Document:

EX-10.22

 Exhibit 10.22 

SECOND AMENDMENT TO JOINT DEVELOPMENT AGREEMENT 

THIS SECOND AMENDMENT TO JOINT DEVELOPMENT AGREEMENT (“Amendment”) effective as of March 1, 2012 (the
“Amendment Date”), is entered into by and among PetroQuest Energy, L.L.C., a Louisiana limited liability company whose address is 400 East Kaliste Saloom Road, Suite 6000, Lafayette, Louisiana 70508 (“PetroQuest”),
WSGP Gas Producing, LLC, a Delaware limited liability company whose address is 1000 Louisiana, Suite 5550, Houston, Texas 77002 (“WSGP”) and NextEra Energy Gas Producing, LLC, a Delaware limited liability company, whose address
is 1000 Louisiana, Suite 5550, Houston, Texas 77002 (“NEGP”). PetroQuest, WSGP and NEGP are referred to herein collectively as a the “Parties” and each individually as a “Party”). 

RECITALS: 
 A. The Parties entered into that certain Joint Development Agreement on May 17, 2010, as amended (jointly, the “Agreement), with respect to the purchase and sale of certain oil and gas
leasehold interests and the joint participation in, and development of, certain oil and gas properties, all as more particularly described in the Agreement. 
 B. The Parties desire to further modify and amend the Agreement as follows, but in particular (i) to memorialize the Parties’ decision to jointly pursue Phase 2 effective as of the Amendment
Date to run concurrently with Phase I, and (ii) to set forth their agreement that the Carried Amount under the Agreement may be utilized and applied to certain wells drilled under the ML Agreement (as hereinafter defined) between the Parties
and certain wells drilled pursuant to the Territory Agreement (as hereinafter defined); in each case, subject to the specific terms and provisions of this Amendment. 
 AGREEMENTS: 
 NOW, THEREFORE, in consideration of Ten
Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the Parties agree as follows: 

1. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Agreement.

 2. The Agreement is hereby modified by replacing the term “6-Month Tranche” in all instances with
the term “12-Month Tranche” including, without limitation, such references in Sections 1.1.2,4.3.2,4.3.3,4.5.7 and 4.5.8 of the Agreement. 

 3. The following additional Defined Terms are appended to Article I of the
Agreement: 
 1.1.102 “Completed Well Costs” shall mean the combined working interest shares of
PetroQuest and WSGP of the costs of drilling, completing and equipping any Program Well, Development Well, ML Well or PUD Well, as applicable, not to exceed 115% of the original AFE amount for drilling, completing and equipping such well.

 1.1.103 “ML Agreement” means that certain Purchase, Sale and Development Agreement
(Mississippian Lime Undeveloped Leasehold) between PetroQuest, WSGP and NEGP dated as of February 17, 2012. 
 1.1.104 “ML Well” means either (i) any well defined as an Acquisition Well under the ML Agreement, or (ii) any well drilled pursuant to and on the acreage covered by the
Territory Agreement. 
 1.1.105 “Second Amendment” means that certain amendment to the
Agreement styled as such between PetroQuest, WSGP and NEGP dated effective as of January 1, 2012. 

1.1.106 “Payout Amount” means, for purposes of Section 4.3.2.1 an amount equal to one hundred and
twelve percent (112%) of 25% of the Completed Well Costs for any ML Well respecting which PetroQuest has elected to pursue a ML AFS. 
 1.1.107 “Territory Agreement” means that certain Purchase and Sale Agreement between the Parties covering the “Territory Acquisition” dated as of September 9, 2011, as
amended. 
 1.1.108 “Woodford Well” means any well drilled pursuant to and on the acreage
covered by the Agreement. 
  

