Document:

Executive Variable Incentive Plan

 Exhibit 10.G 
 MENTOR GRAPHICS CORPORATION 
 EXECUTIVE VARIABLE INCENTIVE PLAN 
 1. PURPOSES. This Plan is intended to enable the Company to attract, retain, motivate and reward qualified executive officers by providing them
with the opportunity to earn competitive variable incentive compensation directly linked to achievement of Company business objectives. This Plan is also intended to qualify eligible portions of the compensation paid under the Plan as
“performance-based compensation” within the meaning of Section 162(m), so as to exempt such eligible compensation from the deduction limits imposed by Section 162(m) and to make such eligible compensation deductible by the
Company for Federal income tax purposes. 
 2. DEFINITIONS. The following words as used in this Plan have the meanings ascribed to
each below: 
 (a) “162(m) Performance Goals” means one or more targeted levels of performance for a fiscal year with respect to one
or more of the following objective measures with respect to the Company or any Business Unit: revenues, bookings, gross margins, operating expenses, operating income, income before income taxes, earnings before interest, taxes, depreciation and
amortization (EBITDA), net income, earnings per share, stock price increase, asset turnover, reduction in leverage, days sales outstanding, total shareholder return (stock price increase plus dividends), return on equity, return on assets, return on
investment, and cash flows, or any of the foregoing before the effect of acquisitions, divestitures, accounting changes, SFAS 123(R) expenses, restructuring charges, and special charges (determined according to criteria pre-established by the
Committee). The portion of any cash bonus paid under the Plan based on achievement of 162(m) Performance Goals is intended to constitute “performance-based compensation” within the meaning of Section 162(m). 
 (b) “Award” means an annual cash incentive award granted in accordance with Section 4 of the Plan. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Business Unit” means any subsidiary, division, line of business, product line or other unit of the Company. 
 (e) “Committee” means the Compensation Committee of the Board, which shall be comprised solely of two or more “outside directors” as defined in regulations promulgated under Section 162(m).

 (f) “Company” means Mentor Graphics Corporation. 
 (g) “Other Performance Goals” means one or more targeted levels of performance for a fiscal year addressing aspects of a Participant’s individual job performance or the performance of the Company or of
any Business Unit for which the Participant is responsible or to which the Participant contributes, as determined and established by the Committee in its discretion. Other Performance Goals may be either objectively or subjectively determinable. The
portion of any cash bonus paid under the Plan based on achievement of Other Performance Goals will not constitute “performance-based compensation” within the meaning of Section 162(m). 
 (h) “Participant” means the Chief Executive Officer and the President of the Company and such other executive officers of the Company as may be
designated in writing by the Committee at the time of the establishment of 162(m) Performance Goals or Other Performance Goals for any fiscal year. 

 (i) “Plan” means the Executive Variable Incentive Plan, as set forth herein and as may be
amended from time to time. 
 (j) “Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as amended, and
any regulations promulgated thereunder. 
 3. ADMINISTRATION. The Committee will administer and interpret the Plan. In accordance with
Section 4 of the Plan, the Committee will establish target bonuses and performance goals for the applicable year. In accordance with Section 5 of the Plan, the Committee will certify whether such performance goals have been met and
determine the amount of bonuses to be paid. The Committee’s determinations under the Plan will be final and conclusive. 
 4. TARGET BONUSES AND PERFORMANCE GOALS. To make an Award to any Participant for any fiscal
year under the Plan, the Committee shall establish in writing (i) a target cash bonus amount for the Participant for performance in that fiscal year, (ii) the maximum cash bonus amount for the Participant for the year, (iii) the
portion of the target bonus that will be payable based on 162(m) Performance Goals for the fiscal year and the portion of the target bonus that shall be payable based on Other Performance Goals for the fiscal year, (iv) the 162(m) Performance
Goals and/or the Other Performance Goals for the fiscal year, (v) the methodology for determining the bonus amounts to be paid based on the level of achievement of the 162(m) Performance Goals and/or the Other Performance Goals for the fiscal
year, and (vi) the timing of payment and any other conditions to payment under the Award. The 162(m) Performance Goals for any fiscal year shall be established no later than the 90th day of that fiscal year. The Committee may, in its sole discretion, reserve the right to reduce the resulting cash bonus under any Award prior to payment on
such terms as determined by the Committee. The terms of Awards shall be promptly communicated to Participants. 
 5. COMPUTATION
AND CERTIFICATION OF BONUS. Following the conclusion of any fiscal year, prior to the payment of any cash bonuses under the Plan with respect to that year, the Committee shall certify in writing the levels of attainment of the 162(m) Performance
Goals and the Other Performance Goals for the year, and the calculation of the total bonus amount for each Participant. No bonus shall be paid if the related performance goal is not met. 
 6. DISCRETIONARY BONUS. In addition to bonuses payable based on 162(m) Performance Goals and Other Performance Goals, the Committee may, in its
discretion, at any time determine to pay a bonus to a Participant with respect to performance in any fiscal year. Such discretionary bonuses will not constitute “performance-based compensation” within the meaning of Section 162(m).
The Committee shall not promise to pay any amount as a discretionary bonus as a substitute for amounts not earned under a 162(m) Performance Goal. 
 7. MAXIMUM BONUS. The maximum cash bonus that may be paid or accrued for any Participant with respect to performance in any fiscal year shall be $5 million. 
 8. GENERAL PROVISIONS. 
 (a)
Effective Date. This Plan has been adopted by the Board and is effective beginning with Awards made to Participants for performance in the Company’s fiscal year ending January 31, 2009. The Plan is subject to approval of the
Company’s shareholders and shall be submitted for such approval at the 2007 Annual Meeting of Shareholders. 
 (b) Termination;
Amendment. The Board may at any time amend or terminate the Plan, except that no amendment will be effective without approval by the Company’s shareholders if such approval is necessary to qualify amounts payable hereunder as
“performance-based compensation” under Section 162(m). Unless it is re-approved by the shareholders, the Plan shall terminate on the date of the first shareholder meeting that occurs in the fifth year after the year of initial
shareholder approval. No termination of the Plan shall affect performance goals and related Awards established by the Committee prior to such termination. 

