Document:

Credit Agreement dated February 14, 2011

 Exhibit 10.2 
 Execution Version 
 CREDIT AGREEMENT 

DATED AS OF 
 FEBRUARY 14, 2011 
 AMONG 

ENERGY PARTNERS, LTD., 

AS BORROWER, 
 BANK OF MONTREAL, 

AS ADMINISTRATIVE AGENT AND ISSUING BANK,

 CAPITAL ONE, N.A. AND THE BANK
OF NOVA SCOTIA, 
 AS
CO-SYNDICATION AGENTS, 
 NATIXIS, S.A. AND
REGIONS BANK, 
 AS CO-DOCUMENTATION
AGENTS, 
 AND 
 THE LENDERS PARTY HERETO 
  

 

SOLE LEAD ARRANGER AND SOLE BOOKRUNNER

 BMO CAPITAL MARKETS 

 TABLE OF CONTENTS 

 

									
	 	  	 	    	 	  	Page	 
		
	 ARTICLE I DEFINITIONS AND ACCOUNTING MATTERS
	  	 	1	  
		  	 Section 1.01
	    	Defined Terms	  	 	1	  
		  	 Section 1.02
	    	Types of Loans and Borrowings	  	 	25	  
		  	 Section 1.03
	    	Terms Generally; Rules of Construction	  	 	25	  
		  	 Section 1.04
	    	Accounting Terms and Determinations; GAAP	  	 	26	  
		
	 ARTICLE II THE CREDITS
	  	 	26	  
		  	 Section 2.01
	    	Commitments	  	 	26	  
		  	 Section 2.02
	    	Loans and Borrowings	  	 	26	  
		  	 Section 2.03
	    	Requests for Borrowings	  	 	27	  
		  	 Section 2.04
	    	Interest Elections.	  	 	28	  
		  	 Section 2.05
	    	Funding of Borrowings.	  	 	30	  
		  	 Section 2.06
	    	Termination, Reduction and Increase of Aggregate Maximum Credit Amounts.	  	 	30	  
		  	 Section 2.07
	    	Borrowing Base.	  	 	33	  
		  	 Section 2.08
	    	Letters of Credit	  	 	35	  
		
	 ARTICLE III PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES
	  	 	40	  
		  	 Section 3.01
	    	Repayment of Loans	  	 	40	  
		  	 Section 3.02
	    	Interest	  	 	40	  
		  	 Section 3.03
	    	Alternate Rate of Interest	  	 	41	  
		  	 Section 3.04
	    	Prepayments	  	 	42	  
		  	 Section 3.05
	    	Fees	  	 	43	  
		
	 ARTICLE IV PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS
	  	 	44	  
		  	 Section 4.01
	    	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	 	44	  
		  	 Section 4.02
	    	Presumption of Payment by the Borrower	  	 	46	  
		  	 Section 4.03
	    	Certain Deductions by the Administrative Agent; Defaulting Lenders	  	 	46	  
		
	 ARTICLE V INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY
	  	 	48	  
		  	 Section 5.01
	    	Increased Costs	  	 	48	  
		  	 Section 5.02
	    	Break Funding Payments	  	 	49	  
		  	 Section 5.03
	    	Taxes	  	 	50	  
		  	 Section 5.04
	    	Mitigation Obligations; Replacement of Lenders	  	 	52	  
		  	 Section 5.05
	    	Illegality	  	 	53	  
		
	 ARTICLE VI CONDITIONS PRECEDENT
	  	 	54	  
		  	 Section 6.01
	    	Effective Date	  	 	54	  
		  	 Section 6.02
	    	Each Credit Event	  	 	58	  

  
 i 

									
	ARTICLE VII REPRESENTATIONS AND WARRANTIES	  	 	58	  
		  	 Section 7.01
	    	Organization; Powers	  	 	58	  
		  	 Section 7.02
	    	Authority; Enforceability	  	 	59	  
		  	 Section 7.03
	    	Approvals; No Conflicts	  	 	59	  
		  	 Section 7.04
	    	Financial Condition; No Material Adverse Change	  	 	59	  
		  	 Section 7.05
	    	Litigation	  	 	60	  
		  	 Section 7.06
	    	Environmental Matters	  	 	60	  
		  	 Section 7.07
	    	Compliance with the Laws and Agreements; No Defaults	  	 	61	  
		  	 Section 7.08
	    	Investment Company Act	  	 	62	  
		  	 Section 7.09
	    	Taxes	  	 	62	  
		  	 Section 7.10
	    	ERISA	  	 	62	  
		  	 Section 7.11
	    	Disclosure; No Material Misstatements	  	 	63	  
		  	 Section 7.12
	    	Insurance	  	 	63	  
		  	 Section 7.13
	    	Restriction on Liens	  	 	63	  
		  	 Section 7.14
	    	Subsidiaries; Foreign Operations	  	 	64	  
		  	 Section 7.15
	    	Location of Business and Offices	  	 	64	  
		  	 Section 7.16
	    	Properties; Titles, Etc	  	 	64	  
		  	 Section 7.17
	    	Maintenance of Oil and Gas Properties	  	 	65	  
		  	 Section 7.18
	    	Gas Imbalances, Prepayments	  	 	66	  
		  	 Section 7.19
	    	Marketing of Production	  	 	66	  
		  	 Section 7.20
	    	Security Instruments	  	 	66	  
		  	 Section 7.21
	    	Hedging Agreements	  	 	67	  
		  	 Section 7.22
	    	Use of Loans and Letters of Credit	  	 	67	  
		  	 Section 7.23
	    	Solvency	  	 	67	  
		  	 Section 7.24
	    	Acquisition	  	 	67	  
		  	 Section 7.25
	    	Foreign Corrupt Practices	  	 	67	  
		  	 Section 7.26
	    	Anti-Terrorism Laws	  	 	68	  
		
	 ARTICLE VIII AFFIRMATIVE COVENANTS
	  	 	69	  
		  	 Section 8.01
	    	Financial Statements; Other Information	  	 	69	  
		  	 Section 8.02
	    	Notices of Material Events	  	 	72	  
		  	 Section 8.03
	    	Existence; Conduct of Business	  	 	72	  
		  	 Section 8.04
	    	Payment of Obligations	  	 	73	  
		  	 Section 8.05
	    	[Reserved]	  	 	73	  
		  	 Section 8.06
	    	Operation and Maintenance of Properties	  	 	73	  
		  	 Section 8.07
	    	Insurance	  	 	74	  
		  	 Section 8.08
	    	Books and Records; Inspection Rights	  	 	74	  
		  	 Section 8.09
	    	Compliance with Laws	  	 	74	  
		  	 Section 8.10
	    	Environmental Matters	  	 	74	  
		  	 Section 8.11
	    	Further Assurances	  	 	75	  
		  	 Section 8.12
	    	Reserve Reports	  	 	75	  
		  	 Section 8.13
	    	Title Information	  	 	76	  
		  	 Section 8.14
	    	Additional Collateral; Additional Guarantors; Additional Mortgaged Property	  	 	77	  
		  	 Section 8.15
	    	ERISA Compliance	  	 	79	  
		  	 Section 8.16
	    	Marketing Activities	  	 	79	  
		  	 Section 8.17
	    	Hedging Agreements	  	 	80	  

  
 ii 

									
	ARTICLE IX NEGATIVE COVENANTS	  	 	80	  
		  	 Section 9.01
	    	Financial Covenants	  	 	80	  
		  	 Section 9.02
	    	Indebtedness	  	 	80	  
		  	 Section 9.03
	    	Liens	  	 	81	  
		  	 Section 9.04
	    	Restricted Payments; Redemption or Repayment of Senior Notes	  	 	82	  
		  	 Section 9.05
	    	Investments, Loans and Advances; Permitted Acquisitions	  	 	83	  
		  	 Section 9.06
	    	Nature of Business; International Operations	  	 	84	  
		  	 Section 9.07
	    	Limitation on Leases	  	 	84	  
		  	 Section 9.08
	    	Proceeds of Loans	  	 	85	  
		  	 Section 9.09
	    	ERISA Compliance	  	 	85	  
		  	 Section 9.10
	    	Sale or Discount of Receivables	  	 	85	  
		  	 Section 9.11
	    	Mergers, Etc.	  	 	85	  
		  	 Section 9.12
	    	Sale of Properties	  	 	86	  
		  	 Section 9.13
	    	Environmental Matters	  	 	87	  
		  	 Section 9.14
	    	Transactions with Affiliates	  	 	87	  
		  	 Section 9.15
	    	Subsidiaries	  	 	88	  
		  	 Section 9.16
	    	Negative Pledge Agreements; Dividend Restrictions	  	 	88	  
		  	 Section 9.17
	    	Gas Imbalances, Take-or-Pay or Other Prepayments	  	 	88	  
		  	 Section 9.18
	    	Hedging Agreements	  	 	88	  
		  	 Section 9.19
	    	Sale and Leaseback	  	 	89	  
		  	 Section 9.20
	    	Amendments to Organization Documents, Material Contracts, Fiscal Year End	  	 	89	  
		  	 Section 9.21
	    	Anti-Terrorism Law; Anti-Money Laundering	  	 	90	  
		  	 Section 9.22
	    	Embargoed Person	  	 	90	  
		
	 ARTICLE X EVENTS OF DEFAULT; REMEDIES
	  	 	90	  
		  	 Section 10.01
	    	Events of Default	  	 	90	  
		  	 Section 10.02
	    	Remedies	  	 	93	  
		
	ARTICLE XI THE ADMINISTRATIVE AGENT	  	 	94	  
		  	 Section 11.01
	    	Appointment; Powers	  	 	94	  
		  	 Section 11.02
	    	Duties and Obligations of Administrative Agent	  	 	94	  
		  	 Section 11.03
	    	Action by Administrative Agent	  	 	95	  
		  	 Section 11.04
	    	Reliance by Administrative Agent	  	 	95	  
		  	 Section 11.05
	    	Sub-agents	  	 	96	  
		  	 Section 11.06
	    	Resignation or Removal of Administrative Agent	  	 	96	  
		  	 Section 11.07
	    	Agents as Lenders	  	 	96	  
		  	 Section 11.08
	    	No Reliance	  	 	96	  
		  	 Section 11.09
	    	Administrative Agent May File Proofs of Claim	  	 	97	  
		  	 Section 11.10
	    	Authority of Administrative Agent to Release Collateral and Liens	  	 	98	  
		  	 Section 11.11
	    	The Arranger, the Co-Syndication Agents and the Co-Documentation Agents	  	 	98	  
		
	 ARTICLE XII MISCELLANEOUS
	  	 	98	  
		  	 Section 12.01
	    	Notices	  	 	98	  

  
 iii

									
		  	Section 12.02	    	Waivers; Amendments	  	 	99	  
		  	 Section 12.03
	    	Expenses, Indemnity; Damage Waiver	  	 	101	  
		  	 Section 12.04
	    	Assignments and Participations	  	 	103	  
		  	 Section 12.05
	    	Survival; Revival; Reinstatement	  	 	106	  
		  	 Section 12.06
	    	Counterparts; Integration; Effectiveness	  	 	106	  
		  	 Section 12.07
	    	Severability	  	 	107	  
		  	 Section 12.08
	    	Right of Setoff	  	 	107	  
		  	 Section 12.09
	    	GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS	  	 	107	  
		  	 Section 12.10
	    	Headings	  	 	109	  
		  	 Section 12.11
	    	Confidentiality	  	 	109	  
		  	 Section 12.12
	    	Interest Rate Limitation	  	 	109	  
		  	 Section 12.13
	    	EXCULPATION PROVISIONS	  	 	110	  
		  	 Section 12.14
	    	Collateral Matters; Hedging Agreements; Treasury Management Agreements	  	 	111	  
		  	 Section 12.15
	    	No Third Party Beneficiaries	  	 	111	  
		  	 Section 12.16
	    	USA Patriot Act Notice	  	 	111	  
		  	 Section 12.17
	    	Releases	  	 	111	  
		  	 Section 12.18
	    	No Fiduciary Duty	  	 	111	  

  
 iv 

 ANNEXES, EXHIBITS AND SCHEDULES 

 

			
	 Annex I
	  	List of Maximum Credit Amounts
		
	 Exhibit A
	  	Form of Note
	 Exhibit B
	  	Form of Borrowing Request
	 Exhibit C
	  	Form of Interest Election Request
	 Exhibit D-1
	  	Form of Compliance Certificate (Effective Date)
	 Exhibit D-2
	  	Form of Compliance Certificate (Ongoing)
	 Exhibit D-3
	  	Form of Hedging Agreement Certificate
	 Exhibit E-1
	  	Form of Maximum Credit Amount Increase Certificate
	 Exhibit E-2
	  	Form of Additional Lender Certificate
	 Exhibit F
	  	Form of Guaranty and Collateral Agreement
	 Exhibit G
	  	Form of Assignment and Assumption
	 Exhibit H
	  	Subordination Provisions
		
	 Schedule 1.01(a)
	  	Security Instruments
	 Schedule 6.01(o)
	  	Collateral Exceptions
	 Schedule 7.05
	  	Litigation
	 Schedule 7.06
	  	Environmental Matters
	 Schedule 7.14
	  	Subsidiaries
	 Schedule 7.18
	  	Gas Imbalances
	 Schedule 7.19
	  	Marketing Contracts
	 Schedule 7.20
	  	Jurisdictions for Security Instrument Filings
	 Schedule 7.21
	  	Hedging Agreements
	 Schedule 9.02
	  	Existing Indebtedness
	 Schedule 9.03
	  	Existing Liens
	 Schedule 9.05
	  	Existing Investments

  
 v 

 THIS CREDIT AGREEMENT dated as of February 14, 2011, is among: ENERGY PARTNERS,
LTD., a corporation duly formed and existing under the laws of the State of Delaware (the “Borrower”); each of the Lenders from time to time party hereto; BANK OF MONTREAL (in its individual capacity,
“BMO”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as Issuing Bank (as defined below); CAPITAL ONE, N.A.
and THE BANK OF NOVA SCOTIA, as co-syndication agents (in such capacity, together with their successors in such capacity, the “Co-Syndication Agents”); and NATIXIS, S.A. and REGIONS BANK, as co-documentation agents (in such
capacity, together with their successors in such capacity, the “Co-Documentation Agents”). 
 R E C
I T A L S 
 A. The Borrower has requested that the Lenders provide certain loans to and extensions of credit on behalf
of the Borrower. 
 B. The Lenders have agreed to make such loans and extensions of credit subject to the terms and conditions
of this Agreement. 
 C. In consideration of the mutual covenants and agreements herein contained and of the loans, extensions
of credit and commitments hereinafter referred to, the parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS AND ACCOUNTING MATTERS 
 Section 1.01 Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate. 
 “Acquisition” means the acquisition of the Acquisition Properties. 

“Acquisition Documents” means, collectively, (a) the Purchase and Sale Agreement, dated as of January 13,
2011, between ASOP and the Borrower, and (b) all bills of sale, assignments, agreements, instruments and documents executed and delivered in connection therewith. 
 “Acquisition Properties” means the Oil and Gas Properties and other assets and properties acquired by the Borrower or any Guarantor pursuant to the Acquisition Documents (including the
membership interests in ASOP Pipeline). 
 “Additional Lender” has the meaning assigned to such term in
Section 2.06(d)(i). 
 “Additional Lender Certificate” has the meaning assigned to such term in
Section 2.06(d)(ii)(F). 

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

“Administrative Agent” has the meaning assigned to such term in the introductory paragraph hereto. 

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

 “Affected Loans” has the meaning assigned to such term in Section 5.05. 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
 “Agents”
means, collectively, the Administrative Agent, the Co-Syndication Agents and the Co-Documentation Agents; and “Agent” means any of the Administrative Agent, the Co-Syndication Agents or the Co-Documentation Agents, as the context
requires. 
 “Aggregate Maximum Credit Amounts” means, at any time, the sum of the Maximum Credit Amounts, as
the same may be increased, reduced or terminated pursuant to Section 2.06. The initial Aggregate Maximum Credit Amount of the Lenders is $250,000,000. 
 “Agreement” means this Credit Agreement, as the same may from time to time be amended, modified, supplemented or restated. 

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus
 1/2 of 1%, and (c) the Adjusted LIBO Rate for
a one month Interest Period at approximately 11:00 a.m., London time, on such day (or, if such day is not a Business Day, the immediately preceding Business Day) plus 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the
Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively. 

“Anti-Terrorism Law” has the meaning assigned to such term in Section 7.26(a). 

“Applicable Margin” means, for any day, with respect to any ABR Loan or Eurodollar Loan, the rate per annum set forth
below based upon the Borrowing Base Utilization Percentage then in effect: 
  

																					
	 Borrowing Base Utilization Percentage
	  	<25%	 	 	325% and
<50%	 	 	350% and
<75%	 	 	375% and
<90%	 	 	390%	 
	 ABR Loans
	  	 	1.00	% 	 	 	1.25	% 	 	 	1.50	% 	 	 	1.75	% 	 	 	2.00	% 
	 Eurodollar Loans
	  	 	2.00	% 	 	 	2.25	% 	 	 	2.50	% 	 	 	2.75	% 	 	 	3.00	% 

  
 2 

 Each change in the Applicable Margin shall apply during the period commencing on the
effective date of such change and ending on the date immediately preceding the effective date of the next such change, provided, however, that if at any time the Borrower fails to deliver a Reserve Report as required by and within the
time frames set forth in Section 8.12(a), then the “Applicable Margin”, from the applicable date of such failure until the date the applicable Reserve Report is delivered, shall be the rate per annum set forth on the
grid when the Borrowing Base Utilization Percentage is at its highest level. 
 “Applicable Percentage” means,
with respect to any Lender, the percentage of the Aggregate Maximum Credit Amounts represented by such Lender’s Maximum Credit Amount as such percentage is set forth on Annex I, and as such percentage may be adjusted from time to time in
accordance with the terms hereof. 
 “Approved Counterparty” means any Lender or any Affiliate of a Lender.

 “Approved Fund” means (a) a CLO and (b) with respect to any Lender that is a fund which invests in
bank loans and similar extensions of credit, any other fund that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 

“Approved Petroleum Engineers” means (a) Netherland, Sewell & Associates, Inc., and (b) Ryder Scott
Company Petroleum Consultants, L.P. and (c) any other independent petroleum engineers reasonably acceptable to the Administrative Agent. 
 “Arranger” means BMO Capital Markets, in its capacities as the sole lead arranger and sole bookrunner hereunder. 
 “ASOP” means Anglo-Suisse Offshore Partners, LLC, a Delaware limited liability company. 
 “ASOP Pipeline” means Anglo-Suisse Offshore Pipeline Partners, LLC, a Delaware limited liability company. 
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by
Section 12.04(b)), and accepted by the Administrative Agent, in the form of Exhibit G or any other form approved by the Administrative Agent. 
 “Availability Period” means the period from and including the Effective Date to but excluding the Termination Date. 

“BMO” has the meaning assigned to such term in the introductory paragraph hereto. 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America or any successor
Governmental Authority. 

  
 3 

 “BOEMRE” means the Bureau of Ocean Energy Management, Regulation and
Enforcement and any successor thereto. 
 “Borrower” has the meaning assigned to such term in the introductory
paragraph hereto. 
 “Borrowing” means Loans of the same Type, made, converted or continued on the same date
and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect. 
 “Borrowing Base”
means at any time an amount equal to the amount determined in accordance with Section 2.07, as the same may be adjusted from time to time pursuant to Section 2.07(e) or Section 8.13(c). 

“Borrowing Base Deficiency” means any period during which the total Credit Exposures exceeds the Borrowing Base then in
effect. 
 “Borrowing Base Hedge Unwind” means any Unwind of a Borrowing Base Hedging Contract. 

“Borrowing Base Hedging Contracts” means all Hedging Contracts (and related hedge positions) in respect of commodities
that were in effect at the time of the most recent Borrowing Base redetermination. 
 “Borrowing Base Property
Disposition” means the sale or other disposition (including Casualty Event) by the Borrower or any Subsidiary of (a) Oil and Gas Properties that were evaluated in the most recently delivered Reserve Report(s) or (b) Equity
Interests in Subsidiaries that own Oil and Gas Properties that were evaluated in the most recently delivered Reserve Report(s), other than any such sale or disposition made to the Borrower or any Subsidiary. 

“Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a percentage, the numerator of
which is the sum of the Credit Exposures of the Lenders on such day, and the denominator of which is the Borrowing Base in effect on such day. 
 “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03. 
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City or Houston, Texas are authorized or required by law to remain closed;
and if such day relates to a Borrowing or continuation of, a payment or prepayment of principal of or interest on, or a conversion of or into, or the Interest Period for, a Eurodollar Loan or a notice by the Borrower with respect to any such
Borrowing or continuation, payment, prepayment, conversion or Interest Period, any day which is also a day on which dealings in dollar deposits are carried out in the London interbank market. 

“Capital Leases” means, in respect of any Person, all leases which shall have been, or should have been, in accordance
with GAAP, recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder. 

  
 4 

 “Casualty Event” means any loss, casualty or other insured damage to, or
any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Borrower or any of its Subsidiaries having a fair market value in excess of $1,000,000. 

“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) other than the Equity Investors of Equity Interests representing more than thirty-five percent
(35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower, or (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower
by Persons who were neither (i) nominated by the board of directors of the Borrower nor (ii) appointed by directors so nominated, or (c) any change in control or similar event shall occur under the terms of the Senior Indenture (or
any supplement thereto) that results in an “event of default” under the Senior Indenture (or any supplement thereto) or Senior Notes, the Senior Notes becoming due and payable before their maturity or the Senior Notes being subject to a
repurchase, retirement or redemption right or option (whether or not exercised). 
 “Change in Law” means
(a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement
or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section 5.01(b), by any lending office of such Lender or such Issuing Bank or by such Lender’s or such Issuing Bank’s holding company, if any) with
any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 
 “CLO” means any entity (whether a corporation, partnership, trust or otherwise) that is engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered or managed by a Lender or an Affiliate of such Lender. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute. 

“Collateral” means all Property of the Loan Parties which is subject to a Lien under one or more Security Instruments.

 “Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire
participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Credit Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time in connection
with a reduction or termination of the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b), (b) increased from time to time in connection with an increase in the Aggregate Maximum Credit Amounts pursuant to
Section 2.06(c), or (c) modified from time to time pursuant to any assignment by or to such Lender pursuant to Section 12.04(b). The amount of 

  
 5 

 
each Lender’s Commitment shall at any time be the lesser of (i) such Lender’s Maximum Credit Amount and (ii) such Lender’s Applicable Percentage of the then effective
Borrowing Base. 
 “Commitment Fee Rate” means 0.500% per annum. 

“Consolidated Interest Expense” means, for any period, the sum (determined without duplication) of the aggregate gross
interest expense of the Borrower and the Consolidated Subsidiaries for such period, including to the extent included in interest expense under GAAP: (a) amortization of debt discount, (b) capitalized interest and (c) the portion of
any payments or accruals under Capital Leases allocable to interest expense, plus the portion of any payments or accruals under Synthetic Leases allocable to interest expense whether or not the same constitutes interest expense under GAAP.

 “Consolidated Net Income” means with respect to the Borrower and the Consolidated Subsidiaries, for any
period, the aggregate of the net income (or loss) of the Borrower and its Consolidated Subsidiaries determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net income (to the extent
otherwise included therein) the following: (a) the net income of any Person in which the Borrower or any of its Consolidated Subsidiaries has an interest (which interest does not cause the net income of such other Person to be consolidated with
the net income of the Borrower and its Consolidated Subsidiaries in accordance with GAAP), except to the extent of the amount of dividends or distributions actually paid in cash during such period by such other Person to the Borrower or to any of
its Consolidated Subsidiaries, as the case may be; (b) the net income (but not loss) during such period of any Consolidated Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by
that Consolidated Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Subsidiary or is otherwise restricted or prohibited, in each
case determined in accordance with GAAP; (c) the net income (or loss) of any Person acquired in a pooling-of-interests transaction for any period prior to the date of such transaction; (d) any extraordinary or non-recurring gains or losses
during such period; (e) any gains or losses attributable to writeups or writedowns of assets; provided further if the Borrower or any of its Consolidated Subsidiaries shall acquire or dispose of any material Property (including pursuant
to the Acquisition) during such period, then Consolidated Net Income shall be calculated after giving pro forma effect to such acquisition or disposition, as if such acquisition or disposition had occurred on the first day of such period.

 “Consolidated Subsidiaries” means each Subsidiary of the Borrower (whether now existing or hereafter created
or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. For the purposes of this definition, and without limiting the generality of the foregoing, any Person that owns directly or indirectly 10% or more of the Equity Interests having ordinary voting power for the
election of the directors or other governing 

  
 6 

 
body of a Person (other than as a limited partner of such other Person) will be deemed to “control” such other Person. “Controlling” and “Controlled”
have meanings correlative thereto. 
 “Credit Exposure” means, with respect to any Lender at any time, the sum
of the outstanding principal amount of such Lender’s Loans and its LC Exposure at such time. 
 “Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
 “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit within
three (3) Business Days of the date required to be funded by it hereunder, (b) notified the Borrower, the Administrative Agent, any Issuing Bank or any Lender in writing that it does not intend to comply with any of its funding obligations
under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement, (c) failed, within three (3) Business Days after request by the Administrative Agent, to
confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit, (d) otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within three (3) Business Days of the date when due, unless the subject of a good faith dispute, or (e) (i) becomes or is insolvent or has a parent company that has
become or is insolvent or (ii) becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken
any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment; provided, that a Lender shall not become a Defaulting Lender solely as the result of the acquisition or maintenance
of an ownership interest in such Lender or its parent company, or the exercise of control over such Lender or its parent company, by a Governmental Authority or an instrumentality thereof. 

“Disqualified Capital Stock” means any Equity Interest that, by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a
sinking fund obligation or otherwise, or is convertible or exchangeable for Indebtedness or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder
thereof, in whole or in part, on or prior to the date that is ninety-one (91) days after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and the
termination of the Aggregate Maximum Credit Amounts has occurred. 
 “dollars” or “$” refers
to lawful money of the United States of America. 
 “Domestic Subsidiary” means any Subsidiary that is
organized under the laws of the United States of America or any state thereof or the District of Columbia. 

  
 7 

 “EBITDAX” means, for any period, the sum of (a) Consolidated Net
Income for such period plus (b) accretion of asset retirement obligations in accordance with SFAS No. 143, Accounting for Asset Retirement Obligations, and any similar accounting in prior periods plus (c) the following
expenses or charges to the extent deducted from Consolidated Net Income in such period: interest, income Taxes, depreciation, depletion, amortization (including amortization of goodwill), expenses associated with the exploration of Oil and Gas
Properties, other noncash charges, and expenses incurred in connection with the consummation of the Transactions and the transactions under the Senior Indenture, minus (d) all noncash income added to Consolidated Net Income. 

“Effective Date” means the date on which the conditions specified in Section 6.01 are satisfied (or waived
in accordance with Section 12.02). 
 “Embargoed Person” has the meaning assigned to such term in
Section 9.22. 
 “Engineering Reports” has the meaning assigned to such term in
Section 2.07(c)(i). 
 “Environmental Laws” means any and all Governmental Requirements pertaining
in any way to health, safety, the environment, the preservation or reclamation of natural resources, or the management, Release or threatened Release of any Hazardous Materials, in effect in any and all jurisdictions in which the Borrower or any
Subsidiary is conducting business, or where any Property of the Borrower or any Subsidiary is located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive
Environmental, Response, Compensation, and Liability Act of 1980 (“CERCLA”), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and
Recovery Act of 1976 (“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials
Transportation Act, as amended, and similar state and local statutes. 
 “Environmental Permit” means any
permit, registration, license, approval, consent, exemption, variance, or other authorization required under or issued pursuant to applicable Environmental Laws. 
 “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest. 
 “Equity Investors” means Wexford Capital LP, Carlson Capital, L.P. and their respective Affiliates. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute. 
 “ERISA Affiliate” means each trade or business (whether or not incorporated) which together with the Borrower or a Subsidiary would be deemed to be a “single employer” within

  
 8 

 
the meaning of Section 4001(b)(1) of ERISA or subsections (b), (c), (m) or (o) of Section 414 of the Code. 

“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 
 “Event of
Default” has the meaning assigned to such term in Section 10.01. 
 “Excepted Liens”
means: (a) 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 established in accordance with
GAAP; (b) 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; (c) 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 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; (d) contractual Liens which arise in the ordinary
course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas,
unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production
agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business and are for
claims which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; provided that no such Lien referred to in this clause
(d) materially impairs the use of the Property covered by such Lien for the purposes for which such Property is held by the Borrower or any Subsidiary or materially impairs the value of such Property subject thereto; (e) Liens arising
solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution,
provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is
intended by Borrower or any of its Subsidiaries to provide collateral to the depository institution; (f) easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any Property of the Borrower or any
Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate,
rights of way, facilities and equipment, that do not secure any monetary obligations and which in the aggregate do not materially impair the use of such Property for the purposes of which such Property is held by the Borrower or any Subsidiary or

  
 9 

 
materially impair the value of such Property subject thereto; (g) Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts,
performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business; (h) judgment and attachment Liens not giving
rise to an Event of Default, provided that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated
shall not have expired and no action to enforce such Lien has been commenced; (i) encumbrances consisting of deed restrictions, zoning restrictions, and other similar restrictions on the use of Oil and Gas Properties, none of which, in the
aggregate, materially impairs the use of such property by the Borrower or any Subsidiary in the operation of its business or materially detracts from the value of such properties, and none of which, in the aggregate, is or shall be violated in any
material respect by existing proposed operations; (j) purported Liens evidenced by the filing of UCC financing statements solely as a precautionary measure in connection with operating leases of personal property; (k) Liens on pipelines or
pipeline facilities that arise by operation of law; provided that no such Lien referred to in this clause (k) secures Indebtedness or materially impairs the use of the Property covered by such Lien for the purposes for which such
Property is held by the Borrower or any Subsidiary or materially impairs the value of such Property subject thereto; (l) minor defects and irregularities of title to any Property so long as such defects and irregularities, in the aggregate,
neither secure Indebtedness nor materially impair the value of such property or the use of such property for the purposes of which the property is held; and (m) Liens on cash earnest money deposited pursuant to the terms of an agreement to
acquire assets used in, or Persons engaged in, the oil and gas business, as permitted by this Agreement; provided, further that no intention to subordinate the first priority Lien granted in favor of the Administrative Agent and the
Lenders is to be hereby implied or expressed by the permitted existence of such Excepted Liens. 
 “Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, any Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower or any Guarantor hereunder or under any other Loan
Document, (a) any and all Taxes imposed on or measured by in whole or in part its revenue, income (however denominated), net assets, capital or net worth and franchise or similar Taxes imposed on it (in lieu of such Taxes) by the jurisdiction
(or any political subdivision thereof) (i) under the laws of which such recipient is organized or incorporated, (ii) in which its principal office is located, (iii) in which it is doing business, or (iv) in the case of any
Lender, in which its applicable lending office is located, (b) any and all branch profits Taxes imposed by the United States of America or any similar Taxes imposed by any other jurisdiction in which the Borrower or any Guarantor is located,
(c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 5.04(b)), any and all withholding Taxes that are imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with Section 5.03(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts with respect to such withholding Taxes pursuant to Section 5.03(a) or Section 5.03(c), and
(d) any Taxes (including withholding of Taxes) imposed as a result of such recipient’s failure or inability to comply with the requirements of FATCA to establish an exemption from such tax pursuant to FATCA. 

