Document:

Exhibit

Exhibit 10.1

FOURTH AMENDMENT TO
SENIOR CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO SENIOR CREDIT AGREEMENT (the "Fourth Amendment"), dated effective as of April 2, 2018 (the "Fourth Amendment Effective Date"), is made and signed among the UNIT CORPORATION, a Delaware corporation (“Unit”), UNIT DRILLING COMPANY, an Oklahoma corporation (“Unit Drilling”), UNIT PETROLEUM COMPANY, an Oklahoma corporation (“Unit Petroleum”), SUPERIOR PIPELINE COMPANY, L.L.C., a Delaware limited liability company (formerly an Oklahoma limited liability company) (“Superior LLC”), SUPERIOR PIPELINE TEXAS, L.L.C., an Oklahoma limited liability company  (“Superior TX”), SUPERIOR APPALACHIAN PIPELINE, L.L.C., an Oklahoma limited liability company  (“Superior APP”; Superior APP, together with each of Superior TX and Superior LLC, are referred to, collectively, as  “Superior”) (subject to Section 4(a) of this Fourth Amendment, each of Unit, Unit Drilling, Unit Petroleum and each Person constituting Superior, together with each existing Material Subsidiary of each of the foregoing Persons, and each of their respective successors and assigns, including any receiver, trustee or debtor-in-possession, is each, individually, called a “Borrower”, and, collectively, jointly and severally, as the “Borrowers”), the Lenders signatory parties to this Fourth Amendment (each, individually a "Lender" and, collectively, the "Lenders"), and BOKF, NA dba Bank of Oklahoma, as administrative agent for the Lenders now or hereafter signatory parties thereto (the "Administrative Agent").

RECITALS:

A.    The Borrowers, the Lenders signatory thereto and the Administrative Agent signed a Senior Credit Agreement dated as of September 13, 2011, as amended by the First Amendment and Consent to Senior Credit Agreement dated as of September 5, 2012, the Second Amendment and Consent to Senior Credit Agreement dated as of April 10, 2015, and the Third Amendment to Senior Credit Agreement dated as of April 8, 2016 (collectively, the "Existing Credit Agreement").  Under the Existing Credit Agreement, the Lenders severally established in favor of the Borrowers Commitments set forth on the Lenders Schedule annexed as Schedule 2 to the Existing Credit Agreement until the Facility Termination Date, subject to the Maximum Credit Amount and the Borrowing Base. Capitalized terms used in this Fourth Amendment (including the Recitals) but not otherwise defined shall have the meaning given to that term in the Existing Credit Agreement.

B.    The Bank of Nova Scotia, which has been a Lender under the Existing Credit Agreement and the other Loan Documents, will cease being a Lender under the Existing Credit Agreement and the other Loan Documents effective as of the Fourth Amendment Effective Date (the “Fourth Amendment Exiting Lender”), whereupon (in lieu of anything to the contrary in Article 14 of the Credit Agreement) certain of the other Lenders shall acquire a proportionate share of Fourth Amendment Exiting Lender’s Outstanding Credit Exposure and Commitments, as more particularly provided for in this Fourth Amendment.

C.    Unit has: (x) advised Administrative Agent and the Lenders of Unit’s intent to sell fifty percent (50%) of its Equity Interests in Superior and their respective Subsidiaries, before the next Determination Date to occur after the Fourth Amendment Effective Date, on terms that are acceptable to, and have been approved by, Administrative Agent (the “Superior Sale”), subject to the conditions that (i) the Superior Sale results in net sales proceeds inuring to Unit over two hundred million dollars ($200,000,000) (with $200,000,000 being herein referred to as the 

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“Superior Sale Net Proceeds”), and (ii) Borrowers shall, on the same Business Day of Unit’s receipt of the Superior Sale Net Proceeds, cause the Superior Sale Net Proceeds to be paid to Administrative Agent (for the ratable benefit of the Lenders) to pay down the existing outstanding principal balance of the Outstanding Credit Exposure by the Superior Sale Net Proceeds (the conditions in preceding sub-clauses (i) and (ii) of this clause (x) of this Recital C, are herein, together, called the “Superior Sale Paydown Conditions”); and (y) requested that Administrative Agent and the Required Lenders consent to permit Unit to facilitate and consummate the Superior Sale, subject to (without limitation) the Superior Sale Paydown Conditions, and at closing of the Superior Sale automatically remove and irrevocably release and discharge each Person constituting Superior and their respective Subsidiaries as a Borrower, Subsidiary Guarantor and/or co-obligor under the Existing Credit Agreement and the other Loan Documents, provided that the Superior Sale Paydown Conditions shall have been duly satisfied (the “Superior Release”). Administrative Agent and Required Lenders are agreeable to granting such consents, subject to this Fourth Amendment.

D.    Borrowers have further requested, and the Lenders have agreed, to amend certain provisions of the Existing Credit Agreement and the other Loan Documents, all as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements in this Fourth Amendment, and other good and valuable consideration, receipt of which is acknowledged by the parties, the parties agree as follows:

1.    Lenders Schedule.  Schedule 2 annexed to the Existing Credit Agreement is hereby deleted and replaced in its entirety by the applicable revised Schedule 2 annexed to this Fourth Amendment for the applicable period (as more particularly set forth therein).  Each Lender shall have the Commitment set forth opposite that Lender's name on the applicable replacement Schedule 2, for the following periods of time: (i) from the Fourth Amendment Effective Date until the earlier to occur of the next Determination Date or the Superior Release Effective Date (as defined below); and (ii) on and from the Superior Release Effective Date until the next Determination Date to occur thereafter.