 (c) No Employment Rights. Nothing in this Plan will be construed as conferring upon any
Participant any right to continue in the employment of the Company or any of its subsidiaries. Except as otherwise determined by the Committee, if a Participant’s employment terminates for any reason before the payout date for an Award, the
Participant will not be entitled to any payout under that Award. 
 (d) Withholding. Any Award payable to a Participant or a
beneficiary under this Plan will be subject to any applicable Federal, state and local income and employment taxes and any other amounts that the Company or a subsidiary is required by law to deduct and withhold from such Award. 
 (e) Governing Law. The Plan will be construed in accordance with and governed by the laws of the State of Oregon, without reference to the
principles of conflict of laws.Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 $450,000,000 
 W&T OFFSHORE, INC. 
 8.25% SENIOR NOTES DUE 2014 
 PURCHASE AGREEMENT 
 June 8, 2007 

 June 8, 2007 
 Morgan Stanley & Co. Incorporated 
 As Representative of the several 
     Initial Purchasers named in Schedule I attached hereto 
 c/o Morgan Stanley & Co. Incorporated 
 1585 Broadway 
 New York, New York 10036 
 Ladies and Gentlemen: 

W&T Offshore, Inc., a Texas corporation (the “Company”), proposes to issue and sell to the several purchasers named in
Schedule I hereto (the “Initial Purchasers”), for whom you are acting as representative (the “Representative”), $450,000,000 principal amount of its 8.25% Senior Notes due 2014 (the
“Securities”) to be issued pursuant to the provisions of an Indenture, dated as of June 13, 2007 (the “Indenture”) among the Company, the “Guarantors” (as defined below) and Wells Fargo Bank, N.A., as
Trustee (the “Trustee”). The Securities will be initially and severally guaranteed (the “Guarantees”) by each entity set forth in Schedule IV hereto (referred to herein as the “Guarantors”). The
Securities and the Guarantees are referred to collectively herein as the “Offered Securities.” The Offered Securities will be offered without being registered under the Securities Act of 1933, as amended (the “Securities
Act”), to qualified institutional buyers in compliance with the exemption from registration provided by Rule 144A under the Securities Act and in offshore transactions in reliance on Regulation S under the Securities Act
(“Regulation S”). 
 In connection with the sale of the Offered Securities, the Company has prepared a preliminary
offering memorandum (the “Preliminary Memorandum”) and will prepare a final offering memorandum (the “Final Memorandum”) including a description of the terms of the Offered Securities, the terms of the offering and
a description of the Company. For purposes of this Agreement, “Additional Written Offering Communication” means any written communication (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or a
solicitation of an offer to buy the Offered Securities other than the Preliminary Memorandum or the Final Memorandum, and “Time of Sale Memorandum” means the Preliminary Memorandum together with the Additional Written Offering
Communications, if any, each identified in Schedule II hereto. As used herein, the terms Preliminary Memorandum, Time of Sale Memorandum and Final Memorandum shall include the documents, if any, incorporated by reference therein. 

 1. Representations and Warranties. Each of the Company and the Guarantors, jointly and severally,
represents and warrants to, and agrees with, you that: 
 (a) (i) the Time of Sale Memorandum does not, and at the time of the
sale of the Offered Securities in connection with the offering when the Final Memorandum is not yet available to prospective purchasers and at the Closing Date (as defined in Section 4), the Time of Sale Memorandum, as then amended or supplemented
by the Company, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and
(ii) the Preliminary Memorandum does not contain and the Final Memorandum, in the form used by the Initial Purchasers to confirm sales and on the Closing Date (as defined in Section 4), will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to
statements or omissions in the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum based upon information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly
for use therein. 
 (b) Except for the Additional Written Offering Communications, if any, identified in Schedule II hereto,
and electronic road shows, if any, furnished to you before first use, the Company has not prepared, used or referred to, and will not, without your prior consent, prepare, use or refer to, any Additional Written Offering Communication. 

(c) The Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of
its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Time of Sale Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in which the
conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not, individually or in the aggregate have a material adverse effect
on the general affairs, management, consolidated financial position, stockholders’ equity, results of operations, business or prospects of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”).

  

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 (d) Each Guarantor has been duly formed, is validly existing as a corporation or limited
liability company in good standing under the laws of jurisdiction of its incorporation or formation, has the corporate or limited liability company power and authority necessary to own or hold its property and to conduct its business as described in
the Time of Sale Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that
the failure to be so qualified or be in good standing would not have a Material Adverse Effect; all of the membership interests of each Guarantor have been duly and validly authorized and issued, are fully paid and non-assessable and are owned
directly by the Company, free and clear of all liens, encumbrances, equities or claims except for liens and encumbrances permitted under the Company’s “Credit Facilities” (as defined below); and other than the subsidiaries
listed on Exhibit 21 to the Annual Report on Form 10–K for the year ended December 31, 2006 (the “Form 10-K”), none of the Company’s subsidiaries is a “significant subsidiary,” as such term is defined in
Rule 405 under the Securities Act. 
 (e) The Company and the Guarantors have all requisite power and authority to execute and
deliver this Agreement and to otherwise perform their respective obligations under this Agreement and this Agreement has been duly authorized, executed and delivered by the Company and each of the Guarantors. 
 (f) (i) The shares of common stock of the Company that are outstanding, prior to the issuance of the Offered Securities, have been duly
authorized and are validly issued, fully paid and non-assessable, (ii) with respect to the Guarantors, the membership interests of each subsidiary of the Company that are outstanding prior to the issuance of the Offered Securities have been
duly authorized, and are validly issued, fully paid and non-assessable, and (iii) except as set forth in the Time of Sale Memorandum and the Final Memorandum, such membership interests are owned directly or indirectly by the Company, free and
clear of all liens, encumbrances, equities or claims except for liens and encumbrances permitted under the Company’s Credit Facilities. The Company does not own, directly or indirectly, any capital stock, membership interest, partnership
interest, joint venture interest or other equity or ownership interest in any person or entity, other than the subsidiaries listed on Exhibit 21 to the Company’s Form 10-K. As used in this Agreement, “Credit Facilities” means the
Third Amended and Restated Credit Agreement made as of May 26, 2006, as amended, by and among the Company and the various financial institutions and other persons from 

  

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time to time parties hereto, as lenders, each Issuer referred to therein, as issuers of Letters of Credit, Toronto Dominion (Texas) LLC, individually and as
agent for the Lenders, Lehman Commercial Paper Inc., as syndication agent, Harris Nesbitt Financing, Inc., Fortis Capital Corp. and Bank of Scotland, as Co–Documentation Agents, Natexis Banques Populaires, as Co–Agent, and TD Securities
(USA) LLC and Lehman Brothers Inc., as Co–Lead Arrangers and Co–Bookrunners. 
 (g) The table under the caption
“Capitalization” in the Time of Sale Memorandum and in the Final Memorandum (including the footnote thereto) sets forth or will set forth, as of the date of such table, (i) the actual cash and cash equivalents and capitalization of
(x) the Company and its subsidiaries on a consolidated basis and (ii) the pro forma cash and cash equivalents and capitalization of the Company and its subsidiaries on a consolidated basis, after giving effect to the offer and sale of the
Offered Securities and the application of the net proceeds therefrom as described in the Time of Sale Memorandum and in the Final Offering Memorandum under the section entitled “Use of Proceeds.” 
 (h) No labor disturbance by the employees of the Company or the Guarantors exists or, to the knowledge of the Company or the Guarantors,
is imminent or threatened, which might be expected to have a Material Adverse Effect. 
 (i) No “nationally recognized
statistical rating organization” (as such term is defined for purposes of Rule 436(g)(2) under the Act) (i) has imposed (or has informed the Company that it is considering imposing) any condition (financial or otherwise) on the Company
relating to any rating assigned to the Company or the Guarantors or to any securities of the Company or the Guarantors, or (ii) has indicated to the Company that it is considering (A) the downgrading, suspension, or withdrawal of, or any
review for a possible change that does not indicate the direction of the possible change in, any rating so assigned, or (B) any change in the outlook for any rating of the Company or the Guarantors or any securities of the Company or the
Guarantors. 
 (j) The Company intends to use the proceeds of the offering and sale of the Offered Securities in the manner
described in the Time of Sale Memorandum and the Final Offering Memorandum under the caption “Use of Proceeds.” 
 (k) Except as disclosed in the Time of Sale Memorandum or the Final Offering Memorandum and as it relates to the Initial Purchasers, neither the Company nor any affiliate (as defined in Rule 501(b) under the 

