfully do in the premises by virtue hereof. In the
event of the resignation or death of Trustee, or his or her removal from his or her county of residence stated on the second page hereof, or his or her failure, refusal, or inability, for any reason, to make any such sale or to perform any of the
trusts herein declared, or, at the option of Mortgagee, without cause, Mortgagee may appoint, in writing, a substitute trustee, who shall thereupon succeed to all the estates, titles, rights, powers, and trusts herein granted to and vested in
Trustee. If Mortgagee is a national banking association or a corporation, such appointment may be made on behalf of such Mortgagee by any Person who is then the president, or any vice-president, or the cashier or secretary, or any other authorized
officer or Administrative Agent of Mortgagee. In the event of the resignation or death of any such substitute trustee, or his or her failure, refusal, or inability to make such sale or perform such trusts, or, at the option of Mortgagee, without
cause, Mortgagee may appoint successive substitute trustees from time to time in the same manner. Wherever herein the word “Trustee” is used, the same shall mean the Person who is the duly appointed Trustee or substitute
trustee hereunder at the time in question. 
  
 (g) Mortgagee may, or Trustee may upon written request of Mortgagee, in lieu of or in addition to exercising the power of sale provided for in Section 6.1(f) hereof, proceed by suit or suits, at law or in equity, to enforce the
payment and performance of the Secured Indebtedness in accordance with the terms hereof, and of the other Loan Documents evidencing 

  

 15 

 
it, to foreclose the Liens of this Mortgage as against all or any part of the Mortgaged Property, and to have all or any part of the Mortgaged Property sold
under the judgment or decree of a court of competent jurisdiction. 
  
 (h) To the extent permitted by law, upon the acceleration of the Secured Indebtedness under the Credit Agreement, Mortgagee, as a matter of right and without regard to the sufficiency of the Mortgaged Property, and
without any showing of insolvency, fraud or mismanagement on the part of Mortgagor, and without the necessity of filing any judicial or other proceeding other than the proceeding for appointment of a receiver, shall be entitled to the appointment of
a receiver or receivers of the Mortgaged Property, or any part thereof, and of the income, royalties, revenues, bonuses, production payments, delay rentals, benefits, rents, issues and profits thereof. Mortgagor hereby consents to the appointment of
such receiver or receivers and agrees not to oppose any application therefor by Trustee or Mortgagee. 
  
 (i) Upon the acceleration of the Secured Indebtedness, Mortgagee may (without notification, if permitted by applicable law) enter upon the
Mortgaged Property, take possession of the Mortgaged Property, and remove the Personal Property, or any part thereof, with or without judicial process, and, in connection therewith, without any responsibility or liability on the part of Mortgagee,
take possession of any property located on or in the Mortgaged Property which is not a part of the Mortgaged Property and hold or store such property at Mortgagor’s expense. If necessary to obtain the possession provided for in this
Section 6.1(i), Mortgagee or Trustee may undertake any and all remedies to dispossess Mortgagor, including, specifically, one or more actions for forcible entry and detainer, trespass to try title and restitution. 
  
 (j) Mortgagee may require Mortgagor to assemble any Personal
Property and any other items of the Mortgaged Property, or any part thereof, and make it available to Mortgagee at a place to be designated by Mortgagee which is reasonably convenient to Mortgagor and Mortgagee. 
  
 (k) Mortgagee may surrender the insurance policies
maintained pursuant to the Credit Agreement, or any part thereof, and receive and apply the unearned premiums as a credit on the Secured Indebtedness, and, in connection therewith, Mortgagor hereby appoints Mortgagee as the Administrative Agent and
attorney-in-fact for Mortgagor (with full powers of substitution) to collect such premiums, which power of attorney shall be deemed to be a power coupled with an interest and therefore irrevocable until the release of the Liens evidenced by this
Mortgage. 
  
 (l) Mortgagee may retain the
Personal Property and any other items of the Mortgaged Property, or any part thereof, in satisfaction or partial satisfaction of the Secured Indebtedness whenever the circumstances are such that Mortgagee is entitled to do so under the Code.