  
 10 

 “Executive Order” has the meaning assigned to such term in
Section 7.26(a). 
 “Existing Credit Agreement” means the Credit Agreement, dated as of
September 21, 2009, among the Borrower, General Electric Capital Corporation, as administrative agent, and the lenders party thereto, as amended. 
 “FATCA” means Sections 1471 through 1474 of the Code as enacted on the date hereof (or any amended version that is substantively comparable) and any regulations thereunder or official
interpretations thereof. 
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
 “Fee Letter”
means that certain letter agreement from the Administrative Agent to the Borrower dated January 19, 2011, concerning certain fees in connection with this Agreement. 
 “Financial Officer” means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references
herein to a Financial Officer means a Financial Officer of the Borrower. 
 “Financial Statements” means the
financial statement or statements of the Borrower and its Consolidated Subsidiaries referred to in Section 7.04(a)(i). 
 “Foreign Lender” means any Lender that is not a United States person, within the meaning of Section 7701(a)(30) of the Code. 

“Foreign Subsidiary” means any Subsidiary that (a) is not a Domestic Subsidiary or (b) is disregarded for
United States federal income tax purposes and all of the assets of which (other than de minimis assets) consist of Equity Interests in a Subsidiary that is not a Domestic Subsidiary. 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time
subject to the terms and conditions set forth in Section 1.04. 
 “Governmental Authority” means
the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over the Borrower, any Subsidiary, any other Loan Party, any of their Properties, the Administrative Agent, the Issuing Bank or any
Lender. 

  
 11 

 “Governmental Requirement” means any applicable law, statute, code,
ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, rules of common law, authorization or other directive or requirement, whether now or hereinafter in effect, including, without
limitation, Environmental Laws, energy regulations and occupational, safety and health standards or controls, of any Governmental Authority. 
 “Guarantor” means any Domestic Subsidiary that guarantees the Secured Obligations pursuant to Section 8.14(b). 

“Guaranty and Collateral Agreement” means an agreement executed by the Borrower and the Guarantors in substantially the
form of Exhibit F granting Liens on certain Collateral and unconditionally guarantying on a joint and several basis, payment of the Secured Obligations, as the same may be amended, modified or supplemented from time to time. 

“Hazardous Material” means any substance regulated as hazardous or toxic or as a pollutant under any applicable
Environmental Law and including: (a) any chemical, compound, material, product, byproduct, substance or waste defined as or included in the definition or meaning of “hazardous substance,” “hazardous material,”
“hazardous waste,” “toxic waste,” “extremely hazardous substance,” “toxic substance,” “contaminant,” “pollutant,” or words of similar meaning or import found in any applicable Environmental
Law; (b) petroleum hydrocarbons, petroleum products, petroleum substances, natural gas, oil, oil and gas waste, crude oil, and any components, fractions, or derivatives thereof; and (c) radioactive materials, explosives, asbestos or
asbestos containing materials, polychlorinated biphenyls, or radon. 
 “Hedge Termination Value” means, in
respect of any one or more Hedging Agreements (or related hedge positions), after taking into account the effect of any legally enforceable netting agreement relating to such Hedging Agreements and any substantially contemporaneous Hedging
Agreements entered into, (a) for purposes of Section 2.07(e), the value (as proposed by the Administrative Agent in its sole discretion and approved by the Majority Lenders) allocated to such Hedging Agreements in connection with
the then-current Borrowing Base, and (b) for any other purpose, (i) for any date on or after the date such Hedging Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and
(ii) for any date prior to the date referenced in clause (i), the amount(s) determined as the mark-to-market value(s) for such Hedging Agreements, as determined in accordance with GAAP. 

“Hedging Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or
similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing
indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided, that no phantom stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Hedging Agreement. 
 “Highest Lawful Rate” means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved,

  
 12 

 
charged or received on the Loans or on other Secured Obligations under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws
which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the date hereof. 
 “Hydrocarbon Interests” means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous
hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature. 

“Hydrocarbon Property Exclusion Deadline” has the meaning assigned to such term in Section 8.14(e).

 “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate,
liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom. 
 “Immaterial
Subsidiary” means each Subsidiary of the Borrower described on the Effective Date as an “Immaterial Subsidiary” on Schedule 7.14, so long as such Subsidiary (a) has assets of less than $250,000, (b) owns no Oil
and Gas Properties and (c) is not a Guarantor. 
 “Indebtedness” means, for any Person, the sum of the
following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent
or otherwise) in respect of letters of credit, bonds (other than contingent obligations with respect to surety bonds required in connection with the operation of the Oil and Gas Properties) and similar instruments; (c) all accounts payable and
all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services (other than trade accounts payable, from time to time incurred in the ordinary course of business, which are not greater
than ninety (90) days past the date of invoice or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP); (d) all principal obligations under Capital
Leases; (e) all obligations under Synthetic Leases; (f) all Indebtedness (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Indebtedness is assumed by such Person; (g) all Indebtedness (as defined in the other clauses of this definition) of others guaranteed by such Person or in
which such Person otherwise assures a creditor against loss of the Indebtedness (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Indebtedness and the maximum stated amount of such guarantee or assurance
against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others or to purchase the Indebtedness of others so as to assure the owner of such Indebtedness of the
payment thereof; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business;
(j) obligations to pay for goods or services even if such goods or services are not actually received or utilized by such Person; (k) any 

  
 13 

 
Indebtedness (as defined in the other clauses of this definition) of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but
only to the extent of such liability; (l) Disqualified Capital Stock; and (m) the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment;
provided that “Indebtedness” shall not include (i) asset retirement obligations attributable to a period after the Maturity Date or (ii) customary contingent payment obligations (including earn- outs) and contingent
liabilities in respect of indemnification obligations and adjustments of purchase price, in each case in connection with the Acquisition or any Permitted Acquisition, provided that if any of the contingent payment obligations (including
earn-outs) or contingent liabilities described in this clause (ii) are listed in the Borrower’s consolidated balance sheet as Indebtedness at any time, such contingent payment obligations and contingent liabilities shall be included in
calculating Total Indebtedness for the relevant period. The Indebtedness of any Person shall include all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof notwithstanding
that any such obligation is not included as a liability of such Person under GAAP. 
 “Indemnified Taxes” means
Taxes other than Excluded Taxes. 
 “Indemnitee” has the meaning assigned to such term in
Section 12.03(b). 
 “Information” has the meaning assigned to such term in
Section 12.11. 
 “Initial Reserve Reports” means, collectively, (a) the report of Netherland,
Sewell & Associates, Inc., dated as of January 26, 2011, with respect to certain Oil and Gas Properties of the Borrower and its Subsidiaries as of December 31, 2010, (b) the report of Ryder Scott Company, L.P., dated as of
January 25, 2011, with respect to certain Oil and Gas Properties of the Borrower and its Subsidiaries as of December 31, 2010, and (c) the report of Netherland, Sewell & Associates, Inc., dated as of January 26, 2011,
with respect to certain of the Acquisition Properties as of December 31, 2010. 
 “Interest Election
Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.04. 
 “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December, and (b) with respect to any Eurodollar Loan, the last
day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period
that occurs at intervals of three months’ duration after the first day of such Interest Period. 
 “Interest
Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three, six months (or, with the consent of
each Lender, twelve months) thereafter, as the Borrower may elect; provided, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next 

  
 14 

 
calendar month, in which case such Interest Period shall end on the next preceding Business Day and (b) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 

“Interim Redetermination” has the meaning assigned to such term in Section 2.07(b). 

“Interim Redetermination Date” means the date on which a Borrowing Base that has been redetermined pursuant to an
Interim Redetermination becomes effective as provided in Section 2.07(d). 
 “Investment” means,
for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any “short
sale” or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Indebtedness of,
purchase or other acquisition of any other Indebtedness or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such Property to such Person, but excluding (i) any such advance, loan or extension of credit having a term not exceeding ninety (90) days representing the purchase price of inventory or supplies sold by
such Person in the ordinary course of business and (ii) deposits with financial institutions available for withdrawal on demand); (c) the purchase or acquisition (in one or a series of transactions) of Property of another Person that
constitutes a business unit; or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Indebtedness or other liability of any other Person and
(without duplication) any amount committed to be advanced or extended to such Person. 
 “IRS” means the
Internal Revenue Service or any successor entity. 
 “Issuing Bank” means (a) Bank of Montreal and
(b) any other Lender agreed to by the Borrower, the Administrative Agent and such Lender, as applicable, in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in
Section 2.08(h). Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate
with respect to Letters of Credit issued by such Affiliate. 
 “LC Commitment” means, at any time, $20,000,000.

 “LC Disbursement” means a payment made by any Issuing Bank pursuant to a Letter of Credit. 

“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit
at such time plus (b) the aggregate amount of all LC Disbursements 

  
 15 

 
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

 “Lenders” means the Persons listed on Annex I, any Person that shall become a party hereto pursuant
to an Assignment and Assumption, and any Person that shall become a party hereto as an Additional Lender pursuant to Section 2.06(c), other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 “Letter of Credit” means any letter of credit issued pursuant to this Agreement. 

“Letter of Credit Agreements” means all letter of credit applications and other agreements (including any amendments,
modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with any Issuing Bank relating to any Letter of Credit. 
 “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate
(rounded upwards, if necessary, to the next 1/16 of 1%) at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period. 
 “Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a mortgage, deed of trust, encumbrance, pledge, security agreement, conditional
sale or trust receipt or a lease, consignment or bailment for security purposes or (b) production payments and the like payable out of Oil and Gas Properties. The term “Lien” shall include easements, restrictions, servitudes,
permits, conditions, covenants, exceptions or reservations. For the purposes of this Agreement, the Borrower or any Subsidiary shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or
leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing. 

“Loan Documents” means this Agreement, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Fee Letter
and the Security Instruments. 

  
 16 

 “Loan Parties” means, collectively, the Borrower and the Guarantors.

 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement. 

“Majority Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having greater than fifty
percent (50%) (or one hundred percent (100%) if the there are fewer than three (3) Lenders under this Agreement) of the Aggregate Maximum Credit Amounts, and at any time while any Loans or LC Exposure is outstanding, Lenders holding
greater than fifty percent (50%) (or one hundred percent (100%) if the there are fewer than three (3) Lenders under this Agreement) of the outstanding aggregate principal amount of the sum of the Loans and participation interests in
Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)); provided, that the Maximum Credit Amounts and the principal amount of the Loans and participation interests in
Letters of Credit of the Defaulting Lenders (if any) shall be excluded from the determination of Majority Lenders. 

“Material Adverse Effect” means a material adverse change in, or material adverse effect on (a) the business,
operations, Property, or financial condition of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Borrower, any of its Subsidiaries (other than Immaterial Subsidiaries) or any Guarantor to perform any of its obligations
under any Loan Document to which it is a party in all material respects, (c) the validity or enforceability of any Loan Document or (d) the rights and remedies of or benefits available to the Administrative Agent, any other Agent, any
Issuing Bank or any Lender under any Loan Document. 
 “Material Indebtedness” means Indebtedness (other than
the Loans and Letters of Credit), or obligations in respect of one or more Hedging Agreements of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $5,000,000. For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary thereof in respect of any Hedging Agreement at any time shall be the Hedge Termination Value. 

“Maturity Date” means February 14, 2015. 
 “Maximum Credit Amount” means, as to each Lender, the amount set forth opposite such Lender’s name on Annex I under the caption “Maximum Credit Amounts”, as the same
may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b), (b) increased from time to time pursuant to
Section 2.06(d) or (c) modified from time to time pursuant to any assignment by or to such Lender pursuant to Section 12.04(b). 
 “Maximum Credit Amount Increase Certificate” has the meaning assigned to such term in Section 2.06(d)(ii)(E). 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a nationally recognized
rating agency. 
 “Mortgage” means each mortgage, deed of trust or any other document creating and evidencing a
Lien on real Property and other Property to secure the Secured Obligations, which 

  
 17 

 
shall be in a form reasonably satisfactory to the Administrative Agent and the Borrower, as the same may be amended, modified, supplemented or restated from time to time in accordance with the
Loan Documents. 
 “Mortgaged Property” means any Oil and Gas Property or other Property which is subject to a
Lien under any Mortgage. 
 “New Borrowing Base Notice” has the meaning assigned to such term in
Section 2.07(d). 
 “Non-Defaulting Lender” means, at any time, each Lender that is not a
Defaulting Lender at such time. 
 “Notes” means the promissory notes of the Borrower described in
Section 2.02(d) and being substantially in the form of Exhibit A, together with all amendments, modifications, replacements, extensions and rearrangements thereof. 

“OFAC” has the meaning assigned to such term in Section 7.26(b)(v). 

“Oil and Gas Properties” means: (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or
unitized with Hydrocarbon Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including, without limitation, all units created under orders, regulations
and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any
of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to
the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements, hereditaments, appurtenances and
Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests; and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or
personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Properties (excluding drilling rigs, automotive equipment,
rental equipment or other personal Property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings, structures,
fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances,
tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing.

 “Organization Documents” means: (a) with respect to any corporation, the certificate or articles of
incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non United States jurisdiction); (b) with respect to any limited liability 

  
 18 

 
company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental
Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or Property taxes, similar charges or similar levies arising from any payment made
hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, this Agreement and any other Loan Document, including any and all liabilities (including interest and penalties and other additions to taxes
other than any interest, penalties and additions to tax resulting from the gross negligence or willful misconduct of any Lender or the Administrative Agent) with respect to the foregoing. 

“Participant” has the meaning set forth in Section 12.04(c)(i). 

“Permitted Acquisition” means any acquisition after the Effective Date (whether by purchase, merger, amalgamation,
consolidation or otherwise) by the Borrower or any Guarantor in the form of acquisitions of all or substantially all of the business or a line of business (whether by the acquisition of the Equity Interests, Property or any combination thereof) of
any other Person if each such acquisition meets all of the following requirements: 
 (a) no less than ten (10) Business
Days prior to the proposed closing date of such acquisition, the Borrower shall have delivered a written notice and description of such acquisition to the Administrative Agent and the Lenders, which notice shall include the proposed closing date of
such acquisition; 
 (b) the Person or business to be acquired shall be in a substantially similar line of business as the
Borrower and Subsidiaries pursuant to Section 9.06; 
 (c) no Change in Control shall have been effected thereby and
the transaction shall comply with the requirements of Section 9.11, to the extent applicable; 
 (d) no later than
two (2) Business Days prior to the proposed closing date of such acquisition, the Borrower shall have delivered to the Administrative Agent a compliance certificate in the form of Exhibit D-2 for the most recent fiscal quarter end
preceding such acquisition demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, pro forma compliance (after giving effect to the acquisition and any Loans made or to be made in connection therewith, as if such
acquisition had occurred on the first day of the applicable four (4) fiscal quarter period) with each covenant contained in Section 9.01; 
 (e) no later than the closing date of such acquisition, the Borrower, to the extent requested by the Administrative Agent, shall have delivered to the Administrative Agent promptly upon the finalization
thereof copies of the Permitted Acquisition Documents; 

  
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 (f) no Event of Default shall have occurred and be continuing both before and after giving
effect to such acquisition; 
 (g) the contingent payment obligations (including earn-outs) and contingent liabilities in
respect of indemnification obligations and adjustments of purchase price related to such acquisition, and the amounts thereof, shall be reasonably acceptable to the Administrative Agent; and 

(h) the Borrower shall have provided such other documents and other information as may be reasonably requested by the Administrative
Agent or the Majority Lenders (through the Administrative Agent) in connection with the acquisition. 
 “Permitted
Acquisition Documents” means with respect to any acquisition proposed by the Borrower or any Guarantor, final copies (or substantially final drafts if not executed at the required time of delivery) of the purchase agreement, sale agreement,
merger agreement or other agreement evidencing such acquisition, including to the extent available, without limitation, all legal opinions and each other material document executed, delivered, contemplated by or prepared in connection therewith and
any amendment, modification or supplement to any of the foregoing. 
 “Person” means any natural person,
corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan” means any employee pension benefit plan, as defined in Section 3(2) of ERISA, which (a) is currently or hereafter sponsored, maintained or contributed to by the Borrower,
a Subsidiary or an ERISA Affiliate or (b) was at any time during the six (6) calendar years preceding the date hereof, sponsored, maintained or contributed to by the Borrower or a Subsidiary or an ERISA Affiliate. 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by BMO as its prime rate in
effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. Such rate is set by the Administrative Agent as a general reference
rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agent’s commercial or other loans are priced in relation to such rate, that it is not
necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate. 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or
intangible (including, without limitation, cash, securities, accounts, contract rights and Equity Interests or other ownership interests of any Person), whether now in existence or owned or hereafter acquired. 

“Proposed Borrowing Base” has the meaning assigned to such term in Section 2.07(c)(i). 

“Proposed Borrowing Base Notice” has the meaning assigned to such term in Section 2.07(c)(ii). 

  
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 “Purchase Money Indebtedness” means Indebtedness, the proceeds of which are
used to finance the acquisition, construction, or improvement of inventory, equipment or other property in the ordinary course of business. 
 “Redemption” means, with respect to any Indebtedness, the repurchase, redemption, prepayment, repayment, or defeasance or any other acquisition or retirement for value (or the segregation
of funds with respect to any of the foregoing) of such Indebtedness. 
 “Redeem” has the correlative meaning
thereto. 
 “Redetermination Date” means, with respect to any Scheduled Redetermination or any Interim
Redetermination, the date that the redetermined Borrowing Base related thereto becomes effective pursuant to Section 2.07(d). 
 “Register” has the meaning assigned to such term in Section 12.04(b)(iv). 
 “Regulation D” means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time. 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective
directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person’s Affiliates. 
 “Release” (or “threatened Release”) has the meaning assigned to such terms as specified in CERCLA, as amended; provided, however, that (a) in the event
that CERCLA is amended so as to broaden the meaning of the term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b) to the extent the laws of the state or other jurisdiction in which any
Property of the Borrower or any Subsidiary is located establish a meaning for “release” that is broader than that specified in CERCLA, such broader meaning shall apply. 

“Remedial Work” has the meaning assigned to such term in Section 8.10(a). 

“Required Lenders” means, at any time while no Loans or LC Exposure is outstanding, Lenders having at least sixty-six
and two-thirds percent (66-2/3%) (or one hundred percent (100%) if the there are fewer than three (3) Lenders under this Agreement) of the Aggregate Maximum Credit Amounts; or at any time while any Loans or LC Exposure is outstanding,
Lenders holding at least sixty-six and two-thirds percent (66-2/3%) (or one hundred percent (100%) if the there are fewer than three (3) Lenders under this Agreement) of the outstanding aggregate principal amount of the sum of the
Loans and participation interests in such Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)); provided, that the Maximum Credit Amounts and the principal amount of the
Loans and participation interests in Letters of Credit of the Defaulting Lenders (if any) shall be excluded from the determination of Required Lenders. 
 “Reserve Report” means the Initial Reserve Reports and each other report, in form and substance reasonably satisfactory to the Administrative Agent, setting forth, as of each
January 1st or July 1st (or such other date in the event of an Interim Redetermination), the oil and gas 

  
 21 

 
reserves attributable to the Oil and Gas Properties of the Borrower and its Subsidiaries which the Borrower wishes to include in the Borrowing Base, together with a projection of the rate of
production and future net income, taxes, operating expenses and capital expenditures with respect thereto as of such date, based upon the economic assumptions consistent with the Administrative Agent’s lending requirements at the time.

 “Responsible Officer” means, as to any Person, the Chief Executive Officer, the President, any Financial
Officer or any Vice President of such Person, or if such Person does not have any such officer, an individual holding such position with a Person directly or indirectly managing its business and affairs. Unless otherwise specified, all references to
a Responsible Officer herein shall mean a Responsible Officer of the Borrower. 
 “Restricted Payment” means
any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Subsidiaries or any option, warrant or other right to acquire any such
Equity Interests in the Borrower or any of its Subsidiaries. 
 “S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency. 
 “Scheduled Redetermination” has the meaning assigned to such term in Section 2.07(b). 
 “Scheduled Redetermination Date” means the date on which a Borrowing Base that has been redetermined pursuant to a Scheduled Redetermination becomes effective as provided in
Section 2.07(d). 
 “SEC” means the Securities and Exchange Commission or any successor
Governmental Authority. 
 “Secured Hedging Agreement” means any Hedging Agreement of the Borrower or any
Subsidiary (other than any Immaterial Subsidiary) if on the date entering into such Hedging Agreement (or on the date on which such Hedging Agreement is novated) a party thereto was a Lender or an Affiliate of a Lender. 

“Secured Hedging Agreement Counterparty” means each Person that is a Lender or Affiliate of a Lender at the time such
Person enters into a Secured Hedging Agreement. 
 “Secured Obligations” means any and all amounts owing or to
be owing (including interest accruing at any post-default or Borrowing Base Deficiency rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, any of its Subsidiaries or any Guarantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) by the Borrower, any of its Subsidiaries or any Guarantor (whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising): (a) to the Administrative Agent, any Issuing Bank or any Lender 

  
 22 

 
under any Loan Document; (b) to any Secured Hedging Agreement Counterparty under any Secured Hedging Agreement, but excluding any additional transactions or confirmations entered into
thereunder after such Secured Hedging Agreement Counterparty ceases to be a Lender or an Affiliate of a Lender; (c) to any Secured Treasury Management Counterparty under a Secured Treasury Management Agreement; and (d) all renewals,
restatements, extensions and/or rearrangements of any of the above. 
 “Secured Parties” means the
Administrative Agent, each Issuing Bank, each Lender, each Secured Hedging Agreement Counterparty and each Secured Treasury Management Counterparty. 
 “Secured Treasury Management Agreement” means any Treasury Management Agreement between the Borrower or a Subsidiary (other than an Immaterial Subsidiary) and a Secured Treasury
Management Counterparty. 
 “Secured Treasury Management Counterparty” means each Lender or Affiliate of a
Lender that enters into a Treasury Management Agreement with the Borrower or a Subsidiary (other than an Immaterial Subsidiary); provided, that if such Person at any time ceases to be a Lender or an Affiliate of a Lender, as the case may be,
such Person shall no longer be a Secured Treasury Management Counterparty. 
 “Security Instruments” means the
Guaranty and Collateral Agreement, the Mortgages, the other agreements, instruments or certificates described or referred to in Schedule 1.01(a), and any and all other agreements, instruments, consents or certificates now or hereafter
executed and delivered by the Borrower or any other Person (other than Secured Hedging Agreements or participation or similar agreements between any Lender and any other lender or creditor with respect to any Secured Obligations pursuant to this
Agreement or any Secured Treasury Management Agreement) in connection with, or as security for the payment or performance of the Secured Obligations, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such
agreements may be amended, modified, supplemented or restated from time to time. 
 “Senior Indenture” means
that certain Indenture, dated as of the date hereof, among the Borrower, certain Subsidiaries of the Borrower specified therein and U.S. Bank National Association, as trustee. 
 “Senior Note Documents” means, collectively, (a) the Senior Notes, (b) the Senior Indenture and (c) all agreements and documents executed and delivered in connection
therewith. 
 “Senior Notes” means the Borrower’s 8.250% Senior Notes due 2018 issued pursuant to the
Senior Indenture. 
 “Solvent” means, with respect to any Person as of any date, that on such date (a) the
value of the assets of such Person (both at fair value and present fair saleable value) is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person as of such date, (b) such Person is able
to pay all liabilities of such Person as such liabilities mature, (c) such Person does not intend to, and does not believe it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature,
and (d)

  
 23 

 
such Person is not engaged in any business or transaction, and is not about to engage in any business or transaction, for which such Person’s Property would constitute unreasonably small
capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability. 
 “Statutory Reserve Rate” means a fraction
(expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such
reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve
percentage. 
 “Subsidiary” means: (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 another Person or one or more of its Subsidiaries or by such other Person and one or more
of its Subsidiaries and (b) any partnership of which such other Person or any of its Subsidiaries is a general partner. Unless otherwise indicated herein, each reference to the term “Subsidiary” means a Subsidiary of the
Borrower. 
 “Synthetic Leases” means, in respect of any Person, all leases which shall have been, or should
have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed
money for purposes of U.S. federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to
such operating lease upon expiration or early termination of such lease. 
 “Taxes” means any and all present
or future taxes, levies, imposts, similar duties, deductions, withholdings or charges of a similar nature imposed by any Governmental Authority, including any and all liabilities (including interest and penalties and other additions to taxes) with
respect to the foregoing. 
 “Termination Date” means the earlier of (a) the Maturity Date and
(b) the date of termination of the Aggregate Maximum Credit Amounts. 

  
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 “Total Indebtedness” means, at any date, all Indebtedness of the Borrower
and the Consolidated Subsidiaries on a consolidated basis; provided that for purposes of determining Total Indebtedness, all Indebtedness that is listed on the Borrower’s consolidated balance sheet shall be deemed to equal the higher of
(a) the stated balance sheet amount of such Indebtedness as of such date and (b) the par value or stated face amount of such Indebtedness. 
 “Transactions” means, with respect to the Borrower and the Guarantors, as applicable, the execution, delivery and performance of this Agreement, each other Loan Document and each
Acquisition Document, the Acquisition, the borrowing of Loans, the use of the proceeds of such Loans, the issuance of Letters of Credit hereunder, the guaranteeing of the Secured Obligations and the other obligations under the Guaranty and
Collateral Agreement, and the grant of Liens on Collateral pursuant to the Security Instruments. 
 “Treasury Management
Agreement” means any agreements regarding bank services provided to Borrower or any Subsidiary (other than an Immaterial Subsidiary) for commercial credit cards, stored value cards and treasury management services, including, without
limitation, deposit accounts, auto-borrow, zero balance accounts, returned check concentration, lockbox, controlled disbursements, automated clearinghouse transactions, return items, overdrafts, interstate depository network services and reporting
and trade finance services. 
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the
rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Alternate Base Rate or the Adjusted LIBO Rate. 
 “Unwind” means to unwind, sell, terminate, restructure, modify, or otherwise affect or restructure (including to unwind or other terminate a Hedging Agreement and promptly replace it with
another) any Hedging Agreement or related hedge position prior to the maturity thereof. 
 “USA Patriot Act”
has the meaning assigned to such term in Section 12.16. 
 “Wholly-Owned Subsidiary” means any
Subsidiary of which all of the outstanding Equity Interests (other than any directors’ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are
owned by the Borrower and one or more of the Wholly-Owned Subsidiaries. 
 “Withholding Certificate” has the
meaning assigned to such term in Section 5.03(e). 
 Section 1.02 Types of Loans and Borrowings. For purposes
of this Agreement, Loans and Borrowings, respectively, may be classified and referred to by Type (e.g., a “Eurodollar Loan” or a “Eurodollar Borrowing”). 

Section 1.03 Terms Generally; Rules of Construction. The definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference
to any agreement, instrument or other document herein shall be construed as referring to such 

  
 25 

 
agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in
the Loan Documents), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person
shall be construed to include such Person’s successors and assigns (subject to the restrictions contained in the Loan Documents), (d) the words “herein”, “hereof” and “hereunder”, and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word “from” means “from and including” and the word
“to” means “to and including” and (f) unless otherwise specified, any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and
Schedules to, this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. 

Section 1.04 Accounting Terms and Determinations; GAAP. Unless otherwise specified herein, all accounting terms used herein
shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the
Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis consistent with the Financial Statements except for changes in which Borrower’s independent certified public accountants concur and which are disclosed to
Administrative Agent on the next date on which financial statements are required to be delivered to the Lenders pursuant to Section 8.01(a); provided that, unless the Borrower and the Majority Lenders shall otherwise agree in
writing, no such change shall modify or affect the manner in which compliance with the covenants contained herein is computed such that all such computations shall be conducted utilizing financial information presented consistently with prior
periods. 
 ARTICLE II 
 THE CREDITS 
 Section 2.01 Commitments. Subject to the terms
and conditions set forth herein, each Lender agrees to make Loans to the Borrower during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Credit Exposure exceeding such Lender’s
Commitment or (b) the total Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Loans. 

Section 2.02 Loans and Borrowings. 
 (a) Borrowings; Several Obligations. Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of
any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments are several and no Lender shall be responsible for any other Lender’s failure to make
Loans as required. 

  
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 (b) Types of Loans. Subject to Section 3.03, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 
 (c) Minimum Amounts; Limitation on Number of Borrowings. At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $100,000 and not less than $500,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000; provided that an ABR Borrowing
may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.08(e). Borrowings of more than one Type
may be outstanding at the same time, provided that there shall not at any time be more than a total of seven (7) Eurodollar Borrowings outstanding. Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
 (d) Notes. The Loans made by each Lender, if requested by such Lender, shall be evidenced by a single promissory note of the Borrower in substantially the form of Exhibit A, dated, in the
case of (i) any Lender party hereto as of the date of this Agreement, as of the date of this Agreement, (ii) any Lender that becomes a party hereto pursuant to an Assignment and Assumption, as of the effective date of the Assignment and
Assumption, or (iii) any Lender that becomes a party hereto in connection with an increase in the Aggregate Maximum Credit Amounts pursuant to Section 2.06(d), as of the effective date of such increase, in each case, payable to such
Lender in a principal amount equal to its Maximum Credit Amount as in effect on such date, and otherwise duly completed. In the event that any Lender’s Maximum Credit Amount increases or decreases for any reason (whether pursuant to
Section 2.06, Section 12.04(b) or otherwise), if requested by such Lender, the Borrower shall deliver or cause to be delivered on the effective date of such increase or decrease, a new Note payable to such Lender in a
principal amount equal to its Maximum Credit Amount after giving effect to such increase or decrease, and otherwise duly completed. The replaced Note shall be deemed cancelled upon delivery from the Borrower to the Lender of such new Note. The date,
amount, Type, interest rate and, if applicable, Interest Period of each Loan made by each Lender, and all payments made on account of the principal thereof, shall be recorded by such Lender on its books for its Note, and, prior to any transfer, may
be endorsed by such Lender on a schedule attached to such Note or any continuation thereof or on any separate record maintained by such Lender. Failure to make any such notation or to attach a schedule shall not affect any Lender’s or the
Borrower’s rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Note. 
 Section 2.03 Requests for Borrowings To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not
later than 12:00 noon, New York City time, three (3) Business Days before the date of the proposed Borrowing, or (b) in the case of an ABR Borrowing, not later than 12:00 

  
 27 

 
noon, New York City time, one (1) Business Day before the date of the proposed Borrowing; provided that no such notice shall be required for any deemed request of an ABR Borrowing to
finance the reimbursement of an LC Disbursement as provided in Section 2.08(e). Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery, facsimile or e-mail to the Administrative Agent
of a written Borrowing Request in substantially the form of Exhibit B and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:

 (i) the aggregate amount of the requested Borrowing; 

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

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

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term “Interest Period”; 
 (v) the amount of the then effective
Borrowing Base, the current total Credit Exposures (without regard to the requested Borrowing) and the pro forma total Credit Exposures (giving effect to the requested Borrowing); and 

(vi) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with
the requirements of Section 2.05(a). 
 If no election as to the Type of Borrowing is specified, then the requested Borrowing shall
be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one (1) month’s duration. Each Borrowing Request shall
constitute a representation that the amount of the requested Borrowing shall not cause the total Credit Exposures to exceed the total Commitments (i.e., the lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing Base).