	4.	 Article IV of the Agreement is hereby modified as follows: 

Section 4.3, WSGP’s Carry. All references in Section 4.3 of the Agreement to the ratio 1.6:1
(i.e., respecting WSGP’s Carry) are hereby changed to 1.5:1 with respect to any and ail Development Wells and Program Wells and, if contained in an agreed Drilling Program and 12-Month Tranche, ML Wells, whose Spud Dates are after
March 1, 2012; provided, however, that if Phase 2 is terminated by WSGP before completion of Phase 1 and before PetroQuest has applied and benefited 

  
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 from the full Carried Amount, WSGP’s Carry of 1.5:1 shall revert to
1.6:1 with respect to any Program Wells and/or Development Wells thereafter drilled under the Drilling Program during Phase 1 until the earlier of (a) the completion of Phase 1, or (b) the Carried Amount has been fully applied. 

Section 4.3.1, Phase 1. The Parties agree that Schedule 4.3.1. attached hereto, shall represent
the Drilling Program for Phase 1 and Phase 2 for calendar year 2012 as such program may be amended by mutual agreement of the Parties (the “2012 Drilling Program”). The Parties shall agree to the Drilling Program for Phase 1, if
applicable, and Phase 2 for each year subsequent to calendar year 2012 during the Quarterly Meeting during the fourth quarter of the prior calendar year. The Parties agree that their execution of this Amendment serves as satisfaction of
PetroQuest’s obligation under Section 4.3.1 of the Agreement to deliver the Phase 2 Notice. Further, the Parties hereby add the following paragraph at the end of Section 4.3.1 of the Agreement: 

For all PUD Wells drilled during Phase 1 in which WSGP participates and having a Spud Date after March 1, 2012,
PetroQuest will have the right, but not the obligation, to cause WSGP to provide an alternative funding structure (“Phase 1 PUD AFS”) for PetroQuest’s share of Completed Well Costs, as follows: 

(a) WSGP will pay one hundred percent (100%) of the Completed Well Costs attributable to WSGP’s
and PetroQuest’s working interest for such PUD Well, after which point the Parties will bear all costs associated with such PUD Well in accordance with their working interests in the applicable PUD Well; 

(b) Upon completion of the PUD Well, PetroQuest will permanently relinquish and assign to WSGP a gross
thirty percent (30%) of its gross fifty percent (50%) interest in such PUD Well, retaining only a gross twenty percent (20%) of its gross fifty percent (50%) interest in such PUD Well, with all ownership interests being
proportionately reduced; 

  
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 (c) PetroQuest’s right to be paid proceeds of
production from such PUD Well (i.e., as to its remaining 20% interest) will vest and be payable to PetroQuest from the date of first sales from such PUD Well; and 

(d) PetroQuest’s relinquishment to WSGP of thirty percent (30%) of its interest due to its
election to utilize the Phase 1 PUD AFS shall be limited to the wellbore of the applicable PUD Well only. 

Section 4.3.2, Phase 2. Subject to the remaining terms and provisions of this Amendment, WSGP hereby
elects to pursue Phase 2 in accordance with Section 4.3.2 of the Agreement, notwithstanding that Phase 1 has not yet been fully completed as of the date of this Amendment. The Parties acknowledge that Phase 2 shall be deemed to commence
effective March 1, 2012 and that Phase 1 and Phase 2 can occur concurrently. Further, the Parties agree that there is no change to the 12-Well Minimum Content and/or Minimum Commitment under Section 4.3.2 of the Agreement, other than all
references to the term “6-Month Tranche” are, as previously indicated, replaced with “12-Month Tranche”, and the sentence “Phase 2 shall be divided into six (6) month periods of time, the first of which commencing upon
WSGP’s agreement to enter into Phase 2 (each such six (6) month period a “6-Month Tranche”).” shall be replaced in its entirety with the sentence “Phase 2 shall be divided into
twelve (12) month periods of time, the first of which commencing upon WSGP’s agreement to enter into Phase 2 or on a date otherwise agreed by the Parties (each such twelve (12) month period a 12-Month Tranche).” The
Parties agree that Schedule 4.3.1, attached hereto, shall represent the Drilling Program for Phase 1 and Phase 2 for the twelve (12) months following March 1, 2012, which such Drilling Program may include, if applicable, ML Wells. The
Parties agree that (a) Woodford Wells appearing on Schedule 4.3.1 will be Phase 1 wells until the completion of Phase 1, and Woodford Wells drilled after the completion of Phase 1 will constitute Phase 2 wells, and (b) all ML Wells
appearing on Schedule 4.3.1 shall constitute Phase 2 wells. The Parties shall agree to the Drilling Program for Phase 2 for each twelve (12) month period subsequent to the 2012 Drilling Program at the Quarterly Meeting held
during the fourth quarter of the calendar year prior to the calendar year containing the date of commencement of the applicable 12-Month Tranche and may include, if agreed to by the Parties, ML Wells. Finally, the Parties hereby add to the Agreement
the following Section 4.3.2.1: 