2.    Reaffirmation of the Total Commitment and Reduction of Maximum Credit Amount; Subject to Automatic Reductions On the Occurrence of the Superior Release Effective Date.  Borrowers, Lenders, and Administrative Agent hereby agree, stipulate, and confirm that as of the Fourth Amendment Effective Date, and until the earlier to occur of either the next Determination Date or the Superior Release Effective Date: (i) the Total Commitment is reaffirmed at “$475,000,000”; and (ii) the Maximum Credit Amount is reduced from “$875,000,000” to “$475,000,000.” From the Fourth Amendment Effective Date, and until the earlier to occur of the next Determination Date or the Superior Release Effective Date, all references in Section 2.1 of the Existing Credit Agreement and elsewhere in the Existing Credit Agreement or any other Loan Document to a Total Commitment and a Maximum Credit Amount shall, for all purposes, mean and refer to a Total Commitment of "$475,000,000.00" and a Maximum Credit Amount of “$475,000,000.00.”  On the Superior Release Effective Date, and until the next Determination Date to occur thereafter: (x) the Total Commitment shall automatically, and with no further action or documentation being required from or by any Person, be reduced from “475,000,000” to “$425,000,000”; and (y) the Maximum Credit Amount shall automatically, and with no further action or documentation being required from or by any Person, be reduced from “$475,000,000” to “$425,000,000.”  On the Superior Release 

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Effective Date and until the next Determination Date to occur thereafter, all references in Section 2.1 of the Existing Credit Agreement and elsewhere in the Existing Credit Agreement or any other Loan Document to a Total Commitment and a Maximum Credit Amount shall, for all purposes, automatically mean and refer to a Total Commitment of "$425,000,000.00" and a Maximum Credit Amount of “$425,000,000.00.”

3.    Increase to the Borrowing Base; Subject to Automatic Reduction On the Occurrence of the Superior Release Effective Date.  From the Fourth Amendment Effective Date, and until the earlier to occur of the next Determination Date or the Superior Release Effective Date, the reference in Section 2.6.1 of the Existing Credit Agreement and elsewhere in the Existing Credit Agreement or any other Loan Document to a Borrowing Base of "$475,000,000" is hereby deleted and replaced with "$525,000,000", subject, however, to all applicable terms, conditions and limitations set forth in the Credit Agreement. The parties acknowledge and agree that the redetermination of the Borrowing Base as provided in this Section 3 constitutes the April 1, 2018 scheduled redetermination of the Borrowing Base under the Existing Credit Agreement. Without limitation of the foregoing, on and from the Superior Release Effective Date, and until the next Determination Date to occur thereafter, the Borrowing Base shall automatically, and with no further action or documentation being required from or by any Person, be hereby reduced from “525,000,000” to “$425,000,000.”

4.    Additional Modifications to Existing Credit Agreement.  The Existing Credit Agreement is hereby further amended as follows:

(a)    The Borrowers have advised that Unit intends to facilitate and consummate the Superior Sale, and have requested that Administrative Agent and the Required Lenders consent to the Superior Sale and to the Superior Release. Subject to the Existing Credit Agreement, as amended by this Fourth Amendment, and in consideration thereof, including the Borrowers’ timely satisfaction of the Superior Sale Paydown Conditions, the Administrative Agent and the Required Lenders agree that: (i) Borrowers and Unit may facilitate and consummate the Superior Sale, subject to the Borrowers’ obligation to first timely satisfy the Superior Sale Paydown Conditions (the date on which the Superior Sale is duly consummated is herein called the “Superior Sale Effective Date”); and (ii) on Borrowers’ satisfaction of the Superior Sale Paydown Conditions by timely remitting all Superior Sale Net Proceeds to Administrative Agent (for the ratable benefit of the Lenders) on the Superior Sale Effective Date to paydown the principal balance of the Outstanding Credit Exposure outstanding at such time by such amount (the date on which the Superior Sale Paydown Conditions are duly satisfied is herein called the “Superior Release Effective Date”), the Superior Release shall be deemed to have occurred for all intents and purposes of the Credit Agreement and the other Loan Documents, effective as of such Superior Release Effective Date (if any), whereupon each Person constituting Superior and their respective Subsidiaries shall be deemed to have automatically been removed and released by the Lenders as a Borrower, Subsidiary Guarantor and/or co-obligor under the Credit Agreement and the other Loan Documents and from all of its respective liability and obligations regarding the Obligations accruing thereunder. Without limitation of the foregoing, Borrowers acknowledge and agree that if Borrowers consummate the Superior Sale in any manner contrary to the requirements and conditions in this Fourth Amendment and/or as may otherwise be additionally stipulated by Administrative Agent (including, without limitation, if Borrowers fail to timely and fully satisfy the Superior Sale Paydown Conditions), any such failure shall constitute an automatic and immediate Event of Default under the Credit Agreement and the 

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other Loan Documents and no additional notice or cure period shall apply to any such failure. On the Superior Release Effective Date the Credit Agreement’s definition of “Borrower(s)” shall, automatically, and with no further action or documentation being required from or by any Person, be amended and restated in its entirety to thereafter have this revised meaning: “Each of Unit, Unit Drilling and  Unit Petroleum together with each existing Material Subsidiary of each of the foregoing Persons, and each of their respective successors and assigns, including any receiver, trustee or debtor-in-possession, is each, individually, herein referred to as a “Borrower”, and, collectively, jointly and severally, as the “Borrowers”.”  