 Promptly following receipt of a Borrowing Request in accordance with this Section 2.03, the Administrative Agent shall advise
each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. 

Section 2.04 Interest Elections. 
 (a) Conversion and Continuance. Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor,
all as provided in this Section 2.04. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably

  
 28 

 
among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 

(b) Interest Election Requests. To make an election pursuant to this Section 2.04, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective
date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Interest Election Request in substantially the form of
Exhibit C and signed by the Borrower. 
 (c) Information in Interest Election Requests. Each telephonic and
written Interest Election Request shall specify the following information in compliance with Section 2.02: 
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each
resulting Borrowing (in which case the information to be specified pursuant to Section 2.04(c)(iii) and (iv) shall be specified for each resulting Borrowing); 

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

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

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving
effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
 If any such Interest
Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one (1) month’s duration. 

(d) Notice to Lenders by the Administrative Agent. Promptly following receipt of an Interest Election Request, the Administrative
Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
 (e)
Effect of Failure to Deliver Timely Interest Election Request and Events of Default and Borrowing Base Deficiencies on Interest Election. If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default or a Borrowing Base Deficiency has occurred and is continuing: (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing (and any Interest Election Request that requests the
conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing 

  
 29 

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

Section 2.05 Funding of Borrowings. 
 (a) Funding by Lenders. Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., New York City time, to
the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds,
to an account of the Borrower, as designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.08(e) shall be remitted by
the Administrative Agent to the applicable Issuing Bank. Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or
will obtain the funds for its Loan in any particular place or manner. 
 (b) Presumption of Funding by the Lenders.
Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in accordance with Section 2.05(a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender
has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount
to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 

Section 2.06 Termination, Reduction and Increase of Aggregate Maximum Credit Amounts. 

(a) Scheduled Termination of Aggregate Maximum Credit Amounts. Unless previously terminated, the Aggregate Maximum Credit Amounts
and the Borrowing Base shall terminate on the Maturity Date. If at any time the Aggregate Maximum Credit Amounts or the Borrowing Base is terminated or reduced to zero (whether on or prior to the Maturity Date), then the Commitments shall terminate
on the effective date of such termination or reduction. 
 (b) Optional Termination and Reduction of Aggregate Maximum Credit
Amounts. 
 (i) The Borrower may at any time terminate, or from time to time reduce, the Aggregate Maximum
Credit Amounts; provided that (A) each reduction of 

  
 30 

 
the Aggregate Maximum Credit Amounts shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (B) the Borrower shall not terminate or reduce the
Aggregate Maximum Credit Amounts if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 3.04(c), the total Credit Exposures would exceed the total Commitments. 

(ii) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Maximum
Credit Amounts under Section 2.06(b)(i) at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any
notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section 2.06(b)(ii) shall be irrevocable; provided that a notice of termination of the
Aggregate Maximum Credit Amounts delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent
on or prior to the specified effective date) if such condition is not satisfied. 
 (c) Terminations and Reductions of
Aggregate Maximum Credit Amounts. Any termination or reduction of the Aggregate Maximum Credit Amounts shall be permanent and may not be reinstated except pursuant to Section 2.06(d). Each reduction of the Aggregate Maximum Credit
Amounts shall be made ratably among the Lenders in accordance with each Lender’s Applicable Percentage. 
 (d) Optional
Increase in Aggregate Maximum Credit Amounts. 
 (i) Subject to the conditions set forth in
Section 2.06(d)(ii), the Borrower may increase the Aggregate Maximum Credit Amounts then in effect with the prior written consent of the Administrative Agent by increasing the Maximum Credit Amount of a Lender or by causing a Person that
at such time is not a Lender to become a Lender (an “Additional Lender”). 
 (ii) Any increase
in the Aggregate Maximum Credit Amounts shall be subject to the following additional conditions: 
 (A) such increase shall not
be less than $5,000,000 unless the Administrative Agent otherwise consents; provided, that there shall be no more than five (5) such increases pursuant to this Section 2.06(d) and all such increases shall not exceed
$100,000,000 in the aggregate; 
 (B) no Default shall have occurred and be continuing at the effective date of such increase;

 (C) the Borrower shall have paid all compensation required by Section 5.02 (if any); 

(D) no Lender’s Maximum Credit Amount may be increased without the consent of such Lender; 

  
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 (E) if the Borrower elects to increase the Aggregate Maximum Credit Amounts by increasing
the Maximum Credit Amount of an existing Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit E-1 (a “Maximum Credit Amount Increase
Certificate”), and if requested by such Lender, the Borrower shall deliver a new Note payable to such Lender in a principal amount equal to its Maximum Credit Amount after giving effect to such increase, and otherwise duly completed;

 (F) if the Borrower elects to increase the Aggregate Maximum Credit Amounts by causing an Additional Lender to become a
party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit E-2 (an “Additional Lender Certificate”), together
with an Administrative Questionnaire and a processing and recordation fee of $3,500, and if requested by such Additional Lender, the Borrower shall deliver a Note payable to such Additional Lender in a principal amount equal to its Maximum Credit
Amount, and otherwise duly completed; and 
 (G) the Borrower and its Subsidiaries shall have delivered to the Administrative
Agent such legal opinions, resolutions, amendments to Security Instruments and other documents as the Administrative Agent may reasonably request. 
 (iii) Subject to acceptance and recording thereof pursuant to Section 2.06(d)(iv), from and after the effective date specified in the Maximum Credit Amount Increase Certificate or the
Additional Lender Certificate: (A) the amount of the Aggregate Maximum Credit Amounts shall be increased as set forth therein, and (B) in the case of an Additional Lender Certificate, any Additional Lender party thereto shall be a party to
this Agreement and the other Loan Documents and have the rights and obligations of a Lender under this Agreement and the other Loan Documents. In addition, the Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of the
outstanding Loans (and participation interests in Letters of Credit) of each of the other Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Lender (including any Additional
Lender, if applicable) shall hold its Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to the increase in the Aggregate Maximum Credit Amounts. 

(iv) Upon its receipt of a duly completed Maximum Credit Amount Increase Certificate or an Additional Lender Certificate,
executed by the Borrower and the Lender or the Borrower and the Additional Lender party thereto, as applicable, the processing and recording fee referred to in Section 2.06(d)(ii)(F), the Administrative Questionnaire referred to in
Section 2.06(d)(ii), if applicable, the written consent of the Administrative Agent to such increase required by Section 2.06(d)(i), and all other documents and payments required by this Section 2.06(d), the
Administrative Agent shall accept such Maximum Credit Amount Increase Certificate or Additional Lender Certificate and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant to
Section 12.04(b)(iv). No increase in the Aggregate Maximum Credit Amounts shall be effective for purposes of this 

  
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Agreement unless and until it has been recorded in the Register as provided in this Section 2.06(d)(iv). 
 Section 2.07 Borrowing Base. 
 (a) Initial Borrowing Base. For
the period from and including the Effective Date to but excluding the first Redetermination Date, the amount of the Borrowing Base shall be $150,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from
time to time pursuant to Section 2.07(e) or Section 8.13(c). 
 (b) Scheduled and Interim
Redeterminations. The Borrowing Base shall be redetermined semi-annually in accordance with this Section 2.07 (a “Scheduled Redetermination”), and subject to Section 2.07(d), such redetermined Borrowing
Base shall become effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders on May 1st and November 1st of each year, commencing May 1, 2011. In addition, the Borrower may, by notifying the
Administrative Agent thereof, and the Administrative Agent may, at the direction of the Required Lenders, by notifying the Borrower thereof, one time each between Scheduled Redeterminations, each elect to cause the Borrowing Base to be redetermined
between Scheduled Redeterminations (an “Interim Redetermination”) in accordance with this Section 2.07. 
 (c) Scheduled and Interim Redetermination Procedure. 
 (i)
Each Scheduled Redetermination and each Interim Redetermination shall be effectuated as follows: Upon receipt by the Administrative Agent of (A) the Reserve Report and the certificate required to be delivered by the Borrower to the
Administrative Agent, in the case of a Scheduled Redetermination, pursuant to Section 8.12(a) and (c), and, in the case of an Interim Redetermination, pursuant to Section 8.12(b) and (c), and (B) such other
reports, data and supplemental information, including, without limitation, the information provided pursuant to Section 8.12(c), as may, from time to time, be reasonably requested by the Majority Lenders (the Reserve Report, such
certificate and such other reports, data and supplemental information being the “Engineering Reports”), the Administrative Agent shall evaluate the information contained in the Engineering Reports and shall, in its sole discretion,
propose a new Borrowing Base (such amount, the “Proposed Borrowing Base”), based upon such information and such other information (including, without limitation, the status of title information with respect to the Oil and Gas
Properties as described in the Engineering Reports and the existence of any other Indebtedness) as the Administrative Agent deems appropriate in its sole discretion, but consistent with its normal oil and gas lending criteria as it exists at the
particular time. In no event shall the Proposed Borrowing Base exceed the Aggregate Maximum Credit Amounts. 

(ii) The Administrative Agent shall notify the Borrower and the Lenders of the Proposed Borrowing Base (the
“Proposed Borrowing Base Notice”): 
 (A) in the case of a Scheduled Redetermination (a) if the
Administrative Agent shall have received the Engineering Reports required to be delivered by 

  
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the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on or before the March 15th and September 15th of such year following the
date of delivery or (b) if the Administrative Agent shall not have received the Engineering Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then
promptly after the Administrative Agent has received complete Engineering Reports from the Borrower and has had a reasonable opportunity to determine the Proposed Borrowing Base in accordance with Section 2.07(c)(i); and 

(B) in the case of an Interim Redetermination, promptly, and in any event, within fifteen (15) days after the Administrative Agent
has received the required Engineering Reports. 
 (iii) Any Proposed Borrowing Base that would increase the
Borrowing Base then in effect must be approved or deemed to have been approved by all of the Lenders as provided in this Section 2.07(c)(iii); and any Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in
effect must be approved or be deemed to have been approved by the Required Lenders as provided in this Section 2.07(c)(iii). Upon receipt of the Proposed Borrowing Base Notice, each Lender shall have fifteen (15) days to agree with
the Proposed Borrowing Base or disagree with the Proposed Borrowing Base by proposing an alternate Borrowing Base. If at the end of such fifteen (15) days, any Lender has not communicated its approval or disapproval in writing to the
Administrative Agent, such silence shall be deemed to be an approval of the Proposed Borrowing Base. If, at the end of such 15-day period, all of the Lenders, in the case of a Proposed Borrowing Base that would increase the Borrowing Base then in
effect, or the Required Lenders, in the case of a Proposed Borrowing Base that would decrease or maintain the Borrowing Base then in effect, have approved or are deemed to have approved, as aforesaid, then the Proposed Borrowing Base shall become
the new Borrowing Base, effective on the date specified in Section 2.07(d). If, however, at the end of such 15-day period, all of the Lenders or the Required Lenders, as applicable, have not approved or deemed to have approved, as
aforesaid, then the Administrative Agent shall poll the Lenders to ascertain the highest Borrowing Base then acceptable to a number of Lenders sufficient to constitute the Required Lenders for purposes of this Section 2.07 and, so long
as such amount does not increase the Borrowing Base then in effect, such amount shall become the new Borrowing Base, effective on the date specified in Section 2.07(d). 

(d) Effectiveness of a Redetermined Borrowing Base. After a redetermined Borrowing Base is approved or is deemed to have been
approved by all of the Lenders or the Required Lenders, as applicable, pursuant to Section 2.07(c)(iii), the Administrative Agent shall notify the Borrower and the Lenders of the amount of the redetermined Borrowing Base (the
“New Borrowing Base Notice”), and such amount shall become the new Borrowing Base, effective and applicable to the Borrower, the Administrative Agent, the Issuing Banks and the Lenders: 

(i) in the case of a Scheduled Redetermination, (A) if the Administrative Agent shall have received the Engineering
Reports required to be delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete 

  
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manner, then on the May 1st or November 1st, as applicable, following such notice, or (B) if the Administrative Agent shall not have received the Engineering Reports required to be
delivered by the Borrower pursuant to Section 8.12(a) and (c) in a timely and complete manner, then on the Business Day next succeeding delivery of such notice; and 

(ii) in the case of an Interim Redetermination, on the Business Day next succeeding delivery of such notice. 

Such amount shall then become the Borrowing Base until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next
adjustment to the Borrowing Base under Section 2.07(e) or Section 8.13(c), whichever occurs first. Notwithstanding the foregoing, no Scheduled Redetermination or Interim Redetermination shall become effective until the New
Borrowing Base Notice related thereto is received by the Borrower. 
 (e) Reduction of Borrowing Base Upon Sales of Oil and
Gas Properties and Unwind of Hedging Agreements. In addition to Scheduled Redeterminations and Interim Redeterminations, the Borrowing Base shall be reduced within one (1) Business Day of (i) any Borrowing Base Property Disposition or
(ii) any Borrowing Base Hedge Unwind, in each case, by an amount equal to (x) the Borrowing Base value of the Oil and Gas Properties that are subject to such Borrowing Base Property Disposition (which shall be the value proposed by the
Administrative Agent in its sole discretion and approved by the Majority Lenders as being allocated to such Oil and Gas Properties in the then-current Borrowing Base) or (y) the Hedge Termination Value of the Borrowing Base Contracts that are
subject to such Borrowing Base Hedge Unwind, as applicable; provided, however, so long as no Borrowing Base Deficiency exists immediately prior to such Borrowing Base Property Disposition or Borrowing Base Hedge Unwind, as applicable,
such reduction in the Borrowing Base shall not occur unless and until the sum of the aggregate Borrowing Base value of all Oil and Gas Properties subject to Borrowing Base Property Dispositions and the aggregate Hedge Termination Value of the
Borrowing Base Contracts that are subject to such Borrowing Base Hedge Unwinds since the most recent Borrowing Base determination (the “Aggregate Disposition Value”) equals or exceeds five percent (5%) of the total amount of
the Borrowing Base in effect at the most recent determination. 
 Section 2.08 Letters of Credit. 

(a) General. Subject to the terms and conditions set forth herein, the Borrower may request the issuance of dollar denominated
Letters of Credit for its own account or for the account of any of its Subsidiaries, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at any time and from time to time during the Availability Period;
provided that the Borrower may not request the issuance, amendment, renewal or extension of Letters of Credit hereunder if a Borrowing Base Deficiency exists at such time or would exist as a result thereof. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit Agreement, the terms and conditions of this Agreement shall control. 
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an

  
 35 

 
outstanding Letter of Credit), the Borrower shall deliver by hand delivery or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable
Issuing Bank) to an Issuing Bank and the Administrative Agent (not less than three (3) Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice: 

(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit to be amended, renewed or extended;

 (ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day);

 (iii) specifying the date on which such Letter of Credit is to expire (which shall comply with
Section 2.08(c)); 
 (iv) specifying the amount of such Letter of Credit; 

(v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit; and 
 (vi) specifying the amount of the then effective
Borrowing Base, whether a Borrowing Base Deficiency exists at such time, the current total Credit Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and
the pro forma total Credit Exposures (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit). 
 Each notice shall constitute a representation that after giving effect to the requested issuance, amendment, renewal or extension, as applicable, (i) the LC Exposure shall not exceed the LC
Commitment and (ii) the total Credit Exposures shall not exceed the total Commitments (i.e. the lesser of the Aggregate Maximum Credit Amounts and the then effective Borrowing Base). 
 If requested by an Issuing Bank, the Borrower also shall submit a letter of credit application on such Issuing Bank’s standard form in connection with any request for a Letter of Credit. 

(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date
one (1) year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five (5) Business Days prior to the
Maturity Date. If the Borrower so requests in any applicable notice given pursuant to Section 2.08(b) and an Issuing Bank agrees to do so, such Issuing Bank may issue a Letter of Credit that has automatic renewal provisions;
provided, however, that any Letter of Credit that has automatic renewal provisions must permit such Issuing Bank to prevent any such renewal at least once in each twelve-month period (commencing with the date of issuance of such Letter
of Credit) by giving prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon by the Borrower and such Issuing Bank at the time such Letter of Credit is issued. Once any such Letter of Credit
that has automatic renewal provisions has been issued, the Lenders shall be 

  
 36 

 
deemed to have authorized (but may not require) such Issuing Bank to permit the renewal of such Letter of Credit at any time to an expiry date not later than thirty (30) Business Days prior
to the Maturity Date; provided, however, that such Issuing Bank shall not permit any such renewal if (i) such Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in its renewed
form under the terms hereof, or (ii) it has received notice (which may be by telephone or in writing) on or before the day that is two (2) Business Days before the date that such Issuing Bank is permitted to send a notice of non-renewal
from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 6.02 is not then satisfied. 
 (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of any Issuing Bank or the
Lenders, the applicable Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available
to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of such Issuing Bank, such Lender’s
Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in Section 2.08(e), or of any reimbursement payment required to be refunded to the Borrower for any
reason. Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this Section 2.08(d) in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default, the existence of a Borrowing Base Deficiency or reduction or termination of the Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever. 
 (e) Reimbursement. If any Issuing
Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on
the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such
date, then not later than 12:00 noon, New York City time, on (i) the Business Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided that if such LC Disbursement is not less than $500,000, the Borrower shall, subject to the
conditions to Borrowing set forth herein, be deemed to have requested, and the Borrower does hereby request under such circumstances, that such payment be financed with an ABR Borrowing in an equivalent amount and, to the extent so financed, the
Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Borrowing. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC
Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of
the payment then due from the Borrower, in the same manner as provided in Section 2.04(a) with respect to Loans 

  
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made by such Lender (and Section 2.04(a) shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the
applicable Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this Section 2.08(e), the Administrative Agent shall distribute
such payment to the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant to this Section 2.08(e) to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank as their interests may appear. Any
payment made by a Lender pursuant to this Section 2.08(e) to reimburse any Issuing Bank for any LC Disbursement (other than the funding of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of
its obligation to reimburse such LC Disbursement. 
 (f) Obligations Absolute. The Borrower’s obligation to
reimburse LC Disbursements as provided in Section 2.08(e) shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by any Issuing Bank under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit or any Letter of Credit Agreement, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this
Section 2.08(f), constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Banks, nor any of their Related
Parties shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of any Issuing Bank; provided that the foregoing shall not be construed to excuse any Issuing Bank from liability to the
Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing
Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of an Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing Bank may, in its sole discretion,
either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in
strict compliance with the terms of such Letter of Credit. 

  
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 (g) Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by facsimile) of such demand for payment
and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the
Lenders with respect to any such LC Disbursement. 
 (h) Interim Interest. If any Issuing Bank shall make any LC
Disbursement, then, until the Borrower shall have reimbursed such Issuing Bank for such LC Disbursement (either with its own funds or a Borrowing under Section 2.08(e)), the unpaid amount thereof shall bear interest, for each day from
and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Loans. Interest accrued pursuant to this Section 2.08(h) shall
be for the account of such Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to Section 2.08(e) to reimburse such Issuing Bank shall be for the account of such Lender to the extent of such
payment. 
 (i) Replacement of the Issuing Bank. Any Issuing Bank may be replaced at any time by written agreement among
the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the replaced Issuing Bank. At the time any such replacement shall become
effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 3.05(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have
all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to
any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 

(j) Cash Collateralization. If (i) any Event of Default shall occur and be continuing and the Borrower receives notice from
the Administrative Agent or the Majority Lenders demanding the deposit of cash collateral pursuant to this Section 2.08(j), or (ii) the Borrower is required to pay to the Administrative Agent the excess attributable to an LC
Exposure in connection with any prepayment pursuant to Section 3.04(c), then the Borrower shall deposit, in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount
in cash equal to, in the case of an Event of Default, the LC Exposure, and in the case of a payment required by Section 3.04(c), the amount of such excess as provided in Section 3.04(c), as of such date plus any accrued and
unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to the Borrower or any Subsidiary described in Section 10.01(g) or Section 10.01(h). The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Banks
and the 

  
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Lenders, an exclusive first priority and continuing perfected security interest in and Lien on such account and all cash, checks, drafts, certificates and instruments, if any, from time to time
deposited or held in such account, all deposits or wire transfers made thereto, any and all investments purchased with funds deposited in such account, all interest, dividends, cash, instruments, financial assets and other Property from time to time
received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing, and all proceeds, products, accessions, rents, profits, income and benefits therefrom, and any substitutions and replacements therefor. The
Borrower’s obligation to deposit amounts pursuant to this Section 2.08(j) shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of
such amount under the terms of a Letter of Credit, and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower or any of its
Subsidiaries may now or hereafter have against any such beneficiary, the Issuing Banks, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such deposit shall be held as collateral securing the payment and
performance of the Borrower’s and the Guarantor’s obligations under this Agreement and the other Loan Documents. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such
account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the applicable Issuing Bank for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other
obligations of the Borrower and the Guarantors under this Agreement or the other Loan Documents. If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, and the Borrower is
not otherwise required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment pursuant to Section 3.04(c), then such amount (to the extent not applied as aforesaid) shall be
returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived. 
 ARTICLE
III 
 PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES 

Section 3.01 Repayment of Loans. The Borrower hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Loan on the Termination Date. 
 Section 3.02
Interest. 
 (a) ABR Loans. The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate
plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate. 

  
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 (b) Eurodollar Loans. The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate. 
 (c) Post-Default and Borrowing Base Deficiency Rate. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing, or if any principal of or interest on any Loan or any fee
or other amount payable by the Borrower or any Guarantor hereunder or under any other Loan Document is not paid when due, whether at stated maturity, upon acceleration or otherwise, and including any payments in respect of a Borrowing Base
Deficiency when due in accordance with Section 3.04(c), then (i) in the case of an Event of Default or the failure to make payments in respect of a Borrowing Base Deficiency when due in accordance with Section 3.04(c),
all Loans outstanding shall bear interest, after as well as before judgment, at a rate per annum equal to the rate then applicable to such Loans plus an additional two percent (2%), but in no event to exceed the Highest Lawful Rate, and (ii) in
the case of any other overdue amount, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to two percent (2%) plus the rate applicable to ABR Loans as provided in Section 3.02(a), but
in no event to exceed the Highest Lawful Rate. 
 (d) Interest Payment Dates. Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan and on the Termination Date; provided, that (i) interest accrued pursuant to Section 3.02(c) shall be payable on demand, (ii) in the event of any repayment
or prepayment of any Loan (other than an optional prepayment of an ABR Loan prior to the Termination Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, and (iii) in
the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 

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

Section 3.03 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

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

  
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and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be
ineffective, and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing or at an alternate rate of interest determined by the Majority Lenders as their cost of funds. 

Section 3.04 Prepayments. 
 (a) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with
Section 3.04(b). 
 (b) Notice and Terms of Optional Prepayment. The Borrower shall notify the Administrative
Agent by telephone (confirmed by facsimile or other electronic transmission) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 12:00 noon, New York City time, three (3) Business Days before
the date of prepayment, or (ii) in the case of prepayment of an ABR Borrowing, not later than 12:00 noon, New York City time, one (1) Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Aggregate Maximum Credit Amounts as
contemplated by Section 2.06(b), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06(b). Promptly following receipt of any such notice relating to a
Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 3.02. 

(c) Mandatory Prepayments. 
 (i) If, after giving effect to any termination or reduction of the Aggregate Maximum Credit Amounts pursuant to Section 2.06(b), the total Credit Exposures exceeds the total Commitments, then
the Borrower shall (A) prepay the Borrowings on the date of such termination or reduction in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC
Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j). 

  
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 (ii) Upon any redetermination of or adjustment to the amount of the
Borrowing Base in accordance with Section 2.07 (other than Section 2.07(e)) or Section 8.13(c), if the total Credit Exposures exceeds the redetermined or adjusted Borrowing Base, then the Borrower shall prepay the
Borrowings in an aggregate principal amount equal to such excess, and if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess
to be held as cash collateral as provided in Section 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral within sixty (60) days following its receipt of the New Borrowing Base Notice in
accordance with Section 2.07(d) or the date the adjustment occurs; provided that all payments required to be made pursuant to this Section 3.04(c)(ii) must be made on or prior to the Termination Date. 

(iii) Upon any adjustments to the Borrowing Base pursuant to Section 2.07(e), if the total Credit Exposures
exceeds the Borrowing Base as adjusted, then the Borrower shall (A) prepay the Borrowings in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC
Exposure, pay to the Administrative Agent on behalf of the Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.08(j). The Borrower shall be obligated to make such prepayment and/or deposit of
cash collateral within one (1) Business Day of the date of the later of (1) such adjustment and (2) the date it receives cash proceeds or other consideration as a result of such disposition; provided that all payments required
to be made pursuant to this Section 3.04(c)(iii) must be made on or prior to the Termination Date. 

(iv) Each prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied, first, ratably to
any ABR Borrowings then outstanding, and, second, to any Eurodollar Borrowings then outstanding, and if more than one Eurodollar Borrowing is then outstanding, to each such Eurodollar Borrowing in order of priority beginning with the
Eurodollar Borrowing with the least number of days remaining in the Interest Period applicable thereto and ending with the Eurodollar Borrowing with the most number of days remaining in the Interest Period applicable thereto. 

(v) Each prepayment of Borrowings pursuant to this Section 3.04(c) shall be applied ratably to the Loans
included in the prepaid Borrowings. Prepayments pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the extent required by Section 3.02. 

(d) No Premium or Penalty. Prepayments permitted or required under this Section 3.04 shall be without premium or
penalty, except as required under Section 5.02. 
 Section 3.05 Fees. 

(a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the applicable Commitment Fee Rate on the average daily amount of the unused amount of the Commitment of such Lender during the period from and including the date of this Agreement to but excluding

  
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the Termination Date. Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first
such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365
days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
 (b) Letter of Credit Fees. The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in Letters of
Credit, which shall accrue at the same Applicable Margin used to determine the interest rate applicable to Eurodollar Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the date of this Agreement to but excluding the later of the date on which such Lender’s Maximum Credit Amount terminates and the date on which such Lender ceases to have any LC Exposure,
(ii) to each Issuing Bank, for its own account, a fronting fee, which shall accrue at the rate of 0.375% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the date of this Agreement to but excluding the later of the date of termination of the Aggregate Maximum Credit Amounts and the date on which there ceases to be any LC Exposure, provided that in no event
shall such fee be less than $500 during any quarter, and (iii) to each Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Accrued participation fees and fronting fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the date hereof;
provided that all such fees accruing after the Termination Date shall be payable on demand. Any other fees payable to an Issuing Bank pursuant to this Section 3.05(b) shall be payable within ten (10) days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a
leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 

(c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. 
 ARTICLE IV

 PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS 

Section 4.01 Payments Generally; Pro Rata Treatment; Sharing of Set-offs. 

(a) Payments by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 5.01, Section 5.02, Section 5.03 or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately
available funds, without defense, deduction, recoupment, set-off or counterclaim. Fees, once 

  
 44 

 
paid, shall be fully earned and shall not be refundable under any circumstances. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to
have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at Three Times Square, 27th Floor, New York, New York 10036, except payments to be made directly
to an Issuing Bank as expressly provided herein and except that payments pursuant to Section 5.01, Section 5.02, Section 5.03 and Section 12.03 shall be made directly to the Persons entitled thereto.
The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

 (b) Application of Insufficient Payments. If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
 (c) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its
Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such
payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this
Section 4.01(c) shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this Section 4.01(c) shall
apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of
set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 

  
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 Section 4.02 Presumption of Payment by the Borrower. Unless the Administrative
Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or any Issuing Bank that the Borrower will not make such payment, the Administrative Agent
may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the applicable Issuing Bank, as the case may be, the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or the applicable Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing
Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. 
 Section 4.03 Certain
Deductions by the Administrative Agent; Defaulting Lenders. 
 (a) Certain Deductions by the Administrative Agent. If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(b), Section 2.08(d), Section 2.08(e) or Section 4.02 then the Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 

(b) Payments to Defaulting Lenders. If a Defaulting Lender (or a Lender who would be a Defaulting Lender but for the expiration of
the relevant grace period) as a result of the exercise of a set off shall have received a payment in respect of such Lender’s Credit Exposure and fails to purchase participations in the Loans and LC Disbursements pursuant to
Section 4.01(c), which results in such Lender’s Credit Exposure being less than its Applicable Percentage of the aggregate Credit Exposure, then no payment will be made to such Defaulting Lender until all amounts due and owing to
the Lenders have been equalized in accordance with each Lender’s respective pro rata share of the Secured Obligations. Further, if at any time prior to the acceleration or maturity of the Loans, the Administrative Agent shall receive any
payment in respect of principal of a Loan or a reimbursement of an LC Disbursement while one or more Defaulting Lenders shall be party to this Agreement, the Administrative Agent shall apply such payment first to the Borrowing(s) for which such
Defaulting Lender(s) shall have failed to fund its pro rata share until such time as such Borrowing(s) are paid in full or each Lender (including each Defaulting Lender) is owed its Applicable Percentage of all Loans then outstanding. After
acceleration or maturity of the Loans, subject to the first sentence of this Section 4.03(b), all principal will be paid ratably as provided in Section 10.02(c). 