  
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 4.3.2.1 Miss Lime Development: AFS. While
the Parties acknowledge that the proposal by PetroQuest of ML Wells shall be generally controlled by the terms and provisions of their applicable agreements, with respect to the total Carried Amount applicable to Phase 2 under the Agreement (i.e.,
$92,600,000) (the “Phase 2 Drilling Carry”), a portion of such Phase 2 Drilling Carry equivalent to $7,500.000 per 12-Month Tranche (the “Phase 2 ML Available Drilling
Carry”) shall be available to PetroQuest to apply to any such ML Wells drilled during each such 12-Month Tranche of Phase 2, to the extent such ML Wells are included in an agreed Drilling Program and an agreed 12-Month
Tranche; subject, however, to the following: 
 (a) Application of the Phase 2 ML Available
Drilling Carry will be in addition to, not in substitution for, the separate $5,000,000 “Drilling Carry” prescribed under the ML Agreement (the “ML Drilling Carry”), but shall be applied in the
same manner as the ML Drilling Carry is applied under the ML Agreement, subject to the express provisions of this Amendment; 
 (b) For any ML Well respecting which PetroQuest wishes to utilize either the Phase 2 ML Available Drilling Carry or the separate ML Drilling Carry, PetroQuest will provide WSGP written notice indicating
which “carry bucket” applies to the original AFE for the applicable ML Well. The priority of “carry bucket” application shall first be the ML Drilling Carry followed by utilization of the Phase 2 ML Available Drilling Carry. In
the event the ML Drilling Carry is depleted to zero and is therefore insufficient to fund the amount applicable to the prescribed drilling carry attributable to PetroQuest’s interest in an ML Well, then, with respect to such well, PetroQuest
may apply an amount from the Phase 2 ML Available Drilling Carry sufficient to make up the difference, but only to the extent of PetroQuest’s prescribed drilling carry; 

(c) The Phase 2 ML Available Drilling Carry will, as indicated in Section 4.3 above, be
subject to the 1.5:1 rather than the 1.6:1 ratio for any ML Well for which the Phase 2 ML Available Drilling Carry is otherwise available; 
 (d) Notwithstanding anything to the contrary, if the amount applicable to PetroQuest’s prescribed drilling carry attributable to the mutually agreed upon 2012 Drilling Program requires an expenditure
for ML Wells above the amount of $7,500,000 (as attributed to the “Phase 2 ML Available Drilling Carry” set forth above), then the Phase 2 ML 

  
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 Available Drilling Carry shall be increased to cover such increased amount,
but only to the extent attributable to the mutually agreed upon 2012 Drilling Program; provided that, for the avoidance of doubt, in the event of such an increase, the Phase 2 Drilling Carry shall be reduced in the amount of such increase.