(b)    To further effectuate the Superior Release as more particularly described in Section 4(a) of this Fourth Amendment, the parties further agree, as follows, effective as of the Superior Release Effective Date, respecting each of (i) that certain Pledge Agreement (as defined in the Existing Credit Agreement), (ii) that certain related side letter dated April 8, 2016, signed and delivered by the Administrative Agent to, and counter-signed by, Superior LLC in connection with the Pledge Agreement (the “2016 Pledge Side Letter”), and (iii) those certain UCC financing statements naming Unit, as debtor, and naming Administrative Agent, as secured party, filed with the Office of the Delaware Secretary of State on December 21, 2016, as Initial Filing No. 2016-7930835 (the “2016 UCC”) and on February 27, 2017, as Initial Filing No. 2017-1310660 (the “2017 UCC”, together with the 2016 UCC, the “Superior UCCs”; the Superior UCCs, with the Pledge Agreement, and the 2016 Pledge Side Letter are, collectively, herein called the “Superior LLC Pledge Instruments”): Under the Superior LLC Pledge Instruments, one hundred percent (100%) of the Equity Interests owned and held by Unit in Superior LLC, and all of Unit’s related rights, title and interests in all corresponding distributions, profits and proceeds arising therefrom, were (prior to the Superior Release Effective Date, if any) encumbered by Liens and corresponding negative covenants made in favor of the Administrative Agent (to benefit the Lenders). Effective as of and after the Superior Release Effective Date, the Administrative Agent and the Lenders agree that each instrument comprising the Superior LLC Pledge Instruments is deemed to have been released, terminated, and rendered null, void, and of no further force and effect, whereupon Administrative Agent shall, at Unit’s sole cost, file the release and termination instrument respecting the Superior UCCs (in form and substance acceptable to the Administrative Agent) in the appropriate public records of all applicable jurisdictions, to give effect to the foregoing agreements to terminate and release the Superior LLC Pledge Instruments.

(c)    As of the Fourth Amendment Effective Date, the Existing Credit Agreement is amended to delete the stricken text (indicated textually like this example: stricken text) and to add the underlined text (indicated textually like this example: underlined text) as set forth in the revised, conformed copy thereof attached as Exhibit B hereto, which is incorporated into this Fourth Amendment by this reference. Any Exhibits and Schedules to the Existing Credit Agreement not being amended and restated by this Fourth Amendment (whether by attaching same as stand-alone new exhibits or schedules to this Fourth Amendment, or by including same within the revised, conformed copy of the Loan Agreement attached as Exhibit B hereto), shall remain unmodified and of full force and effect as set forth in the Existing Credit Agreement.

5.    Post-Closing Obligations.  

A. The Credit Parties shall have sixty (60) days following the Fourth Amendment Effective Date to sign and deliver the Oil and Gas Mortgages required under Section 6.11(a)(i) of the Credit Agreement (the 60 days may be extended by Administrative Agent in its sole 

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discretion), respecting the Oil and Gas Properties more particularly described on Exhibit A attached hereto and incorporated herein by this reference. Borrowers’ failure to timely deliver those Mortgages within the time provided shall constitute an immediate Event of Default under the Credit Agreement and no additional notice or cure period shall apply to that failure.

B. The Credit Parties shall have thirty (30) days following the Fourth Amendment Effective Date (which 30-days may be extended by Administrative Agent in its sole discretion) to sign and deliver to the Administrative Agent a pledge agreement (in form and substance substantially similar to the Pledge Agreement (as defined in the Existing Credit Agreement), and acceptable to Administrative Agent), pursuant to which the Credit Parties shall grant and pledge in favor of Administrative Agent (for the ratable benefit of the Lenders) first priority liens and security interests encumbering (i) all of each Credit Party’s respective Equity Interests held at such time in Superior LLC (which shall not be less than fifty percent (50%) of the aggregate Equity Interests held at such time in Superior LLC by all Persons holding any such Equity Interests), together with (ii) all of each Credit Party’s related rights, title and interests in and to all corresponding distributions, profits and proceeds arising therefrom. Contemporaneously with the Credit Parties’ delivery of such a pledge agreement to the Administrative Agent, the Administrative Agent shall cause a new UCC financing statement to be filed against each such grantor thereunder (in each jurisdiction as may deemed necessary by Administrative Agent), which shall include a description of the collateral as more particularly provided for in said pledge agreement. The Credit Parties’ failure to timely deliver such a pledge agreement within the time provided for herein shall constitute an immediate Event of Default under the Credit Agreement and no additional notice or cure period shall apply to that failure.  

6.    Ratification of Representations, Warranties, Covenants and Other Provisions.  The remaining terms, provisions and conditions in the Existing Credit Agreement and the other Loan Documents not modified hereby shall continue and remain in full force and effect, and are incorporated herein and ratified and adopted herein by this reference (including without limitation, the consents, waivers and other provisions of Article 17 thereof), with the same force and effect as if reiterated at length herein. The Borrowers hereby restate, confirm, and ratify the covenants in the Existing Credit Agreement and the other Loan Documents (after giving effect to this Fourth Amendment). The Borrowers represent and warrant to the Administrative Agent and the Lenders as of the Fourth Amendment Effective Date that the representations and warranties in the Existing Credit Agreement and the other Loan Documents (after giving effect to this Fourth Amendment) are true and correct in all material respects as of the Fourth Amendment Effective Date (except to the extent a representation or warranty is stated to relate solely to an earlier date, in which case such representations and warranties will have been true and correct on and as of such earlier date). The Borrowers further represent and warrant to the Administrative Agent and the Lenders as of the Fourth Amendment Effective Date (after giving effect to this Fourth Amendment) that: (i) no Default or Event of Default exists under the Existing Credit Agreement, as amended by this Fourth Amendment, or any other Loan Document; (ii) Borrowers have all necessary power and authority to sign, deliver and perform their respective obligations under the Existing Credit Agreement, as amended by this Fourth Amendment, and the other Loan Documents; (iii) the signing, delivery, and performance by the Borrowers of this Fourth Amendment has been duly authorized by all necessary action on their part; (iv) the Existing Credit Agreement, as amended by this Fourth Amendment, and the other Loan Documents has each been duly signed and delivered by the Borrowers and each Loan Document constitutes the legal, valid, and binding obligation of the Borrowers enforceable under its terms, except if the 