(c) Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting
Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender: 
 (i) fees
shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 3.05(a); 

  
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 (ii) the Maximum Credit Amount and the outstanding amount of the Loans and
participation interests in Letters of Credit of such Defaulting Lender shall not be included in determining whether all Lenders, the Required Lenders or the Majority Lenders have taken or may take any action hereunder (including any consent to any
amendment or waiver pursuant to Section 12.02), provided, that any waiver, amendment or modification (A) that would increase the Maximum Credit Amount or Commitment of such Defaulting Lender or (B) requiring the consent
of all Lenders or each adversely affected Lender, in each case which affects such Defaulting Lender differently than all other Lenders or all other adversely affected Lenders, as the case may be, shall require the consent of such Defaulting Lender;
provided further, that any redetermination or affirmation of the Borrowing Base shall occur without the participation of a Defaulting Lender, but such Defaulting Lender’s Maximum Credit Amount and Commitment may not be increased
without the consent of such Defaulting Lender; 
 (iii) if any LC Exposure exists at the time a Lender becomes a
Defaulting Lender then: 
 (A) all or any part of such LC Exposure shall be reallocated among the Non-Defaulting Lenders in
accordance with their respective Applicable Percentages (for the purposes of such reallocation, the Defaulting Lender’s Maximum Credit Amount shall be disregarded in determining the Non-Defaulting Lenders’ Applicable Percentages) but only
to the extent (x) the sum of all Non-Defaulting Lenders’ Credit Exposures plus such Defaulting Lender’s LC Exposure does not exceed the total of all Non-Defaulting Lenders’ Maximum Credit Amounts, (y) the conditions set
forth in Section 6.02 are satisfied at such time, and (z) the sum of each Non-Defaulting Lender’s Credit Exposure plus its reallocated share of such Defaulting Lender’s LC Exposure does not exceed such Non-Defaulting
Lender’s Maximum Credit Amount; 
 (B) if the reallocation described in clause (A) above cannot, or can only
partially, be effected, the Borrower shall within two (2) Business Days following notice by the Administrative Agent cash collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to
clause (A) above) in accordance with the procedures set forth in Section 2.08(j) for so long as such LC Exposure is outstanding and the relevant Defaulting Lender remains a Defaulting Lender; 

(C) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to this
Section 4.03(c)(iii), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting
Lender’s LC Exposure is cash collateralized; 
 (D) if the LC Exposure of the non-Defaulting Lenders is reallocated
pursuant to this Section 4.03(c)(iii), then the fees payable to the Lenders pursuant to Section 3.05(a) and Section 3.05(b) shall be adjusted in accordance with such Non-Defaulting Lenders’ Maximum Credit
Amounts; 

  
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 (E) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor
reallocated pursuant to this Section 4.03(c)(iii), then, without prejudice to any rights or remedies of any Issuing Bank or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender
(solely with respect to the portion of such Defaulting Lender’s Commitment that was utilized by such LC Exposure) under Section 3.05(a) and letter of credit fees payable under Section 3.05(b) with respect to such
Defaulting Lender’s LC Exposure shall be payable to the applicable Issuing Bank until such LC Exposure is cash collateralized and/or reallocated; 
 (iv) so long as any Lender is a Defaulting Lender, no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered
by the Commitments of the Non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 4.03(c), and participating interests in any such newly issued or increased Letter of Credit shall be
allocated among Non-Defaulting Lenders in a manner consistent with Section 4.03(c)(iii)(A) (and any Defaulting Lender shall not participate therein). 

(v) In the event that the Administrative Agent, the Borrower and the Issuing Banks each agrees that a Defaulting Lender
has adequately remedied all matters that caused such Defaulting Lender to be a Defaulting Lender, then the LC Exposure of the Non-Defaulting Lenders shall be readjusted to reflect the inclusion of such Defaulting Lender’s Commitment and on such
date such Defaulting Lender shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Defaulting Lender to hold such Loans in accordance with its Commitment.

 ARTICLE V 
 INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY 

Section 5.01 Increased Costs. 
 (a) Eurodollar Changes in Law. If any Change in Law shall: 

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with
or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or 
 (ii) impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the
amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise) (other than any such increase or reduction attributable to Taxes, which are governed solely and exclusively by Section 5.03), then the
Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. 

  
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 (b) Capital Requirements. If any Lender or any Issuing Bank determines that any
Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company,
if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such
Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing
Bank’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing
Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered. 
 (c)
Certificates. A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in Section 5.01(a) or
(b) shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten (10) days
after receipt thereof. 
 (d) Effect of Failure or Delay in Requesting Compensation. Failure or delay on the part of any
Lender or any Issuing Bank to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall
not be required to compensate a Lender or Issuing Bank pursuant to this Section for any increased costs incurred or reductions suffered more than 270 days prior to the date that such Lender or Issuing Bank, as the case may be, notifies the Borrower
of any Change in Law giving rise to such increased costs or reductions, and of such Lender’s or Issuing Bank’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 365-day period referred to above shall be extended to include the period of retroactive effect thereof). 

Section 5.02 Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than
on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto,
(c) the failure to borrow, convert into, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower pursuant to Section 5.04(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had
such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert
or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of 

  
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interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market. 
 A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section 5.02 shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
ten (10) days after receipt thereof. 
 Section 5.03 Taxes. 

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower or any Guarantor under any
Loan Document shall be made free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes; provided that if the Borrower or any Guarantor shall be required to deduct or withhold any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums payable under this
Section 5.03(a)), the Administrative Agent, Lender, Issuing Bank or other recipient (as the case may be) receives an amount equal to the sum it would have received had no such deductions or withholdings been made, (ii) the Borrower
or such Guarantor shall make such deductions or withholdings and (iii) the Borrower or such Guarantor shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law. 

(b) Payment of Other Taxes by the Borrower. The Borrower shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law. 
 (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and each Issuing Bank, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or such Issuing Bank, as the case may be, on
or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 5.03(c)) and any and all
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate of the Administrative Agent, a
Lender or an Issuing Bank as to the amount of such payment or liability under this Section 5.03(c) shall be delivered to the Borrower and shall be conclusive absent manifest error. 

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

  
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 (e) Withholding Certificates. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding Tax with respect to payments under this Agreement or any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), or to such Persons as the Borrower may designate, at the time or
times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate. Without
limiting the generality of the foregoing, to the extent permitted by applicable law, each Foreign Lender shall deliver to the Borrower and the Administrative Agent, or to such Persons as they may designate, on or prior to the Effective Date (or, in
the case of any Foreign Lender that is an assignee of a Lender, on the date such assignee becomes a party to this Agreement), two accurate and complete original signed copies of IRS Form W-BEN, W-8ECI, W-8IMY or W-8EXP, as appropriate (or any
successor or other applicable form prescribed by the IRS), and any other appropriate forms and certificates certifying to such Foreign Lender’s entitlement to a complete exemption from, or a reduced rate in, United States withholding Tax on
payments to be made under any Loan Document. If a Foreign Lender is claiming a complete exemption from withholding Tax on interest pursuant to Section 871(h) or 881(c) of the Code, such Foreign Lender shall deliver to the Borrower and the
Administrative Agent, or to such Persons as they may designate, on the date specified in the previous sentence (along with two accurate and complete original signed copies of IRS Form W-8BEN, or any successor form thereto, and any other appropriate
forms and certificates), a certificate in form and substance reasonably satisfactory to the Borrower stating that (1) the Foreign Lender is not a “bank” for purposes of Section 881(c)(3)(A) of the Code or the obligation of each
of the Loan Parties hereunder is not, with respect to such Foreign Lender, a loan agreement entered into in the ordinary course of its trade or business, within the meaning of that Section, (2) the Foreign Lender is not a 10% shareholder of any
Loan Party within the meaning of Section 871(h)(3) or 881(c)(3)(B) of the Code, and (3) the Foreign Lender is not a controlled foreign corporation that is related to any Loan Party within the meaning of Section 881(c)(3)(C) of the
Code (any such certificate, a “Withholding Certificate”). In addition, each Foreign Lender agrees that from time to time after the Effective Date (or, in the case of any Foreign Lender that is an assignee of a Lender, after the date
such assignee becomes a party to this Agreement), when a form or certificate delivered by such Foreign Lender hereunder is invalid, obsolete or inaccurate in any respect, such Foreign Lender shall promptly deliver to the Borrower and the
Administrative Agent, or to such Persons as they may designate, two new accurate and complete original signed copies of IRS Form W-8BEN, W-8ECI, W-8IMY or W-8EXP, as appropriate (or any successor or other applicable form prescribed by the IRS), and
any other appropriate forms and certificates and, if applicable, a new Withholding Certificate, to confirm or establish the entitlement of such Foreign Lender to an exemption from, or reduction in, United States withholding Tax on payments to be
made under any Loan Document. 
 In addition, any Lender (other than a Lender whose name includes “Incorporated,” “Inc.,”
“Corporation,” “Corp.”, “P.C.”, “N.A.”, “National Association,” “Insurance Company” or “Assurance Company”) shall, if and when requested by the Borrower or the Administrative
Agent, deliver such documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine that such Lender is not subject to United States
backup withholding Tax or information reporting requirements. To the extent that such documentation is invalid, obsolete or inaccurate in any respect at any time, such Lender shall promptly deliver to the Borrower and

  
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the Administrative Agent, or to such Persons as they may designate, revised documentation necessary to confirm or establish the entitlement of such Lender to an exemption from United States
backup withholding Tax. 
 (f) FATCA. If any payment made hereunder or under any other Loan Document would be subject to
United States federal withholding Tax imposed pursuant to FATCA if the recipient of such payment fails to comply with applicable reporting and other requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as
applicable), such recipient shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by applicable law or as reasonably requested by the Borrower or the Administrative Agent, (i) two accurate, complete and
signed certifications and other documentation prescribed by applicable law and reasonably satisfactory to the Borrower and the Administrative Agent that establish that such payment is exempt from United States federal withholding Tax imposed
pursuant to FATCA or to determine the amount to deduct and withhold from such payment and (ii) any other documentation reasonably requested by the Borrower or the Administrative Agent sufficient for the Borrower and the Administrative Agent to
comply with their obligations under FATCA and to determine that such recipient has complied with such applicable reporting and other requirements of FATCA or to determine the amount to deduct and withhold from such payment. 

(g) Tax Refunds and Credits. If the Administrative Agent or a Lender or an Issuing Bank determines, in its reasonable discretion,
that it has received a refund or credit of any Taxes as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts pursuant to this Section 5.03, it shall pay over the amount of
such refund or credit to the applicable Loan Party (but only to the extent of indemnity payments made, or additional amounts paid, by the applicable Loan Party under this Section 5.03 with respect to the Taxes giving rise to such refund
or credit), net of all out-of-pocket expenses of the Administrative Agent or such Lender or such Issuing Bank and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund or credit);
provided, that the applicable Loan Party, upon the request of the Administrative Agent or such Lender or such Issuing Bank, agrees to repay the amount paid over to the applicable Loan Party (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender or such Issuing Bank in the event the Administrative Agent or such Lender or such Issuing Bank is required to repay such refund or credit to such Governmental
Authority. This Section 5.03 shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any
other Person. 
 Section 5.04 Mitigation Obligations; Replacement of Lenders. 

(a) Designation of Different Lending Office. If any Lender requests compensation under Section 5.01, or if any
Loan Party is required to indemnify any Lender or pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, then such Lender shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant 

  
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to Section 5.01 or Section 5.03, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 

(b) Replacement of Lenders. If (i) any Lender requests compensation under Section 5.01, (ii) any Loan Party
is required to indemnify any Lender or pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, (iii) any Lender becomes a Defaulting Lender, (iv) any Lender
declines to make a Eurodollar Loan under Section 5.05, (v) any Lender fails to approve or consent to a requested amendment, waiver or other action (including increasing the Borrowing Base) that requires the consent of all Lenders or
all Lenders affected thereby when the Required Lenders have provided their approval or consent to such amendment, waiver or other action, or (vi) any Lender fails to approve or consent to a requested amendment, waiver or other action (including
maintaining the Borrowing Base) that requires the consent of the Required Lenders when the Majority Lenders have provided their approval or consent to such amendment, waiver or other action, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 12.04(b)), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if such other Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written
consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section 5.01 or payments required to be made pursuant to Section 5.03, such assignment will result in a reduction in or the elimination of such compensation
or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease
to apply. 
 Section 5.05 Illegality. Notwithstanding any other provision of this Agreement, in the event that it
becomes unlawful for any Lender or its applicable lending office to honor its obligation to make or maintain Eurodollar Loans either generally or having a particular Interest Period hereunder, then (a) such Lender shall promptly notify the
Borrower and the Administrative Agent thereof and such Lender’s obligation to make such Eurodollar Loans shall be suspended (the “Affected Loans”) until such time as such Lender may again make and maintain such Eurodollar Loans
and (b) all Affected Loans which would otherwise be made by such Lender shall be made instead as ABR Loans (and, if such Lender so requests by notice to the Borrower and the Administrative Agent, all Affected Loans of such Lender then
outstanding shall be automatically converted into ABR Loans on the date specified by such Lender in such notice) and, to the extent that Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which would otherwise be
applied to such Lender’s Affected Loans shall be applied instead to its ABR Loans. 

  
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 ARTICLE VI 
 CONDITIONS PRECEDENT 
 Section 6.01 Effective Date. The
obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the Business Day on which each of the following conditions is satisfied (or waived in accordance with
Section 12.02): 
 (a) The Administrative Agent, the Arranger and the Lenders shall have received all commitment,
facility and agency fees and all other fees and amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the
Borrower hereunder (including, without limitation, the estimated costs and expenses for recordation of certain Security Instruments and the fees and expenses of Latham & Watkins LLP, counsel to the Administrative Agent pursuant to
Section 12.03(a)). 
 (b) The Administrative Agent shall have received a certificate of a Responsible Officer of
each Loan Party setting forth (i) resolutions of its board of directors, general partner or member(s) with respect to the authorization of such Loan Party to execute and deliver the Loan Documents to which it is a party and to enter into the
Transactions contemplated in those documents, (ii) the individuals (A) who are authorized to sign the Loan Documents to which such Loan Party is a party and (B) who will, until replaced by another individual or individuals duly
authorized for that purpose, act as its representative for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the Transactions contemplated hereby, (iii) specimen signatures of
such authorized individuals, and (iv) the Organization Documents of such Loan Party, certified as being true and complete. The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent
receives notice in writing from such Loan Party to the contrary. 
 (c) The Administrative Agent shall have received
certificates of the appropriate state agencies with respect to the existence, qualification and good standing of each Loan Party from each jurisdiction in which such Loan Party is formed or authorized or qualified to do business. 

(d) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the
Administrative Agent) of this Agreement signed on behalf of such party. 
 (e) The Administrative Agent shall have received duly
executed Notes payable to each Lender that has requested a Note in a principal amount equal to its Maximum Credit Amount dated as of the date hereof. 
 (f) The Administrative Agent shall have received from each party thereto duly executed counterparts (in such number as may be requested by the Administrative Agent) of the Security Instruments. In
connection with the execution and delivery of the Security Instruments, the Administrative Agent shall: 

  
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 (i) be reasonably satisfied that the Security Instruments create first
priority, perfected Liens (subject only to Excepted Liens) on at least 85% of the total value of the Oil and Gas Properties evaluated in the Initial Reserve Reports; and 

(ii) have received certificates, together with undated, blank stock powers for each such certificate, representing to the
extent certificated (A) all of the issued and outstanding Equity Interests of each Domestic Subsidiary (other than the Immaterial Subsidiaries) of any Loan Party and (B) 66 2/3% of the issued and outstanding Equity Interests of each
Foreign Subsidiary (other than the Immaterial Subsidiaries) of any Loan Party. 
 (g) The Administrative Agent shall have
received an opinion of (i) Jones Day, counsel to the Borrower, (ii) Milling Benson Woodward L.L.P., Louisiana counsel to the Borrower, and (iii) Watkins Ludlam Winter & Stennis, P.A., Mississippi counsel to the Borrower.

 (h) The Administrative Agent shall have received certificates of insurance coverage of the Borrower evidencing that the
Borrower is carrying insurance in accordance with Section 8.07. 
 (i) The Administrative Agent shall have received
title information as the Administrative Agent may reasonably require reasonably satisfactory to the Administrative Agent setting forth the status of title to the Oil and Gas Properties evaluated in the Initial Reserve Reports. 

(j) The Administrative Agent shall be reasonably satisfied with the environmental condition of the Oil and Gas Properties of the Borrower
and its Subsidiaries. 
 (k) The Administrative Agent shall have received a compliance certificate substantially in the form of
Exhibit D-1, duly and properly executed by a Financial Officer of the Borrower and delivered on behalf of the Borrower and dated as of the Effective Date, certifying, among other things, that: 

(i) the Borrower is in pro forma compliance with the financial covenants set forth in Section 9.01 as of the
Effective Date after giving effect to the Acquisition and the initial funding of Loans on the Effective Date; provided that EBITDAX for the four (4) quarter period ending on the last day of the most recent fiscal quarter for which
financial statements are available will be used for such calculations; 
 (ii) the Borrower has received all
consents and approvals required by Section 7.03; 
 (iii) after giving effect to the Transactions on
the Effective Date, (i) each Loan Party on a stand-alone basis, and (ii) the Borrower and its Subsidiaries taken as a whole, are Solvent. 
 (l) The Administrative Agent shall have received (i) a pro forma consolidated balance sheet for the Borrower as of September 30, 2010, giving effect to the Acquisition as if it

  
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had occurred as of such date, in a form reasonably acceptable to the Administrative Agent, and (ii) the financial statements referred to in Section 7.04(a). 

(m) The Administrative Agent shall have received the Initial Reserve Reports, accompanied by a certificate covering the matters described
in Section 8.12(c). 
 (n) The Administrative Agent shall have received appropriate UCC search certificates
reflecting no prior Liens encumbering the Properties of the Borrower and the Subsidiaries from each jurisdiction reasonably requested by the Administrative Agent; other than those prior Liens being assigned or released on or prior to the Effective
Date or Liens permitted by Section 9.03. 
 (o) Except as set forth on Schedule 6.01(o), all Property in
which the Administrative Agent shall, at such time, be entitled to have a Lien pursuant to this Agreement or any other Security Instrument shall have been physically delivered to the possession of the Administrative Agent or any bailee accepted by
the Administrative Agent to the extent that such possession is necessary for the purpose of perfecting the Administrative Agent’s Lien in such Collateral. 
 (p) Each document (including any Uniform Commercial Code financing statement) required by this Agreement or under law or reasonably requested by the Administrative Agent to be filed, registered or
recorded in order to create in favor of the Administrative Agent, for the benefit of the Lenders, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than, with respect to priority, Liens
permitted on Collateral pursuant to Section 9.03), shall be in proper form for filing, registration or recordation. 

(q) As of the Effective Date, there shall be no (i) actions, suits, investigations, claims, or legal, equitable, arbitration or
administrative proceedings pending or threatened with respect to the Acquisition or the other Transactions, or (ii) actions, suits, investigations, claims, or legal, equitable, arbitration or administrative proceedings pending or threatened
against a Loan Party or Subsidiary or involving the Acquisition Properties or any Property of the Borrower or any Subsidiary that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(r) The Administrative Agent shall not have become aware of any material information or other matter that is inconsistent in a material
and adverse manner with any previous due diligence, information or matter (including any financial information or projections previously delivered to the Administrative Agent). 

(s) Concurrently with the initial Loans hereunder, all commitments under the Existing Credit Agreement shall have been terminated in
full, all amounts outstanding under the Existing Credit Agreement shall have been paid in full, and all Liens granted in connection therewith shall have been released pursuant to documentation in form and substance reasonably satisfactory to the
Administrative Agent. 
 (t) The Administrative Agent shall have received appropriate termination statements, mortgage releases
and such other documentation as shall be necessary to terminate, 

  
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release or assign to the Administrative Agent all Liens encumbering the Properties of the Borrower and the Subsidiaries (including the Acquisition Properties), other than Liens permitted by
Section 9.03, in each case, in proper form for filing, registration or recordation in the appropriate jurisdictions. 
 (u) The Administrative Agent shall be reasonably satisfied that the Borrower and its Subsidiaries have no Indebtedness in respect of borrowed money, other than the Indebtedness described in clause
(v) below. 
 (v) The Borrower shall have (A) received net proceeds from the issuance of the Senior Notes of at least
$200,000,000, and (B) delivered to the Administrative Agent copies of the duly executed Senior Note Documents, which documents shall be in form and substance reasonably satisfactory to the Administrative Agent. 

(w) The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower delivered on behalf of the
Borrower certifying: (i) that the Borrower is concurrently consummating the Acquisition in accordance with the terms of the Acquisition Documents (with all of the conditions precedent thereto having been satisfied or waived in all respects by
the parties thereto) and acquiring ASOP Pipeline and the Acquisition Properties as contemplated by the Acquisition Documents; and (ii) that attached thereto are correct and complete executed copies of the Acquisition Documents (which shall be
reasonably acceptable to the Administrative Agent). 
 (x) The Acquisition shall be consummated substantially contemporaneously
with the initial funding of Loans and substantially consistent with the terms and conditions of the Acquisition Documents, without waiver or amendment of any material terms thereof not otherwise approved by the Administrative Agent (such approval
not to be unreasonably withheld), and the Administrative Agent shall be satisfied that no Material Adverse Effect (as defined in the Acquisition Documents) shall have occurred. 

(y) The Administrative Agent shall be satisfied with the capital structure of the Borrower as of such date after giving effect to the
Transactions (including the initial funding of Loans hereunder). 
 (z) The Borrower shall have liquidity (cash plus unused
Borrowing Base as of the Effective Date) of at least $100,000,000 and a positive working capital balance (inclusive of the unused Borrowing Base). 
 (aa) The Administrative Agent shall be reasonably satisfied with all Hedging Agreements in place or entered into on the Effective Date. 

(bb) The Administrative Agent shall have received, at least five (5) Business Days prior to the Effective Date, all documentation
and other information required under applicable “know your customer” and anti-money laundering rules and regulations, including the USA Patriot Act. 
 (cc) The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request. 

  
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 The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date,
and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 12.02) at or prior to 2:00 p.m., New York City time, on February 14, 2011 (and, in the event such conditions are not so satisfied or waived, the Aggregate Maximum Credit Amounts
shall terminate at such time). 
 Section 6.02 Each Credit Event. The obligation of each Lender to make a Loan on
the occasion of any Borrowing (including the initial funding), and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions, at the time of and immediately after giving
effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable: 
 (a) no
Default or Event of Default shall have occurred and be continuing; 
 (b) the representations and warranties of the Loan Parties
set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects (except that any such representations and warranties that are qualified by materiality shall be true and correct in all respects), except
to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (except that any such representations
and warranties that are qualified by materiality shall be true and correct in all respects) as of such specified earlier date; and 
 (c) the receipt by the Administrative Agent of a Borrowing Request in accordance with Section 2.03 or a request for a Letter of Credit and related Letter of Credit Agreement in accordance with
Section 2.08(b), as applicable. 
 Each request for a Borrowing and each request for the issuance, amendment,
renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Section 6.02(a) through (c). 

ARTICLE VII 

REPRESENTATIONS AND WARRANTIES 
 The Borrower represents and warrants to the Administrative Agent, the Issuing Banks and the Lenders that: 
 Section 7.01 Organization; Powers. Each Loan Party is a legal entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all
requisite power and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing
in, every jurisdiction where such qualification is required, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect. 

  
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 Section 7.02 Authority; Enforceability. The Transactions are within each Loan
Party’s corporate, limited liability company or limited partnership powers and have been duly authorized by all necessary corporate, limited liability company and limited partnership and, if required, stockholder, member or partner action
(including, without limitation, any action required to be taken by any class of directors of the Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document and
Acquisition Document to which a Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

Section 7.03 Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors, whether interested or disinterested, of the Borrower or any other Person), nor is any such consent,
approval, registration, filing or other action necessary for the validity or enforceability of any Loan Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and are in full force and effect
other than (i) the recording and filing of the Security Instruments as required by this Agreement and (ii) those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect or do not have an adverse effect on the enforceability of the Loan Documents, (b) will not violate any applicable law or regulation or any Organization Document of
any Loan Party or any Subsidiary of the Borrower or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or any Subsidiary of the
Borrower or any Property thereof, or give rise to a right thereunder to require any payment to be made by such Loan Party or such Subsidiary and (d) will not result in the creation or imposition of any Lien on any Collateral or any other
Property of the Borrower or any Subsidiary thereof (other than the Liens created by the Loan Documents). 
 Section 7.04
Financial Condition; No Material Adverse Change. 
 (a) The Borrower has heretofore furnished to the Lenders (i) its
consolidated balance sheet and statements of income, stockholders equity and cash flows (A) as of and for the fiscal year ended December 31, 2009, reported on by KPMG LLP, independent public accountants, and (B) as of and for the
fiscal quarter and the portion of the fiscal year ended September 30, 2010, certified by its chief financial officer, and (ii) ASOP’s balance sheet and statements of operations, changes in members’ equity and cash flows
(A) as of and for the fiscal year ended December 31, 2009, and (B) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2010. The financial statements described in clause (i) above present
fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its Consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments
and the absence of footnotes in the case of the unaudited quarterly financial statements. 

  
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 (b) Since December 31, 2009, (i) there has been no event, development or
circumstance that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect and (ii) the business of the Borrower and its Subsidiaries has been conducted only in the ordinary course consistent
with past business practices (other than with respect to the Transactions). 
 (c) Neither the Borrower nor any Subsidiary has
on the date hereof any material Indebtedness (including Disqualified Capital Stock) or any contingent liabilities, off-balance sheet liabilities or partnerships, liabilities for taxes, unusual forward or long-term commitments or unrealized or
anticipated losses from any unfavorable commitments, except (i) as referred to or reflected or provided for in the Financial Statements, (ii) Indebtedness owing with respect to the Senior Notes, (ii) Secured Obligations, and
(iii) contingent payment obligations owing under the Acquisition Documents. 
 Section 7.05 Litigation.

 (a) Except as set forth on Schedule 7.05, there are no (i) actions, suits, investigations or proceedings by or
before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting any Loan Party, any Subsidiary, ASOP Pipeline or their respective Properties or the Acquisition Properties as to
which there is a reasonable possibility of an adverse determination that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (ii) material actions, suits,
investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting any Loan Party or any Subsidiary that involve any Acquisition Document or the
Acquisition, or (iii) actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting any Loan Party or any Subsidiary
that involve any Loan Document or the Transactions (other than the Acquisition and the Acquisition Documents). 
 (b) Since the
date of this Agreement, there has been no change in the status of the matters disclosed on Schedule 7.05 that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

 Section 7.06 Environmental Matters. Except for such matters as set forth on Schedule 7.06 or that,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect: 
 (a) the Properties are
in compliance with all applicable Environmental Laws, the Borrower and the Subsidiaries have operated the Properties in compliance with all applicable Environmental Laws, and to the knowledge of the Borrower, the Properties were operated in
compliance with applicable Environmental Laws prior to the acquisition by the Borrower; 
 (b) the Borrower and the Subsidiaries
have obtained all Environmental Permits required for their respective operations and each of their Properties, with all such Environmental Permits being currently in full force and effect, and none of Borrower or the Subsidiaries has received any
written notice or otherwise has knowledge that any such existing 

  
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Environmental Permit will be revoked or that any application for any new Environmental Permit or renewal of any existing Environmental Permit will be protested or denied; 

(c) there are no claims, written demands, suits, orders, investigations, requests for information by a Governmental Authority or
proceedings concerning any violation of, or any liability (including as a potentially responsible party) under, any applicable Environmental Law that is pending or, to the Borrower’s knowledge, threatened against the Borrower or any Subsidiary
arising from the ownership or operation of their respective Properties, and to the Borrower’s knowledge, there are no conditions or circumstances that are reasonably expected to result in the receipt of such claims, written demands, suits,
orders, investigations, requests for information or proceedings; 
 (d) to the Borrower’s knowledge, none of the Properties
of the Borrower or any Subsidiary contain any: (i) regulated underground storage tanks; (ii) friable asbestos-containing materials; (iii) landfills or dumps; (iv) hazardous waste management units as defined pursuant to the
Resource Conservation and Recovery Act of 1976 or any comparable state law; or (v) sites on or, to Borrower’s knowledge, nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list
promulgated or published pursuant to any comparable state law; 
 (e) since the Borrower’s acquisition of any Property, or
to the Borrower’s knowledge prior to such acquisition, there has been no Release or threatened Release at any of the Borrower’s or any Subsidiary’s Properties that would reasonably be expected to result in liability to, or require
Remedial Work by, the Borrower or any Subsidiary at their respective Properties pursuant to applicable Environmental Law; and there is no on-going Remedial Work at any of the Borrower’s or any Subsidiary’s Properties; 

(f) neither the Borrower nor any Subsidiary has received any written notice asserting the alleged liability or obligation of such
Borrower or other Loan Party under any applicable Environmental Laws with respect to the presence of Hazardous Materials at, under or Released or threatened to be Released from any real properties offsite the Borrower’s or any Subsidiary’s
Properties; 
 (g) to the Borrower’s knowledge, there has been no exposure of any Person or property to any Hazardous
Materials as a result of the operations of any of the Borrower’s or the Subsidiaries’ Properties that would reasonably be expected to result in damages or compensation against the Borrower or any Subsidiary; and 

(h) the Borrower and the Subsidiaries have provided to the Lenders complete and correct copies of all environmental site assessment
reports, investigations, studies, and analyses addressing potentially material environmental matters (including matters relating to any alleged non-compliance with or liability under Environmental Laws) that are in any of the Borrower’s or the
Subsidiaries’ possession or control and relating to their respective Properties or operations thereon. 
 Section 7.07
Compliance with the Laws and Agreements; No Defaults. 

  
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 (a) Each of the Borrower and each Subsidiary is in compliance with all Governmental
Requirements applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the
ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 

(b) Neither the Borrower nor any Subsidiary is in default nor has any event or circumstance occurred which, but for the expiration of any
applicable grace period or the giving of notice, or both, would constitute a default or would require the Borrower or a Subsidiary to Redeem or make any offer to Redeem (except as permitted by Section 9.04(b)(i)) under any indenture,
note, credit agreement or instrument pursuant to which any Material Indebtedness is outstanding or by which the Borrower or any Subsidiary or any of their Properties is bound. 
 (c) No Default has occurred and is continuing. 
 Section 7.08 Investment
Company Act. Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company,” within the meaning of, or subject to regulation under, the Investment Company Act
of 1940, as amended. 
 Section 7.09 Taxes. The Borrower and each of its Subsidiaries has timely filed or caused to
be filed all Tax returns and reports required to have been filed by it and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for
which the Borrower or such Subsidiary, as applicable, has established on its books adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. The reserves on the books of the Borrower and its Subsidiaries in respect of Taxes and other governmental charges have been established in accordance with GAAP. No Tax Lien (other than an Excepted Lien) has been
filed and, to the knowledge of the Borrower, no claim is being asserted in writing with respect to any such Tax. 

Section 7.10 ERISA. 
 (a) The Borrower, the Subsidiaries and each ERISA Affiliate have complied in all material respects with ERISA and, where applicable, the Code regarding each Plan. 

(b) Each Plan is, and has been, established and maintained in substantial compliance with its terms, ERISA and, where applicable, the
Code. 
 (c) No act, omission or transaction has occurred in respect of a Plan which could result in imposition on the Borrower,
any Subsidiary or any ERISA Affiliate (whether directly or indirectly) of (i) either a material civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502 of ERISA or a material tax imposed pursuant to
Chapter 43 of Subtitle D of the Code or (ii) material breach of fiduciary duty liability damages under Section 409 of ERISA. 