 (e) For the avoidance of doubt, (i) any payment by WSGP of the Phase 2 ML Available
Drilling Carry will be credited to WSGP as a payment of the Carried Amount under the Agreement; (ii) any ML Well that is drilled by the Parties shall not be deemed to be subject to the Agreement, whether as a Program Well or otherwise
(notwithstanding the fact that an ML Well may be included in the Drilling Program), except as expressly set forth in the Second Amendment, (iii) no part of the Agreement or this Amendment, including the Phase 2 ML Available Drilling Carry,
shall be deemed to be a burden on any ML Wells or any lands subject to the ML Agreement and/or the Territory Agreement, (iv) any contract entered into by PetroQuest for the purposes of developing ML Wells shall be subject to Vendor Penalties,
(v) no ML Well shall be subject to the Administrative Fee, and (vi) after the expiration of the applicable agreed Drilling Program and/or agreed 12-Month Tranche, any unused portion of the agreed Phase 2 ML Available Drilling Carry shall
cease to be available for use with respect to ML Wells; 
 (f) The Parties may increase the
amount of the Phase 2 ML Available Drilling Carry upon mutual written agreement of all of the Parties; and 
 (g) PetroQuest shall have the option, but not the obligation, of causing WSGP to provide an alternative funding structure for any ML Well in which PetroQuest properly elects to apply the Phase 2 ML
Available Drilling Carry (the “ML AFS”), in which case the following shall apply: 
 (i) WSGP will pay one hundred percent (100%) of the Completed Well Costs for such ML Well, after which point the Parties will bear all costs associated with such ML Well in accordance with their
respective working interests in the applicable ML Well; 

  
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 (ii) WSGP will receive all proceeds of production
attributable to the joint interests of the Parties in such ML Well, as applicable, until WSGP has received proceeds of production from PetroQuest’s proportionate fifty percent (50%) share equal to fifty percent (50%) of the Payout
Amount, at which time PetroQuest will back in for its original fifty percent (50%) share, with all ownership interests being proportionately reduced; and 

(iii) The 25% share of PetroQuest’s Completed Well Costs not considered part of the Payout Amount
applicable to such ML Well (i.e, being that portion not being recouped by WSGP under clause (ii) above) will be applied, dollar-for-dollar, against the Phase 2 ML Available Drilling Carry. 

PetroQuest must submit its election to use the ML AFS to WSGP in the original AFE for the applicable ML Well. All funding
elections made by PetroQuest under this Section 4.3.2.1 must be made in accordance with the time periods prescribed for AFE elections under Section 4.4 of the Agreement. Finally, should the Parties discontinue the drilling of ML Wells
(whether such discontinuance is due to technical obstacles, geologic reasons or otherwise), the Parties’ commitment to drill PUD Wells, Program Wells and/or Development Wells (i.e., Woodford Weils), if any, under the Agreement will
remain unaltered. 
  

	5.	 Article V of the Agreement, Assignments to WSGP, is hereby amended by adding the following provisions: 

5.3 Phase 2 Assignments. No later than sixty (60) Business Days following the execution of
the Second Amendment, PetroQuest shall (subject to its contingent right of reassignment under Section 5.4 below) prepare, execute and deliver to WSGP an assignment, in the form attached as Exhibit “F” (the
“Phase 2 Assignment”), of an undivided 50% of PetroQuest’s right, title and interest in and to the Remaining Assets; the intent being that WSGP will receive
an Assignment of all Transaction Assets with respect to which WSGP has not previously received a PUD Assignment or Program Well Assignment under the Agreement. PetroQuest hereby reaffirms, as of the date of the Second Amendment, with respect to the
acreage subject to the Phase 2 Assignment, all of the representations and warranties made with respect to the Transaction Assets in Section 6.1 of the Agreement. 

  
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 5.4 Contingent Duty to Reassign. Should WSGP exercise
its election rights with respect to Phase 2 in such a manner that Phase 2 terminates before PetroQuest has received the full benefit of the Phase 2 Drilling Carry, WSGP shall, no later than sixty (60) days following the termination or
expiration of Phase 2, prepare, execute and deliver to PetroQuest an assignment, in the form attached as Exhibit “F”. of the applicable Reassigned Percentage on such date of WSGP’s right, title and interest in and to the
Remaining Assets received by WSGP under the Phase 2 Assignment that would not have otherwise been required to be assigned to WSGP under the Agreement, but for the Phase 2 Assignment, as of such date, whether as PUD Assignments, Program Well
Assignments or otherwise (such portion of the Remaining Assets assigned in the Phase 2 Assignment, the “Unearned Acreage”). The Reassigned Percentage shall be calculated as follows: 

 