  
 (m) Any Lender shall have the right to become
the purchaser at any sale of the Mortgaged Property held by Mortgagee, Trustee or by any court, receiver or public officer, and Mortgagee shall have the right to credit upon the amount of the bid made therefor, the amount payable out of the net
proceeds of such sale to any such Lender. Recitals contained in any conveyance made to any purchaser at any sale made hereunder shall conclusively establish the truth and accuracy of the matters therein stated, including, without limiting the
generality of the 

  

 16 

 
foregoing, nonpayment of the unpaid principal sum of, interest accrued on, and fees payable in respect of, the Secured Indebtedness after the same have
become due and payable, and advertisement and conduct of such sale in the manner provided herein or appointment of any successor Trustee hereunder. 
  
 (n) Mortgagee and any Lender may buy any Personal Property and any other items of the Mortgaged Property, or any part thereof, at any
private disposition if the Mortgaged Property or the part thereof being disposed of, is a type customarily sold in a recognized market or a type which is the subject of widely distributed standard price quotations. 
  
 (o) Mortgagee shall have and may exercise any and all other
rights which Mortgagee may have under the Code, by virtue of the Loan Documents, at law, in equity or otherwise. 
  
 Mortgagee shall have no obligation to do, or refrain from doing, any of the acts, or to make or refrain from making any payment, referred to in this
Section 6.1. 
  
 6.2 Foreclosure by Judicial
Proceedings. Upon the occurrence of an Event of Default, Mortgagee may proceed, where permitted by law, by a suit or suits in equity or at law, whether for a foreclosure hereunder, or for the sale of the Mortgaged Property, or for the
specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Mortgaged Property, or for the
enforcement of any other appropriate legal or equitable remedy. 
  
 6.3 Receipt to Purchaser. Upon any sale by virtue of judicial proceedings, the receipt of the officer making such sale under judicial proceedings shall be sufficient discharge to the purchaser or purchasers at any sale for his
or their purchase money, and such purchaser or purchasers, or his or their assigns or personal representatives, shall not, after paying such purchase money and receiving such receipt of such officer therefor, be obligated to see to the application
of such purchase money, or be in any way answerable for any loss, misapplication or non-application thereof. 
  
 6.4 Effect of Sale. Any sale or sales of the Mortgaged Property or portions thereof where permitted by law shall operate to divest all
right, title, interest, claim and demand whatsoever either at law or in equity, of Mortgagor of, in and to the premises and the property sold, and shall be a perpetual bar, both at law and in equity, against Mortgagor, and Mortgagor’s
successors, legal representatives or assigns, and against any and all Persons claiming or who shall thereafter claim all or any of the property sold by, through or under Mortgagor, or Mortgagor’s successors, legal representatives and assigns.
Nevertheless, Mortgagor, if requested by Mortgagee to do so, shall join in the execution and delivery of all proper conveyances, assignments and transfers of the properties so sold. 
  
 6.5 Application of Proceeds. The proceeds of any sale of the Mortgaged Property, or any part thereof, shall be
applied in the manner required by the Credit Agreement. 
  
 6.6
Mortgagor’s Waiver of Appraisement, Marshaling, etc. Rights. Mortgagor agrees, to the full extent that Mortgagor may lawfully so agree, that Mortgagor will not at any time, insist upon or plead or, in any manner whatsoever, claim
the benefit of any stay, extension 

  

 17 

 
or redemption law now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of this Mortgage or the absolute sale of the
Mortgaged Property or any portion thereof or the possession thereof by any purchaser at any sale made pursuant to any provision hereof, or pursuant to the decree of any court of competent jurisdiction; but Mortgagor, and all who may claim through or
under Mortgagor, so far as Mortgagor or those claiming through or under Mortgagor now or hereafter lawfully may, hereby waives the benefit of all such laws. Mortgagor and all who may claim through or under Mortgagor, waives, to the extent that
Mortgagor or those claiming through or under Mortgagor may lawfully do so, any and all rights of appraisement and any and all right to have the Mortgaged Property marshaled upon any foreclosure of the Lien hereof, or sold in inverse order of
alienation, and agrees that any court having jurisdiction to foreclose such Lien may sell the Mortgaged Property as an entirety. If any law in this Section 6.6 referred to and now in force, of which Mortgagor or Mortgagor’s
successor or successors might take advantage despite the provisions hereof, shall hereafter be repealed or cease to be in force, such law shall not thereafter be deemed to constitute any part of the contract herein contained or to preclude the
operation or application of the provisions of this Section 6.6. Notwithstanding the provisions of Section 6.1(f) or any other contrary or inconsistent provision of this Mortgage, in any judicial foreclosure action in
Oklahoma, appraisement of any Mortgaged Property located in Oklahoma is waived or not waived, at the Mortgagee’s election, which election shall be exercised at the time any written judgment is entered by the applicable court or at any time
prior thereto. 
  