  
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 (d) Full payment when due has been made of all material amounts which the Borrower, the
Subsidiaries or any ERISA Affiliate is required under the terms of each Plan or applicable law to have paid as contributions to such Plan as of the date hereof. 
 (e) Neither the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains, or contributes to an employee welfare benefit plan, as defined in Section 3(1) of ERISA, including, without
limitation, any such plan maintained to provide benefits to former employees of such entities, that may not be terminated by the Borrower, a Subsidiary or any ERISA Affiliate in its sole discretion at any time without any material liability.

 (f) Neither the Borrower, the Subsidiaries nor any ERISA Affiliate sponsors, maintains or contributes to, or has at any time
in the six-year period preceding the date hereof sponsored, maintained or contributed to, any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of ERISA or
Section 412 of the Code. 
 Section 7.11 Disclosure; No Material Misstatements. The Borrower and each
Subsidiary has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters known to it with respect to the Borrower and the Subsidiaries, that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports, financial statements, certificates or other information furnished in writing by or on behalf of the Borrower or any
Subsidiary to the Administrative Agent or any Lender or any of their Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by
other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading;
provided that, with respect to pro forma financial statements and projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 Section 7.12 Insurance. The Borrower has, and has caused all of its Subsidiaries to have, (a) all insurance
policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without limitation, public
liability) that are usually insured against by companies similarly situated and engaged in the same or a similar business for the assets and operations of the Borrower and its Subsidiaries. The Administrative Agent and the Lenders have been named as
additional insureds in respect of such liability insurance policies and the Administrative Agent has been named as loss payee with respect to Property loss insurance. 
 Section 7.13 Restriction on Liens. Neither the Borrower nor any other Loan Party is a party to any material agreement or arrangement (other than Capital Leases and other contracts creating
Liens permitted by Section 9.03(d), but then only on the Property subject to such Liens), or subject to any order, judgment, writ or decree, which either restricts or purports to restrict its

  
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ability to grant Liens to the Administrative Agent and the Lenders on or in respect of their Properties to secure the Secured Obligations and the Loan Documents. 

Section 7.14 Subsidiaries; Foreign Operations. Except as set forth on Schedule 7.14 or as disclosed in writing to the
Administrative Agent (which shall promptly furnish a copy to the Lenders) after the Effective Date, which shall be a supplement to Schedule 7.14, the Borrower has no Subsidiaries. The Borrower has no Immaterial Subsidiaries or Foreign
Subsidiaries other than the Subsidiaries designated as such on Schedule 7.14 (as in effect on the Effective Date). 

Section 7.15 Location of Business and Offices. The Borrower’s jurisdiction of organization is Delaware; the name of the
Borrower as listed in the public records of its jurisdiction of organization is Energy Partners, Ltd.; and the organizational identification number of the Borrower in its jurisdiction of organization is 2863545 (or, in each case, as set forth in a
notice delivered to the Administrative Agent pursuant to Section 8.01(m) in accordance with Section 12.01). The Borrower’s principal place of business and chief executive offices are located at the address specified in
Section 12.01 (or as set forth in a notice delivered pursuant to Section 8.01(m) and Section 12.01(c)). Each Subsidiary’s (other than Immaterial Subsidiaries) jurisdiction of organization, name as listed in
the public records of its jurisdiction of organization, organizational identification number in its jurisdiction of organization, and the location of its principal place of business and chief executive office is stated on Schedule 7.14 (or as
set forth in a notice delivered to the Administrative Agent pursuant to Section 8.01(m) in accordance with Section 12.01). 
 Section 7.16 Properties; Titles, Etc. 
 (a) Each of the Borrower and
the other Loan Parties has good and defensible title to, or valid leasehold interests in, the Oil and Gas Properties evaluated in the most recently delivered Reserve Report(s) (except for those Properties that have been disposed of since the date of
such Reserve Report(s) in accordance with this Agreement or leases which have expired in accordance with their terms) and good title to, or valid leasehold interests in, licenses of, or rights to use, all its material personal Properties, in each
case, free and clear of all Liens except Liens permitted by Section 9.03. After giving full effect to the Excepted Liens, the Borrower or the Loan Party specified as the owner owns the net interests in production attributable to the
Hydrocarbon Interests as reflected in the most recently delivered Reserve Report(s) (except for those Properties that have been disposed of since the date of such Reserve Report(s) in accordance with this Agreement or leases which have expired in
accordance with their terms), and the ownership of such Oil and Gas Properties shall not in the aggregate in any material respect obligate the Borrower or such Loan Property to bear the costs and expenses relating to the maintenance, development and
operations of any such Oil and Gas Property in an amount in excess of the working interest of such Oil and Gas Property set forth in the most recently delivered Reserve Report(s) that is not offset by a corresponding proportionate increase in the
Borrower’s or such Loan Party’s net revenue interest in such Oil and Gas Property. 
 (b) All leases and agreements
necessary to conduct the business of the Borrower and the Subsidiaries are valid and subsisting, in full force and effect, and there exists no default by the Borrower or any Subsidiary, or to the knowledge of the Borrower, no default by any other
party thereto or any event or circumstance which with the giving of notice or the 

  
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passage of time or both would give rise to a default under any such lease or leases, which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 (c) The rights and Properties presently owned, leased or licensed by the Borrower and the Subsidiaries including, without
limitation, all easements and rights of way, include all rights and Properties necessary to permit the Borrower and the Subsidiaries to conduct their businesses in all material respects in the manner as their respective businesses have been
conducted prior to the date hereof. 
 (d) The Borrower and each Subsidiary owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual Property material to its business, and the use thereof by the Borrower and such Subsidiary does not infringe upon the rights of any other Person, except for any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and its Subsidiaries either own or have valid licenses or other rights to use all databases, geological data, geophysical data,
engineering data, seismic data, maps, interpretations and other technical information used in their businesses as presently conducted, subject to the limitations contained in the agreements governing the use of the same, which limitations are
customary for companies engaged in the business of the exploration and production of Hydrocarbons, with such exceptions as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

Section 7.17 Maintenance of Oil and Gas Properties. Except for such acts or failures to act as, individually or in the
aggregate, could not be reasonably expected to have a Material Adverse Effect, the Oil and Gas Properties of the Borrower and its Subsidiaries (and Oil and Gas Properties unitized therewith) have been maintained, operated and developed in a good and
workmanlike manner and in conformity with all Governmental Requirements and in conformity with the provisions of all leases, subleases or other contracts comprising a part of the Hydrocarbon Interests and other contracts and agreements forming a
part of such Oil and Gas Properties. Specifically in connection with the foregoing, except for those as, individually or in the aggregate, could not be reasonably expected to have a Material Adverse Effect, (i) no Oil and Gas Property of the
Borrower or any Subsidiary is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not the same was permissible at the time) and
(ii) none of the wells comprising a part of the Oil and Gas Properties of the Borrower and its Subsidiaries (or Oil and Gas Properties unitized therewith) is deviated from the vertical more than the maximum permitted by Governmental
Requirements, and such wells are, in fact, bottomed under and are producing from, and the well bores are wholly within, such Oil and Gas Properties (or in the case of wells located on Oil and Gas Properties unitized therewith, such unitized Oil and
Gas Properties). All pipelines, wells, gas processing plants, platforms and other material improvements, fixtures and equipment owned in whole or in part by the Borrower or any of its Subsidiaries that are necessary to conduct normal operations are
being maintained in a state adequate to conduct normal operations, and with respect to such of the foregoing which are operated by the Borrower or any of its Subsidiaries, in a manner consistent with the Borrower’s or its Subsidiaries’
past practices (other than those the failure of which to maintain in accordance with this Section 7.17, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect). 

  
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 Section 7.18 Gas Imbalances, Prepayments. Except as set forth on Schedule
7.18 or on the most recent certificate delivered pursuant to Section 8.12(c), on a net basis there are no gas imbalances, take or pay or other prepayments which would require the Borrower or any of its Subsidiaries to deliver
Hydrocarbons produced from the Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor exceeding one-fourth (1/4) bcf of gas (on an mcf equivalent basis) in the aggregate. 

Section 7.19 Marketing of Production. Except for contracts listed on Schedule 7.19, and thereafter either disclosed in
writing to the Administrative Agent or included in the most recently delivered Reserve Report(s) (with respect to all of which contracts the Borrower represents that it or its Subsidiaries are receiving a price for all production sold thereunder
which is computed substantially in accordance with the terms of the relevant contract and are not having deliveries curtailed substantially below the subject Property’s delivery capacity), no material agreements exist which are not cancelable
on one hundred twenty (120) days notice or less without penalty or detriment for the sale of production from the Borrower’s or its Subsidiaries’ Hydrocarbons (including, without limitation, calls on or other rights to purchase,
production, whether or not the same are currently being exercised) that (a) pertain to the sale of production at a fixed price and (b) have a maturity or expiry date of longer than six (6) months from the date hereof. 

Section 7.20 Security Instruments. 
 (a) Guaranty and Collateral Agreement. The provisions of the Guaranty and Collateral Agreement are effective to create, in favor of the Administrative Agent for the benefit of the Secured Parties,
a legal, valid and enforceable Lien on, and security interest in, all of the Collateral covered thereby, and (i) when financing statements and other filings in appropriate form are filed in the offices specified in the Guaranty and Collateral
Agreement and (ii) upon the taking of possession or control by the Administrative Agent of the Collateral with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to
the Administrative Agent to the extent possession or control by the Administrative Agent is required by the Guaranty and Collateral Agreement), the Liens created by the Guaranty and Collateral Agreement shall constitute fully perfected Liens on, and
security interests in, all right, title and interest of the Loan Parties in the Collateral covered thereby (other than such Collateral in which a security interest cannot be perfected under the Uniform Commercial Code as in effect at the relevant
time in the relevant jurisdiction), in each case free of all Liens other than Liens permitted on Collateral pursuant to Section 9.03, and prior and superior to all other Liens other than Liens permitted on Collateral by
Section 9.03. 
 (b) Mortgages. Each Mortgage is effective to create, in favor of the Administrative Agent
(or such other trustee as may be required or desired under local law) for the benefit of the Secured Parties, legal, valid and enforceable Liens on, and security interests in, all of the Mortgaged Property thereunder, subject only to Excepted Liens,
and when the Mortgages are filed in the offices specified on Schedule 7.20 (or, in the case of any Mortgage executed and delivered after the date thereof in accordance with the provisions of Section 8.11 and
Section 8.14, when such Mortgage is filed in the appropriate offices), the Mortgages shall constitute fully perfected Liens on, and security interests in, all right, title and interest of the

  
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Borrower and Subsidiaries in the Mortgaged Property, in each case prior and superior in right to any other person, other than Excepted Liens. 

(c) Valid Liens. Each Security Instrument delivered pursuant to Sections Section 8.11 and Section 8.14
(other than the Guaranty and Collateral Agreement or any Mortgage), upon execution and delivery thereof, are effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, legal, valid and enforceable Liens on, and
security interests in, all of the Collateral thereunder, and when all appropriate filings or recordings are made in the appropriate offices as may be required under applicable Governmental Requirements, such Security Instruments will constitute
fully perfected first priority Liens on, and security interests in, all right, title and interest of the Loan Parties in such Collateral, in each case with no other Liens except for applicable Liens permitted on Collateral pursuant to
Section 9.03. 
 Section 7.21 Hedging Agreements. Schedule 7.21, as of the date hereof, and after
the date hereof, each report required to be delivered by the Borrower pursuant to Section 8.01(e), sets forth, a true and complete list of all Hedging Agreements of the Borrower and each Subsidiary in effect on the date of such report,
the material terms thereof (including the type, term, agreement date, settlement date, and notional amounts or volumes), all credit support relating thereto (including any margin required or supplied) and the counterparty to each such agreement.

 Section 7.22 Use of Loans and Letters of Credit. The proceeds of the Loans and the Letters of Credit shall be
used (a) to refinance the Indebtedness of the Borrower under the Existing Credit Agreement, (b) for the Acquisition, (c) for the acquisition and development by the Borrower and its Subsidiaries of other exploration and production
properties, and for general corporate purposes of the Borrower and its Subsidiaries. The Borrower and its Subsidiaries are not engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose,
whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan or Letter of Credit will be used for any purpose which violates the
provisions of Regulations T, U or X of the Board. 
 Section 7.23 Solvency. Each Loan Party is Solvent. As of the
date hereof, no Loan Party is planning to take any action described in Section 10.01(h) or Section 10.01(i). 
 Section 7.24 Acquisition. The copies of the Acquisition Documents previously delivered by the Borrower to the Administrative Agent are true, accurate and complete and have not been amended or
modified in any manner, other than pursuant to amendments or modifications that individually or in the aggregate are not materially adverse to the Lenders. 
 Section 7.25 Foreign Corrupt Practices. Neither the Borrower nor any of its Subsidiaries, nor any director, officer, agent, employee or Affiliate of the Borrower or any of its Subsidiaries is
aware of or has taken any action, directly or indirectly, that would result in a material violation by such Persons of the FCPA, including without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly
in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, 

  
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gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA; and, the Borrower and its Subsidiaries, and to the knowledge of the Borrower, its Affiliates (other than the Subsidiaries), have conducted their business in
material compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. 

Section 7.26 Anti-Terrorism Laws. 
 (a) The Borrower is not, and to the knowledge of the Borrower, none of the Borrower’s Affiliates, officers or directors is in violation of any Governmental Requirement relating to terrorism or
money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, and the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., in each case, as amended from time to time. 

(b) The Borrower is not, and to the knowledge of the Borrower, no Affiliate, officer, director, broker or other agent of the
Borrower acting or benefiting in any capacity in connection with the Loans is any of the following: 
 (i) a
Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; 
 (ii)
a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; 

(iii) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law; 
 (iv) a Person that commits, threatens or conspires to commit or supports
“terrorism” as defined in the Executive Order; or 
 (v) a Person that is named as a “specially
designated national and blocked Person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website or any replacement website or other replacement
official publication of such list. 
 (c) No Loan Party and, to the knowledge of the Borrower, no broker or other agent of
any Loan Party acting in any capacity in connection with the Loans (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in paragraph
(b) above, (ii) deals in, or otherwise engages in any transaction relating to, any Property or interests in Property blocked pursuant to the Executive Order, or (iii) engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 

  
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 ARTICLE VIII 
 AFFIRMATIVE COVENANTS 
 Until the Aggregate Maximum Credit Amounts have
expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents shall have been paid in full (other than contingent indemnification obligations for which
no claim has been made) and all Letters of Credit (other than those that have been fully cash collateralized or with respect to which a backstop letter of credit has been provided to the applicable Issuing Bank, in each case, on customary terms
reasonably acceptable to each applicable Issuing Bank) shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders, the Administrative Agent and the Issuing Banks that:

 Section 8.01 Financial Statements; Other Information. The Borrower will furnish to the Administrative Agent and
each Lender: 
 (a) Annual Financial Statements. Within ninety (90) days after the end of each fiscal year of the
Borrower, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal
year, all reported on by KPMG LLP or other independent public accountants of recognized national standing or another accounting firm selected by the Borrower and reasonably acceptable to the Administrative Agent (without a “going concern”
or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of
operations of the Borrower and its Consolidated Subsidiaries on a consolidated basis, in accordance with GAAP consistently applied. 
 (b) Quarterly Financial Statements. Within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, its consolidated balance sheet and
related statements of operations and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or,
in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries on a consolidated basis, in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes. 
 (c) Certificate of Financial Officer — Compliance. Concurrently with any delivery of financial statements under Section 8.01(a) or Section 8.01(b), a certificate of a
Financial Officer in substantially the form of Exhibit D-2 hereto (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with
respect thereto, (ii) certifying that the representations and warranties of the Loan Parties set forth in this Agreement and in the other Loan Documents are true and correct in all material respects (except that any such representations and
warranties that are qualified by materiality are true and correct in all respects), except to the extent any such 

  
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representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties continue to be true and correct in all material respects (except that
any such representations and warranties that are qualified by materiality are true and correct in all respects) as of such specified earlier date, (iii) setting forth reasonably detailed calculations demonstrating compliance with
Section 9.01, (iv) setting forth (A) the aggregate amount of the obligations of the Borrower and its Subsidiaries with respect to surety bonds, and (B) the aggregate amount of such obligations that (1) are contingent,
(2) are due and payable, and (3) constitute Indebtedness under clause (b) of the definition of Indebtedness, and (v) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited
financial statements referred to in Section 7.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate. 

(d) [Reserved] 

(e) Certificate of Financial Officer — Hedging Agreements. Concurrently with any delivery of financial statements under
Section 8.01(a) or Section 8.01(b), a certificate of a Financial Officer of the Borrower, in substantially the form of Exhibit D-3 hereto, setting forth as of a recent date, a true and complete list of all Hedging
Agreements of the Borrower and each Subsidiary and setting forth the type, term, agreement date, settlement date, notional amounts or volumes, all credit support relating thereto (including any margin required or supplied) and the counterparty of
each such agreement. 
 (f) Certificate of Insurer — Insurance Coverage. Concurrently with any delivery of financial
statements under Section 8.01(a), a certificate of insurance coverage from each insurer with respect to the insurance required by Section 8.07, in form and substance satisfactory to the Administrative Agent, and, if requested
by the Administrative Agent or any Lender, all copies of the applicable policies. 
 (g) Other Accounting Reports.
Promptly upon receipt thereof, a copy of each other report or letter (except standard and customary correspondence) submitted to the Borrower or any of its Subsidiaries by independent accountants in connection with any annual, interim or special
audit made by them of the books of the Borrower or any such Subsidiary, and a copy of any response by, or on behalf of, the Borrower or any such Subsidiary to such letter or report. 

(h) SEC and Other Filings; Reports to Shareholders. Promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Borrower or any Subsidiary thereof with the SEC, or with any national or foreign securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be.

 (i) Notices Under Material Instruments. Promptly after the furnishing thereof, copies of any financial statement,
report or notice furnished to or by any Person pursuant to the terms of any preferred stock designation, indenture, loan or credit or other similar agreement evidencing Material Indebtedness and not otherwise required to be furnished to the Lenders
pursuant to any other provision of this Agreement. 

  
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 (j) Lists of Purchasers. If requested by the Administrative Agent, concurrently with
the delivery of any Reserve Report to the Administrative Agent pursuant to Section 8.12, a list of all Persons purchasing Hydrocarbons from the Borrower or any Subsidiary since the date of the last Reserve Report delivered. 

(k) Notice of Sales of Oil and Gas Properties and Borrowing Base Hedge Unwind. In the event the Borrower or any Subsidiary intends
to (i) sell, transfer, assign or otherwise dispose of any Oil or Gas Properties or any Equity Interests in any Subsidiary in accordance with Section 9.12(h) or (ii) Unwind a Borrowing Base Hedging Contract, the Borrower shall,
or shall cause its applicable Subsidiary to, provide five (5) Business Days’ prior written notice of such disposition or Unwind, as applicable, the price thereof, the anticipated date of closing and any other details thereof reasonably
requested by the Administrative Agent or any Lender. 
 (l) Notice of Casualty Events. Prompt written notice, and in any
event within five (5) Business Days, of the occurrence of any Casualty Event or the commencement of any action or proceeding that could reasonably be expected to result in a Casualty Event. 

(m) Information Regarding Loan Parties. Prompt written notice (and in any event at least ten (10) days prior thereto) of any
change (i) in any Loan Party’s corporate, limited liability company or limited partnership name, (ii) in the location of any Loan Party’s chief executive office or principal place of business, (iii) in any Loan Party’s
jurisdiction in which such Person is incorporated or formed, (iv) in any Loan Party’s organizational identification number in such Person’s jurisdiction of organization, and (v) in any Loan Party’s United States federal
taxpayer identification number. 
 (n) Production Report and Lease Operating Statements. Within forty-five (45) days
after the end of each fiscal quarter, a report setting forth for such quarter, the volume of production and sales attributable to production (and the prices at which such sales were made and the revenues derived from such sales) for such quarter
from the Oil and Gas Properties described in the most recent Reserve Report, and setting forth the related ad valorem, severance and production taxes and lease operating expenses attributable thereto and incurred for such quarter. 

(o) Notices of Certain Changes. Promptly, but in any event within five (5) Business Days after the execution thereof, copies
of any material amendment, modification or supplement to the certificate or articles of incorporation, by-laws, any preferred stock designation or any other Organization Document of the Borrower or any other Loan Party. 

(p) Notices Relating to Acquisition. In the event that after the Effective Date: (i) the Borrower is required or elects to
purchase any of the Acquisition Properties which had been excluded from, or return any of the Acquisition Properties which had been included in, the Acquisition Properties in accordance with the terms of the Acquisition Documents, or (ii) the
Borrower is required to honor any preferential purchase right in respect of any Acquisition Property which has not been waived, then, in each such case, the Borrower shall promptly give the Administrative Agent notice in reasonable detail of such
circumstances. 

  
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 (q) BOEMRE. Concurrently with any delivery of financial statements under
Section 8.01(a) or Section 8.01(b), copies of the most recent plans (as amended or supplemented) submitted to the BOEMRE with respect to the plugging and abandonment obligations of the Borrower and any of its Subsidiaries.
Promptly after receipt of notice thereof after the date hereof from the BOEMRE, notice of any increase in the aggregate amount of bonds that the Borrower and its Subsidiaries are required to provide to the BOEMRE. 

(r) Other Requested Information. Promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of the Borrower and its Subsidiaries (including, without limitation, any Plan and any reports or other information required to be filed with respect thereto under the Code or under ERISA) or compliance with
the terms of this Agreement or any other Loan Document, as the Administrative Agent or any Lender may reasonably request. 
 Information
required to be furnished pursuant to clauses (a), (b) or (h) above shall be deemed to have been delivered on the date on which the Borrower provides notice to Administrative Agent that such information has been posted on the
Borrower’s website on the Internet at http://www. eplweb.com or the website of the SEC at http://ww.sec.gov; provided that such notice may be included in a certificate delivered pursuant to Section 8.01(c). 

Section 8.02 Notices of Material Events. The Borrower will furnish to the Administrative Agent and each Lender prompt written
notice of the following: 
 (a) after a Responsible Officer obtains knowledge thereof, the occurrence of any Default;

 (b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by
or before any arbitrator or Governmental Authority against or affecting the Borrower, any Subsidiary or, to the knowledge of a Responsible Officer of the Borrower, any other Affiliate of the Borrower, not previously disclosed in writing to the
Lenders or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed to the Lenders) that, in either case, if adversely determined, could reasonably be expected to result in a
Material Adverse Effect; and 
 (c) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect. 
 Each notice delivered under this Section 8.02 shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
 Section 8.03 Existence; Conduct of Business. The Borrower will, and will cause each Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force and
effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each other jurisdiction in which its Oil and Gas
Properties is located or the ownership of its Properties requires such qualification, except where the failure to so qualify, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect; provided that

  
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the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 9.11. 

Section 8.04 Payment of Obligations. The Borrower will, and will cause each Subsidiary to, pay its obligations, including Tax
liabilities of the Borrower and all of its Subsidiaries, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower
or such Subsidiary has established on its books adequate reserves with respect thereto in accordance with GAAP or (c) the failure to make payment pending such contest, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect or result in the seizure or sale by a Governmental Authority of any Property of the Borrower or any Subsidiary. 
 Section 8.05 [Reserved] 
 Section 8.06 Operation and Maintenance of
Properties. The Borrower, at its own expense, will, and will cause each Subsidiary to, except where the failure to comply, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect: 

(a) operate its Oil and Gas Properties and other Properties or cause such Oil and Gas Properties and other Properties to be operated in a
careful and efficient manner in accordance with the practices of the industry and in compliance with all applicable contracts and agreements and in compliance with all Governmental Requirements, including, without limitation, applicable proration
requirements and Environmental Laws, and all applicable laws, rules and regulations of every other Governmental Authority from time to time constituted to regulate the development and operation of its Oil and Gas Properties and the production and
sale of Hydrocarbons and other minerals therefrom; 
 (b) keep and maintain all Property used or to be used in the conduct of
its business in good working order and condition (ordinary wear and tear excepted) and preserve, maintain and keep in good repair, working order and efficiency (ordinary wear and tear excepted) all of its material Oil and Gas Properties and other
material Properties; 
 (c) promptly pay and discharge, or make reasonable and customary efforts to cause to be paid and
discharged, all delay rentals, royalties, expenses and indebtedness accruing under the leases or other agreements affecting or pertaining to its Oil and Gas Properties and will do all other things necessary to keep unimpaired their rights with
respect thereto and prevent any forfeiture thereof or default thereunder; and 
 (d) promptly perform or make reasonable and
customary efforts to cause to be performed, in accordance with industry standards, the obligations required by each and all of the assignments, deeds, leases, sub-leases, contracts and agreements affecting its interests in its Oil and Gas Properties
and other material Properties. 
 provided, that, to the extent the Borrower is not the operator of any Oil and Gas Property, the
Borrower shall use reasonable efforts to cause the operator to comply with this Section 8.06. 

  
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 Section 8.07 Insurance. The Borrower will, and will cause each Subsidiary to,
maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies of similar size engaged in the same or similar businesses operating in the same or
similar locations. The Borrower shall cause the loss payable clauses or provisions in said insurance policy or policies insuring any of the Collateral to be endorsed in favor of and made payable to the Administrative Agent as its interests may
appear, and such policies shall (a) name the Administrative Agent as an “additional insured” or “loss payee,” as applicable, and (b) provide (unless not available on commercial terms) that the insurer will endeavor to
give at least thirty (30) days’ prior notice of any cancellation to the Administrative Agent. 
 Section 8.08
Books and Records; Inspection Rights. The Borrower will, and will cause each Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business
and activities. The Borrower will, and will cause each Subsidiary to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts
from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; provided, that so long as no Event of Default has
occurred and is continuing, the Loan Parties shall not be required to reimburse the Administrative Agent for more than one (1) inspection during any fiscal year. 
 Section 8.09 Compliance with Laws. The Borrower will, and will cause its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or
its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
 Section 8.10 Environmental Matters. 
 (a) The Borrower shall at its
sole expense: (i) comply, and shall cause its Properties and operations and each Subsidiary and its Properties and operations to comply, with applicable Environmental Laws, the breach of which, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect; (ii) not Release or threaten to Release, and shall cause each Subsidiary not to Release or threaten to Release, any Hazardous Material on, under, about or from any of the Borrower’s or its
Subsidiaries’ Properties or any other property offsite the Property to the extent caused by the Borrower’s or any of its Subsidiaries’ operations except in compliance with applicable Environmental Laws, the Release or threatened
Release of which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; (iii) timely obtain or file, and shall cause each Subsidiary to timely obtain or file, all Environmental Permits to be obtained
or filed in connection with the operation or use of the Borrower’s or its Subsidiaries’ Properties, which failure to obtain or file, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; and
(iv) promptly commence and diligently prosecute to completion, and shall cause each Subsidiary to promptly commence and diligently prosecute to completion, any assessment, evaluation, investigation, monitoring, containment, cleanup, removal,
repair, restoration, remediation or other remedial obligations (collectively, the “Remedial Work”) in the event such Remedial Work is required under applicable Environmental Laws because of or in connection

  
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with the Release or threatened Release of Hazardous Material on, under, about or from any of the Borrower’s or its Subsidiaries’ Properties, which failure to commence and diligently
prosecute to completion, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(b) The Borrower will promptly, but in no event later than five (5) days of the occurrence of a triggering event, notify the
Administrative Agent and the Lenders in writing of any action or investigation initiated, commenced or threatened in writing by any Governmental Authority or any demand or lawsuit initiated, commenced or threatened in writing by any landowner or
other third party against the Borrower or its Subsidiaries or their Properties of which the Borrower has knowledge in connection with any Environmental Laws if the Borrower could reasonably anticipate that such action will result in liability in
excess of $1,000,000, not fully covered by insurance, subject to normal deductibles. 
 (c) The Borrower will, and will cause
each Subsidiary to, provide any environmental assessments, audits and tests obtained by the Borrower or any Subsidiary in connection with any future acquisitions of Oil and Gas Properties or other Properties to the Administrative and the Lenders.

 (d) To the extent the Borrower is not the operator of any Oil and Gas Property, the Borrower shall use reasonable efforts to
cause the operator to comply with this Section 8.10. 
 Section 8.11 Further Assurances. 

(a) The Borrower at its sole expense will, and will cause each Subsidiary to, promptly execute and deliver to the Administrative Agent
all such other documents, agreements and instruments reasonably requested by the Administrative Agent to comply with, cure any defects or accomplish the covenants and agreements of the Borrower or any Subsidiary, as the case may be, in the Loan
Documents, including the Notes, or to further evidence and more fully describe the Collateral intended as security for the Secured Obligations, or to correct any omissions in this Agreement or the Security Instruments, or to perfect, protect or
preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any consents, all as may be reasonably necessary or appropriate, in the sole
discretion of the Administrative Agent, in connection therewith. 
 (b) The Borrower hereby authorizes the Administrative Agent
to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of the Borrower or any of its Subsidiaries where permitted by law. A carbon, photographic or other
reproduction of the Security Instruments or any financing statement covering such Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. 

Section 8.12 Reserve Reports. 
 (a) On or before April 1st and October 1st of each year, commencing April 1, 2011, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report

  
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evaluating ninety-five percent (95%) of the value of the Oil and Gas Properties of the Borrower and the other Loan Parties as of the immediately preceding January 1st and July 1st.
The Reserve Report as of January 1 of each year shall be prepared by one or more Approved Petroleum Engineers, and the July 1 Reserve Report of each year shall be prepared by or under the supervision of the chief engineer of the Borrower.

 (b) In the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent a Reserve Report
prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be true and accurate and to have been prepared in accordance with the procedures used in the immediately preceding January 1
Reserve Report. For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant to Section 2.07(b), the Borrower shall provide such Reserve Report with an “as of” date as required by the
Administrative Agent as soon as possible, but in any event no later than forty-five (45) days following the receipt of such request. 
 (c) With the delivery of each Reserve Report, the Borrower shall provide to the Administrative Agent and the Lenders a certificate from a Responsible Officer of the Borrower certifying on behalf of the
Borrower that in all material respects: (i) the information contained in the Reserve Report and any other information delivered in connection therewith is true and correct, (ii) the Borrower or other Loan Parties own good and defensible
title to the Oil and Gas Properties evaluated in such Reserve Report and such Properties are free of all Liens except for Liens permitted by Section 9.03, (iii) except as set forth on an exhibit to the certificate, on a net basis
there are no gas imbalances, take or pay or other prepayments in excess of the volume specified in Section 7.18 with respect to its Oil and Gas Properties evaluated in such Reserve Report which would require the Borrower or any Loan
Party to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of their Oil and Gas Properties have been sold since the date
of the last Borrowing Base determination except as set forth on an exhibit to the certificate, which certificate shall list all of its Oil and Gas Properties sold and in such detail as reasonably required by the Administrative Agent, and
(v) attached thereto is a schedule of the Oil and Gas Properties evaluated by such Reserve Report that are Mortgaged Properties and demonstrating the percentage of the Borrowing Base that the value of such Mortgaged Properties represent in
compliance with Section 8.14(a). 
 Section 8.13 Title Information. 