			September 30,		September 30,
	 Applicable Percentage
	    	 X
	    	 Assigned Percentage
            =            Reassigned Percentage

			
	 where:
	    		    	
			
	 Applicable Percentage
	    	 =
	    	 The unexpended amount of Phase 2 Drilling Carry divided by the Phase 2 Drilling Carry

			
	 Assigned Percentage
	    	 =
	    	 undivided percentage working interest (out of 100%) in the applicable tract of Unearned Acreage that was assigned in the Phase 2 Assignment

			
	 Reassigned Percentage
	    	 =
	    	 WSGP’s undivided percentage interest in the tract of Unearned Acreage to be reassigned

 For example, if the Phase 2 Assignment to WSGP covered an undivided 50% working interest in an applicable
tract of Unearned Acreage and if Phase 2 effectively terminates with only $62,000,000 of the Phase 2 Drilling Carry having been expended, WSGP would reassign to PetroQuest under this Section 5.4 an undivided 33% of the interest it received
under the Phase 2 Assignment in the tract of Unearned Acreage, or an undivided 16.5% working interest in such Unearned Acreage (i.e., $30.6mm/$92.6mm x 50%). 

6. The right to the Phase 1 PUD AFS, the ML AFS and the use of the Phase 2 ML Available Drilling Carry on ML Wells is
unique to PetroQuest and may not be transferred in any manner without the express prior written consent of WSGP. 
 7. Except as expressly amended hereby, the Agreement and all rights and obligations created thereby or thereunder are in all respects ratified and confirmed and remain in full force and effect. Where any
section, subsection or clause of the Agreement is modified or deleted by 

  
 8 

 this Amendment, any unaltered provision of such section, subsection or clause of the
Amendment shall remain in full force and effect. However, where any provision of this Amendment conflicts or is inconsistent with the Agreement, the provision of this Amendment shall control. 

8. Sections 18.1,18.4,18.5,18.6,18.7,18.8,18.9,18.10,18.11,18.12,18.13,18.15, 18.16,18.18,18.19 and 18.22 of the
Agreement are hereby incorporated by reference as if set out in full herein and shall apply to this Amendment. Each Party represents to the other Party that the execution, delivery and performance of this Amendment have been duly authorized, and
this Amendment has been duly executed and delivered by the signatory so authorized, and the obligations contained herein constitute the valid and binding obligations of such Party. 

[Signature Page Follows] 

  
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 The undersigned have caused this Amendment to be executed effective as of the date first set
forth above. 
  

			
	 PETROQUEST:

	
	 PetroQuest Energy, L.L.C.

		
	 By:
	 	 /s/ Mark K. Stover

		 	 Mark K. Stover, Executive Vice

		 	 President—Exploration & Development

	
	 WSGP:

	
	 WSGP Gas Producing, LLC

		
	 By:
	 	 /s/ Lawrence A. Wall

		 	 Lawrence A. Wall, Jr., President

	
	 NEGP:

	
	 NextEra Energy Gas Producing, LLC

		
	 By:
	 	 /s/ Lawrence A. Wall

		 	 Lawrence A. Wall, Jr., President

  
 10Second Amended and Restated Unsecured Revolving Demand Promissory Note

 Exhibit 10.15 
 SECOND AMENDED AND RESTATED 
 UNSECURED REVOLVING 

DEMAND PROMISSORY NOTE 
  

			
	 $8,000,000.00
	  	December 13, 2011

 Section 1. Promise to Pay. For and in consideration
of value received, the undersigned, NL INDUSTRIES, INC., a corporation duly organized under the laws of the state of New Jersey (“Borrower”), promises to pay to the order of COMPX
INTERNATIONAL INC., a corporation duly organized under the laws of the state of Delaware (“CompX”), or the holder hereof (as applicable, CompX or such holder shall be referred to as
“Noteholder”), the principal sum of EIGHT MILLION and NO/100ths United States Dollars ($8,000,000.00) or such lesser amount as shall equal the unpaid principal amount of the loan made by Noteholder to Borrower together with interest
on the unpaid principal balance from time to time pursuant to the terms of this Second Amended and Restated Unsecured Revolving Demand Promissory Note, as it may be amended from time to time (this “Note”). This Note shall be
unsecured and will bear interest on the terms set forth in Section 7 below. Capitalized terms not otherwise defined shall have the meanings given to such terms in Section 17 of this Note. 