 6.7 Mineral Leasing Act.
Notwithstanding any other provisions of this Mortgage, any Oil and Gas Leases covered by this Mortgage which are subject to the Mineral Leasing Act of 1920, as amended, and the regulations promulgated thereunder, shall not be sold or otherwise
disposed of to any party other than citizens of the United States, or to associations of such citizens or to any corporation organized under the laws of the United States, or any state or territory thereof that are qualified to own or control
interests in such Oil and Gas Leases under the provisions of such Mineral Leasing Act and regulations, or to Persons who may acquire ownership or interest in such Oil and Gas Leases under the provisions of 30 U.S.C. § 184(g), if applicable, as
such Mineral Leasing Act or regulations are now or may be from time to time in effect. 
  
 6.8 Costs and Expenses. All reasonable costs, expenses (including attorneys’ fees) and payments incurred or made by Mortgagee in protecting and enforcing its rights hereunder, shall constitute a
demand obligation owing by Mortgagor to the party incurring such or making such costs, expenses or payments and shall bear interest at a rate per annum equal to the rate set forth in Section 3.02 of the Credit Agreement, all of which shall
constitute a portion of the Secured Indebtedness. 
  
 6.9
Operation of the Mortgaged Property by Mortgagee. Upon the occurrence and continuance of an Event of Default and the acceleration of the Secured Indebtedness under the Credit Agreement, and in addition to all other rights herein
conferred on Mortgagee, Mortgagee (or any Person designated by Mortgagee) shall, to the extent permitted by applicable law, have the right and power, but not the obligation, to enter upon and take possession of any of the Mortgaged Property, and to
exclude Mortgagor, and Mortgagor’s Administrative Agents or servants, wholly therefrom, and to hold, use, administer, manage and operate the same to the extent that Mortgagor shall be at the time entitled to do any of such things and in
Mortgagor’s place and stead. Mortgagee (or any Person designated by Mortgagee) may operate the same 

  

 18 

 
without any liability or duty to Mortgagor in connection with such operations, except to use ordinary care in the operation of such Mortgaged Property, and
Mortgagee or any Person designated by Mortgagee, shall have the right to collect and receive all Hydrocarbons produced and sold from the Mortgaged Property, the proceeds of which shall be applied to the Obligations in the manner required under the
Intercreditor Agreement, to make repairs, purchase machinery and equipment, conduct workover operations, drill additional wells and to exercise every power, right and privilege of Mortgagor with respect to the Mortgaged Property. When and if such
expenses of such operation and development (including costs of unsuccessful workover operations or additional wells) have been paid and the Secured Indebtedness paid and performed in full, such Mortgaged Property shall, if there has been no sale or
foreclosure thereof, be returned to Mortgagor. 
  