  

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Securities Act) has and, to its knowledge after due inquiry, no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in, or that has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Offered Securities,
(ii) sold, bid for, purchased, or paid anyone any compensation for soliciting purchases of, any of the Offered Securities, or (iii) except as disclosed in the Time of Sale Memorandum or the Final Offering Memorandum, paid or agreed to pay
to any person any compensation for soliciting another to purchase any other securities of the Company. 
 (l) The Securities
have been duly authorized and, when executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, will be valid and binding
obligations of the Company, enforceable in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent conveyance or other similar laws now
or hereafter in effect relating to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity) and the discretion of the court before which any proceeding therefor may be brought.

 (m) The Guarantees, as evidenced by the notations of Guarantees in the Indenture, have been duly and validly authorized by
the Guarantors and, upon their execution by the Guarantors, such notations will be duly executed, issued and delivered by each of the Guarantors. When the Securities have been issued, executed and authenticated in accordance with the terms of the
Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, the Guarantee of each Guarantor will be duly issued and the legal, valid and binding obligation of such Guarantor, entitled to the
benefit of the Indenture, and enforceable against such Guarantor in accordance with its terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent conveyance or
other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity) and the discretion of the court before which any proceeding therefor
may be brought. 
 (n) The Indenture has been duly authorized, executed and delivered by, and is a valid and binding agreement
of, the Company and 

  

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the Guarantors, enforceable in accordance with its terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, receivership, moratorium, fraudulent conveyance or other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of equity (whether applied by a court of law or equity)
and the discretion of the court before which any proceeding therefor may be brought. 
 (o) No transaction has occurred
between or among the Company, any of its subsidiaries and their affiliates, officers or directors or any affiliate or affiliates of any such officer or director that is required to have been described under applicable securities laws in the
Company’s filings under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is not so described. 
 (p) The execution and delivery by the Company and the Guarantors of, and the performance by the Company and the Guarantors of their respective obligations under, this Agreement, the Indenture, and the Offered
Securities will not contravene any provision of applicable law or the certificate of incorporation, or the by-laws or other governing documents of the Company or any of its subsidiaries, or any indenture, mortgage, deed of trust, loan agreement or
other agreement or other instrument binding upon the Company or any of its subsidiaries or to which any of the property or assets of the Company or any of its subsidiaries is subject that is material to the Company and its subsidiaries, taken as a
whole, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company or any subsidiary or any of their property or assets, nor will such action result in the creation or imposition of any material
lien, charge, claim or encumbrance upon any property or asset of the Company or any subsidiaries, and (subject to the accuracy of the representations and warranties in Section 7 hereof) no consent, approval, authorization or order of, or
qualification with, any governmental body or agency is required for the performance by the Company and the Guarantors of their obligations under this Agreement, the Indenture or the Offered Securities, except such as may be required by the
securities or Blue Sky laws of the various states in connection with the offer and sale of the Offered Securities, the consummation of the transactions contemplated hereby, and the application of the proceeds from the sale of the Offered Securities
as described under “Use of Proceeds” in each of the Time of Sale Memorandum and the Final Offering Memorandum. 
  

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 (q) The statements set forth in the Time of Sale Memorandum and the Final Offering
Memorandum under the captions “Description of Notes,” and “Certain United States Federal Tax Considerations,” as the case may be, insofar as they constitute summaries of the legal matters, documents or proceedings referred to
therein, fairly present, in all material respects, the information presented with respect to such legal matters, documents or proceedings. 
 (r) Offered Securities are eligible for resale pursuant to Rule 144A under the Act and no other securities of the Company are of the same class (within the meaning of Rule 144A under the Act) as the Offered Securities
and listed on a national securities exchange registered under Section 6 of the Exchange Act, or quoted in a U.S. automated inter-dealer quotation system. No securities of the Company of the same class as the Offered Securities have been
offered, issued or sold by the Company or any of its Affiliates, including any sales pursuant to Rule 144A or Regulation D or S of the Securities Act, within the six-month period immediately prior to the date hereof. 
 (s) Neither the Company nor any of its subsidiaries has sustained, since the date of the latest audited financial statements included in
the Time of Sale Memorandum, any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, nor from any labor dispute or court or governmental action, order or decree; and,
otherwise than as set forth or contemplated in the Time of Sale Memorandum, since such date, there has not been any material change in the capital stock or long–term debt of the Company or any of its subsidiaries or any material adverse change,
or any development involving a prospective material adverse change, in or affecting the general affairs, management, consolidated financial position, stockholders’ equity, results of operations, business or prospects of the Company and its
subsidiaries. 
 (t) The historical financial statements (including the related notes and supporting schedules) included in
the Time of Sale Memorandum comply in all material respects with the applicable requirements under the Securities Act, other than the with respect to the Kerr-McGee historical financial statements for the six-month periods ending June 30, 2006
and 2005, and such financial statements present fairly in all material respects the financial condition, results of operations and cash flows of the entities purported to be shown thereby, at the dates and for the periods indicated, and have been
prepared in conformity with generally accepted accounting principles applied on a consistent basis 

  