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enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws generally affecting the enforcement of creditor’s rights and general principles of equity; (v) the signing and delivery of the Existing Credit Agreement, as amended by this Fourth Amendment, or any other Loan Document by the Borrowers and their performance of their respective obligations hereunder and thereunder require no authorizations, approvals, or consent, or registration or filing with, or further action by, any Governmental Authority, except for those that have been obtained or made and are in effect; and (vi) neither the signing and delivery of the Existing Credit Agreement, as amended by this Fourth Amendment, or any other Loan Document, nor compliance with the terms hereof or thereof, will contravene, or result in a breach of, the charter, by-laws, operating agreement, or other constituent corporate governance documents of the Borrowers, any requirement of applicable law, any agreement or instrument to which the Borrowers are a party or by which it is bound or to which it or its Property or assets are subject, or constitute a default under any such agreement or instrument.

7.    Conditions Precedent.  This Fourth Amendment will become effective as of the Fourth Amendment Effective Date on each of these conditions precedent having been satisfied to the satisfaction of the Administrative Agent:

a.    the Borrowers have signed and delivered, or caused to be signed and delivered, to the Administrative Agent for the benefit of the Lenders, each of the following:

i.counterparts of this Fourth Amendment, including to the Subsidiary Guaranty ratification pages attached hereto and incorporated herein by this reference;

ii.a replacement Note for, and made payable by Borrowers to, each Lender that may request same; 

iii.such good standing certificates and UCC searches of the Borrowers as required by the Administrative Agent; and

iv.such closing certificates and authorizing resolutions from each of the Credit Parties as Administrative Agent may require (all in form and substance acceptable to Administrative Agent).

b.     payment of all fees and expenses owed by Borrowers to the Administrative Agent that have been billed and submitted to the Administrative Agent and Unit as of the execution and delivery date hereof, including the reasonable attorneys’ fees and expenses of legal counsel for the Administrative Agent, to the extent billed; and

c.    counterparts of this Fourth Amendment have been signed by the Required Lenders and delivered to the Administrative Agent.

8.    Fees and Costs.   Borrowers agree to pay (i) to the Administrative Agent on demand all reasonable and out-of-pocket expenses (including reasonable attorneys' fees), time charges, and expenses advanced of attorneys paid or incurred by the Administrative Agent in the preparation, negotiation, execution, closing, delivery, and administration of this Fourth Amendment and the transactions contemplated hereby, and (ii) to the Administrative Agent an 

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amendment fee in an amount under any separate fee letter, if any, between Administrative Agent and Borrowers to be payable to Administrative Agent and each Lender consenting to this Fourth Amendment (by signing hereof), which fee shall be deemed fully earned and non-refundable as of the date hereof.

9.    Effect on Credit Documents.  Except only as amended in this Fourth Amendment, the Existing Credit Agreement and all other Loan Documents remain in full force and effect as heretofore signed and are hereby ratified, confirmed, and continued for all purposes. Nothing in this Fourth Amendment shall waive any of the Administrative Agent's or any Lender's rights under the Loan Documents (after giving effect to this Fourth Amendment), including the waiver of any Default or Event of Default, however denominated. Borrowers acknowledge and agree this Fourth Amendment does not impair or affect the validity or enforceability of the Existing Credit Agreement, as amended by this Fourth Amendment. This Fourth Amendment is a Loan Document for the purposes of the other Loan Documents. All references to the "Loan Agreement" or the "Credit Agreement" appearing in the Loan Documents (or to “this Agreement” as set forth within the Existing Credit Agreement or in this Fourth Amendment) shall hereafter be deemed references to the Existing Credit Agreement, as amended, modified and supplemented by this Fourth Amendment (and as the same may be further amended, amended and restated, supplemented, or otherwise modified from time to time). To the extent of any conflict or inconsistency between the terms and conditions in the Existing Credit Agreement, and the terms and conditions in this Fourth Amendment, the terms and conditions in this Fourth Amendment shall govern and control. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Fourth Amendment shall be a Default or Event of Default under Article 10 of the Existing Credit Agreement, as applicable. 

10.    Waiver and Release. In consideration of the amendments and renewals contained herein, and as a material inducement to Administrative Agent and the Lenders signing this Fourth Amendment, each of the Borrowers hereby waives and releases the Administrative Agent and the Lenders from any and all claims, damages, disputes, defenses, and setoffs, known or unknown, foreseen or unforeseen, as of the Fourth Amendment Effective Date, which may arise or accrue (or may have arisen or accrued) under or otherwise regarding the Existing Credit Agreement, the other Loan Documents, and/or the transactions contemplated hereby and thereby.

11.    Recitals.  The Recitals in this Fourth Amendment are, by this reference, incorporated into and deemed a part of this Fourth Amendment.  

12.    Counterparts.  This Fourth Amendment may be signed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute the same instrument.  Delivery of this Fourth Amendment by facsimile or electronic transmission (e.g., pdf) shall be effective as delivery of a manually signed counterpart.

13.    No Course of Dealing. This Fourth Amendment does not establish a course of dealing or be construed as evidence of any willingness or commitment by Administrative Agent or any Lender to agree to other or future amendments to or modifications of the Loan Documents.