(a) On or before the delivery to the Administrative Agent of each Reserve Report required by Section 8.12(a), the Borrower
will deliver title information in form and substance reasonably acceptable to the Administrative Agent covering enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report,
so that the Administrative Agent shall have received together with title information previously delivered to the Administrative Agent, reasonably satisfactory title information on at least 85% of the total value of the Oil and Gas Properties
evaluated by such Reserve Report. 
 (b) If the Borrower has provided title information for additional Properties under
Section 8.13(a), the Borrower shall, within sixty (60) days of notice from the 

  
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Administrative Agent that title defects or exceptions exist with respect to such additional Properties that are not Excepted Liens, either (i) cure any such title defects or exceptions
(including defects or exceptions as to priority) which are not permitted by Section 9.03 raised by such information, (ii) substitute acceptable Mortgaged Properties having an equivalent or greater value with no title defects or
exceptions except for Excepted Liens or (iii) deliver title information in form and substance reasonably acceptable to the Administrative Agent so that the Administrative Agent shall have received, together with title information previously
delivered to the Administrative Agent, reasonably satisfactory title information on at least 85% of the value of the Oil and Gas Properties evaluated by such Reserve Report. 
 (c) If the Borrower is unable to cure any title defect that is not an Excepted Lien and that is requested by the Administrative Agent to be cured within the 60-day period or the Borrower does not comply
with the requirements to provide reasonably acceptable title information covering 85% of the value of the Oil and Gas Properties evaluated in the most recent Reserve Report, such failure shall not be a Default or Event of Default, but instead the
Administrative Agent and/or the Majority Lenders shall have the right to exercise the remedy described in the immediately succeeding sentence in their sole discretion from time to time, and any failure to so exercise such remedy at any time shall
not be a waiver as to future exercise of such remedy by the Administrative Agent or the Lenders; provided that if such title defects (excluding Excepted Liens) and/or failure to provide reasonably acceptable title information related to Oil
and Gas Properties that in the aggregate represent greater than 25% of the value of the Oil and Gas Properties evaluated in the most recent Reserve Report, such circumstance shall constitute a Default under this Section 8.13(c). To the
extent that the Administrative Agent or the Majority Lenders are not reasonably satisfied with title to any Mortgaged Property after the 60-day period has elapsed, such unacceptable Mortgaged Property shall not count towards the 85% requirement, and
the Administrative Agent may send a notice to the Borrower and the Lenders that the then outstanding Borrowing Base shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the requirement to
provide reasonably acceptable title information on 85% of the value of the Oil and Gas Properties. This new Borrowing Base shall become effective immediately after receipt of such notice. 

Section 8.14 Additional Collateral; Additional Guarantors; Additional Mortgaged Property. 

(a) In connection with each redetermination of the Borrowing Base, the Borrower shall review the Reserve Report and the list of current
Mortgaged Properties (as described in Section 8.12(c)(vi)) to ascertain whether the Mortgaged Properties represent at least 85% of the total value of the Oil and Gas Properties evaluated in the most recently completed Reserve Report
after giving effect to exploration and production activities, acquisitions, dispositions and production. In the event that the Mortgaged Properties do not represent at least 85% of such total value, then the Borrower shall, and /or shall cause the
other Loan Parties to, grant, within thirty (30) days of delivery of the certificate required under Section 8.12(c), to the Administrative Agent as security for the Secured Obligations a first-priority Lien interest (provided
that Excepted Liens may exist) on additional Oil and Gas Properties not already subject to a Lien of the Security Instruments such that after giving effect thereto, the Mortgaged Properties will represent at least 85% of such total value. All such
Liens will be created and 

  
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perfected by and in accordance with the provisions of deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory
to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Domestic Subsidiary places a Lien on its Oil and Gas
Properties and such Domestic Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with Section 8.14(b). 
 (b) The Borrower shall promptly cause each Domestic Subsidiary (other than any Immaterial Subsidiary) now existing or hereafter created or acquired to guarantee the Secured Obligations pursuant to the
Guaranty and Collateral Agreement. In connection with each such guaranty, the Borrower shall, or shall cause, as applicable: (i) such Domestic Subsidiary to assume the obligations under the Guaranty and Collateral Agreement and this Agreement
applicable to a Guarantor by executing and delivering a supplement or joinder to the Guaranty and Collateral Agreement and such other Security Instruments (in proper form for filing, registration or recordation, as applicable) as are requested by
the Administrative Agent, each in form and substance satisfactory to the Administrative Agent, and take such actions necessary or advisable to grant to the Administrative Agent for the benefit of the Secured Parties a first priority, perfected Lien
(subject, with respect to priority, to Liens permitted on Collateral by Section 9.03) on all of the tangible and intangible Property of such Domestic Subsidiary, other than Excluded Property (as defined in the Guaranty and Collateral
Agreement) and Oil and Gas Properties not required to be mortgaged hereunder, (ii) each owner of Equity Interests in such Domestic Subsidiary to pledge such Equity Interests (including, without limitation, to the extent certificated, deliver
original certificates evidencing the Equity Interests of such Domestic Subsidiary, together with an appropriate undated transfer powers for each certificate duly executed in blank by the registered owner thereof) and (iii) execute and deliver
such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. Notwithstanding the foregoing, if any Person that is not a Guarantor becomes a guarantor under any Senior Note
Document, then the Borrower shall cause such Person to become a Guarantor and comply with all of the requirements of this Section 8.14(b). 
 (c) In the event that the Borrower or any Domestic Subsidiary (other than an Immaterial Subsidiary) becomes the direct owner of Equity Interests in a Foreign Subsidiary, whether now existing or hereafter
created or acquired, then the Borrower shall, or shall cause such Domestic Subsidiary to (i) pledge 66 2/3% of all the Equity Interests of such Foreign Subsidiary (and deliver a supplement to the Guaranty and Collateral Agreement reflecting
such pledged Equity Interests and, to the extent certificated, deliver original stock certificates evidencing such Equity Interests of such Foreign Subsidiary, together with appropriate stock powers for each certificate duly executed in blank by the
registered owner thereof) and (ii) execute and deliver such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. Notwithstanding anything in any Loan Document to the
contrary, no Foreign Subsidiary shall be required to guarantee any obligation of any Loan Party. 
 (d) The Borrower will at all
times cause the other material tangible and intangible assets of the Borrower and each Subsidiary not covered by clauses (a) through (c) above to be subject to a Lien pursuant to the Security Instruments. 

  
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 (e) The Borrower shall, and shall cause the applicable Guarantors to, execute and deliver
supplements, in form and substance reasonably satisfactory to the Administrative Agent, to the Mortgages recorded in Plaquemines Parish, Louisiana within sixty (60) days after the Effective Date (as such time period may be extended by the
Administrative Agent in its sole discretion, the “Hydrocarbon Property Exclusion Deadline”) to cause the Excluded Hydrocarbon Properties (as defined in such Mortgages) to become Mortgaged Properties; provided that the
Borrower and the applicable Guarantors shall not be required to execute and deliver such supplements pursuant to this Section 8.14(e) with respect to any Excluded Hydrocarbon Properties (i) that become the subject of a joint
operation or similar transaction permitted by the Credit Agreement on or before the Excluded Hydrocarbon Property Deadline or (ii) to the extent that the Administrative Agent waives such requirement in its sole discretion. 

(f) Unless waived by the Administrative Agent in its sole discretion, the Borrower shall cause ASOP Pipeline, within fifteen
(15) days after the Effective Date, to execute and deliver a Mortgage, in form and substance reasonably satisfactory to the Administrative Agent, creating and evidencing a Lien on ASOP Pipeline’s Property to secure the Secured Obligations.

 Section 8.15 ERISA Compliance. The Borrower will promptly furnish and will cause the Subsidiaries and any ERISA
Affiliate to promptly furnish to the Administrative Agent (i) if requested by the Administrative Agent, promptly after the filing thereof with the United States Secretary of Labor or the Internal Revenue Service, copies of each annual and other
report with respect to each Plan or any trust created thereunder, and (ii) immediately upon becoming aware of the occurrence of any material “prohibited transaction,” as described in Section 406 of ERISA or in Section 4975
of the Code, in connection with any Plan or any trust created thereunder, a written notice signed by the President or the principal Financial Officer, the Subsidiary or the ERISA Affiliate, as the case may be, specifying the nature thereof, what
action the Borrower, the Subsidiary or the ERISA Affiliate is taking or proposes to take with respect thereto, and, when known, any action taken or proposed by the Internal Revenue Service or the Department of Labor with respect thereto. 

Section 8.16 Marketing Activities. The Borrower will not, and will not permit any of its Subsidiaries to, engage in marketing
activities for any Hydrocarbons or enter into any contracts related thereto other than (i) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from their proved Oil and Gas Properties during the period of
such contract, (ii) contracts for the sale of Hydrocarbons scheduled or reasonably estimated to be produced from proved Oil and Gas Properties of third parties during the period of such contract associated with the Oil and Gas Properties of the
Borrower and its Subsidiaries that the Borrower or one of its Subsidiaries has the right to market pursuant to joint operating agreements, unitization agreements or other similar contracts that are usual and customary in the oil and gas business and
(iii) other contracts for the purchase and/or sale of Hydrocarbons of third parties (A) which have generally offsetting provisions (i.e. corresponding pricing mechanics, delivery dates and points and volumes) such that no
“position” is taken and (B) for which appropriate credit support has been taken to alleviate the material credit risks of the counterparty thereto. 

  
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 Section 8.17 Hedging Agreements. Within ten (10) Business Days after the
Effective Date, the Borrower shall enter into Hedging Agreements, reasonably acceptable to the Administrative Agent, in respect of commodities with one or more Approved Counterparties, that (a) are materially similar to the Hedging Agreements
disclosed in the Borrower’s September 30, 2010 quarterly financial statements, and (b) also cover an additional 2,000 bbls/d for 2011, 1,600 bbls/d for 2012 and 1,200 bbls/d for 2013. To the extent that Administrative Agent is not
reasonably satisfied with the form and substance of such Hedging Agreements (including the prices, volumes and duration thereof), the Administrate Agent may upon notice to the Borrower require an Interim Redetermination in accordance with
Section 2.07(b). 
 ARTICLE IX 
 NEGATIVE COVENANTS 
 Until the Aggregate Maximum Credit Amounts have
expired or terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents have been paid in full (other than contingent indemnification obligations for which no claim
has been made) and all Letters of Credit (other than those that have been fully cash collateralized or with respect to which a backstop letter of credit has been provided to the applicable Issuing Bank, in each case, on customary terms reasonably
acceptable to each applicable Issuing Bank) have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders, the Administrative Agent and the Issuing Banks that: 

Section 9.01 Financial Covenants. 
 (a) Ratio of Total Indebtedness to EBITDAX. The Borrower will not, as of the last day of any fiscal quarter, permit the ratio of Total Indebtedness as of such day to EBITDAX for the four
(4) fiscal quarter period ending on such day to be greater than 3.5 to 1.0. 
 (b) Interest Coverage Ratio. The
Borrower will not, as of the last day of any fiscal quarter, permit the ratio of EBITDAX for the four (4) fiscal quarter period ending on such day to Consolidated Interest Expense for such period to be less than 2.5 to 1.0. 

(c) Current Ratio. The Borrower will not permit, as of the last day of any fiscal quarter, the ratio of (i) consolidated
current assets (including the unused amount of the Borrowing Base, but excluding non-cash assets under FAS 133) of the Borrower and its Consolidated Subsidiaries to (ii) consolidated current liabilities (excluding non-cash obligations under FAS
133 and current maturities under this Agreement) of the Borrower and its Consolidated Subsidiaries to be less than 1.0 to 1.0. 

Section 9.02 Indebtedness. The Borrower will not, and will not permit any Subsidiary to, incur, create, assume or suffer to
exist any Indebtedness, except: 
 (a) the Secured Obligations arising under the Loan Documents or any guaranty of or suretyship
arrangement for the Secured Obligations arising under the Loan Documents; 

  
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 (b) Indebtedness of the Borrower and its Subsidiaries existing on the date hereof that is
set forth on Schedule 9.02; 
 (c) Indebtedness under Capital Leases and Indebtedness that constitutes Purchase Money
Indebtedness; provided that the aggregate amount of all Indebtedness under this Section 9.02(c) outstanding at any time shall not exceed $5,000,000. 
 (d) Indebtedness associated with bonds or surety obligations required in connection with the operation of the Oil and Gas Properties; 

(e) intercompany Indebtedness between the Borrower and any Subsidiary or between Subsidiaries to the extent permitted by
Section 9.05(g); provided that such Indebtedness is not held, assigned, transferred, negotiated or pledged to any Person other than the Borrower or one of its Wholly-Owned Subsidiaries, and, provided further, that
any such Indebtedness owed by the Borrower or any of its Subsidiaries shall be subordinated to the Secured Obligations on terms set forth in the Guaranty and Collateral Agreement; 

(f) endorsements of negotiable instruments for collection in the ordinary course of business; 

(g) Senior Notes in an aggregate principal amount not to exceed $250,000,000 and any guarantees thereof; provided that no
Subsidiary that is not a Guarantor shall guarantee such Indebtedness; 
 (h) Indebtedness constituting a guarantee by any Loan
Party of any Indebtedness incurred by another Loan Party so long as the incurrence of such Indebtedness by such other Loan Party is otherwise permitted by this Section 9.02; 

(i) Indebtedness arising under Hedging Agreements permitted by Section 9.18; and 

(j) other Indebtedness not to exceed $3,000,000 in the aggregate at any one time outstanding. 

Section 9.03 Liens. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist
any Lien on any of its Properties (now owned or hereafter acquired), except: 
 (a) Liens existing on the date hereof that are
set forth on Schedule 9.03; 
 (b) Liens securing the payment of any Secured Obligations pursuant to the Security
Instruments; 
 (c) Excepted Liens; 
 (d) Liens securing Capital Leases and Purchase Money Indebtedness permitted by Section 9.02(c) but only on the Property under such lease or the Property purchased with such Purchase Money
Indebtedness, as applicable; and 

  
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 (e) Liens on Property not constituting Collateral and not otherwise permitted by the
foregoing clauses of this Section 9.03; provided that the aggregate value of the Property subject to such Liens shall not exceed $1,000,000 at any time. 
 Section 9.04 Restricted Payments; Redemption or Repayment of Senior Notes. 
 (a) Restricted Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any
capital to its stockholders or make any distribution of its Property to its Equity Interest holders, except: 

(i) the Borrower may declare and pay distributions with respect to its Equity Interests payable solely in additional
shares of its Equity Interests (other than Disqualified Capital Stock); 
 (ii) Subsidiaries may declare and pay
dividends ratably with respect to their Equity Interests; and 
 (iii) the Borrower may make Restricted Payments
pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries; and 
 (iv) the Borrower may make Restricted Payments to the holders of its Equity Interests in an aggregate amount not to exceed $20,000,000, so long as (i) no Default, Event of Default or Borrowing Base
Deficiency has occurred and is continuing (A) at the time of the declaration of such Restricted Payment, (B) at the time of the payment or making of such Restricted Payment or (C) after giving pro forma effect to such declaration or
such payment or the making of such Restricted Payment and any substantially concurrent incurrence of Indebtedness, (ii) the Borrower is in pro forma compliance with the financial covenants described in Section 9.01 as of the most
recently ended four (4) quarter period for which financial statements are required to be delivered under Section 8.01 after giving effect to the declaration and payment or making of such Restricted Payment and any substantially
concurrent incurrence of Indebtedness, and (iii) at the time of and immediately after giving effect to each of the declaration and payment or making of such Restricted Payment and any substantially concurrent incurrence of Indebtedness, the
unused Borrowing Base shall not be less than $100,000,000. 
 (b) Redemption or Repayment of Senior Notes. The Borrower
will not, and will not permit any Subsidiary to, prior to the date that is ninety-one (91) days after the Maturity Date: 
 (i) call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes, unless (A) such Redemption is
required by the Senior Indenture in connection with a sale of assets, and (B) at the time of the Redemption, (1) no Event of Default has occurred and is continuing or would result therefrom and (2) no Borrowing Base Deficiency has
occurred, is continuing or would result therefrom (unless and until the Borrower has cured such Borrowing Base Deficiency); provided that the Borrower may 

  
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prepay the Senior Notes with the net cash proceeds of any sale of Equity Interests (other than Disqualified Capital Stock) of the Borrower; 

(ii) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to,
any of the terms of the Senior Notes or the Senior Indenture if the effect thereof would be to shorten its maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of
interest thereon; provided that the foregoing shall not prohibit the execution of supplemental indentures to add guarantors if required by the terms of any Senior Indenture provided such Person complies with Section 8.14(b); or

 (iii) designate any Indebtedness (other than obligations of the Borrower and the Subsidiaries pursuant to the
Loan Documents) as “Specified Senior Indebtedness” or “Specified Guarantor Senior Indebtedness” or give any such other Indebtedness any other similar designation for the purposes of any Senior Indenture. 

Section 9.05 Investments, Loans and Advances; Permitted Acquisitions. The Borrower will not, and will not permit any
Subsidiary to, make or permit to remain outstanding any Investments in or to any Person, except that the foregoing restriction shall not apply to: 
 (a) Investments which are disclosed to the Lenders in Schedule 9.05; 
 (b)
accounts receivable arising in the ordinary course of business; 
 (c) direct obligations of the United States or any agency
thereof, or obligations guaranteed by the United States or any agency thereof, in each case maturing within one (1) year from the date of creation thereof; 
 (d) commercial paper maturing within one (1) year from the date of creation thereof rated in the highest grade by S&P or Moody’s; 

(e) deposits maturing within one (1) year from the date of creation thereof with, including certificates of deposit issued by, any
Lender or any office located in the United States of any other bank or trust company which is organized under the laws of the United States or any state thereof, has capital, surplus and undivided profits aggregating at least $100,000,000 (as of the
date of such bank or trust company’s most recent financial reports) and has a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time, by S&P or Moody’s, respectively or, in the case of any
Foreign Subsidiary, a bank organized in a jurisdiction in which the Foreign Subsidiary conducts operations having assets in excess of $500,000,000 (or its equivalent in another currency); 

(f) deposits in money market funds investing exclusively in Investments described in Section 9.05(c),
Section 9.05(d) or Section 9.05(e); 
 (g) Investments (i) made by the Borrower in or to the
Guarantors, (ii) made by any Subsidiary in or to the Borrower or any Guarantor, and (iii) made by the Borrower or any Subsidiary in or to any Subsidiary that is not a Guarantor on or prior to the date hereof; 

  
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 (h) subject to the limits in Section 9.06, Investments (including, without
limitation, capital contributions) in general or limited partnerships or other types of entities (each a “venture”) formed or incorporated, as the case may be, under applicable state law, by the Borrower or any Subsidiary, on the
one hand, and any other Person, on the other hand, in the ordinary course of business; provided that (i) any such venture is engaged exclusively in oil and gas exploration, development, production, processing and related activities,
including transportation, (ii) the interest in such venture is acquired in the ordinary course of business and on fair and reasonable terms and (iii) such venture interests acquired and capital contributions made (valued as of the date
such interest was acquired or the contribution made) do not exceed, in the aggregate at any time outstanding an amount equal to $1,000,000; 
 (i) loans or advances in the ordinary course of business to employees, officers or directors of the Borrower or any of its Subsidiaries, in each case only as permitted by applicable law, including
Section 402 of the Sarbanes Oxley Act of 2002, but in any event not to exceed $1,000,000 in the aggregate at any time; 

(j) Investments in stock, obligations or securities received in settlement of debts arising from Investments permitted under this
Section 9.05 and accounts receivable owing to the Borrower or any Subsidiary as a result of a bankruptcy or other insolvency proceeding of the obligor in respect of such debts or upon the enforcement of any Lien in favor of the Borrower
or any of its Subsidiaries; provided that the Borrower shall give the Administrative Agent prompt written notice in the event that the aggregate amount of all investments held at any one time under this Section 9.05(j) exceeds
$1,000,000; 
 (k) Investments pursuant to Hedging Agreements otherwise permitted under this Agreement; 

(l) Permitted Acquisitions not to exceed $2,500,000 in the aggregate in any twelve (12) month period; 

(m) seller notes and other Investments representing consideration received in connection with sales or other dispositions of Oil and Gas
Properties permitted pursuant to Section 9.12(h) not to exceed $10,000,000 outstanding in the aggregate at any time; and 
 (n) other Investments not to exceed $1,000,000 in the aggregate at any time. 

Section 9.06 Nature of Business; International Operations. The Borrower will not, and will not permit any Subsidiary to,
allow any material change to be made in the character of its business as an independent oil and gas exploration and production company. From and after the date hereof, the Borrower and its Domestic Subsidiaries will not acquire or make any other
expenditure (whether such expenditure is capital, operating or otherwise) in or related to, any Oil and Gas Properties not located within the geographical boundaries of the United States. 

Section 9.07 Limitation on Leases. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or
suffer to exist any obligation for the payment of rent or hire of Property of any kind whatsoever (real or personal but excluding Capital Leases and leases of Hydrocarbon Interests), under leases or lease agreements which would cause the aggregate
amount of all payments made by the Borrower and the Subsidiaries pursuant to all such leases or 

  
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lease agreements, including, without limitation, any residual payments at the end of any lease, to exceed $5,000,000 in any period of twelve (12) consecutive calendar months during the life
of such leases. 
 Section 9.08 Proceeds of Loans. The Borrower will not permit the proceeds of the Loans to be used
for any purpose other than those permitted by Section 7.22. Neither the Borrower nor any Person acting on behalf of the Borrower will take any action which could reasonably be expected to cause any of the Loan Documents to violate
Regulations T, U or X or any other regulation of the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect. If
requested by the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulation U,
Regulation T or Regulation X of the Board, as the case may be. 
 Section 9.09 ERISA Compliance. The Borrower will
not, and will not permit any Subsidiary to, at any time: 
 (a) engage in, or permit any ERISA Affiliate to engage in, in
respect of any Plan, any transaction in connection with which the Borrower, a Subsidiary or any ERISA Affiliate could be subjected to either a material civil penalty assessed pursuant to subsections (c), (i), (l) or (m) of Section 502
of ERISA or a material tax imposed by Chapter 43 of Subtitle D of the Code. 
 (b) fail to make, or permit any ERISA Affiliate
to fail to make, full payment when due of all material amounts which, under the provisions of any Plan, agreement relating thereto or applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required to pay as contributions thereto.

 (c) contribute to or assume an obligation to contribute to, or permit any ERISA Affiliate to contribute to or assume an
obligation to contribute to (i) any employee welfare benefit plan, as defined in Section 3(1) of ERISA, including, without limitation, any such plan maintained to provide benefits to former employees of such entities, that may not be
terminated by such entities in their sole discretion at any time without any material liability, or (ii) any employee pension benefit plan, as defined in Section 3(2) of ERISA, that is subject to Title IV of ERISA, Section 302 of
ERISA or Section 412 of the Code. 
 Section 9.10 Sale or Discount of Receivables. Except for receivables
obtained by the Borrower or any Subsidiary out of the ordinary course of business or the settlement of joint interest billing accounts in the ordinary course of business or discounts granted to settle collection of accounts receivable or the sale of
defaulted accounts arising in the ordinary course of business in connection with the compromise or collection thereof and not in connection with any financing transaction, the Borrower will not, and will not permit any Subsidiary to, discount or
sell (with or without recourse) any of its notes receivable or accounts receivable. 
 Section 9.11 Mergers, Etc.
The Borrower will not, and will not permit any Subsidiary to, merge into or with or consolidate with any other Person, or permit any other Person to merge 

  
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into or consolidate with it, or sell, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other
Person (whether now owned or hereafter acquired) (any such transaction, a “consolidation”) or liquidate or dissolve; provided that: 
 (a) the Borrower or any Subsidiary may participate in a consolidation with another Person if (i) no Default is continuing, (ii) any such consolidation would not cause a Default hereunder,
(iii) if the Borrower consolidates with any Person, the Borrower shall be the surviving Person, and (iv) if any Subsidiary (other than an Immaterial Subsidiary) consolidates with any Person (other than the Borrower or another Subsidiary)
and such Subsidiary is not the surviving Person, such surviving Person shall expressly assume in writing (in form and substance satisfactory to the Administrative Agent) all obligations of such Subsidiary under the Loan Documents; 

(b) any Subsidiary (including a Foreign Subsidiary or an Immaterial Subsidiary) may participate in a consolidation with the Borrower
(provided that the Borrower shall be the continuing or surviving Person) or any other Subsidiary that is a Domestic Subsidiary (provided that if one of such parties to the consolidation is a Foreign Subsidiary, such Domestic Subsidiary
shall be the continuing or surviving Person, if one of such Subsidiaries is a Wholly-Owned Subsidiary, then the surviving Person shall be a Wholly-Owned Subsidiary, and if one (but not all) of such Subsidiaries are Immaterial Subsidiaries, then the
surviving Person shall not be an Immaterial Subsidiary); 
 (c) any Foreign Subsidiary of the Borrower may participate in a
consolidation with any one or more Foreign Subsidiaries; provided that if one of such Foreign Subsidiaries is a Wholly-Owned Subsidiary, the survivor shall be a Wholly-Owned Subsidiary; and 

(d) any Immaterial Subsidiary may liquidate or dissolve. 
 Section 9.12 Sale of Properties. The Borrower will not, and will not permit any of its Subsidiaries to, sell, assign, farm-out, convey or otherwise transfer any Property except for:

 (a) the sale of Hydrocarbons and seismic data in the ordinary course of business; 

(b) farmouts of undeveloped acreage and assignments in connection with such farmouts; 

(c) the sale or transfer of equipment that is no longer necessary for the business of the Borrower or such Subsidiary or is replaced by
equipment of at least comparable value and use, and 
 (d) any disposition to the Borrower or another Loan Party; 

(e) dispositions permitted by Section 9.10; 
 (f) the creation of a Lien permitted by Section 9.03; 

  
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 (g) Restricted Payments permitted by Section 9.04; 

(h) sales or other dispositions (including Casualty Events) of Oil and Gas Properties or any interest therein or of Subsidiaries owning
Oil and Gas Properties; provided that the following are satisfied: (i) at least seventy-five percent (75%) of the consideration received in respect of such sale or other disposition shall be cash, or Investments of the type
described in Sections 9.05(c), (d), (e) or (f) or new Oil and Gas Properties or any combination of the foregoing, (ii) the consideration received in respect of such sale or other disposition shall be equal
to or greater than the fair market value of the Oil and Gas Properties, interest therein or Subsidiaries that are the subjects of such sale or other disposition (as reasonably determined by the board of directors of the Borrower and, if requested by
the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect), (iii) if any such sale or other disposition is of Equity Interests in a Subsidiary owning Oil and Gas
Properties, such sale or other disposition shall include all the Equity Interests of such Subsidiary, and (iv) to the extent that such sale or other disposition constitutes a Borrowing Base Property Disposition, in connection therewith,
(A) the Borrowing Base shall be reduced or redetermined in accordance with Section 2.07(e), unless such reduction is not required pursuant to the first proviso in Section 2.07(e), and (B) the Borrower shall, or
shall cause its Subsidiaries to, make all mandatory prepayments required by, and within the time periods set forth in, Section 3.04(c)(iii) (including after giving effect to any Borrowing Base reduction pursuant to Section
2.07(e)) 
 (i) dispositions of Investments permitted by Section 9.05(c) through (f); 

(j) the sale, transfer or other disposition of Equity Interests in Subsidiaries that are not Loan Parties; and 

(k) other dispositions and sales of Properties (other than Oil and Gas Properties) having a fair market value not to exceed $1,000,000 in
the aggregate. 
 Section 9.13 Environmental Matters. The Borrower will not, and will not permit any Subsidiary to
violate any applicable Environmental Laws, or cause or permit a Release or threatened Release from any Property of the Borrower or any Subsidiary in violation of applicable Environmental Law, assuming disclosure to the applicable Governmental
Authority of all relevant facts, conditions and circumstances, if any, pertaining to such Property where such violations, Release or threatened Release, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect. 
 Section 9.14 Transactions with Affiliates. The Borrower will not, and will not permit any Subsidiary to,
enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate (other than the Borrower or a Subsidiary) except (a) such transactions as are
otherwise permitted under this Agreement and are upon fair and reasonable terms no less favorable to it than it would obtain in a comparable arm’s length transaction with a Person not an Affiliate, and (b) any Restricted Payment permitted
by Section 9.04. 

  
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 Section 9.15 Subsidiaries. The Borrower will not, and will not permit any
Subsidiary to, create or acquire any additional Subsidiary, except that the Borrower or any Subsidiary may create or acquire a Domestic Subsidiary if it complies with Section 8.14(b) and Section 8.14(c). The Borrower shall
not, and shall not permit any Subsidiary to, sell, assign or otherwise dispose of any Equity Interests in any Subsidiary except in compliance with Section 9.12. Neither the Borrower nor any Subsidiary shall have or form any Foreign
Subsidiaries, except those constituting Immaterial Subsidiaries. 
 Section 9.16 Negative Pledge Agreements; Dividend
Restrictions. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or suffer to exist any contract, agreement or understanding (other than this Agreement or the Security Instruments) which in any way prohibits or
restricts the granting, conveying, creation or imposition of any Lien on any of its Property in favor of the Administrative Agent and the Lenders or restricts any Subsidiary from paying dividends or making distributions to the Borrower or any other
Subsidiary, or which requires the consent of or notice to other Persons in connection therewith, except agreements evidencing the Indebtedness permitted under Section 9.02(c) that restrict the granting, conveying, creation or imposition
of any Lien on the Property that is the subject of such Indebtedness. 
 Section 9.17 Gas Imbalances, Take-or-Pay or
Other Prepayments. The Borrower will not, and will not permit any Subsidiary to, allow gas imbalances, take-or-pay or other prepayments with respect to the Oil and Gas Properties of the Borrower or any Subsidiary that would require the Borrower
or such Subsidiary to deliver Hydrocarbons at some future time without then or thereafter receiving full payment therefor with a value in excess of $2,500,000 in the aggregate. 