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throughout the periods indicated. The financial information contained in the Time of Sale Memorandum under the caption “Summary Historical and Pro Forma
Financial Information” and “Selected Historical Financial Information” (i) with respect to the Company is derived from the accounting records of the Company and its subsidiaries and fairly presents the information purported to be
shown thereby, and (ii) with respect to the properties (referred to herein as the “Kerr–McGee properties”) acquired from Kerr–McGee Corporation (“Kerr–McGee”) is derived from the accounting records of
Kerr–McGee and, to the knowledge of the Company, such financial information fairly presents the information purported to be shown thereby. The pro forma financial information and the financial and operating data contained in the Time of Sale
Memorandum has been prepared on a basis consistent with the historical financial statements contained in the Time of Sale Memorandum (except for the pro forma adjustments specified therein), includes all material adjustments to the historical
financial information required by Rule 11–02 of Regulation S–X under the Securities Act and the Exchange Act to reflect the transactions described in the Time of Sale Memorandum, gives effect to assumptions made on a reasonable basis and
fairly presents the transactions described in the Time of Sale Memorandum. The other historical financial and statistical information and data included in the Time of Sale Memorandum are, in all material respects, fairly presented. 
 (u) The pro forma financial information and the related notes of the Company set forth in the Time of Sale Memorandum and the Final
Offering Memorandum include assumptions that were made in good faith and provide a reasonable basis for presenting the significant effects directly attributable to the transactions and events described therein. The related pro forma adjustments give
appropriate effect to those assumptions and the pro forma adjustments reflect the proper application of those adjustments and the pro forma adjustments reflect the proper application of those adjustments to the historical financial statement amounts
in the pro forma financial data included in the Time of Sale Memorandum and the Final Offering Memorandum. The pro forma financial data set forth under “Summary Historical and Pro Forma Financial Information” and “Unaudited Pro Forma
Condensed Consolidated Financial Information” in the Time of Sale Memorandum and the Final Offering Memorandum comply as to form in all material respects with the applicable accounting requirements of Regulation S-X under the Act and the pro
forma adjustments have been properly applied to the historical amounts in the compilation of those statements. 
  

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 (v) Other than proceedings accurately described in all material respects in the Time of
Sale Memorandum, there are no legal or governmental proceedings pending or threatened to which the Company or any of its subsidiaries is a party or to which any of the properties of the Company or any of its subsidiaries is subject that would have a
Material Adverse Effect, or a material adverse effect on the power or ability of the Company and the Guarantors to perform their obligations under this Agreement, the Indenture or the Offered Securities or to consummate the transactions contemplated
by the Time of Sale Memorandum. 
 (w) There are no contracts or other documents which are required to be described in the
Company’s filings under the Exchange Act or filed as exhibits to the Form 10–K or the Company’s Quarterly Report on Form 10–Q for the quarter ended March 31, 2007 by the Exchange Act or by the rules and regulations
thereunder which have not been described or filed as required. 
 (x) The Company and its subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits,
licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect, whether or not arising from transactions in the ordinary course of business. Neither the Company nor its subsidiaries have been named as a “potentially
responsible party” under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended. 
 (y) There has been no storage, disposal, generation, manufacture, refinement, transportation, handling or treatment of toxic wastes, medical wastes, hazardous wastes or hazardous substances by the Company or any of its subsidiaries (or, to
the knowledge of the Company, any of their predecessors in interest) at, upon or from any of the property now or previously owned or leased by the Company or its subsidiaries in violation of any applicable law, ordinance, rule, regulation, order,
judgment, decree or permit or which would require remedial action under any applicable law, ordinance, rule, regulation, order, judgment, decree or 

  

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permit, except for any violation or remedial action which would not have, or could not be reasonably likely to have, individually or in the aggregate with
all such violations and remedial actions, a Material Adverse Effect; there has been no material spill, discharge, leak, emission, injection, escape, dumping or release of any kind onto such property or into the environment surrounding such property
of any toxic wastes, medical wastes, solid wastes, hazardous wastes or hazardous substances due to or caused by the Company or any of its subsidiaries or with respect to which the Company or any of its subsidiaries have knowledge, except for any
such spill, discharge, leak, emission, injection, escape, dumping or release which would not have or would not be reasonably likely to have, individually or in the aggregate with all such spills, discharges, leaks, emissions, injections, escapes,
dumpings and releases, a Material Adverse Effect; and the terms “hazardous wastes”, “toxic wastes”, “hazardous substances” and “medical wastes” shall have the meanings specified in any applicable local, state,
federal and foreign laws or regulations with respect to environmental protection. 
 (z) Ernst & Young LLP, who have
(i) certified certain financial statements of the Company, whose report appears in the Time of Sale Memorandum and the Final Memorandum and who have delivered the initial letters referred to in Section 5(e) hereof, are independent public
accountants with respect to the Company as required by the Securities Act and the rules and regulations thereunder. 
 (aa)
The Company and each of its subsidiaries have (i) generally satisfactory title to all their respective interests in their natural gas and oil properties owned or leased by them, title investigations having been carried out by the Company and
its subsidiaries in accordance with the practice in the oil and gas industries in the areas in which the Company and its subsidiaries operate, (ii) good and marketable title in fee simple to all real property owned by them to the extent
necessary to carry on their business and (iii) good and marketable title to all personal property owned by them to the extent necessary to carry on their business, in each case free and clear of all liens, encumbrances and defects, except as
may be a “Permitted Lien” as defined under the caption “Description of Notes” in the Time of Sale Memorandum (other than under clauses (3), (4) and (5) of such definition) or such as are described in the Time of Sale
Memorandum or such as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property in the aggregate by the Company and its subsidiaries; and, to the extent material to
the business and operations of the Company and its subsidiaries, taken as a whole, all assets held under 

  

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lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases, with such exceptions that do not interfere with
the use made of such properties and proposed to be made of such property and buildings by the Company or any of its subsidiaries. 
 (bb) The Company and its subsidiaries carry, or are covered by, insurance by reputable and solvent insurers in such amounts and covering such risks as is adequate for the conduct of the business operated by them and the value of their
properties and as is customary for companies engaged in the oil and gas exploration and production industry. In the Company’s reasonable judgment, such insurance insures against such losses and risks as are adequate to protect the Company and
the subsidiaries and their business. Neither the Company nor any subsidiary has received notice from any insurer or agent of such insurer that substantial capital improvements or other expenditures will have to be made in order to continue such
insurance; and all such insurance is outstanding and duly in force on the date hereof and will be outstanding and duly in force on the Closing Date. 
 (cc) The Company and its subsidiaries own or possess adequate rights to use all material patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations,
copyrights and licenses necessary for the conduct of their business and have no reason to believe that the conduct of their respective businesses will conflict with, and have not received any notice of any claim of conflict with, any such rights of
others, where if determined adversely to the Company or its subsidiaries would have a Material Adverse Effect. 
 (dd) The
Company is in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”); no
“reportable event” (as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which the Company would have any liability; the Company has not incurred and does not expect to incur liability
under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published
interpretations thereunder (the “Code”); and each “pension plan” for which the Company would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and
nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification. 
  