14.    Miscellaneous Provisions. Articles 12, 16, and 17 of the Existing Credit Agreement are incorporated herein by reference as if set forth fully herein and such provisions shall apply to this Fourth Amendment, mutatis mutandis.

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15.    Further Assurances.  The Borrowers shall immediately sign and deliver to the Administrative Agent, for the benefit of the Lenders, on request all other instruments as required or desired by the Administrative Agent or the Lenders from time to time in compliance with or in accomplishment of the covenants and agreements of the Borrowers made in this Fourth Amendment and any other instruments and documents referred to or mentioned herein, all as may be necessary or appropriate in connection therewith (as determined by the Administrative Agent and the Lenders in their respective discretion).

16.    ENTIRE AGREEMENT.  THIS FOURTH AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
[Signature Page Follows]

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IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to be duly executed and delivered, effective as of the day and year first above written.
BORROWERS:

UNIT CORPORATION, a Delaware corporation,
UNIT PETROLEUM COMPANY, an Oklahoma
corporation,
UNIT DRILLING COMPANY, an Oklahoma
corporation,
SUPERIOR PIPELINE COMPANY, L.L.C.,
a Delaware limited liability company (formerly an Oklahoma limited liability company),
SUPERIOR PIPELINE TEXAS, L.L.C., an Oklahoma limited liability company, and 
SUPERIOR APPALACHIAN PIPELINE, L.L.C., an Oklahoma limited liability company

By:   /s/ Larry D. Pinkston                   
Larry D. Pinkston, as President of each of 
UNIT CORPORATION, 
UNIT PETROLEUM COMPANY, and 
UNIT DRILLING COMPANY, and as Chairman of SUPERIOR PIPELINE COMPANY, L.L.C., and as 
Manager of each of SUPERIOR APPALACHIAN PIPELINE, L.L.C., and 
SUPERIOR PIPELINE TEXAS, L.L.C.

8200 South Unit Drive
Tulsa, Oklahoma 74132-5300
Attention:  Larry Pinkston
Telephone:  (918) 493-7700
Facsimile:  (918) 493-7711

4th Amendment to Credit
Agreement Signature Page

SUBSIDIARY GUARANTY RATIFICATION
By signing below, each of the undersigned Subsidiary Guarantors: (a) acknowledges, consents and agrees to the execution, delivery and performance by the Borrowers of this Fourth Amendment; (b) acknowledges and agrees that its obligations in respect of its Subsidiary Guaranty (i) are not released, diminished, waived, modified, impaired or affected in any manner by this Fourth Amendment or any of the provisions contemplated herein, and (ii) cover the Commitments as amended and modified by this Fourth Amendment; (c) ratifies and confirms its obligations under its Subsidiary Guaranty; (d) acknowledges and agrees that it has no claim or offsets against, or defenses or counterclaims to, its Subsidiary Guaranty; and (e) acknowledges and agrees that notwithstanding anything in its Subsidiary Guaranty to the contrary, “Guaranteed Obligations” as defined in its Subsidiary Guaranty with respect to such Subsidiary Guarantor shall not include Excluded Swap Obligations.
UNIT DRILLING AND EXPLORATION COMPANY, PRESTON COUNTY GAS GATHERING, L.L.C. and PETROLEUM SUPPLY COMPANY, 

By   /s/ Mark E. Schell                         
Mark E. Schell, Senior Vice President

4th Amendment to Credit
Agreement Signature Page

BOKF, NA dba Bank of Oklahoma, as LC Issuer, as Administrative Agent, and as a Lender

By:  /s/ Pam Schloeder                                
Pam Schloeder
Senior Vice President

101 East Second Street
Bank of Oklahoma Tower - 8th floor/Energy Department
One Williams Center
Tulsa, Oklahoma  74172
Telephone:  (918) 588-6012
Facsimile:  (918) 588-6880

4th Amendment to Credit
Agreement Signature Page

COMPASS BANK, a Lender

By:   /s/ Kathleen J, Bowen                     
Kathleen J. Bowen
Managing Director

2200 Post Oak Blvd.
17th Floor
Houston, Texas 77056
Telephone:  (713) 968-8273

4th Amendment to Credit
Agreement Signature Page

BANK OF AMERICA, N.A., a Lender

By:   /s/ Bryan Heller                                     
Bryan Heller
Director

One Bryant Park, NY1-100-18-07
New York, New York 10036
Telephone:  (646) 855-1833

4th Amendment to Credit
Agreement Signature Page

BMO HARRIS FINANCING, INC., a Lender

By:   /s/ Kevin Utsey                                      
Kevin Utsey 
Director
    
BMO Capital Markets/Houston Agency
700 Louisiana Street, Suite 2100
Houston, Texas 77002
Telephone:  (713) 546-9720
Facsimile:  (713) 223-4007

4th Amendment to Credit
Agreement Signature Page

WELLS FARGO BANK, N.A., a Lender

By:   /s/ David C. Brooks                                
David C. Brooks
Director
    
1445 Ross Avenue
Suite 4500
MAC T9216-451
Dallas, TX 75202
Telephone: (214) 721-8219
Facsimile: (214) 721-8215

4th Amendment to Credit
Agreement Signature Page

COMERICA BANK, a Lender

By:   /s/ Jeff LaBauve                                  
Jeff LaBauve
Vice President

1717 Main Street
Dallas, Texas 75201
Telephone:  (214) 462-4418

4th Amendment to Credit
Agreement Signature Page

CANADIAN IMPERIAL BANK OF
COMMERCE, NEW YORK BRANCH, a Lender

By:   /s/ Trudy W. Nelson                                
Trudy W. Nelson 
Authorized Signatory