Section 9.18 Hedging Agreements. 
 (a) The Borrower will not, and will not permit any Subsidiary to, enter into or permit to exist any Hedging Agreements with any Person other than: 

(i) Hedging Agreements in respect of commodities (A) with an Approved Counterparty, (B) the terms of which do
not exceed four (4) years, (C) the notional volumes for which (other than for Hedging Agreements providing for floors), when aggregated with all other commodity Hedging Agreements then in effect (other than Hedging Agreements providing for
floors) do not exceed on a monthly basis (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to the Administrative Agent), (1) for the months of January through July of each year,
eighty percent (80%), (2) for the months of August through October of each year, thirty percent (30%), (3) for the month of November of each year, forty percent (40%), and (4) for the month of December of each year, fifty (50%), in
each case, of the reasonably anticipated projected production from proved, developed, producing Oil and Gas Properties during such periods, with crude oil and natural gas to be calculated separately in each case, and (D) providing for floors,
the notional volumes for which (when aggregated with all other Hedging Agreements in effect that provide for floors) do not exceed on a monthly basis (determined, in the case of contracts that are not settled on a monthly basis, by a monthly
proration acceptable to the Administrative Agent) 100% of 

  
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the reasonably anticipated projected production from proved, developed, producing Oil and Gas Properties during such periods, with crude oil and natural gas to be calculated separately in each
case; and 
 (ii) Hedging Agreements in respect of interest rates with an Approved Counterparty, as follows:
(A) Hedging Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Hedging Agreements of the Borrower and its Subsidiaries then in effect effectively converting
interest rates from fixed to floating) do not exceed 50% of the then outstanding principal amount of the Borrower’s Indebtedness for borrowed money which bears interest at a fixed rate and (B) Hedging Agreements effectively converting
interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Hedging Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not exceed
75% of the then outstanding principal amount of the Borrower’s Indebtedness for borrowed money which bears interest at a floating rate. 
 (b) No Hedging Agreement shall be entered into for speculative purposes. 
 (c) In
no event shall any Hedging Agreement contain any requirement, agreement or covenant for the Borrower or any Subsidiary to post collateral or margin to secure their obligations under such Hedging Agreement or to cover market exposures, except that
the Secured Hedging Agreements may require that the obligations thereunder be secured pursuant to the Security Instruments. 

(d) The Borrower will not Unwind any Borrowing Base Hedging Contracts, unless in connection with therewith, (i) the Borrowing Base
shall be reduced or redetermined in accordance with Section 2.07(e), unless such reduction is not required pursuant to the first proviso of Section 2.07(e), and (ii) the Borrower shall, or shall cause its Subsidiaries
to, make all mandatory prepayments required by, and within the time periods set forth in, Section 3.04(c)(iii) (including after giving effect to any Borrowing Base reduction pursuant to Section 2.07(e)). 

Section 9.19 Sale and Leaseback. The Borrower shall not, and shall not permit any Subsidiary to, enter into any
arrangement, directly or indirectly, with any Person whereby it shall sell or transfer any Property, whether now owned or hereafter acquired, and thereafter rent or lease such Property which it intends to use for substantially the same purpose or
purposes as the Property being sold or transferred. 
 Section 9.20 Amendments to Organization Documents, Material
Contracts, Fiscal Year End. 
 (a) The Borrower shall not, and shall not permit any of its Subsidiaries to, amend or
otherwise modify (or permit to be amended or modified) any of the Acquisition Documents or Organization Documents in a manner that would be adverse to the Lenders in any material respect (and provided that the Borrower promptly furnishes to
the Administrative Agent a copy of such amendment, modification or supplement), 

  
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 (b) The Borrower shall not, and shall not permit any of its Subsidiaries to, change the last
day of its fiscal year from December 31 of each year, or the last days of the first three fiscal quarters in each of its fiscal years from March 31, June 30 and September 30 of each year, respectively. 

Section 9.21 Anti-Terrorism Law; Anti-Money Laundering. 

(a) The Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, (i) knowingly conduct any business or
engage in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in Section 7.26, (ii) knowingly deal in, or otherwise engage in any transaction relating to, any Property or
interests in Property blocked pursuant to the Executive Order or any other Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts
to violate, any of the prohibitions set forth in any Anti-Terrorism Law (and the Borrower shall deliver to any Lender any certification or other evidence requested from time to time by such Lender confirming the Borrower’s and the
Subsidiaries’ compliance with this Section 9.21(a)). 
 (b) The Borrower shall not, and shall not permit any
Subsidiary to cause or permit any of the funds of the Borrower or any Subsidiary that are used to repay the Loans to be derived from any unlawful activity with the result that the making of the Loans would be in violation of any Governmental
Regulation. 
 Section 9.22 Embargoed Person. The Borrower shall not, and shall not permit any Subsidiary to, permit
(a) any of the funds or Properties of the Borrower or any Subsidiary that are used to repay the Loans to constitute Property of, or be beneficially owned directly or indirectly by, any Person subject to sanctions or trade restrictions under
United States law (“Embargoed Person” or “Embargoed Persons”) that is identified on (i) the “List of Specially Designated Nationals and Blocked Persons” maintained by OFAC and/or on any other similar
list maintained by OFAC pursuant to any authorizing statute including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any
Executive Order or Governmental Regulation promulgated thereunder, with the result that the investment in the Borrower or any Subsidiary (whether directly or indirectly) is prohibited by a Governmental Regulation, or the Loans would be in violation
of a Governmental Regulation, or (ii) the Executive Order, any related enabling legislation or any other similar Executive Orders or (b) any Embargoed Person to have any direct or indirect interest, of any nature whatsoever in the Borrower
or any Subsidiary, with the result that the investment in the Borrower or any Subsidiary (whether directly or indirectly) is prohibited by a Governmental Regulation or the Loans are in violation of a Governmental Regulation. 

ARTICLE X 

EVENTS OF DEFAULT; REMEDIES 
 Section 10.01 Events of Default. One or more of the following events shall constitute an “Event of Default”: 

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

(b) The Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in
Section 10.01(a)) payable under any Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days. 

(c) Any written representation or warranty made or deemed made by or on behalf of any Loan Party or any Subsidiary of the Borrower in or
in connection with any Loan Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan
Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made. 
 (d) The Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in Section 8.01(m), Section 8.02, Section 8.03,
Section 8.14, Section 8.15 or ARTICLE IX. 
 (e) Any Loan Party or any Subsidiary of the Borrower
shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 10.01(a), Section 10.01(b), Section 10.01(d) or Section 8.13(c))
or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after the earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the
request of any Lender) or (ii) a Responsible Officer of the Borrower or such Subsidiary otherwise becoming aware of such default. 
 (f) (i) Any Loan Party or any Subsidiary of the Borrower shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the
same shall become due and payable, (ii) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or
both) the holder or holders of such Material Indebtedness or any trustee or agent on its or their behalf to cause such Material Indebtedness to become due, or to require the Redemption thereof or any offer to Redeem to be made in respect thereof,
prior to its scheduled maturity or require the Borrower or any Subsidiary to make an offer in respect thereof; provided that this Section 10.01(f)(ii) shall not apply with respect to a requirement to Redeem or offer to Redeem
Senior Notes in connection with the sale, transfer or condemnation of any of the Borrower’s or any Subsidiary’s Properties if such Redemption or offer to Redeem is consummated in accordance with Section 9.04(b)(i). 

(g) An involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of the Borrower or any Subsidiary thereof or its debts, or of a substantial part of its assets, under any Federal, state 

  
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or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar
official for the Borrower or any Subsidiary thereof or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of
the foregoing shall be entered. 
 (h) The Borrower or any Subsidiary thereof shall (i) voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest
in a timely and appropriate manner, any proceeding or petition described in Section 10.01(g), (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the
Borrower or any subsidiary thereof or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the foregoing; or any stockholder, member or partner of the Borrower shall make any request or take any action for the purpose of calling a meeting of the stockholders of the
Borrower to consider a resolution to dissolve and wind-up the Borrower’s affairs. 
 (i) The Borrower or any Subsidiary
thereof shall become unable, admit in writing its inability or fail generally to pay its debts as they become due. 
 (j) (i)
One or more judgments for the payment of money in an aggregate amount in excess of $5,000,000 or (ii) any one or more non-monetary judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, shall be rendered against the Borrower or Subsidiary thereof or any combination thereof and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed,
or any action shall be legally taken by a judgment creditor or judgment creditors to attach or levy upon any assets of the Borrower or any Subsidiary thereof to enforce any such judgment. 

(k) The Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in
full force and effect and valid, binding and enforceable in accordance with their terms against any Loan Party party thereto or shall be repudiated by any of them, or cease to create a valid and perfected Lien of the priority required thereby on any
of the Collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or a Loan Party shall so state in writing. 
 (l) The Borrower or any Subsidiary or their Properties shall be the subject of any claim, demand, proceeding, inquiry or investigation pertaining to (i) any Release by the Borrower, any Subsidiary or
any other Person of any Hazardous Materials or (ii) any violation by the Borrower or any Subsidiary of any Environmental Law, that, in the case of any event described in clause (i) or (ii), individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect. 
 (m) A Change in Control shall occur. 

  
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 Section 10.02 Remedies. 

(a) In the case of an Event of Default other than one described in Section 10.01(g), Section 10.01(h) or
Section 10.01(i), at any time thereafter during the continuance of such Event of Default, the Administrative Agent may, and at the request of the Majority Lenders, shall, by notice to the Borrower, take either or both of the following
actions, at the same or different times: (i) terminate the Aggregate Maximum Credit Amounts, and thereupon the Aggregate Maximum Credit Amounts and Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be
due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrower and the Guarantors accrued hereunder and under the Loan Documents (including, without limitation, the payment of cash collateral to secure the LC Exposure as provided in
Section 2.08(j)), shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower and each
Guarantor; and in case of an Event of Default described in Section 10.01(g), Section 10.01(h) or Section 10.01(i), the Aggregate Maximum Credit Amounts shall automatically terminate and the principal of the Loans
then outstanding, together with accrued interest thereon and all fees and the other obligations of the Borrower and the Guarantors accrued hereunder and under the other Loan Documents (including, without limitation, the payment of cash collateral to
secure the LC Exposure as provided in Section 2.08(j)), shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and each Guarantor.

 (b) In the case of the occurrence of an Event of Default, the Administrative Agent and the Lenders will have all other rights
and remedies available at law and equity. 
 (c) All proceeds realized from the liquidation or other disposition of Collateral
or otherwise received after maturity of the Loans, whether by acceleration or otherwise, shall be applied: 
 (i)
first, to payment or reimbursement of that portion of the Secured Obligations constituting fees, expenses and indemnities payable to the Administrative Agent in its capacity as such; 

(ii) second, pro rata to payment or reimbursement of that portion of the Secured Obligations constituting fees,
expenses and indemnities payable to the Lenders; 
 (iii) third, pro rata to payment of accrued interest
on the Loans; 
 (iv) fourth, pro rata to payment of (A) principal outstanding on the Loans,
(B) Secured Obligations referred to in clause (b) of the definition of Secured Obligations owing to a Secured Hedging Agreement Counterparty, and (C) Secured Obligations referred to in clause (c) of the definition of Secured
Obligations owing to a Secured Treasury Management Counterparty; 
 (v) fifth, pro rata to any other
Secured Obligations; 

  
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 (vi) sixth, to serve as cash collateral to be held by the
Administrative Agent to secure the LC Exposure; and 
 (vii) seventh, any excess, after all of the Secured
Obligations shall have been indefeasibly paid in full in cash, shall be paid to the Borrower or as otherwise required by any Governmental Requirement. 
 ARTICLE XI 
 THE ADMINISTRATIVE AGENT 

Section 11.01 Appointment; Powers. Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative
Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and
powers as are reasonably incidental thereto. 
 Section 11.02 Duties and Obligations of Administrative Agent. The
Administrative Agent shall have no duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing (the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent
contracting parties), (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except as provided in Section 11.03, and (c) except as expressly set forth herein, the
Administrative Agent shall have no duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, any other Loan Party or any of their Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a
Lender, and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or under any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth
herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set
forth in ARTICLE VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or as to those conditions precedent expressly required to be to the Administrative Agent’s
satisfaction, (vi) the existence, value, perfection or priority of any collateral security or the financial or other condition of any Loan Party, any Subsidiary or any other obligor or guarantor, or (vii) any failure by the Borrower or any
other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the performance or observance of any covenants, agreements or other terms or conditions set forth 

  
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herein or therein. For purposes of determining compliance with the conditions specified in ARTICLE VI, each Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from such Lender prior to the proposed
closing date specifying its objection thereto. 
 Section 11.03 Action by Administrative Agent. The Administrative
Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise
in writing as directed by the Majority Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02) and in all cases the Administrative Agent shall be fully
justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 12.02) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by
it by reason of taking or continuing to take any such action. The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders. If a Default has occurred and is
continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this Section 11.03, provided
that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem
advisable in the best interests of the Lenders. In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the Loan
Documents or applicable law. If a Default has occurred and is continuing, neither any Co-Syndication Agent nor any Co-Documentation Agent shall have any obligation to perform any act in respect thereof. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of the Majority Lenders or the Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 12.02), and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or
therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct. 
 Section 11.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by
it to be made by the proper Person, and shall not incur any liability for relying thereon and each of the Borrower, the Lenders and the Issuing Banks hereby waives the right to dispute the Administrative Agent’s record of such statement, except
in the case of gross negligence or willful misconduct by the 

  
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Administrative Agent. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and
until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent. 
 Section 11.05 Sub-agents. The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding Sections of this
ARTICLE XI shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent. 
 Section 11.06 Resignation or Removal of Administrative
Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this Section 11.06, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower, and the
Administrative Agent may be removed at any time with or without cause by the Majority Lenders. Upon any such resignation or removal, the Majority Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no
successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation or removal of the retiring Administrative
Agent, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this ARTICLE XI and Section 12.03 shall continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
 Section 11.07 Agents as Lenders. Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as
though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.

 Section 11.08 No Reliance. Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent, any other Agent, any Issuing Bank or any other 

  
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Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and each other Loan Document to which it is
a party. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, any other Agent, any Issuing Bank or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder. The Agents shall not be
required to keep themselves informed as to the performance or observance by the Borrower or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books
of the Borrower or its Subsidiaries. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, neither any Agent nor the Arranger shall have any duty or
responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or Arranger or any of its
Affiliates. In this regard, each Lender acknowledges that Latham & Watkins LLP is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any
Loan Document. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein. 

Section 11.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party or any Subsidiary of the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan
shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of
the Loans and all other Secured Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 12.03) allowed in
such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent 

  
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and its agents and counsel, and any other amounts due the Administrative Agent under Section 12.03. 
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or
composition affecting the Secured Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 

Section 11.10 Authority of Administrative Agent to Release Collateral and Liens. Each Lender and each Issuing Bank hereby
authorizes the Administrative Agent to release any Collateral that is permitted to be sold or released pursuant to the terms of the Loan Documents. Each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver
to the Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with any sale or other disposition of Property to
the extent such sale or other disposition is permitted by the terms of Section 9.12 or is otherwise authorized by the terms of the Loan Documents. 
 Section 11.11 The Arranger, the Co-Syndication Agents and the Co-Documentation Agents. The Arranger, the Co-Syndication Agents and the Co-Documentation Agents shall have no duties,
responsibilities or liabilities under this Agreement and the other Loan Documents other than its duties, responsibilities and liabilities in their capacities as Lenders hereunder. 

ARTICLE XII 

MISCELLANEOUS 
 Section 12.01 Notices. 
 (a) Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to Section 12.01(b)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by facsimile, as follows: 
 (i) if to the Borrower, to it at the
following: 
 Energy Partners, Ltd. 
 201 St. Charles Ave., Ste 3400 
 New Orleans, LA 70170 

Attention: T.J. Thom 
 Phone: 504-799-4830 
 Fax: 504-569-1874 

(ii) if to the Administrative Agent, to it at the following: 

Bank of Montreal 
 700 Louisiana Street, Suite 2100 
 Houston, Texas 77002-2792

  
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 Attention: Kevin Utsey 

Phone: 713-223-4007 
 Fax: 713-546-9720 
 LIBOR Office: 

Bank of Montreal 
 115 S. LaSalle – 17th Floor West 
 Chicago, IL 60603 

Attention: Janet Pelegrino, BMO Agency Services 
 Phone: 312-461-3458 
 Fax: 312-461-6368 

(iii) if to Bank of Montreal, as an Issuing Bank, to it at the following: 

Bank of Montreal 
 115 S. LaSalle – 17th Floor West 
 Chicago, IL 60603 

Attention: Janet Pelegrino, BMO Agency Services 
 Phone: 312-461-3458 
 Fax: 312-461-6368 

(iv) if to any other Lender or Issuing Bank, to it at its address (or facsimile number) set forth in its Administrative
Questionnaire. 
 (v) if to any Subsidiary, to it at its address set forth in Schedule 1 to the Guaranty and
Collateral Agreement. 
 (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to ARTICLE II, ARTICLE III, ARTICLE IV and ARTICLE V unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. 
 (c) Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 

Section 12.02 Waivers; Amendments. No failure on the part of the Administrative Agent, any Issuing Bank or any Lender to
exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
of the Administrative Agent, the Issuing 

  
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Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by Section 12.02(b), and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time. 
 (b)
Neither this Agreement nor any provision hereof nor any Security Instrument nor any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Majority Lenders
or by the Borrower and the Administrative Agent with the consent of the Majority Lenders; provided that no such agreement shall, subject to the provisions of Section 4.03(c)(ii), (i) increase the Commitment or the Maximum
Credit Amount of any Lender without the written consent of such Lender, (ii) increase the Borrowing Base without the written consent of each Lender, decrease or maintain the Borrowing Base without the consent of the Required Lenders, or modify
in any manner Section 2.07 (other than Section 2.07(e)) without the consent of each Lender, (iii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon (other than a reduction
in, or waiver of, the default rate of interest, which shall require the written consent of the Required Lenders), or reduce any fees payable hereunder, or reduce any other Secured Obligations hereunder or under any other Loan Document, without the
written consent of each Lender affected thereby, (iv) postpone the scheduled date of payment (but not prepayment) of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or any other
Secured Obligations hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment (other than a reduction in, or waiver of, the default rate of interest, which shall require the written consent of the Required
Lenders), or postpone or extend the Termination Date without the written consent of each Lender affected thereby, (v) change Section 4.01(b) or Section 4.01(c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (vi) waive or amend Section 8.14 or change the definition of the terms “Domestic Subsidiary”, “Foreign Subsidiary” or “Subsidiary”,
without the written consent of each Lender, (vii) release any Guarantor (except as set forth in the Guaranty and Collateral Agreement), release all or a substantial portion of the Collateral (other than as provided in
Section 11.10), or reduce the percentage set forth in Section 8.14(a) to less than 85%, without the written consent of each Lender, or (viii) change any of the provisions of this Section 12.02(b) or the
definition of “Required Lenders” or “Majority Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or under any other Loan Documents or make
any determination or grant any consent hereunder or any other Loan Documents, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, any other Agent or any Issuing Bank hereunder or under any other Loan Document without the prior written consent of the Administrative Agent, such other Agent or such Issuing Bank, as the case may be. Notwithstanding the
foregoing, any supplement to Schedule 7.14 shall be effective simply by delivering to the Administrative Agent a supplemental schedule clearly 

  
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marked as such and, upon receipt, the Administrative Agent will promptly deliver a copy thereof to the Lenders. 
 Section 12.03 Expenses, Indemnity; Damage Waiver. 
 (a) The Borrower
shall pay (i) all reasonable and invoiced out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including, without limitation, the reasonable fees, charges and disbursements of counsel and other outside consultants for
the Administrative Agent, the reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, and the cost of environmental invasive and noninvasive assessments, audits and surveys and appraisals, in connection with the
syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel to the Administrative Agent as to the rights
and duties of the Administrative Agent and the Lenders with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, other Taxes, assessments and other similar charges incurred by any Agent in connection with any filing, registration, recording or perfection of any
security interest contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal
or extension of any Letter of Credit or any demand for payment thereunder, and (iv) all out-of-pocket expenses incurred by any Agent, any Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for any Agent,
any Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under this Section 12.03, or in connection with the Loans
made or Letters of Credit issued hereunder, including, without limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 

(b) THE BORROWER SHALL INDEMNIFY EACH AGENT, THE ARRANGER, EACH ISSUING BANK AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE
FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND DEFEND AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES, INCLUDING THE FEES,
CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY
AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OR THE PARTIES TO ANY OTHER LOAN DOCUMENT OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR BY ANY OTHER LOAN DOCUMENT, (ii) THE FAILURE OF ANY LOAN PARTY OR ANY SUBSIDIARY OF THE BORROWER TO COMPLY WITH THE TERMS OF ANY LOAN DOCUMENT, INCLUDING THIS AGREEMENT, OR WITH ANY GOVERNMENTAL

  
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REQUIREMENT, (iii) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OR COVENANT OF THE BORROWER OR ANY GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS OR ANY INSTRUMENTS,
DOCUMENTS OR CERTIFICATIONS DELIVERED IN CONNECTION THEREWITH, (iv) ANY LOAN OR LETTER OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM, INCLUDING, WITHOUT LIMITATION, (A) ANY REFUSAL BY ANY ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A
LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, OR (B) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE,
NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE DOCUMENTS PRESENTED IN CONNECTION THEREWITH, (v) THE OPERATIONS OF THE BUSINESS OF THE LOAN PARTIES AND THE SUBSIDIARIES OF THE BORROWER BY SUCH LOAN PARTIES AND SUBSIDIARIES, (vi) ANY
ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS, (vii) THE PRESENCE, GENERATION, STORAGE, RELEASE, THREATENED RELEASE, USE, TRANSPORT, DISPOSAL, ARRANGEMENT OF DISPOSAL, OR
TREATMENT OF, OR ALLEGED PRESENCE OR RELEASE OF, HAZARDOUS MATERIALS ON OR AT ANY OF THEIR PROPERTIES, (viii) THE BREACH OR NON-COMPLIANCE BY ANY LOAN PARTY OR ANY SUBSIDIARY OF THE BORROWER WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER
OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES, (ix) ANY HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS, OR (x) ANY CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A LOAN PARTY OR A SUBSIDIARY OR ANY THIRD PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO, AND SUCH INDEMNITY SHALL EXTEND TO EACH INDEMNITEE NOTWITHSTANDING THE SOLE OR CONCURRENT
NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF
THE INDEMNITEES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNITEES; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES OR RELATED EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE. 

(c) To the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, the Arranger or any Issuing Bank
under Section 12.03(a) or (b), but without affecting such payment obligations of the Borrower, each Lender severally agrees to pay to such Agent, the Arranger or such Issuing Bank, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or 

  
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indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, Arranger or Issuing Bank in its capacity as such. 

(d) All amounts due under this Section 12.03 shall be payable upon written demand therefor. 

Section 12.04 Assignments and Participations. 
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of any
Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section 12.04. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in Section 12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement. 
 (b) (i) Subject to the conditions set forth in Section 12.04(b)(ii), any
Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Maximum Credit Amount and the Loans at the time owing to it) with the prior written consent (such
consent not to be unreasonably withheld or delayed) of: 
 (A) the Borrower, provided that no consent of the Borrower
shall be required for an assignment (1) at any time, to a Lender, an Affiliate of a Lender, or an Approved Fund, or (2) if an Event of Default has occurred and is continuing, to any other assignee; and 

(B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment to an
assignee that is a Lender immediately prior to giving effect to such assignment. 
 (ii) Assignments shall be
subject to the following additional conditions: 
 (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender or an assignment of the entire remaining amount of the assigning Lender’s Maximum Credit Amount, the amount of the Maximum Credit Amount of the assigning Lender subject to each such assignment (determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000, and the Maximum Credit Amount or Loans of any assigning Lender remaining a party hereto after giving effect to the assignment
shall be at least $5,000,000 unless, in each case, 

  
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each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

 (B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement; 
 (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; 
 (D) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire; and 
 (E) in the case of an
assignment to a CLO, the assigning Lender shall retain the sole right to approve any amendment, modification or waiver of any provision of this Agreement, provided that the Assignment and Assumption between such Lender and such CLO may
provide that such Lender will not, without the consent of such CLO, agree to any amendment, modification or waiver described in the first proviso to Section 12.02 that affects such CLO. 

(iii) Subject to Section 12.04(b)(iv) and the acceptance and recording thereof, from and after the effective
date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Section 5.01, Section 5.02, Section 5.03 and
Section 12.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 12.04 shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 12.04(c). 
 (iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States of America a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Maximum Credit Amount of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender for all purposes of this Agreement,
notwithstanding notice or anything in any Loan Document to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Banks and any Lender, at any reasonable time and from time to time upon reasonable prior notice. In
connection with any changes to the Register, if necessary, the Administrative Agent will reflect the revisions on Annex I 

  
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and forward a copy of such revised Annex I to the Borrower, each Issuing Bank and each Lender. 
 (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to in Section 12.04(b) and any written consent to such assignment required by Section 12.04(b), the Administrative Agent shall accept such Assignment
and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless and until it has been recorded in the Register as provided in this Section 12.04(b).

 (c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent or any Issuing Bank, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Maximum Credit Amount and the Loans
owing to it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and
(C) the Borrower, the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso to Section 12.02(b) that affects
such Participant. In addition such agreement must provide that the Participant be bound by the provisions of Section 12.03. Subject to Section 12.04(c)(ii), the Borrower agrees that each Participant shall be entitled to the
benefits of Section 5.01, Section 5.02 and Section 5.03 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 12.04(b). To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 12.08 as though it were a Lender, provided that such Participant agrees to be subject to Section 4.01(c) as though it were a Lender. 

(ii) A Participant shall not be entitled to receive any greater payment under Section 5.01 or
Section 5.03 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. A Participant shall not be entitled to the benefits of Section 5.03 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply
with Section 5.03(e) as though it were a Lender. 
 (iii) A Participant shall be subject to the
provisions of Section 5.04 as if it were a Lender. 
 (d) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, 

  
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without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section 12.04(d) shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

(e) Notwithstanding any other provisions of this Section 12.04, no transfer or assignment of the interests or obligations of
any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower and the Guarantors to file a registration statement with the SEC or to qualify the Loans under the “Blue
Sky” laws of any state. 
 Section 12.05 Survival; Revival; Reinstatement. 

(a) All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any other Agent, any Issuing Bank or any Lender may have had notice or knowledge
of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid (other than contingent indemnification obligations for which no claim has been made) or any Letter of Credit (other than those that have been fully cash collateralized or with respect to which a
backstop letter of credit has been provided to the applicable Issuing Bank, in each case, on customary terms reasonably acceptable to each applicable Issuing Bank) is outstanding and so long as the Aggregate Maximum Credit Amounts have not expired
or terminated. The provisions of Section 5.01, Section 5.02, Section 5.03 and Section 12.03 and ARTICLE XI shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Aggregate Maximum Credit Amounts or the termination of this Agreement, any other Loan Document or any provision hereof or
thereof. 
 (b) To the extent that any payments on the Secured Obligations or proceeds of any Collateral are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Secured
Obligations so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agent’s and the Lenders’ Liens, security interests, rights, powers and remedies under this Agreement and
each Loan Document shall continue in full force and effect. In such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to
effect such reinstatement. 
 Section 12.06 Counterparts; Integration; Effectiveness. 

  
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 (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. 
 (b) This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the
subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

(c) Except as provided in Section 6.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of
this Agreement. 
 Section 12.07 Severability. Any provision of this Agreement or any other Loan Document held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
 Section 12.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations (of whatsoever kind, including, without limitation, obligations under
Hedging Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Subsidiary against any of and all the obligations of the Borrower or any Subsidiary owed to such Lender now or hereafter
existing under this Agreement or any other Loan Document, irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Lender
under this Section 12.08 are in addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates may have. 
 Section 12.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS. 

  
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 (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS MAY
BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW)
IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION
OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 
 (c) EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT THE ADDRESS SPECIFIED IN Section 12.01 OR SUCH OTHER ADDRESS AS IS SPECIFIED
PURSUANT TO Section 12.01 (OR ITS ASSIGNMENT AND ASSUMPTION), SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH COPIES ARE DEPOSITED IN THE MAIL. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY OR ANY HOLDER OF A NOTE TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANOTHER PARTY IN ANY OTHER JURISDICTION. 
 (d) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS CONTAINED IN THIS Section 12.09. 

  
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 Section 12.10 Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

Section 12.11 Confidentiality. Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority,
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section 12.11, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any Hedging Agreement relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as
a result of a breach of this Section 12.11 or (ii) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this
Section 12.11, “Information” means all information received from any Loan Party or Subsidiary relating to the Loan Parties, the Subsidiaries, and their businesses, other than any such information that is available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by any Loan Party or Subsidiary; provided that, in the case of information received from any Loan Party or a Subsidiary after the date hereof,
such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 12.11 shall be considered to have complied with its obligation
to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 

Section 12.12 Interest Rate Limitation. It is the intention of the parties hereto that each Lender shall conform strictly to
usury laws applicable to it. Accordingly, if the Transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of Texas or any other jurisdiction
whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection
with or as security for the Secured Obligations, it is agreed as follows: (i) the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by such
Lender under any of the Loan Documents or agreements or otherwise in connection with the Loans shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be canceled automatically and if theretofore
paid shall be credited by such Lender on the principal amount of the Secured Obligations (or, to the extent that the principal amount of the Secured Obligations shall have been or would thereby be

  
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paid in full, refunded by such Lender to the Borrower); and (ii) in the event that the maturity of the Loans is accelerated by reason of an election of the holder thereof resulting from any
Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed
by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such
Lender on the principal amount of the Secured Obligations (or, to the extent that the principal amount of the Secured Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower). All sums paid or agreed to
be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term of the Loans until payment in
full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and from time to time (a) the amount of interest payable to any Lender on any date
shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this Section 12.12 and (b) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be
less than the amount of interest payable to such Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be
computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been
computed without giving effect to this Section 12.12. To the extent that Chapter 303 of the Texas Finance Code is relevant for the purpose of determining the Highest Lawful Rate applicable to a Lender, such Lender elects to determine the
applicable rate ceiling under such Chapter by the weekly ceiling from time to time in effect. Chapter 346 of the Texas Finance Code does not apply to the Borrower’s obligations hereunder. 