 11 

 (ee) The Company and its subsidiaries have filed all federal, state and local income and
franchise Tax returns required to be filed through the date hereof and have paid all Taxes due thereon, and no Tax deficiency has been determined adversely to the Company or any of its subsidiaries which has had (nor does the Company or any of the
Guarantors have any knowledge of any Tax deficiency which, if determined adversely to the Company or any of its subsidiaries, might have) a Material Adverse Effect. The accruals and reserves on the books and records of the Company and the Guarantors
in respect of any material Tax liability for any taxable period not finally determined are adequate to meet any assessments of Tax for any such period. For purposes of this Agreement, the term “Tax” and “Taxes” shall mean all
Federal, state, local and foreign taxes, and other assessments of a similar nature (whether imposed directly or through withholding), including, without limitation, any interest, additions to tax, or penalties applicable thereto. 
 (ff) The Company (i) makes and keeps accurate books and records and (ii) maintains internal accounting controls which provide
reasonable assurance that (A) transactions are executed in accordance with management’s authorization, (B) transactions are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its
assets, (C) access to its assets is permitted only in accordance with management’s authorization and (D) the reported accountability for its assets is compared with existing assets at reasonable intervals. 
 (gg) Neither the Company nor any of the Guarantors (i) is in violation of its articles of incorporation, bylaws or other governing
documents, (ii) is in default (and no event has occurred which, with notice or lapse of time or both, would constitute such a default), in the due performance or observance of any term, covenant or condition contained in any material indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject where such default would reasonably be expected to have a Material Adverse
Effect or (iii) is in violation in any material respect of any law, ordinance, governmental rule, regulation or court decree to which it or its property or assets may be subject or has failed to obtain any material license, permit, certificate,
franchise or other governmental authorization or permit necessary to the ownership of its property or to the conduct of its business. To the knowledge of the Company and its subsidiaries, no third party to any indenture, mortgage, deed of trust,
loan agreement or other material agreement or instrument to which the Company or its subsidiaries is a 

  

 12 

 
party or by which it is bound or to which any of its properties are subject is in default under any such agreement, where such default would reasonably be
expected to have a Material Adverse Effect. 
 (hh) Neither the Company nor any of its subsidiaries, nor any director,
officer, agent, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries, has used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment. 
 (ii) Netherland, Sewell & Associates, whose
report regarding the oil and natural gas reserves of the Company and its subsidiaries is referred to in the Time of Sale Memorandum and the Final Memorandum (the “Company Reserve Report”), and who has delivered the letter regarding the
Company referred to in Section 5(f) hereof, was, as of the date of such report, and is, as of the date hereof, an independent petroleum engineer with respect to the Company. The information underlying the estimates of oil and natural gas
reserves of the Company and its subsidiaries, which the Company prepared and supplied to Netherland, Sewell & Associates for the purpose of preparing the Company Reserve Report was true and correct in all material respects on the dates such
estimates were made, except for such inaccuracies when taken as a whole would not result in the material misstatement of the estimate of proved reserves of the Company and its subsidiaries, the future net cash flows therefrom or the present value
thereof, and such information was supplied and was prepared in accordance with customary industry practices; other than normal production of the reserves and intervening product price fluctuations as described in the Time of Sale Memorandum and the
Final Memorandum, the Company is not aware of any facts or circumstances that would result in an adverse change in the reserves, or the present value of future net cash flows therefrom, as described in the Time of Sale Memorandum and the Final
Memorandum and as reflected in the Company Reserve Report, that would reasonably be expected to result in a Material Adverse Effect; estimates of such reserves and present values as described in the Time of Sale Memorandum and the Final Memorandum
and reflected in the Company Reserve Report comply in all material respects with applicable requirements of Regulation S–X and Industry Guide 2 under the Securities Act. 
  

 13 

 (jj) The Company has established and maintains disclosure controls and procedures (as
such term is defined in Rule 13a–15(e) under the Exchange Act); (ii) such disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that the Company will file or
submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and are designed to ensure that information required to be disclosed by the Company in the
reports that it will file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s principal executive and principal financial officers, or persons performing similar functions,
as appropriate to allow timely decisions regarding required disclosure; and (iii) such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established. 
 (kk) Since the date of the latest audited financial statements included in the Time of Sale Memorandum, there has been no change in the
Company’s internal control over financial reporting that has materially adversely affected, or is reasonably likely to materially adversely affect the Company’s internal control over financial reporting. 
 (ll) The Company is in compliance in all material respects with applicable provisions of the Sarbanes–Oxley Act of 2002 and the rules
and regulations of the Commission and the NYSE that pertain thereto that are effective, and is actively taking steps to ensure that it will be in compliance in all material respects with other applicable provisions of the Sarbanes–Oxley Act of
2002 and the rules and regulations of the Commission and the NYSE that pertain thereto upon the effectiveness of such provisions. 
 (mm) The Company has not engaged any broker, finder, commission agent or other person (other than the Initial Purchasers) in connection with the offering or any of the transactions contemplated in this Agreement, the Indenture or the
Offered Securities, and the Company is not under any obligation to pay any broker’s fee or commission in connection with such transactions (other than commissions or fees to the Initial Purchasers). 
 (nn) Each certificate signed by any officer of the Company or the Guarantors delivered to the Representative shall be deemed a
representation and warranty by the Company or the Guarantors (and not individually by such officer) to the Representative with respect to the matters covered thereby. 
  

 14 

 (oo) Neither the Company nor the Guarantors are, and after giving effect to the offering
and sale of the Offered Securities and the application of the proceeds thereof as described in the Final Memorandum will be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended. 
 (pp) Neither the Company nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an
“Affiliate”) of the Company has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be
integrated with the sale of the Offered Securities in a manner that would require the registration under the Securities Act of the Offered Securities or (ii) offered, solicited offers to buy or sell the Offered Securities by any form of general
solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
 (qq) None of the Company, its Affiliates or any person acting on its or their behalf has engaged or will engage in any directed selling
efforts (within the meaning of Regulation S) with respect to the Offered Securities and the Company and its Affiliates and any person acting on its or their behalf have complied and will comply with the offering restrictions requirement of
Regulation S, except no representation, warranty or agreement is made by the Company in this paragraph with respect to the Initial Purchasers. 
 (rr) Assuming the accuracy of representations and warranties in Section 7 hereof, it is not necessary in connection with the offer, sale and delivery of the Offered Securities to the Initial Purchasers in the
manner contemplated by this Agreement to register the Offered Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended. 
 (ss) The Securities satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act. 
 2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several Initial Purchasers, and each Initial Purchaser, upon the
basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Securities set forth in
Schedule I hereto opposite its name at a purchase price of 99.089% of the principal amount thereof (the “Purchase Price”) plus accrued interest, if any, to the Closing Date. 
  