By:   /s/ Richard Antl                                       
Richard Antl 
Authorized Signatory 

333 Clay Street, Suite 4510
Three Allen Center
Houston, Texas 77002
Telephone:  (713) 210-4103
Facsimile: (713) 210-4129

4th Amendment to Credit
Agreement Signature Page

TORONTO DOMINION (NEW YORK), LLC,
a Lender

By:   /s/ Katherine Hawara                              
Katherine Hawara
Authorized Signatory

Toronto Dominion (New York), LLC
31 West 52nd Street, 21st Floor
New York, NY 10019-6101
Telephone: (416) 983-5700
Facsimile:  (416) 983-0003

4th Amendment to Credit
Agreement Signature Page

SCHEDULE 2
LENDERS SCHEDULE
FOR TIME PERIOD FROM THE FOURTH AMENDMENT EFFECTIVE DATE UNTIL THE EARLIER TO OCCUR OF EITHER THE NEXT DETERMINATION DATE OR THE OCCURRENCE OF THE SUPERIOR RELEASE EFFECTIVE DATE, IF ANY, IN ACCORDANCE WITH THIS FOURTH AMENDMENT

	
			
	Lender
	Total
Commitment
	Pro Rata Share

	BOK (BOKF, NA dba Bank of Oklahoma)
	$85,697,916.68
	 18.04168%

	BBVA/Compass Bank
	$84,114,583.33
	 17.70833%

	BMO Harris Financing, Inc. 
	 $74,218,750.00
	15.62500%

	Bank of America, N.A.
	 $74,218,750.00
	15.62500%

	Comerica Bank
	  $39,583,333.33
	8.33333%

	CIBC
	  $39,583,333.33
	8.33333%

	Toronto Dominion (New York), LLC
	  $39,583,333.33
	8.33333%

	Wells Fargo Bank, N.A.
	  $38,000,000.00
	8.00000%

	TOTAL 
	$475,000,000.00
	100.00000%

Amended and Restated Schedule 2 to
4th Amendment to Credit Agreement from Fourth Amendment Effective Date until earlier of
the next Determination Date or the Superior Release Effective Date

SCHEDULE 2
LENDERS SCHEDULE
FOR TIME PERIOD FROM THE OCCURRENCE OF THE SUPERIOR RELEASE EFFECTIVE DATE, IF ANY, IN ACCORDANCE WITH THIS FOURTH AMENDMENT AND UNTIL THE NEXT DETERMINATION DATE TO OCCUR THEREAFTER

	
			
	Lender
	Total
Commitment
	Pro Rata Share

	BOK (BOKF, NA dba Bank of Oklahoma)
	$76,677,083.32
	 18.04168%

	BBVA/Compass Bank
	$75,260,416.67
	 17.70833%

	BMO Harris Financing, Inc. 
	 $66,406,250.00
	15.62500%

	Bank of America, N.A.
	 $66,406,250.00
	15.62500%

	Comerica Bank
	  $35,416,666.67
	8.33333%

	CIBC
	  $35,416,666.67
	8.33333%

	Toronto Dominion (New York), LLC
	  $35,416,666.67
	8.33333%

	Wells Fargo Bank, N.A.
	$34,000,000.00
	8.00000%

	TOTAL 
	$425,000,000.00
	100.00000%

Amended and Restated Schedule 2 to
4th Amendment to Credit Agreement from Superior Release Effective Date until 
the next Determination Date