 6.10
Additional Waivers. In order to enforce this Mortgage, Mortgagee or Trustee shall not be obligated (a) to foreclose any other mortgage or deed of trust covering Mortgaged Property located in another State, seek a deficiency after
any such foreclosure, or otherwise enforce Mortgagee’s rights in any of the other Mortgaged Property; or (b) to seek an injunction (prohibitive or mandatory), the appointment of a receiver, an order modifying any stay in any federal or
state bankruptcy, reorganization or other insolvency proceedings relating to any of the Mortgaged Property or any portion thereof, or any other extraordinary relief. Mortgagor waives any defense Mortgagor may have to any liability hereunder based on
Mortgagee’s failure or refusal to prosecute, or any lack of diligence or delay in prosecuting, any action or proceeding to enforce any other Mortgage. If Mortgagee elects to enforce this Mortgage before, or without, enforcing its rights with
respect to any Mortgaged Property covered by any other Mortgage, Mortgagor waives any right Mortgagor may have, whether statutory or otherwise, to set off the value of any other Mortgaged Property, or any portion thereof, against the Secured
Indebtedness. If Mortgagee elects to enforce its Mortgage(s) covering all or any portion of the Mortgaged Property located in other States, or in conjunction with, the enforcement of this mortgage or deed of trust, Mortgagee is authorized to
purchase all or any part of such other Mortgaged Property at public or private sale or as otherwise provided by applicable law, and to credit the purchase price against the Secured Indebtedness in such order or manner as Mortgagee determines in its
sole discretion and to preserve Mortgagee’s rights and Liens under this Mortgage for any portion of the Secured Indebtedness that remains unpaid. Mortgagor waives to the fullest extent permitted by applicable law any right to claim or seek any
credit against the Secured Indebtedness in excess of the actual amount bid or received by Mortgagee in connection with the foreclosure of Mortgagee’s Liens on any of the Mortgaged Property located in such other States. Mortgagor further agrees
that Mortgagee shall not be required (i) to seek or obtain a deficiency judgment in or pursuant to any action or proceeding to foreclose this Mortgage as a condition of later enforcing any mortgage or deed of trust covering Mortgaged Property
located in another State, or (ii) to seek or obtain a deficiency judgment in or pursuant to any action or proceeding to foreclose any such other mortgage or deed of trust as a condition of later enforcing this Mortgage. Notwithstanding the
foregoing, if Mortgagee in good faith believes that it may be required either to obtain a deficiency judgment to enforce this Mortgage after enforcement of a mortgage or deed of trust covering Mortgaged Property located in another State, or to
enforce another mortgage or deed of trust after enforcement of this Mortgage, then Mortgagor agrees that Mortgagee shall be entitled to seek and obtain such a deficiency judgment notwithstanding any contrary or inconsistent provision contained in
any Loan Documents. 
  

 19 

 ARTICLE 7 
 MISCELLANEOUS 
  
 7.1 Advances by Mortgagee. Each and every covenant herein contained shall be performed and kept by Mortgagor solely at Mortgagor’s expense. If Mortgagor shall fail to perform or keep any of the covenants of whatsoever
kind or nature contained in this Mortgage, Mortgagee or any receiver appointed hereunder, may, but shall not be obligated to, make advances to perform the same on Mortgagor’s behalf, and Mortgagor hereby agrees to repay such sums upon demand
plus interest at a rate per annum equal to the rate of interest set forth in Section 3.02 of the Credit Agreement. No such advance shall be deemed to relieve Mortgagor from any Event of Default hereunder. 
  
 7.2 Defense of Claims. Mortgagor will notify Mortgagee, in
writing, promptly of the commencement of any legal proceedings of which Mortgagor has notice affecting or which could adversely effect the Lien hereof or the status of or title to the Mortgaged Property, or any material part thereof, and will take
such action, employing attorneys agreeable to Mortgagee, as may be necessary to preserve Mortgagor’s or Mortgagee’s rights affected thereby; and should Mortgagor fail or refuse to take any such action, Mortgagee may take such action on
behalf and in the name of Mortgagor and at Mortgagor’s sole cost and expense. Moreover, Mortgagee may take such independent action in connection therewith as it may, in its sole discretion, deem proper without any liability or duty to Mortgagor
except to use ordinary care, Mortgagor hereby agreeing that all sums advanced or all expenses incurred in such actions plus interest at a rate per annum equal to the rate of interest set forth in Section 3.02 of the Credit Agreement, will, on
demand, be reimbursed to Mortgagee or any receiver appointed hereunder. 
  
 7.3 Defeasance. If the Secured Indebtedness shall be paid and discharged in full and the Commitments shall have terminated, then, and in that case only, this Mortgage shall be null and void and the interests of Mortgagor in
the Mortgaged Property shall become wholly clear of the Lien created hereby, and such Lien shall be released in due course at the cost of Mortgagor. Mortgagee will, at Mortgagor’s sole expense, execute and deliver to Mortgagor all releases and
other instruments reasonably requested of the Lien created hereunder. Otherwise, this Mortgage shall remain and continue in full force and effect. 
  