Section 12.13 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND
KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS
RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN
SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO 

  
 110

 
NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.” 
 Section 12.14 Collateral Matters; Hedging Agreements; Treasury Management Agreements. The benefit of the Security Instruments and of the provisions of this Agreement relating to any Collateral
securing the Secured Obligations shall also extend to and be available to Secured Hedging Agreement Counterparties and Secured Treasury Management Counterparties on a pro rata basis (subject to the priorities set forth in
Section 10.02(c)) in respect of any obligations of the Borrower or any of its Subsidiaries (other than Immaterial Subsidiaries) which arise under any such Secured Hedging Agreement or Secured Treasury Management Agreement. No Lender or
any Affiliate of a Lender shall have any voting rights under any Loan Document as a result of the existence of obligations owed to it under any such Secured Hedging Agreements or Secured Treasury Management Agreements. Each Lender, on behalf of
itself and its Affiliates who are Secured Hedging Agreement Counterparties, and each Secured Hedging Agreement Counterparty, by accepting the benefits of the Collateral, hereby agrees that the Loan Parties may grant security interests, covering all
rights of the Obligors in Hedging Agreements with any Lender or Secured Hedging Agreement Counterparty, to the Administrative Agent under the Security Instruments to secure the Secured Obligations, notwithstanding any restriction on such security
interests under any Hedging Agreement. 
 Section 12.15 No Third Party Beneficiaries. This Agreement, the other Loan
Documents, and the agreement of the Lenders to make Loans and the Issuing Banks to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of the Borrower, and no other Person (including, without limitation, any
Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialmen) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any Issuing Bank or any
Lender for any reason whatsoever. There are no third party beneficiaries. 
 Section 12.16 USA Patriot Act Notice.
Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “USA Patriot Act”), it is required to obtain, verify and
record information that identifies the Borrower and its Subsidiaries, which information includes the name and address of the Borrower and its Subsidiaries other information that will allow such Lender to identify the Borrower and its Subsidiaries in
accordance with the USA Patriot Act. 
 Section 12.17 Releases. If any of the Collateral shall be sold, transferred
or otherwise disposed of by any Loan Party in a transaction permitted by the Credit Agreement, then the Administrative Agent, at the request and sole expense of such Loan Party, shall promptly (but in any event within ten (10) Business Days of
receipt by the Administrative Agent of a written notice from a Loan Party with respect to such disposition) execute and deliver to such Loan Party all releases or other documents reasonably necessary or desirable for the release of the Liens created
by the Secured Instruments on such Collateral. 
 Section 12.18 No Fiduciary Duty. Each Lender and its respective
Affiliates (collectively, solely for purposes of this Section 12.18, the “Lenders”) may have economic interests that conflict with those of the Loan Parties. Each Loan Party agrees that nothing in any Loan Document, any
Secured Hedging Agreement or any Secured Treasury Management 

  
 111

 
Agreement will be deemed to create an advisory, fiduciary or agency relationship between the Lenders and the Loan Parties, their partners or their Affiliates. Each Loan Party acknowledges and
agrees that (a) the transactions with the Lenders contemplated by the Loan Documents, the Secured Hedging Agreements and the Secured Treasury Management Agreements are arm’s-length commercial transactions between the Lenders, on the one
hand, and the applicable Loan Parties, on the other, (b) in connection therewith and with the process leading to such transactions each Lender is acting solely as a principal and not the agent or fiduciary of any Loan Party, or of any Loan
Party’s management, partners, creditors or other Affiliates, (c) no Lender has assumed a fiduciary responsibility in favor of any Loan Party with respect to the transactions with Lenders contemplated by the Loan Documents, any Secured
Hedging Agreement or any Secured Treasury Management Agreement or the process leading thereto (irrespective of whether any Lender or any of its Affiliates has advised or is currently advising any Loan Party on other matters) and (d) such Person
has consulted its own legal and financial advisors to the extent it deemed appropriate. Each Loan Party further acknowledges and agrees that it is responsible for making its own independent judgment with respect to such transactions and the process
leading thereto. Each Loan Party agrees that it will not claim that any Lender owes a fiduciary duty to such Person in connection with the Loan Documents, any Secured Hedging Agreement or any Secured Treasury Management Agreement or the process
leading thereto. 
 [SIGNATURES BEGIN NEXT PAGE] 

  
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 The parties hereto have caused this Agreement to be duly executed as of the day and year
first above written. 
  

					
	BORROWER:	 	ENERGY PARTNERS, LTD.
			
		 	By:	 	 /s/ Tiffany J. Thom

		 	Name:	 	T. J. Thom
		 	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer

  

 
  
  

Signature Page to Credit Agreement 

					
	ADMINISTRATIVE AGENT:	 	 BANK OF MONTREAL
 as Administrative Agent

			
		 	By:	 	 /s/ Kevin Utsey

		 	Name:	 	Kevin Utsey
		 	Title:	 	Director

  
  

 
  
  

 
 Signature Page to Credit Agreement 

					
	LENDERS:	 	BANK OF MONTREAL
			
		 	By:	 	 /s/ Kevin Utsey

		 	Name:	 	Kevin Utsey
		 	Title:	 	Director

  
  

 
  
  

 
 Signature Page to Credit Agreement 

 
			
	CAPITAL ONE, N.A.
		
	By:	 	 /s/ Matthew Molero

	Name:	 	Matthew L. Molero
	Title:	 	Vice President

  

 
  
  

 
  

Signature Page to Credit Agreement 

 
			
	NATIXIS, S.A.
		
	By:	 	 /s/ Liana Tchernysheva

		 	Liana Tchernysheva
		 	Director
		
	By:	 	/s/ Louis P. Laville, III
		 	Louis P. Laville, III
		 	Managing Director

  

 
  
  

 
  

Signature Page to Credit Agreement 

 
			
	REGIONS BANK
		
	By:	 	 /s/ William A. Phillip

	Name:	 	William A. Phillip
	Title:	 	 Senior Vice President

  

 
  
  

 
  
  

 
  

Signature Page to Credit Agreement 

 
			
	THE BANK OF NOVA SCOTIA
		
	By:	 	 /s/ John Frazell

	Name:	 	John Frazell
	Title:	 	Director

  

 
  
  

 
  
  

 
 Signature Page to Credit Agreement 

 
			
	IBERIABANK
		
	By:	 	 /s/ Cameron D. Jones

	Name:	 	Cameron D. Jones
	Title:	 	Assistant Vice President

  

 
  
  

 
  
  

Signature Page to Credit Agreement 

 ANNEX I 
 LIST OF MAXIMUM CREDIT AMOUNTS 
  

									
	 Name of Lender
	  	Applicable Percentage	 	 	Maximum Credit Amount	 
	 Bank of Montreal
	  	 	20.0000	% 	 	$	50,000,000.00	  
	 Capital One, N.A.
	  	 	17.3333	% 	 	$	43,333,333.33	  
	 Natixis
	  	 	17.3333	% 	 	$	43,333,333.33	  
	 Regions Bank
	  	 	17.3333	% 	 	$	43,333,333.33	  
	 The Bank of Nova Scotia
	  	 	17.3333	% 	 	$	43,333,333.33	  
	 Iberiabank
	  	 	10.6667	% 	 	$	26,666,666.67	  
	 TOTAL
	  	 	100.00	% 	 	$	250,000,000	  

  
 Annex I
to Credit AgreementEmployment Agreement, executed January 27, 2011

 Exhibit 10.1 
 EXECUTION COPY 
 EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”), is effective as of August 1, 2010 (the “Effective Date”), and executed
August 23, 2010, between Ampio Pharmaceuticals, Inc., a Delaware corporation headquartered at 8400 East Crescent Parkway, Suite 600, Greenwood Village, CO 80111 USA, hereinafter referred to as the “Company”), and Vaughan Clift, M.D.
(“Employee”). 
 RECITALS 
 WHEREAS, the Company is a duly organized Delaware corporation, with its principal place of business within the State of Colorado, and is in the business of developing and marketing pharmaceutical
products; and 
 WHEREAS, the Company desires assurance of the continued association and services of the Employee in
order to continue to retain the Employee’s experience, skills, abilities, background and knowledge, and is willing to continue to engage the Employee’s services on the terms and conditions set forth in this Agreement; and 

WHEREAS, Employee desires to be in the continued employ of the Company, and is willing to accept such continued employment on the
terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, the parties hereto agree to the terms and conditions of this
Agreement as follows: 
 1. Employment for Term. The Company hereby agrees to employ Employee and Employee hereby accepts such employment
with the Company for the period of 36 months beginning on the Effective Date. The term of this Agreement (the “Term”) shall continue until the termination of Employee’s employment in accordance with the provisions of this Agreement.
The termination of Employee’s employment under this Agreement shall end the Term but shall not terminate Employee’s or the Company’s other obligations that are intended to survive the termination of this Agreement (including without
limitation, the payments under Section 7 and 8 and Employee’s obligations under Section 9). 
 2. Position and Duties.
During the Term, Employee shall serve as Vice President of Scientific and Clinical Affairs of the Company, and perform such duties as are consistent with this position. The Employee shall report to the Chief Executive Officer of the Company.
During the Term, Employee shall also hold such additional positions and titles as the Chief Executive Officer or the Board of Directors of the Company (the “Board”) may determine from time to time. During the Term, Employee shall devote as
much time as is necessary to satisfactorily perform his duties as the Vice President of Scientific and Clinical Affairs of the Company. Without limitation of the foregoing, the Company hereby acknowledges that it consents to Employee’s
participation in those outside activities described on Exhibit A hereto. Employee may engage in any civic and not-for-profit activities so long as such activities do not materially interfere with the performance of his duties hereunder or present a
conflict of interest with the Company. During the Term of this Agreement, Employee agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Employee to be adverse or antagonistic to
the Company, its business or prospects, its financial position, or otherwise or in any company, person or entity that is, directly or indirectly, in competition with the business of 

  
 1 

 
the Company or any of its affiliates. This provision shall encompass any advisory boards of which Employee is or becomes a member of during the term hereof. Employee shall provide written
disclosure to the Compensation Committee of the Company’s Board of Directors as to all advisory boards on which Employee sites, and will provide the Company with written notice within 10 business days of Employee agreeing to sit on any
additional advisory boards. On termination of Employee’s employment, regardless of the reason for such termination, Employee shall immediately (and with contemporaneous effect) resign any directorships, offices or other positions that Employee
may hold in the Company or any affiliate, unless otherwise agreed in writing by the parties. 
 3. Compensation. 

(a) Base Salary. The Company shall pay Employee a base salary of $150,000 per annum, payable at least monthly on the Company’s
regular pay cycle for professional employees (the “Base Salary”). In addition, the Company will continue to pay a $3,000 per month temporary housing allowance through January 2011. At such time as the Company receives additional funding in
an amount deemed appropriate by the Board of Directors to permit the Company to execute its strategic plan. the Base Salary shall automatically increase, without additional action by the Compensation Committee or Board, to $250,000 per annum,
payable as described above. Except as specifically otherwise provided herein, the Base Salary may be increased only by recommendation of the Compensation Committee of the Board and ratified by the Compensation Committee or a majority of the
independent members of the Board. 
 (b) Annual Review. The Base Salary shall be reviewed at the end of each calendar
year (the first such review to occur at the end of calendar year 2010). 
 (c) Equity Compensation. In connection with
the execution of this Agreement, the Company hereby agrees to grant initial equity compensation to Employee in the aggregate amount of 365,000 options to purchase shares of Company Common Stock. These options shall vest in accordance with the terms
and schedule set forth in Exhibit B hereto. Such vesting schedule will be accelerated, to the extent provided in Section 8 of this agreement. 
 (d) Other and Additional Compensation. Subsections (a) and (c) above establish Employee’s compensation during the Term which shall not preclude the Board from awarding Employee a
higher salary or any bonuses or stock options, restricted stock or other forms of additional equity awards in the discretion of the Board during the Term at any time. The Employee shall be eligible for an annual discretionary bonus (hereinafter
referred to as the “Bonus”) with a target amount of fifty percent (50%) of the Base Salary, subject to standard deductions and withholdings, based on the Compensation Committee’s determination, in good faith, and based upon the
Employee’s individual achievement and company performance objectives as set by the Board or the Compensation Committee, of whether the Employee has met such performance milestones as are established for the Employee by the Board or the
Compensation Committee, in good faith, in consultation with the Employee (hereinafter referred to as the “Performance Milestones”). The Performance Milestones will be based on certain factors including, but not limited to, the
Employee’s performance and the Company’s financial performance. The Employee’s Bonus target will be reviewed annually and may be adjusted by the Board or the Compensation Committee in its discretion, provided however, that the Bonus
target may only be reduced upon Employee’s written consent. The Employee must be employed on the date the Bonus is awarded to be eligible for the Bonus, subject to the termination provisions hereof. Bonuses shall be paid during the calendar
quarter following the calendar 

  
 2 

 
quarter for which such Bonus was earned when Performance Milestones are met during a calendar quarter. Fourth quarter Bonuses and Bonuses calculated on the basis of partial Performance Milestone
satisfaction shall be paid within 120 days of fiscal year-end. 
 4. Employee Benefits. During the Term, Employee shall be entitled to
participate at the same level as other senior executive officers of the Company in any group insurance, hospitalization, medical, health and accident, disability, fringe benefit and tax-qualified retirement plans or programs of the Company now
existing or hereafter established to the extent that he is eligible under the general provisions thereof. For the term of this Agreement, Employee shall be entitled to paid vacation at the rate of (4) weeks per annum. In accordance with Company
policy, unused vacation may not be carried over from year to year. 
 5. Expenses. The Company shall reimburse Employee for
actual, reasonable out-of-pocket expenses incurred by him in the performance of his services for the Company upon the receipt of appropriate documentation of such expenses which shall be submitted in such form, and with such supporting
documentation, as called for or required by Company policy. 
 6. Termination. 

(a) General. The Term shall end immediately upon Employee’s death. Employee’s employment may also be terminated by the
Company with or without Cause or as a result of Employee’s Disability, as defined in Section 7 or by Employee with or without Good Reason (as such terms are defined below). 

(b) Notice of Termination. Either party shall give written notice of termination to the other party. 

(c) Notification of New Employer. In the event that Employee leaves the employ of the Company, Employee grants consent to
notification by the Company to Employee’s new employer about his rights and obligations under this Agreement and the PIA (hereinafter defined). 
 7. Severance Benefits. 
 (a) Cause Defined. “Cause” means
(i) willful malfeasance or willful misconduct by Employee in connection with his employment; (ii) Employee’s gross negligence in performing any of his duties under this Agreement; (iii) Employee’s conviction of, or entry of
a plea of guilty to, or entry of a plea of nolo contendre with respect to, any crime other than a traffic violation or infraction which is a misdemeanor; (iv) Employee’s willful and deliberate violation of a Company policy,
(v) Employee’s unintended but material breach of any written policy applicable to all employees adopted by the Company which is not cured to the reasonable satisfaction of the Board of Directors within thirty (30) business days after
notice thereof; (vi) the Employee’s unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other party as to which the Employee owes an obligation of nondisclosure as a result of the
Employee’s relationship with the Company, (vii) the Employee’s willful and deliberate breach of his obligations under this Agreement, or (viii) any other material breach by Employee of any of his obligations in this Agreement
which is not cured to the reasonable satisfaction of the Board of Directors within thirty (30) business days after notice thereof. 

  
 3 

 (b) Disability Defined. “Disability” shall mean (i) Employee’s
incapacity due to a physical or mental condition and, if reasonable accommodation is required by law, after any reasonable accommodation, that results in Employee being substantially unable to perform his duties hereunder for six consecutive months
(or for six months out of any nine month period) or (ii) a qualified independent physician mutually acceptable to the Company and Employee determines that Employee is incapacitated due to a physical or mental condition and, if reasonable
accommodation is required by law, after any reasonable accommodation so as to be unable to regularly perform the duties of his position and such condition is expected to be of a permanent or near-permanent duration. Until such time as Employee is
terminated for Disability under this paragraph (b), Employee shall continue to receive his Base Salary hereunder, provided that if the Company provides Employee with disability insurance coverage, payments of Employee’s Base Salary shall be
reduced by the amount of any disability insurance payments received by Employee due to such coverage. The Company shall give Employee written notice of termination due to Disability that shall take effect sixty (60) days after the date it is
sent to Employee unless Employee shall have returned to the performance of his duties hereunder during such sixty (60) day period (whereupon such notice shall become void). In the event that the Company terminates Employee’s employment as
a result of his Disability, Employee shall be entitled to the same benefits as if his employment had been terminated by the Company without Cause. 
 (c) Good Reason Defined. For purposes of this Agreement, “Good Reason” shall mean, without Employee’s written consent: (i) there is a material reduction of the level of
Employee’s compensation (excluding any bonuses) (except where there is a general reduction applicable to the management team generally, provided, however, that in no case may the Base Salary be reduced below the amount stated in
Section 3(a)), (ii) there is a material reduction in Employee’s overall responsibilities or authority, or scope of duties (it being understood that the occurrence of a Change in Control shall not, by itself, necessarily constitute a
reduction in Employee’s responsibilities or authority); or (iii) there is a material change in the principal geographic location at which Employee must perform his services (it being understood that the relocation of Employee to a facility
or a location within forty (40) miles of the State Capitol Building in Denver, Colorado shall not be deemed material for purposes of this Agreement). No event shall be deemed to be “Good Reason” if the Company has cured the event (if
susceptible to cure) within 30 days of receipt of written notice from Employee specifying the event or events which, absent cure, would constitute “Good Cause.” 
 (d) Accrued Compensation Defined. Accrued Compensation shall mean an amount which shall include all amounts earned or accrued by Employee through the date of termination of this Agreement but not
paid as of such date, including (i) Base Salary, (ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii) any
expense allowance pursuant to Company policy, (iv) accrued but unused vacation pay per Company policy, and (v) bonuses and incentive compensation earned and awarded prior to the date of termination. Accrued Compensation shall be paid on
the first regular pay date after the date of termination (or earlier, if required by applicable law). 
 (e) Termination.

 (i) Cause; Without Good Reason; Death. If the Company ends the Term for Cause, if Employee resigns
as an employee of the Company for reasons other than an event of Good Reason, or the Employee dies, then the Company shall pay to Employee the Accrued Compensation but shall have no obligation to pay Employee any amount,

  
 4 

 
whether for salary, benefits, bonuses, or other compensation or expense reimbursements of any kind, accruing after the end of the Term, and such rights shall, except as otherwise required by law
or pursuant to the applicable award agreement or plan, be forfeited immediately upon the end of the Term. For the sake of clarity, any stock options, restricted stock or other equity compensation shall, to the extent vested on the date of
resignation without Good Reason, the date the Company ends the Term for Cause, or the date of Employee’s death, remain outstanding and exercisable to the extent provided in the applicable award agreement or plan, by the Employee or his personal
representative or executor. 
 (ii) Without Cause; Good Reason. In the event that the Company terminates Employee’s
employment hereunder without Cause, Employee terminates his employment with Good Reason, he shall be entitled to the Accrued Compensation and, subject to Section 21 and 22 below, 

(A) A lump sum payment equal to two times his Base Salary in effect at the date of termination, less applicable withholding. 

(B) Continued participation (via state or federal insurance continuation laws such as COBRA, to the extent available) in the health and
welfare plans (or comparable plans, if continued participation in the Company’s plans is not available) provided by the Company to Employee at the time of termination for a period of two years from the date of termination or, if earlier, until
he is eligible for comparable coverage with a subsequent employer. The Company agrees to reimburse the payments Employee makes for such coverage, whether via continuation or separate comparable policy. Premium reimbursements shall be made by the
Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the Company substantiating his payments for insurance coverage. Employee shall give the Company prompt notice
of his eligibility for comparable coverage. 
 (C) All vested stock options shall remain exercisable from
the date of termination until the expiration date of the applicable award. So long as the Section 8 below does not apply, then all options which are unvested at the date of termination Without Cause or for Good Reason shall be accelerated as of
the date of termination such that the number of option shares equal to 1/36th the number of option shares multiplied by the number of full months of Employee’s employment hereunder shall be deemed vested and immediately exercisable by the Employee. Any unvested options over
and above the foregoing shall be cancelled and of no further force or effect, and shall not be exercisable by the Employee. 

(D) Any severance payments and/or other separation benefits contemplated by this Agreement are conditional on Employee:
(i) continuing to comply with the terms of this Agreement and the PIA (as defined herein); (ii) delivering prior to or contemporaneously with any such severance payments, and not revoking, (x) a customary general release of claims
relating to Employee’s employment and/or this Agreement against the Company or its successor, its subsidiaries and their respective directors, officers and stockholders and (y) a customary affirmation of Employee’s continuing
obligations hereunder and under the PIA. 

  
 5 

 Unless otherwise required by law, no severance payments and/or benefits under this Agreement will be paid
and/or provided until after the expiration of any relevant revocation period. 
 8. Change in Control Payments. The provisions of this
paragraph 8 set forth the terms of an agreement reached between Employee and the Company regarding Employee’s rights and obligations upon the occurrence of a “Change in Control” (as hereinafter defined) of the Company during the Term.
These provisions are intended to assure and encourage in advance Employee’s continued attention and dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such Change in Control. The following
provisions shall apply in the event of a Change in Control, in addition to any payment or benefit that may be required pursuant to Section 7. 
 (a) Equity. Upon the occurrence of a Change in Control, all stock options, restricted stock and other stock-based grants to Employee by the Company or that may be granted in the future shall,
irrespective of any provisions of his award agreements, immediately and irrevocably vest and become exercisable and any restrictions thereon shall lapse. All stock options shall remain exercisable from the date of the Change in Control until the
expiration of the term of such stock options. 
 (b) Definitions. For purposes of this paragraph 8, the following terms
shall have the following meanings: 
 “Change in Control” shall mean any of the following: 

(1) the acquisition by any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
(the “Acquiring Person”), other than the Company, or any of its Subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3- promulgated under the Exchange Act) of 50% or more of the combined voting power or economic interests
of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (excluding any issuance of securities by the Company in a transaction or series of transactions made principally for bona fide equity
financing purposes, and any issuance of Company securities in connection with the proposed acquisition of DMI BioSciences, Inc.; or 
 (2) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is party (including, without limitation, any stock acquisition,
reorganization, merger or consolidation but excluding any issuance of securities by the Company in a transaction or series of transactions made principally for bona fide equity financing purposes, and also excluding the issuance of Company
securities in connection with the acquisition of DMI BioSciences, Inc.) other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or
series of related transactions retain, immediately after such transaction or series of related transactions, as a result of shares in the Company held by such holders prior to such transaction or series of related transactions, at least a majority
of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity (or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following
such acquisition, its parent); or 
 (3) the sale or other disposition of all or substantially all of the assets of the Company
in one transaction or series of related transactions. 

  
 6 

 9. Proprietary Information and Inventions Agreement. As a condition of Employee’s employment
with the Company, Employee agrees to sign the Company’s standard form of Proprietary Information and Inventions Agreement (“PIA”). 
 10. Successors and Assigns. 
 (a) Employee. This Agreement is a
personal contract, and the rights and interests that the Agreement accords to Employee may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by him. All rights and benefits of Empolyee shall be for the sole personal benefit of
Employee, and no other person shall acquire any right, title or interest under this Agreement by reason of any sale, assignment, transfer, claim or judgment or bankruptcy proceedings against Employee. Except as so provided, this Agreement shall
inure to the benefit of and be binding upon Employee and his personal representatives, distributees and legatees. 
 (b) The
Company. This Agreement shall be binding upon the Company and inure to the benefit of the Company and of its successors and assigns, including (but not limited to) any Company that may acquire all or substantially all of the Company’s
assets or business or into or with which the Company may be consolidated or merged. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 11. Entire Agreement. This Agreement (together with the equity award agreements referred to herein) represents the entire agreement
between the parties concerning Employee’s employment with the Company and supersedes all prior negotiations, discussions, understanding and agreements, whether written or oral, between Employee and the Company relating to the subject matter of
this Agreement. 
 12. Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived unless such amendment
or waiver is agreed to in writing signed by Employee and by a duly authorized officer of the Company. No waiver by any party to this Agreement or any breach by another party of any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 

13. Notices. Any notice to be given under this Agreement shall be in writing and delivered personally or sent by overnight courier or registered
or certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below, or to such other address of which such party subsequently may give notice in writing: 

 

			
	If to Employee:	 	To the address specified in the payroll records of the Company.
		
	If to the Company:	 	 Ampio Pharmaceuticals, Inc.

8400 East Crescent Parkway
 Suite 600

Greenwood Village, Colorado 80111

  
 7 

 Any notice delivered personally or by overnight courier shall be deemed given on the date delivered and any
notice sent by registered or certified mail, postage prepaid, return receipt requested, shall be deemed given on the date mailed. 
 14.
Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below to be invalid
and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable shall not be affected, and each
provision of this Agreement shall be validated and shall be enforced to the fullest extent permitted by law. If for any reason any provision of this Agreement containing restrictions is held to cover an area or to be for a length of time that is
unreasonable or in any other way is construed to be too broad or to any extent invaild, such provision shall not be determined to be entirely null, void and of no effect; instead, it is the intention and desire of both the Company and Employee that,
to the extent that the provision is or would be valid or enforceable under applicable law, any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below shall construe and interpret or reform this Agreement to provide for a
restriction having the maximum enforceable area, time period and such other constraints or conditions (although not greater than those contained currently contained in this Agreement) as shall be valid and enforceable under the applicable law.

 15. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to
the extent necessary to the intended preservation of such rights and obligations. 
 16. Headings. All descriptive headings of sections
and paragraphs in this Agreement are intended solely for convenience of reference, and no provision of this Agreement is to be construed by reference to the heading of any section or paragraph. 

17. Withholding Taxes. All salary, benefits, reimbursements and any other payments to Employee under this Agreement shall be subject to all
applicable payroll and withholding taxes and deductions required by any law, rule or regulation of and federal, state or local authority. 

18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which
together constitute one and same instrument. The parties agree that facsimile signatures shall have the same force and effect as original signatures. 
 19. Applicable Law; Arbitration. The validity, interpretation and enforcement of this Agreement and any amendments or modifications hereto shall be governed by the laws of the State of Colorado, as
applied to a contract executed within and to be performed in such State. The parties agree that any disputes shall be definitively resolved by binding arbitration before the American Arbitration Association in Denver, Colorado in accordance with its
rules of arbitration procedure then in effect. The parties consent to the jurisdiction to the federal courts of the District of Colorado, or, if there shall be no jurisdiction, to the state courts located in Arapahoe County, Colorado, to enforce any
arbitration award rendered with respect thereto. Each party shall choose one arbitrator and the two arbitrators shall choose a third arbitrator. All costs and fees related to such arbitration (and judicial enforcement proceedings, if any) shall be
borne by the Company unless Employee’s claim is deemed to be frivolous by the arbitrator(s) or judge. 

  
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 20. Legal Fees. The Company shall pay the reasonable expenses of Employee’s counsel in
negotiating this Agreement. 
 21. Section 409A. Notwithstanding anything to the contrary in this Agreement, if Employee is a
“specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated thereunder (“Section 409A”) at the time
of Employee’s termination (other than due to death), and the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits whichy may be considered deferred
compensation under Section 409A. (together, the “Deferred Compensation Separation Benefits”) will not and could not under any circumstances, regardless of when such termination occurs, be paid in full by March 15 of the year
following Employee’s termination, then only that portion of the Deferred Compensation Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made within the first six (6) months following
Employee’s termination of employment in accordance with the payment schedule applicable to each payment or benefit. For these purposes, each severance payment is hereby designated as a separate payment and will not collectively be treated as a
single payment. Any portion of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit shall accrue and, to the extent such portion of the Deferred Compensation Separation Benefits would otherwise have been payable
within the first six (6) months following Employee’s termination of employment, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee’s
termination. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Employee dies following
his termination but prior to the six (6) month anniversary of his termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s
death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. The foregoing provision is intended to comply with the requirements of Section 409A so
that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Employee agree to work together
in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under
Section 409A. For purposes of this Agreement, “Section 409A Limit” will mean the lesser of two (2) times: (A) Employee’s annualized compensation based upon the annual rate of pay paid to Employee during the
Company’s taxable year preceding the Company’s taxable year of Employee’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect
thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee’s employment is terminated. 

22. Application of Internal Revenue Code Section 280G. If any payment or benefit Employee would receive pursuant to a Change in Control from
the Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of
the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable 

  
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 federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in Employee’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits
constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the manner that results in the greatest economic benefit for Employee. If more than one method of reduction will result
in the same economic benefit, the items so reduced will be reduced pro rata. 
 In the event it is subsequently determined by the Internal
Revenue Service that some portion of the Reduced Amount as determined pursuant to clause (x) in the preceding paragraph is subject to the Excise Tax, Employee agrees to promptly return to the Company a sufficient amount of the Payment so that
no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, Employee will have no obligation to return any portion of the
Payment pursuant to the preceding sentence. 
 Unless Employee and the Company agree on an alternative accounting firm, the accounting firm
engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or
auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the
determinations by such accounting firm required to be made hereunder. 
 The Company shall use commercially reasonable efforts to cause the
accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Employee and the Company within fifteen (15) calendar days after the date on which Employee’s
right to a Payment is triggered (if requested at that time by the Employee or the Company) or such other time as requested by Employee or the Company. 
 23. Indemnification. As a condition to the effectiveness of this Agreement, the Company and Employee shall enter into a mutually acceptable indemnification agreement. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

 

							
	AMPIO PHARMACEUTICALS, INC.	 		 	EMPLOYEE
				
	By:	 	 /s/ PHILIP H. COELHO
	 		 	 /s/ VAUGHAN CLIFT, M.D.

	    Name: PHILIP H. COELHO	 		 	Name:VAUGHAN CLIFT, M.D.
	     Chairman, Compensation Committee
     Board of Directors
	 		 	

  
 10 

 EXHIBIT A 
 Outside Activities 
  

	 	1.	Serve on the Board of Directors of no more than one private or public company the business of which is not competitive with that of Ampio Pharmaceuticals, Inc.

  

	 	2.	Serve as a consultant to no more than one private or public company, the business of which is not competitive with that of Ampio Pharmaceuticals, Inc.

  

	 	3.	Serve on the advisory boards of private or public companies whose identity is disclosed in writing to the Compensation Committee of the Board of Directors of Ampio
Pharmaceuticals, Inc. in accordance with the attached Employment Agreement, and the business of which is not competitive with that of Ampio Pharmaceuticals, Inc. 

 Note: None of the possible outside activities may interfere with Employee’s best efforts in meeting the responsibilities of Vice President of Scientific and Clinical Affairs of Ampio Pharmaceuticals,
Inc., and will in the aggregate not require Employee to devote more than 10 hours per month to these outside activities. 

  
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 EXHIBIT B 
 Terms of Compensation 
 Management equity grant: 

 

	 	•	 	 365,000 total options to purchase shares of the Company’s common stock. The strike price for all options will be the last sale price of the
Company’s common stock as reported on Nasdaq.com on August 11, 2010. 

  

	 	•	 	 All options are fully vest upon change in control, death, disability, termination without cause, termination for good reason

  

	 	•	 	 125,000 options are fully vested on Day 1 of this agreement 

 

	 	•	 	 120,000 options vest 365 days thereafter 

  

	 	•	 	 120,000 options vest 730 days thereafter 

 Management milestones that affect cash bonuses 
  

	 	1.	Obtaining additional funding for the company in an amount deemed appropriate by the Board of Directors to permit the company to execute its strategic plan

  

	 	2.	Obtaining a successful phase 2 clinical trial for the diabetic retinopathy drug 

 

	 	3.	Participating in preparing a fiscal budget, obtaining Board approval for that budget and meeting the spending limitations of that budget except for those extra
budgetary expenditures approved by the Board 

  

	 	4.	Launching a second clinical trial for a drug at an expense approved by the Board 

 

	 	5.	Assisting in selling any of the Company’s IP at prices, and at times, approved by the Board 

  
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