Section 2. Amendment and Restatement This Note renews and replaces, amends
and restates in its entirety the First Amended and Restated Unsecured Revolving Demand Promissory Note dated December 31, 2010 in the original principal amount of $8,000,000.00 payable to the order of Noteholder and executed by Borrower (the
“First Amended Note”). The First Amended Note replaced, amended and restated in its entirety the Unsecured Revolving Demand Promissory Note dated February 3, 2010 in the original principal amount of $8,000,000.00 payable to the
order of Noteholder and executed by Borrower (the “Original Note”). This Note amends and restates in its entirety the First Amended Note and the Original Note (collectively, the “Prior Notes”); provided that
(a) such amendment and restatement shall operate to renew, amend and modify the rights and obligations of the parties under each Prior Note, as provided herein, but shall not extinguish the obligations under each Prior Note, nor effect a
novation thereof. As of the close of business on December 12, 2011, the unpaid principal balance of the First Amended Note was nil and the accrued and unpaid interest thereon was nil which principal and accrued and unpaid interest are the
unpaid principal and accrued and unpaid interest owed, respectively, under this Note as of the beginning of business on the date of this Note. 
 Section 3. Place of Payment. All payments will be made at Noteholder’s address at Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas
75240-2697, Attention: Treasurer, or such other place as Noteholder may from time to time appoint in writing. 

Section 4. Payments. The unpaid principal balance of this Note and any unpaid and
accrued interest thereon shall be due and payable on the Final Payment Date. Prior to the Final Payment Date, any unpaid and accrued interest on an unpaid principal balance shall be paid in arrears quarterly on the last day of each March, June,
September and December, commencing December 31, 2011. All payments on this Note shall be applied first to accrued and unpaid interest, next to accrued interest not yet payable and then to principal. If any payment of principal or interest on
this Note shall become due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and the payment shall be the amount owed on the original payment date. 

Section 5. Prepayments. This Note may be prepaid in part or in full at any
time without penalty. 
 Section 6. Borrowings. Prior to the Final Payment
Date, Noteholder expressly authorizes Borrower to borrow, repay and re-borrow principal under this Note in increments of $100,000 on a daily basis so long as: 
  

	 	 •
	 	 the aggregate outstanding principal balance does not exceed $8,000,000.00; 

 

	 	 •
	 	 no Event of Default has occurred and is continuing. 

 Notwithstanding anything else in this Note, in no event will Noteholder be required to lend money to Borrower under this Note and loans under this Note shall be at the sole and absolute discretion of
Noteholder. 
 Section 7. Interest. The unpaid principal balance of
this Note shall bear interest at the rate per annum of the Prime Rate less three quarters of a percent (0.75%). In the event that an Event of Default occurs and is continuing, the unpaid principal amount shall bear interest from the Event of Default
at the rate per annum of the Prime Rate plus four percent (4.00%) until such time as the Event of Default is cured. Accrued interest on the 

  
 Page 1 of 4.