 7.4 Renewals, Amendments and Other Security. Renewals and extensions of the Secured Indebtedness may be given at any time and amendments may
be made to this Mortgage, the Loan Documents and any other agreements relating to any part of the Secured Indebtedness, and Mortgagee may take or may hold other security for the Secured Indebtedness. Any amendment of this Mortgage shall be by
written instrument and need be executed only by the party against whom enforcement of such amendment is asserted. Mortgagee may resort first to such other security or any part thereof or first to the security herein given or any part thereof, or
from time to time to either or both, even to the partial or complete abandonment of either security, and such action shall not be a waiver of any rights conferred by this Mortgage, which shall continue as a first Lien upon the Mortgaged Property not
expressly released until all Secured Indebtedness secured hereby is fully paid and discharged. 
  
 7.5 Instrument and Assignment, etc. This Mortgage shall be deemed to be and may be, enforced from time to time as an assignment, chattel mortgage, contract, financing statement, real estate mortgage,
pledge or security agreement, and from time to time as any one or more thereof; and to the extent that any particular jurisdiction wherein a portion of the Mortgaged 

  

 20 

 
Property is situated does not recognize or permit Mortgagor to grant, bargain, sell, warrant, mortgage, assign, transfer or convey Mortgagor’s rights,
titles and interests to Mortgagee in the manner herein adopted, then, with respect to the Mortgaged Property located in such jurisdiction, Mortgagor does hereby grant, bargain, sell, warrant, mortgage, assign, transfer and convey unto Mortgagee, the
Mortgaged Property to secure the Secured Indebtedness and the Obligations of Mortgagor contained herein. 
  
 7.6 Limitation on Interest. Regardless of any provision contained in this Mortgage or any of the other Loan Documents, the Lenders shall
never be entitled to receive, collect, or apply, as interest on the Loan, any amount in excess of the Highest Lawful Rate (as defined in the Credit Agreement), and in the event any Lender ever receives, collects or applies as interest any such
excess, such amount which would be deemed excessive interest shall be deemed a partial prepayment of principal and treated hereunder as such; and if the Loans are paid in full, any remaining excess shall promptly be paid to Mortgagor. In determining
whether or not the interest paid or payable under any specific contingency exceeds the Highest Lawful Rate, Mortgagor and the Lenders shall, to the extent permitted under applicable law, (a) characterize any non-principal payment as an expense,
fee or premium rather than as interest, (b) exclude voluntary prepayments and the effect thereof, and (c) amortize, prorate, allocate and spread, in equal parts, the total amount of the interest throughout the entire contemplated term of
the Notes, so that the interest rate is the Highest Lawful Rate throughout the entire term of the Notes; provided, however, that if the unpaid principal balance thereof is paid and performed in full prior to the end of the full contemplated term
thereof, and if the interest received for the actual period of existence thereof exceeds the Highest Lawful Rate, the Lenders shall refund to Mortgagor the amount of such excess and, in such event, the Lenders shall not be subject to any penalties
provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the Highest Lawful Rate. 
  
 7.7 Unenforceable or Inapplicable Provisions. If any provision of this Mortgage or in any of the other Loan Documents is invalid or
unenforceable in any jurisdiction, the other provisions hereof or of any of the other Loan Documents shall remain in full force and effect in such jurisdiction, and the remaining provisions hereof shall be liberally construed in favor of Mortgagee
in order to effectuate the provisions hereof, and the invalidity of any provision hereof in any jurisdiction shall not affect the validity or enforceability of any such provision in any other jurisdiction. Any reference herein contained to statutes
or laws of a state in which no part of the Mortgaged Property is situated shall be deemed inapplicable to, and not used in, the interpretation hereof. 
  
 7.8 Rights Cumulative. Each and every right, power and remedy herein given to Mortgagee shall be cumulative and not exclusive; and each and
every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and so often and in such order as may be deemed expedient by Mortgagee and the exercise, or the beginning of the exercise, of
any such right, power or remedy shall not be deemed a waiver of the right to exercise, at the same time and thereafter, any other right, power or remedy. No delay or omission by Mortgagee in the exercise of any right, power or remedy shall impair
any such right, power or remedy or operate as a waiver thereof or of any other right, power or remedy then or thereafter existing. 
  