EXHIBIT A

SCHEDULE OF OIL AND GAS PROPERTIES TO BE MORTGAGED
	
						
	Unique ID
	ST 
	COUNTY
	LEASE NAME
	WI
	NRI

	6A8F318C77421685612700003
	TX
	POLK
	WING #17 CNVTD PUD
	87.50%
	68.25%

	EC1F8AD078796342313200002
	TX
	HEMPHILL
	CARR 1357 XL  #1H (CNV PUD)
	100.00%
	82.97%

	EC1F8AD078469312899500002
	OK
	GRADY
	NINA #1-22H (CNV PUD - MCHD)
	87.45%
	70.21%

	EC1F8AD079193476662500001
	TX
	HEMPHILL
	DIXON 5554 CXL #6H (NWD 17)
	99.36%
	77.25%

	EC1F8AD078143412988900003
	OK
	GRADY
	SCHMIDT #1-10H (CNV PUD - MCHD)
	97.50%
	79.49%

	2D0D49EF79158584878400001
	TX
	HEMPHILL
	CARR 1357 XL #2H (NWD 17)
	100.00%
	83.10%

	EC1F8AD079167478997300001
	OK
	BLAINE
	LORENE #1-5/8HX (NWD 17)
	12.54%
	10.94%

	EC1F8AD079206490191900003
	TX
	GOLIAD
	ENGEL #1 NWD17
	100.00%
	80.76%

	2D0D49EF79174597648200001
	TX
	HEMPHILL
	DIXON 5554 CXL #5H (NWD 17)
	100.00%
	77.70%

	295FED6079173499414600003
	OK
	GRADY
	ATKINSON #1-21H (NWD 17 - MCHD)
	99.00%
	75.47%

	FC65AB6079263430910900002
	TX
	GOLIAD
	GOEHRING ROBERT F #1 (BP #1)
	100.00%
	74.97%

	EC1F8AD079207445965800003
	OK
	BLAINE
	LEONA TRUST #1H (NWD 17)
	24.21%
	19.67%

	E35AAE2F78900504760100002
	OK
	CANADIAN
	ML #1H (NWD 16)
	9.40%
	10.30%

	EC1F8AD079167387783700001
	OK
	CUSTER
	HAMAR #3H-17 (NWD 17)
	30.21%
	23.49%

	EC1F8AD079052415130000001
	TX
	POLK
	TRINITY#1 NWD17
	80.00%
	61.00%

	E17A9C3C76925523629500004
	OK
	BEAVER
	STATE OF OKLAHOMA A #1H (NWD 11)
	99.95%
	79.96%

	EC1F8AD078469309324900001
	OK
	GRADY
	AMANDA #1-21H (CNV PUD)
	22.08%
	16.58%

	EC1F8AD078979373432300002
	OK
	KINGFISHER
	CHISHOLM TRAIL #1HX (NWD 17)
	7.67%
	5.90%

	EC1F8AD078041319024100001
	OK
	GRADY
	LLC 4 #2H (NWD 14)
	73.31%
	58.31%

	E35AAE2F79069526458800005
	OK
	CANADIAN
	JORDAN #1HX (NWD 17)
	11.15%
	9.26%

	EC1F8AD078979339954000001
	OK
	KINGFISHER
	PRIVOTT #1HX (NWD 17)
	2.27%
	1.68%

	EC1F8AD079206482440400002
	TX
	HARDIN
	WEST UNIVERSITY #2H NWD17
	100.00%
	73.17%

	6A8F318C77791792325600001
	TX
	NEWTON
	BLACK STONE-JEBCO #1 NWD13
	80.00%
	59.20%

	E35AAE2F79069500160700004
	OK
	GRADY
	GENE CARROL #1-18H (NWD 17)
	11.59%
	9.10%

	EC1F8AD078983429659900002
	TX
	LIPSCOMB
	LENA #3-440H (NWD 17)
	34.00%
	26.78%

	EC1F8AD078041319495000002
	OK
	GRADY
	LLC 4 #3H (NWD 14)
	74.68%
	59.42%

EXHIBIT B 
TO 
FOURTH AMENDMENT TO 
SENIOR CREDIT AGREEMENT

(CONFORMED COPY OF THE SENIOR CREDIT AGREEMENT, AS OF THE FOURTH AMENDMENT EFFECTIVE DATE, THROUGH AND INCLUDING THE FOURTH AMENDMENT THERETO)

[SEE ATTACHED]

CONFORMED COPY OF
SENIOR CREDIT AGREEMENT
DATED AS OF SEPTEMBER 13, 2011
AS AMENDED BY 9/5/12 FIRST AMENDMENT, 4/10/15 SECOND AMENDMENT, 4/8/16 THIRD AMENDMENT, AND 4/2/18 FOURTH AMENDMENT
AMONG
UNIT CORPORATION,
SUPERIOR PIPELINE COMPANY, L.L.C.,
UNIT DRILLING COMPANY,
UNIT PETROLEUM COMPANY,
SUPERIOR PIPELINE TEXAS, L.L.C.,
and
SUPERIOR APPALACHIAN PIPELINE, L.L.C,
AS BORROWERS,
and
THE LENDERS,
BOKF, NA, DBA BANK OF OKLAHOMA,
AS ADMINISTRATIVE AGENT FOR THE LENDERS,

and with 
COMPASS BANK 
as
JOINT-LEAD ARRANGERS, JOINT BOOKRUNNERS AND CO-SYNDICATION AGENTS,
and with
BANK OF AMERICA, N.A. AND BANK OF MONTREAL,
as
CO-DOCUMENTATION AGENTS

SENIOR CREDIT AGREEMENT
THIS SENIOR CREDIT AGREEMENT is effective as of September 13, 2011 (as amended by each of the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment, collectively, this “Agreement”).  It is among: 
UNIT CORPORATION, a Delaware corporation (“Unit”), UNIT DRILLING COMPANY, an Oklahoma corporation (“Unit Drilling”), UNIT PETROLEUM COMPANY, an Oklahoma corporation (“Unit Petroleum”), SUPERIOR PIPELINE COMPANY, L.L.C., a Delaware limited liability company (formerly an Oklahoma limited liability company) (“Superior LLC”), SUPERIOR PIPELINE TEXAS, L.L.C., an Oklahoma limited liability company  (“Superior TX”), SUPERIOR APPALACHIAN PIPELINE, L.L.C., an Oklahoma limited liability company  (“Superior APP”; Superior APP, together with each of Superior TX and Superior LLC, are herein referred to, collectively, as  “Superior”) (subject to prospective automatic revision as more particularly described within the definition of “Borrower(s)” as set forth in Section 1.1 below, each of Unit, Unit Drilling, Unit Petroleum and each Person constituting Superior, together with each existing Material Subsidiary of each of the foregoing Persons, and each of their respective successors and assigns, including any receiver, trustee or debtor-in-possession, is each, individually, herein referred to as a “Borrower”, and, collectively, jointly and severally, as the “Borrowers”),
and 
BOKF, NA, dba Bank of Oklahoma, formerly Bank of Oklahoma, National Association (“BOk”), COMPASS BANK (“BBVA Compass”), BOk and BBVA Compass as joint lead arrangers, joint bookrunners and co-syndication agents (“Syndication Agents”), BANK OF AMERICA, N.A. (“B of A”),and BANK OF MONTREAL (“BMO”), as co-documentation agents (“Documentation Agents”), the lenders now or at various times later signatories to this Agreement (the current lender parties to this Agreement and the Additional Lenders that may become signatory parties to this Agreement, each being sometimes referred to in this Agreement, individually, as a “Lender,” and collectively as the “Lenders”); 
and 
BOk as administrative agent for the Lenders (in that capacity, referred to as the “Administrative Agent”).
RECITALS
		