 15 

 3. Terms of Offering. You have advised the Company that the Initial Purchasers will make an
offering of the Offered Securities purchased by the Initial Purchasers hereunder as soon as practicable after this Agreement is entered into as in your judgment is advisable. 
 4. Payment and Delivery. Payment for the Offered Securities shall be made to the Company in Federal or other funds immediately available in New
York City against delivery of such Offered Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on June 13, 2007, or at such other time on the same or such other date as shall be designated
in writing by you. The time and date of such payment are hereinafter referred to as the “Closing Date.” 
 The Offered
Securities shall be in global form and registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). The Offered Securities shall be delivered to you on the Closing Date through the facilities of
DTC for the respective accounts of the several Initial Purchasers, with any transfer taxes payable in connection with the transfer of the Offered Securities to the Initial Purchasers duly paid, against payment of the Purchase Price therefor plus
accrued interest, if any, to the date of payment and delivery. 
 5. Conditions to the Initial Purchasers’ Obligations. The
several obligations of the Initial Purchasers to purchase and pay for the Offered Securities on the Closing Date are subject to the following conditions: 
 (a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date: 
 (i) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the
rating accorded any of the securities of the Company or any of its subsidiaries by any “nationally recognized statistical rating organization,” as such term is defined for purposes of Rule 436(g)(2) under the Securities Act; and

 (ii) there shall not have occurred any change, or any development involving a prospective change, in the condition,
financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Memorandum provided to the prospective purchasers of the Offered Securities that, in
your judgment, is material and adverse and that makes it, in your 

  

 16 

 
judgment, impracticable to market the Offered Securities on the terms and in the manner contemplated in the Time of Sale Memorandum. 
 (b) The Initial Purchasers shall have received on the Closing Date a certificate, dated the Closing Date and signed by an executive
officer of the Company and the Guarantors, to the effect set forth in Section 5(a)(i) and to the effect that the representations and warranties of the Company and the Guarantors contained in this Agreement are true and correct as of the Closing
Date and that the Company and the Guarantors have complied with all of the agreements and satisfied all of the conditions on their part to be performed or satisfied hereunder on or before the Closing Date. 
 The officer signing and delivering such certificate may rely upon the best of his or her knowledge as to proceedings threatened.

 (c) The Initial Purchasers shall have received on the Closing Date an opinion of Adams & Reese LLP, outside
counsel for the Company, dated the Closing Date, to the effect set forth in Exhibit A. Such opinion shall be rendered to the Representative at the request of the Company and shall so state therein. 
 (d) The Initial Purchasers shall have received on the Closing Date an opinion of White & Case LLP, counsel for the Initial
Purchasers, dated the Closing Date, to the effect set forth in Exhibit B. 
 (e) The Representative, on behalf of the
Initial Purchasers, shall have received from Ernst & Young, LLP as public accountants for the Company, a letter, and from Ernst & Young, LLP, as auditors of the statement of revenues and direct operating expenses of the Kerr-McGee
properties, a letter, in each case on each of the date hereof and the Closing Date, dated the date hereof or the Closing Date, as the case may be, in each case in form and substance satisfactory to the Representative, from Ernst & Young,
LLP, independent public accountants, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information
contained in the Time of Sale Memorandum and the Final Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than three days prior to the date hereof. 
 (f) The Initial Purchasers shall have received from Netherland Sewell & Associates, the Company’s independent petroleum
engineers, a 

  

 17 

 
letter or letters dated, respectively, the date of this Agreement and the Closing Date, in form and substance reasonably satisfactory to the Representative,
each stating, as of the date of such letter (or, with respect to matters involving changes or developments since the respective dates as of which information regarding the natural gas and oil reserves and future net cash flows is given in the Time
of Sale Memorandum and the Final Offering Memorandum, as of the date not more than five days prior to the date of such letter), the conclusions and findings of such firm with respect to the natural gas and oil reserves of the Company and such other
matters as the Representative reasonably may request. 
 6. Covenants of the Company and the Guarantors. The Company and the
Guarantors covenant with each Initial Purchaser as follows: 
 (a) To furnish to you in New York City, without charge, prior
to 10:00 a.m. New York City time on the business day next succeeding the date of this Agreement and during the period mentioned in Section 6(d) or (e), as many copies of the Time of Sale Memorandum, the Final Memorandum, any documents
referred to therein and any supplements and amendments thereto as you may reasonably request. 
 (b) Before amending or
supplementing the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum, to furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which you reasonably
object. 
 (c) To furnish to you a copy of each proposed Additional Written Offering Communication to be prepared by or on
behalf of, used by, or referred to by the Company and not to use or refer to any proposed Additional Written Offering Communication to which you reasonably object. 
 (d) If the Time of Sale Memorandum is being used to solicit offers to buy the Offered Securities at a time when the Final Memorandum is
not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Memorandum in order to make the statements therein, in the light of the
circumstances, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to amend or supplement the Time of Sale Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to
the Initial Purchasers and to any dealer upon request, either amendments or supplements to the Time of Sale Memorandum so that the statements in the Time of Sale 

  

 18 

 
Memorandum as so amended or supplemented will not, in the light of the circumstances when delivered to a prospective purchaser, be misleading or so that the
Time of Sale Memorandum, as amended or supplemented, will comply with applicable law. 
 (e) If, during such period after the
date hereof and prior to the date on which all of the Offered Securities shall have been sold by the Initial Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final Memorandum in
order to make the statements therein, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to amend or supplement the
Final Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers and to such dealers as the Representative may designate, either amendments or supplements to the Final Memorandum so that
the statements in the Final Memorandum as so amended or supplemented will not, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, be misleading or so that the Final Memorandum, as amended or supplemented, will
comply with applicable law. 
 (f) To endeavor to qualify the Offered Securities for offer and sale under the securities or
Blue Sky laws of such jurisdictions as you shall reasonably request. 
 (g) To use the proceeds from the offer and sale of the
Offered Securities in the manner described in the Time of Sale Memorandum and the Final Offering Memorandum under the caption “Use of Proceeds.” 
 (h) Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of their respective obligations
under this Agreement, including: (i) the fees, disbursements and expenses of the Company’s counsel and the Company’s accountants in connection with the issuance and sale of the Offered Securities and all other fees or expenses in
connection with the preparation of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum, any Additional Written Offering Communication prepared by or on behalf of, used by, or referred to by the Company and any amendments
and supplements to any of the foregoing, including all printing costs associated therewith, and the delivering of copies thereof to the Initial Purchasers, in the quantities herein above specified, (ii) all costs and expenses related to the
issue and delivery of the Offered Securities to the Initial Purchasers, including any transfer or other 

  

 19 

 
taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the
Offered Securities under state securities laws and all expenses in connection with the qualification of the Offered Securities for offer and sale under state securities laws as provided in Section 6(f) hereof, including filing fees and the
reasonable fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by rating agencies for the rating of the
Offered Securities, (v) the fees and expenses, if any, incurred in connection with the admission of the Securities for trading in PORTAL or any appropriate market system, (vi) the costs and charges of the Trustee and any transfer agent,
registrar or depositary, (vii) the cost of the preparation, issuance and delivery of the Offered Securities, (viii) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in
connection with the marketing of the offering of the Offered Securities, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with production of road show slides
and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the representatives and officers of the Company and any such
consultants, and the cost of any aircraft chartered in connection with the road show, and (ix) all other cost and expenses incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this
Section. It is understood, however, that except as provided in this Section, Section 8, and the last paragraph of Section 10, the Initial Purchasers will pay all of their costs and expenses, including fees and disbursements of their
counsel, transfer taxes payable on resale of any of the Offered Securities by them and any advertising expenses connected with any offers they may make. 
 (i) Neither the Company nor any Affiliate will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) which could be integrated with the sale
of the Offered Securities in a manner which would require the registration under the Securities Act of the Offered Securities. 
 (j) Not to solicit any offer to buy or offer or sell the Offered Securities by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Securities Act. 
  