 
unpaid principal of this Note shall be computed on the basis of a 365- or 366-day year for actual days (including the first, but excluding the last day) elapsed, but in no event shall such
computation result in an amount of accrued interest that would exceed accrued interest on the unpaid principal balance during the same period at the Maximum Rate. Notwithstanding anything to the contrary, this Note is expressly limited so that in no
contingency or event whatsoever shall the amount paid or agreed to be paid to Noteholder exceed the Maximum Rate. If, from any circumstances whatsoever, Noteholder shall ever receive as interest an amount that would exceed the Maximum Rate, such
amount that would be excessive interest shall be applied to the reduction of the unpaid principal balance and not to the payment of interest, and if the principal amount of this Note is paid in full, any remaining excess shall be paid to Borrower,
and in such event, Noteholder shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the highest lawful rate permissible under applicable law. All sums paid or
agreed to be paid to Noteholder for the use, forbearance or detention of the indebtedness of Borrower to Noteholder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full of the principal (including the period of any renewal or extension thereof) so that the interest on account of such indebtedness shall not exceed the Maximum Rate. If at any time the Contract Rate is limited to the
Maximum Rate, any subsequent reductions in the Contract Rate shall not reduce the rate of interest on this Note below the Maximum Rate until the total amount of interest accrued equals the amount of interest that would have accrued if the Contract
Rate had at all times been in effect. In the event that, upon the Final Payment Date, the total amount of interest paid or accrued on this Note is less than the amount of interest that would have accrued if the Contract Rate had at all times been in
effect with respect thereto, then at such time, to the extent permitted by law, in addition to the principal and any other amounts Borrower owes to the Noteholder, the Borrower shall pay to the Noteholder an amount equal to the difference between:
(i) the lesser of the amount of interest that would have accrued if the Contract Rate had at all times been in effect or the amount of interest that would have accrued if the Maximum Rate had at all times been in effect; and (ii) the
amount of interest actually paid on this Note. 
 Section 8.
Remedy. Upon the occurrence and during the continuation of an Event of Default, Noteholder shall have all of the rights and remedies provided in the applicable Uniform Commercial Code, this Note or any other agreement with
Borrower and in favor of Noteholder, as well as those rights and remedies provided by any other applicable law, rule or regulation. In conjunction with and in addition to the foregoing rights and remedies of Noteholder, Noteholder may declare all
indebtedness due under this Note, although otherwise unmatured, to be due and payable immediately without notice or demand whatsoever. All rights and remedies of Noteholder are cumulative and may be exercised singly or concurrently. The failure to
exercise any right or remedy will not be a waiver of such right or remedy. 
 Section 9.
Right of Offset. Noteholder shall have the right of offset against amounts that may be due by Noteholder now or in the future to Borrower against amounts due under this Note. 

Section 10. Record of Outstanding Indebtedness. The date and amount of each
repayment of principal outstanding under this Note or interest thereon shall be recorded by Noteholder in its records. The principal balance outstanding and all accrued or accruing interest owed under this Note as recorded by Noteholder in its
records shall be the best evidence of the principal balance outstanding and all accrued or accruing interest owed under this Note; provided that the failure of Noteholder to so record or any error in so recording or computing any such amount
owed shall not limit or otherwise affect the obligations of Borrower under this Note to repay the principal balance outstanding and all accrued or accruing interest. 

Section 11. Waiver. Borrower and each surety, endorser, guarantor, and other
party now or subsequently liable for payment of this Note, severally waive demand, presentment for payment, notice of nonpayment, notice of dishonor, protest, notice of protest, notice of the intention to accelerate, notice of acceleration,
diligence in collecting or bringing suit against any party liable on this Note, and further agree to any and all extensions, renewals, modifications, partial payments, substitutions of evidence of indebtedness, and the taking or release of any
collateral with or without notice before or after demand by Noteholder for payment under this Note. 

Section 12. Costs and Attorneys’ Fees. In addition to any other amounts
payable to Noteholder pursuant to the terms of this Note, in the event Noteholder incurs costs in collecting on this Note, this Note is placed in the hands of any attorney for collection, suit is filed on this Note or if proceedings are had in
bankruptcy, receivership, reorganization, or other legal or judicial proceedings for the collection of this Note, Borrower and any guarantor 

  
 Page 2 of 4.

 
jointly and severally agree to pay on demand to Noteholder all expenses and costs of collection, including, but not limited to, reasonable attorneys’ fees incurred in connection with any
such collection, suit, or proceeding, in addition to the principal and interest then due. 

Section 13. Time of Essence. Time is of the essence with respect to all of
Borrower’s obligations and agreements under this Note. 
 Section 14.
Jurisdiction and Venue. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF
THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS. BORROWER CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN DALLAS, TEXAS. 