 7.9 Waiver by Mortgagee. Any and all covenants in this Mortgage may, from time to time, by instrument in writing signed by Mortgagee and, to
the extent required under the Credit 

  

 21 

 
Agreement, the Lenders be waived to such extent and in such manner as Mortgagee may desire, but no such waiver shall ever affect or impair Mortgagee’s
or any Lender’s rights and remedies or Liens hereunder, except to the extent specifically stated in such written instrument. 
  
 7.10 Successors and Assigns. This Mortgage is binding upon Mortgagor, and Mortgagor’s heirs, devisees, successors, personal and legal
representatives and assigns, and shall inure to the benefit of Mortgagee and Trustee, and their successors, legal representatives and assigns, and the provisions hereof shall likewise be covenants running with the Lands. 
  
 7.11 Article and Section Headings. The article and section
headings in this Mortgage are inserted for convenience and shall not be considered a part of this Mortgage or used in its interpretation. 
  
 7.12 Counterparts. This Mortgage may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an
original, and all of which are identical except that, to facilitate recordation in any particular county or parish, counterpart portions of Exhibit A which describe properties situated in counties or parishes other than the county or parish
in which such counterpart is to be recorded may be omitted. 
  
 7.13 Special Filing as Financing Statements. This Mortgage shall likewise be a security agreement and a financing statement by virtue of Mortgagor, as debtor, granting to Mortgagee, its successors, legal representatives and
assigns, as secured party, a security interest in all personal property, as-extracted collateral, fixtures, accounts, contract rights, general intangibles, inventory, goods, chattel paper, instruments, documents and money described or referred to in
granting clauses (a) through (j) of Article 2 hereof and all proceeds and products from the sale, lease or other disposition of the Mortgaged Property or any part thereof. The addresses shown in Section 7.14 hereof are
the addresses of Mortgagor and Mortgagee and information concerning the security interest may be obtained from Mortgagee at its address. Without in any manner limiting the generality of any of the foregoing provisions hereof: (a) some portion
of the goods described or to which reference is made herein are or are to become fixtures on the Lands described or to which reference is made herein; (b) the minerals and the like (including oil and gas) included in the Mortgaged Property and
the accounts resulting from the sale thereof will be financed at the wellhead(s) or minehead(s) of the well(s) or mine(s) located on the Lands described or to which reference is made herein; and (c) this Mortgage is to be filed of record, among
other places, in the real estate records of each county or parish in which the Lands, or any part thereof, are situated, as a financing statement, but the failure to do so will not otherwise affect the validity or enforceability of this Mortgage.
Mortgagor authorizes Mortgagee to file such amendments to this Mortgage, financing statements and amendments thereto, and continuation statements, as Mortgagee deems reasonable or necessary to perfect and maintain the perfection of the Liens granted
herein, including such Liens with respect to any additions to the Mortgaged Property as provided in Article 5 hereof. 
  
 7.14 Notices. Whenever this Mortgage requires or permits any consent, approval, notice, request or demand from one party to another, such
consent, approval, notice or demand shall, unless otherwise required under applicable law, be given in accordance with the provisions of the Credit Agreement, addressed to the party to be notified at the address stated below (or such other address
as may have been designated in accordance with the provisions of the Credit Agreement): 
  

 22 

			
	 MORTGAGOR - DEBTOR
 [Name of Mortgagor]
 701 Cedar Lake Boulevard
 Oklahoma City, Oklahoma 73114
 Attn:
	  	 MORTGAGEE-SECURED PARTY
 JPMorgan Chase Bank,
N.A.
 1717 Main Street, 4th Floor
 Mail Code TX1-2448

Dallas, Texas 75201
 Attn: J. Scott Fowler

  
 7.15 GOVERNING
LAW. THIS MORTGAGE, THE NOTES AND THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND THE LAWS OF THE UNITED STATES OF AMERICA, EXCEPT TO THE EXTENT THAT THE LAWS OF ANY STATE IN
WHICH THE MORTGAGED PROPERTY IS LOCATED NECESSARILY GOVERNS THE VALIDITY, PERFECTION, PRIORITY AND ENFORCEABILITY OF, AND THE EXERCISE OF ANY REMEDIES WITH RESPECT TO, ANY LIEN INTENDED TO BE CREATED HEREBY ON THE MORTGAGED PROPERTY LOCATED IN SUCH
STATE. 
  