 20 

 (k) While any of the Offered Securities remain “restricted securities” within
the meaning of the Securities Act, to make available, upon request, to any seller of such Offered Securities the information specified in Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to Section 13 or 15(d)
of the Exchange Act. 
 (l) If requested by you, to use its best efforts to permit the Securities to be designated PORTAL
securities in accordance with the rules and regulations adopted by the National Association of Securities Dealers, Inc. relating to trading in the PORTAL Market. 
 (m) None of the Company, its Affiliates or any person acting on its or their behalf (other than the Initial Purchasers) will engage in any
directed selling efforts (as that term is defined in Regulation S) with respect to the Offered Securities, and the Company and its Affiliates and each person acting on its or their behalf (other than the Initial Purchasers) will comply with the
offering restrictions requirement of Regulation S. 
 (n) During the period of two years after the Closing Date the Company
will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Offered Securities which constitute “restricted securities” under Rule 144 that have been reacquired by any of them.

 The Company also agrees that, without the prior written consent of Morgan Stanley & Co. Incorporated on behalf of the Initial
Purchasers, it will not, during the period beginning on the date hereof and continuing to and including the Closing Date, offer, sell, contract to sell or otherwise dispose of any debt securities of the Company or warrants to purchase debt
securities of the Company substantially similar to the Offered Securities (other than the sale of the Offered Securities under this Agreement). 
 7. Offering of Offered Securities; Restrictions on Transfer. (a) Each Initial Purchaser, severally and not jointly, represents and warrants that such Initial Purchaser is a qualified institutional buyer as defined in
Rule 144A under the Securities Act (a “QIB”). Each Initial Purchaser, severally and not jointly, agrees with the Company that (i) it will not solicit offers for, or offer or sell, such Offered Securities by any form of
general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act and (ii) it will solicit
offers for such Offered Securities only from, and will offer such Offered Securities only to, persons that it reasonably believes to be (A) in the case of offers inside the United States, QIBs and (B) in the case of offers outside the
United States, to persons other than U.S. persons (“foreign 

  

 21 

 
purchasers,” which term shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for foreign
beneficial owners (other than an estate or trust)) in reliance upon Regulation S under the Securities Act that, in each case, in purchasing such Offered Securities are deemed to have represented and agreed as provided in the Final Memorandum under
the caption “Notice to Investors”. 
 (b) Each Initial Purchaser, severally and not jointly, represents, warrants,
and agrees with respect to offers and sales outside the United States that: 
 (i) such Initial Purchaser understands that no
action has been or will be taken in any jurisdiction by the Company that would permit a public offering of the Offered Securities, or possession or distribution of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum or any
other offering or publicity material relating to the Offered Securities, in any country or jurisdiction where action for that purpose is required; 
 (ii) such Initial Purchaser will comply with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Offered Securities or has in its possession or distributes the
Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum or any such other material, in all cases at its own expense; 
 (iii) the Offered Securities have not been registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with
Rule 144A or Regulation S under the Securities Act or pursuant to another exemption from the registration requirements of the Securities Act; 
 (iv) such Initial Purchaser has offered the Offered Securities and will offer and sell the Offered Securities (A) as part of their distribution at any time and (B) otherwise until 40 days after the later of
the commencement of the offering and the Closing Date, only in accordance with Rule 903 of Regulation S or as otherwise permitted in Section 7(a); accordingly, neither such Initial Purchaser, its Affiliates or any persons acting on
its or their behalf have engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Offered Securities, and any such Initial Purchaser, its Affiliates and any such persons have complied and
will comply with the offering restrictions requirement of Regulation S; 
  

 22 

 (v) such Initial Purchaser, in relation to each Member State of the European Economic
Area which has implemented the Prospectus Directive (each, a “Member State”), has represented and agreed that with effect from and including the date on which the Prospectus Directive is implemented in that Member State it has not
made and will not make an offer of Offered Securities to the public in that Member State, except that it may, with effect from and including such date, make an offer of Offered Securities to the public in that Member State: 
 (A) at any time to legal entities which are authorized or regulated to operate in the financial markets or, if not so authorised or
regulated, whose corporate purpose is solely to invest in securities; 
 (B) at any time to any legal entity which has two or
more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or
consolidated accounts; or 
 (C) at any time in any other circumstances which do not require the publication by us of a
prospectus pursuant to Article 3 of the Prospectus Directive. 
 For the purposes of the above, the expression an “offer of Offered
Securities to the public” in relation to any Offered Securities in any Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Offered Securities to be offered so as to
enable an investor to decide to purchase or subscribe the Offered Securities, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression Prospectus Directive means
Directive 2003/71/EC and includes any relevant implementing measure in that Member State; 
 (vi) such Initial Purchaser has
represented and agreed that it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the 

  

 23 

 
meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of the Offered Securities in circumstances in
which Section 21(1) of such Act does not apply to us and it has complied and will comply with all applicable provisions of such Act with respect to anything done by it in relation to any Offered Securities in, from or otherwise involving the
United Kingdom; 
 (vii) such Initial Purchaser understands that the Offered Securities have not been and will not be
registered under the Securities and Exchange Law of Japan, and represents that it has not offered or sold, and agrees not to offer or sell, directly or indirectly, any Offered Securities in Japan or for the account of any resident thereof except
pursuant to any exemption from the registration requirements of the Securities and Exchange Law of Japan and otherwise in compliance with applicable provisions of Japanese law; and 
 (viii) such Initial Purchaser agrees that, at or prior to confirmation of sales of the Offered Securities, it will have sent to each
distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Offered Securities from it during the restricted period a confirmation or notice to substantially the following effect: 
 “The Securities covered hereby have not been registered under the U.S. Securities Act of 1933 (the “Securities Act”) and
may not be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering
and the Closing Date, except in either case in accordance with Regulation S (or Rule 144A if available) under the Securities Act. Terms used above have the meaning given to them by Regulation S.” 
 Terms used in this Section 7(b) have the meanings given to them by Regulation S. 
 8. Indemnity and Contribution. (a) The Company and each Guarantor agrees, jointly and severally, to indemnify and hold harmless each Initial Purchaser, each person, if any, who controls any Initial
Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Initial Purchaser within the meaning of Rule 405 

  