Section 15. Notice. Any notice or demand required by this Note shall be
deemed to have been given and received on the earlier of (i) when the notice or demand is actually received by the recipient or (ii) 72 hours after the notice is deposited in the United States mail, certified or registered,
with postage prepaid, and addressed to the recipient. The address for giving notice or demand under this Note (i) to Noteholder shall be the place of payment specified in Section 3 or such other place as Noteholder may
specify in writing to Borrower and (ii) to Borrower shall be the address below Borrower’s signature or such other place as Borrower may specify in writing to Noteholder. 

Section 16. Successors and Assigns. All of the covenants, obligations,
promises and agreements contained in this Note made by Borrower shall be binding upon its successors and permitted assigns, as applicable. Notwithstanding the foregoing, Borrower shall not assign this Note or its performance under this Note without
the prior written consent of Noteholder. 
 Section 17.
Definitions. For purposes of this Note, the following terms shall have the following meanings: 
 (a) “Business Day” shall mean any day banks are open in the state of Texas. 

(b) “Contract Rate” means the amount of any interest (including fees,
charges or expenses or any other amounts that, under applicable law, are deemed interest) contracted for, charged or received by or for the account of Noteholder. 

(c) “Event of Default” wherever used herein, means any one of the
following events: 
 (i) Borrower fails to pay any amount due on this Note and/or any
fees or sums due under or in connection with this Note after any such payment otherwise becomes due and payable and three Business Days after demand for such payment; 

(ii) Borrower otherwise fails to perform or observe any other provision contained in this Note and
such breach or failure to perform shall continue for a period of thirty days after notice thereof shall have been given to Borrower by Noteholder; 

(iii) a case shall be commenced against Borrower, or Borrower shall file a petition commencing a
case, under any provision of the Federal Bankruptcy Code of 1978, as amended, or shall seek relief under any provision of any other bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any
jurisdiction, whether now or hereafter in effect, or shall consent to the filing of any petition against it under such law, or Borrower shall make an assignment for the benefit of its creditors, or shall admit in writing its inability to pay its
debts generally as they become due, or shall consent to the appointment of a receiver, trustee or liquidator of Borrower or all or any part of its property; or 

(iv) an event occurs that, with notice or lapse of time, or both, would become any of the
foregoing Events of Default. 

  
 Page 3 of 4.

 (d) “Final Payment Date”
shall mean the earlier of: 
  

	 	•	 	 written demand by Noteholder for payment of all or part of the principal and interest accrued and unpaid thereon, but in any event no earlier than
March 31, 2013; 

	 	•	 	 December 31, 2013; or 

	 	•	 	 acceleration as provided herein. 

(e) “Maximum Rate” shall mean the highest lawful rate permissible under
applicable law for the use, forbearance or detention of money. 
 (f) “Prime
Rate” shall mean the fluctuating interest rate per annum in effect from time to time equal to the base rate on corporate loans as reported as the Prime Rate in the Money Rates column of The Wall Street Journal or other reliable
source. 
  

			
	 BORROWER:

	
	 NL INDUSTRIES, INC.

		
	 By:  
	 	 /s/ Gregory M. Swalwell

		 	Gregory M. Swalwell, Vice President, Finance and Chief Financial Officer
	
	 Address:

	
	 5430 LBJ Freeway, Suite 1700
 Dallas, Texas 75240-2697

 As of the date hereof, CompX International Inc., as Noteholder, hereby agrees that
this Note renews and replaces, amends and restates in its entirety the First Amended Note and the Original Note (but shall not extinguish the obligations under each Prior Note, nor effect a novation thereof) and that the unpaid principal and accrued
and unpaid interest on the Original Note as of the close of business on December 12, 2011 are the unpaid principal and accrued and unpaid interest, respectively, owed under this Note as of the beginning of business on the date of this Note.

  

			
	 CompX International Inc.

		
	 By:  
	 	 /s/ Darryl R. Halbert

		 	 Darryl R. Halbert

		 	Vice President, Chief Financial Officer and Controller

  
 Page 4 of 4.

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