 7.16 Future Advances; Maximum Secured
Amount. This Mortgage covers not only the proceeds of the Loan, but all advances hereafter made by the Lenders to or for the benefit of Mortgagor (the “Future Advances”), including, without limitation, any amounts
advanced by the Lenders in satisfying, on Mortgagor’s behalf, any of Mortgagor’s Obligations, and any advances made in accordance herewith by Mortgagee or any Lender to protect its security, and any other advances by Mortgagee or any
Lender which shall not, in the aggregate exceed $675,000,000. The maximum amount secured hereby may be advanced and repaid, and again advanced and repaid from time to time, in the Lenders’ sole and absolute discretion, and this Mortgage shall
become enforceable upon recording and shall have priority over all other parties whose rights arose after the recording hereof, with respect to all funds advanced by the Lenders to Mortgagor, regardless of whether such funds were advanced before or
after the arising of such other party’s rights. Nothing herein shall be interpreted as requiring the Lenders to make any Future Advances hereunder. The maximum amount secured by this Mortgage at any one time shall be $675,000,000. 

 
 7.17 Recording. Executed original counterparts of this
Mortgage are to be filed for record in the records of the jurisdictions wherein the Mortgaged Property is situated, and shall have annexed thereto as Exhibit A, only the portions or divisions containing specific descriptions of the Mortgaged
Property relating to the Lands located in such jurisdictions. Whenever a recorded counterpart of this Mortgage contains specific descriptions which are less than all of the descriptions contained in any full counterpart lodged with Mortgagee, the
omitted descriptions are hereby included by reference in such recorded counterpart as if each recorded counterpart conformed to any full counterpart lodged with Mortgagee. 
  
 7.18 No Paraphed Notes. Mortgagor acknowledges that no promissory note or other instrument has been presented
to the undersigned notary public(s) to be paraphed for identification herewith. 
  

 23 

 ARTICLE 8 
 ASSIGNMENT OF PRODUCTION 
  
 8.1 Assignment. For the purpose of further securing the Secured Indebtedness and the performance of Mortgagor’s covenants hereunder, Mortgagor does hereby TRANSFER, ASSIGN, AND CONVEY unto Mortgagee any and all of the
interests of Mortgagor in and to the Hydrocarbons that may be produced from, or attributable to, the Mortgaged Property together with the proceeds of the sale thereof and attributable thereto on and after the Effective Date. This assignment is made
upon the following terms and conditions: (a) pipeline companies and others purchasing the oil, gas, minerals and other substances listed above produced and to be produced from said property are hereby authorized and directed to pay directly to
Mortgagee the interests of Mortgagor in and to the proceeds of the sale of the oil, gas, minerals and other substances listed above produced, to be produced and attributable to said property, and to continue such payments until they have been
furnished with a release hereof executed in writing by Mortgagee, and the receipt of Mortgagee for monies so paid to it shall be a full and complete release, discharge and acquittance to any such pipeline company or other purchaser, to the extent of
all amounts so paid, (b) Mortgagee is hereby authorized to receive and collect the proceeds of the sale of the oil, gas, minerals and other substances listed above assigned to it hereunder, and to apply the funds so received first toward the
payment of the expenses, if any, incurred in the collection thereof, then in such order as Mortgagee, in its sole discretion, shall elect toward the payment of the Secured Indebtedness, any balance remaining after the full and final payment of the
Secured Indebtedness to be held subject to the order of Mortgagor, (c) Mortgagee shall have the right, at its sole option, at any time, and from time to time, to release to, or on the order of, Mortgagor all or any portion of the funds assigned
to Mortgagee hereunder, and no such releases shall affect or impair the Lien of this Mortgage or the validity and effect of the assignment contained in this Article 8, (d) Mortgagee shall never be under any obligation to enforce the
collection of the funds assigned to it hereunder, nor shall it ever be liable for failure to exercise diligence in the collection of such funds, but it shall only be accountable for the sums that it shall actually receive, (e) Mortgagor
covenants to cause all pipeline companies or other purchasers of the oil, gas, minerals and other substances listed above produced from and attributable to said property, to pay promptly to Mortgagee, at the office of Mortgagee at the address of
Mortgagee stated above, the interests of Mortgagor in and to the proceeds of the sale thereof, and (f) upon the full and final payment of the Secured Indebtedness, Mortgagee, at the request of Mortgagor, and at Mortgagor’s sole cost and
expense, shall execute and deliver to Mortgagor a reassignment hereof, without recourse, representations or warranties. Notwithstanding the foregoing provisions of this Section 8.1, so long as no Event of Default has occurred and shall
be continuing, Mortgagor may continue to receive from the purchasers of production, all such Hydrocarbons and proceeds of the sale thereof, subject, however, to the Liens created under this Mortgage. Upon the occurrence of an Event of Default,
Mortgagee may exercise all rights and remedies granted hereunder, including, without limitation, the right to obtain possession of all Hydrocarbons and proceeds of the sale thereof then held by Mortgagor or to receive directly from the purchasers
all other Hydrocarbons and proceeds of the sale thereof. 
  