 24 

 
under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Memorandum, the Time of Sale Memorandum, any
Additional Written Offering Communication prepared by or on behalf of, used by, or referred to by the Company, or the Final Memorandum or any amendment or supplement thereto, or caused by any omission or alleged omission to state therein a material
fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use therein. 
 (b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, their respective directors, its
officers and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to such Initial
Purchaser, but only with reference to information relating to such Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use in the Preliminary Memorandum, the Time of Sale Memorandum, any
Additional Written Offering Communication prepared by or on behalf of, used by or referred to by the Company, or the Final Memorandum or any amendment or supplement thereto. 
 (c) In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay
the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing 

  

 25 

 
interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with
any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all such indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by Morgan Stanley & Co. Incorporated, in the case of parties indemnified pursuant to Section 8(a), and by the Company, in the case of parties indemnified
pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with
such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such
proceeding. 
 (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to an indemnified party or
insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable
by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers
on the other hand from the offering of the Offered Securities or (ii) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause 8(d)(i) above but also the relative fault of the Company and the Guarantors on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The relative 

  

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benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other hand in connection with the offering of the
Offered Securities shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Offered Securities (before deducting expenses) received by the Company and the Guarantors and the total discounts and
commissions received by the Initial Purchasers bear to the aggregate offering price of the Offered Securities. The relative fault of the Company and the Guarantors on the one hand and of the Initial Purchasers on the other hand shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantors or by the Initial
Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. For purposes of the preceding two sentences, the net proceeds deemed to be received by the Company
shall be deemed to be also for the benefit of the Guarantors and information supplied by the Company shall also be deemed to be supplied by the Guarantors. The Initial Purchasers’ respective obligations to contribute pursuant to this
Section 8 are several in proportion to the respective principal amount of Offered Securities they have purchased hereunder, and not joint. 
 (e) The Company, the Guarantors and the Initial Purchasers agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d). The amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in Section 8(d) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Offered Securities resold by it
in the initial placement of such Offered Securities were offered to investors exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The
remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. 
  

 27 

 (f) The indemnity and contribution provisions contained in this Section 8 and the representations,
warranties and other statements of the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Initial
Purchaser, any person controlling any Initial Purchaser or any affiliate of any Initial Purchaser or by or on behalf of the Company, its officers or directors or any person controlling the Company and (iii) acceptance of and payment for any of
the Offered Securities. 
 9. Termination. The Initial Purchasers may terminate this Agreement by notice given by you to the Company,
if after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any securities of the Company shall have been suspended on any exchange or in any
over-the-counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared by Federal
or New York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in your judgment, is material and adverse and which, singly or together
with any other event specified in this clause (v), makes it, in your judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the Offered Securities on the terms and in the manner contemplated in the Time of Sale
Memorandum or the Final Memorandum. 
 10. Effectiveness; Defaulting Initial Purchasers. This Agreement shall become effective upon
the execution and delivery hereof by the parties hereto. 
 If, on the Closing Date, any one or more of the Initial Purchasers shall fail or
refuse to purchase Offered Securities that it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of Offered Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused
to purchase is not more than one-tenth of the aggregate principal amount of Offered Securities to be purchased on such date, the other Initial Purchasers shall be obligated severally in the proportions that the principal amount of Offered Securities
set forth opposite their respective names in Schedule I bears to the aggregate principal amount of Offered Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as you may specify,
to purchase the Offered Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on such date; 

  

 28 

 
provided that in no event shall the principal amount of Offered Securities that any Initial Purchaser has agreed to purchase pursuant to this
Agreement be increased pursuant to this Section 10 by an amount in excess of one-ninth of such principal amount of Offered Securities without the written consent of such Initial Purchaser. If, on the Closing Date any Initial Purchaser or
Initial Purchasers shall fail or refuse to purchase Offered Securities which it or they have agreed to purchase hereunder on such date and the aggregate principal amount of Offered Securities with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Offered Securities to be purchased on such date, and arrangements satisfactory to you and the Company for the purchase of such Offered Securities are not made within 36 hours after such default, this
Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser or of the Company. In any such case either you or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven
days, in order that the required changes, if any, in the Time of Sale Memorandum, the Final Memorandum or in any other documents or arrangements may be effected. Any action taken under this paragraph shall not relieve any defaulting Initial
Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement. 
 If this Agreement shall be terminated
by the Initial Purchasers, or any of them, because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement, the Company will reimburse the Initial Purchasers or such Initial Purchasers as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and
disbursements of their counsel) reasonably incurred by such Initial Purchasers in connection with this Agreement or the offering contemplated hereunder. 
 11. Entire Agreement. (a) This Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not superseded by this Agreement) that relate to the offering
of the Offered Securities, represents the entire agreement between the Company and the Initial Purchasers with respect to the preparation of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum, the conduct of the offering,
and the purchase and sale of the Offered Securities. 
 (b) The Company and the Guarantors acknowledge that in connection with the offering
of the Offered Securities: (i) the Initial Purchasers have acted at arms length, are not agents of, and owe no fiduciary duties to, the Company, the Guarantors or any other person, (ii) the Initial Purchasers owe the Company and the
Guarantors only those duties and obligations set forth in this 

  

 29 

 
Agreement and prior written agreements (to the extent not superseded by this Agreement) if any, and (iii) the Initial Purchasers may have interests that
differ from those of the Company and the Guarantors. The Company and the Guarantors waive to the full extent permitted by applicable law any claims it may have against the Initial Purchasers arising from an alleged breach of fiduciary duty in
connection with the offering of the Offered Securities. 
 12. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York. 
 14. Headings. The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement. 
 15. Notices. All communications hereunder shall be in writing and effective only upon receipt and if to the Initial Purchasers shall be delivered,
mailed or sent to you in care of Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York 10036, Attention: High Yield Syndicate Desk, with a copy to the Legal Department; and if to the Company shall be delivered,
mailed or sent to W&T Offshore, Inc. Nine Greenway Plaza, Suite 300, Houston, Texas 77046, Attention: Tracy W. Krohn (Fax: 713-626-8527). 
  

 30 

			
	Very truly yours,
	
	Very truly yours,
	
	W&T OFFSHORE, INC.
		
	By:	 	 /s/ John D. Gibbons

	Name:	 	John D. Gibbons
	Title:	 	Senior Vice President and Chief Financial Officer
	
	GULF OF MEXICO OIL AND GAS PROPERTIES LLC
	
	OFFSHORE ENERGY I LLC
	
	OFFSHORE ENERGY II LLC
	
	OFFSHORE ENERGY III LLC
	
	OFFSHORE SHELF LLC
	
	W&T ENERGY VI, LLC
	
	W&T ENERGY VII, LLC
		
	By:	 	 /s/ Thomas F. Getten

	Name:	 	Thomas F. Getten
	Title:	 	Authorized Representative

  

 31 

			
	Accepted as of the date hereof
	
	Morgan Stanley & Co. Incorporated
	
	Acting severally on behalf of itself and the
several Initial Purchasers named in
Schedule I hereto.
		
	By:	 	Morgan Stanley & Co. Incorporated
		
	By:	 	 /s/

	Name:	 	
	Title:	 	

  

 32

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