 8.2
Power of Attorney. In consideration of the Loan evidenced by the Notes, Mortgagor hereby designates and appoints Mortgagee as Mortgagor’s true and lawful Administrative Agent and attorney-in-fact (with full power of substitution,
either generally or for such limited periods or purposes as Mortgagee may, from time to time, prescribe), with full power and authority, for and on behalf and in the name of Mortgagor, to execute, acknowledge 

  

 24 

 
and deliver all such division orders, transfer orders, certificates and any and all other documents of every nature as may, from time to time, be necessary
or proper to effectuate the intent and purpose of the assignment contained in Section 8.1 hereof. Mortgagor shall be bound thereby as fully and effectively as if Mortgagor had personally executed, acknowledged and delivered any such
division order, transfer order, certificate or other documents. The powers and authorities herein conferred on Mortgagee may be exercised by Mortgagee through any Person who, at the time of the execution of a particular instrument, is the president,
a senior vice-president or a vice-president of Mortgagee. The power of attorney conferred by this Section 8.2 is granted for a valuable consideration and hence is coupled with an interest and is irrevocable so long as the Secured
Indebtedness, or any part thereof, shall remain unpaid. All Persons dealing with Mortgagee, any officer thereof above designated or any substitute thereof, shall be fully protected in treating the powers and authorizations conferred by this
Section 8.2 as continuing in full force and effect until advised by Mortgagee that all of the Secured Indebtedness is fully and finally paid. 
  
 [Signature Page to Follow] 
  

 25 

 IN WITNESS WHEREOF, Mortgagor, acting by and through its duly authorized officer has executed this
Mortgage on the date of its acknowledgment. 
  

									
	 ATTEST:
	 	 	 	 [Mortgagor]

					
	By:	 	 	 	 	 	By:	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 

  
 The
address of Mortgagor is: 
  
 [Name of Mortgagor]

 701 Cedar Lake Boulevard 
 Oklahoma City, Oklahoma 73114 
 Attn: 
  

	
	This Mortgage was prepared by, and recorded
	counterparts should be returned to:                    

			
	 STATE OF OKLAHOMA
	 	§
	 	 	§
	 COUNTY OF OKLAHOMA
	 	§
		
	 OKLAHOMA
	 	 

  
 Personally appeared
before me, the undersigned authority in and for said county and state, on this              day of
                    , 200  , within my jurisdiction, the within named
                                        ,
who acknowledged that he is the [Title] of
                                        ,
a
                                        ,
and that for and on behalf of
                                        ,
as its act and deed, he executed the above and foregoing instrument after first having been duly authorized by said
                                        
to do so. 
  
 IN WITNESS WHEREOF, the said appearer has signed
those presents, together with the said witnesses, and I have hereunto affixed my hand and seal on the day and date first above written. 
  

					
	 [SEAL]
	 	 	 	  
	 	 	 	 	 Notary Public, State of Oklahoma

  
 My commission expires: 
  
 My commission number: 

  
 EXHIBIT A

  
 MORTGAGED PROPERTY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]