	A.
	Unit, Unit Drilling, Unit Petroleum, Unit Texas Drilling, L.L.C. (which has heretofore been dissolved) and Superior LLC (collectively the “Original Borrowers”), BOk, as the administrative agent for the financial institutions defined in that agreement as the “Existing Lenders” thereunder (such Persons are herein referred to, collectively, as the “Original Lenders”) were parties to a First Amended and Restated Credit Agreement dated as of May 24, 2007, as amended by the First Amendment 

0

dated as of December 23, 2008 (collectively, the “Original Credit Agreement”). The Original Lenders provided certain loans and extensions of revolving credit to such Original Borrowers (all indebtedness arising and all obligations, including contingent liabilities on letters of credit issued under the Original Credit Agreement are collectively called the “Original Indebtedness“);

		
	B.
	The Borrowers, the Lenders signatory thereto, and the Administrative Agent amended and restated the Original Credit Agreement by entering into that certain Senior Credit Agreement dated as of September 13, 2011, as amended by that certain First Amendment and Consent to Senior Credit Agreement dated as of September 5, 2012, that certain Second Amendment and Consent to Senior Credit Agreement dated as of April 10, 2015, and that certain Third Amendment to Senior Credit Agreement dated as of April 8, 2016 (collectively, the "Existing Credit Agreement"), under which the Lenders severally established certain Commitments set forth on the Lenders Schedule annexed as Schedule 2 to the Existing Credit Agreement until the Facility Termination Date, subject to the Maximum Credit Amount and the Borrowing Base, all of which: (i) arranged for the refinancing of any Original Indebtedness in full with funds to be made available under this Agreement and terminated the commitments issued in the Original Credit Agreement to be replaced by the Commitments under this Agreement; (ii) provided the Borrowers financing for general working capital requirements for (a) exploration, development, production and acquisition of Oil and Gas Properties, (b) acquisitions and operation of midstream assets, (c) issuance of standby Letters of Credit, (d) contract drilling services, and (e) general corporate purposes of the Borrowers; and (iii) otherwise amended some of the terms of the Original Credit Agreement. After giving effect to the refinancing of any Original Indebtedness and extinguishing and replacing the commitments of the Original Lenders with the Commitments of the Lenders, the several (but not joint) Commitment of each Lender is as set forth on the Lenders’ Schedule annexed to the Existing Credit Agreement as Schedule 2, as said Schedule 2 is being amended and restated in its entirety, effective as of the Fourth Amendment Effective Date, in the form thereof being attached to the Fourth Amendment, until the Facility Termination Date, and subject to the Maximum Credit Amount and the Borrowing Base;

		
	C.
	The Lenders have appointed BOk as Administrative Agent for the Lenders, and the Borrowers now desire to modify the Existing Credit Agreement as more particularly described in this Agreement;

		
	D.
	By a separate agreement between BOk and Borrowers, BOk and BBVA Compass were appointed Joint-Lead Arrangers, Joint Bookrunners and Co-Syndication Agents, and B of A and BMO have been appointed Documentation Agents for this Agreement;

		
	E.
	As more particularly provided for in Section 4 of the Fourth Amendment, the Borrowers have: (x) advised Administrative Agent and the Lenders of Unit’s intent to sell fifty percent (50%) of its Equity Interests in Superior and their respective Subsidiaries, before the next Determination Date to occur after the Fourth Amendment Effective Date, on terms that are acceptable to, and have been approved 

    

1

by, Administrative Agent (the “Superior Sale”), subject to the conditions that (i) the Superior Sale results in net sales proceeds inuring to Unit over two hundred million dollars ($200,000,000) (with $200,000,000 being herein called the “Superior Sale Net Proceeds”), and (ii) Borrowers shall, on the same Business Day of Unit’s receipt of the Superior Sale Net Proceeds, cause the Superior Sale Net Proceeds to be paid to Administrative Agent (for the ratable benefit of the Lenders) to pay down the existing outstanding principal balance of the Outstanding Credit Exposure by the Superior Sale Net Proceeds (the conditions in preceding sub-clauses (i) and (ii) of this clause (x) of this Recital E, are herein, together, called the “Superior Sale Paydown Conditions”); and (y) requested that Administrative Agent and the Required Lenders consent to permit Unit to facilitate and consummate the Superior Sale, subject to (without limitation) the Superior Sale Paydown Conditions, and at closing of the Superior Sale automatically remove and irrevocably release and discharge each Person constituting Superior and their respective Subsidiaries as a Borrower, Subsidiary Guarantor and/or co-obligor under the Existing Credit Agreement and the other Loan Documents, provided that the Superior Sale Paydown Conditions shall have been duly satisfied (the “Superior Release”), with no further action being required to effectuate the foregoing as more particularly described in Section 4 of the Fourth Amendment. Administrative Agent and Required Lenders are agreeable to granting such consents, subject to the foregoing and the Fourth Amendment.

NOW, THEREFORE, the parties agree as follows:
ARTICLE 1
DEFINITIONS

1.1    Defined Terms. The following terms have the meaning specified below:
“2016 Pledge Side Letter” has the meaning ascribed thereto in the Fourth Amendment. 
“2016 UCC” has the meaning ascribed thereto in the Fourth Amendment.
“2017 UCC” has the meaning ascribed thereto in the Fourth Amendment.
“Acquisition” means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which any of the Credit Parties (i) acquires, by any means, any going business or all or substantially all of the assets of any Person, (ii) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having power only by reason of the happening of a contingency) or a majority (by percentage or voting power) of the outstanding ownership interests of a partnership or limited liability company, or (iii) acquires individually or together Oil and Gas Properties (and ancillary assets), gas gathering systems or gas processing plants, or drilling rigs (and ancillary equipment).
“Administrative Agent” means BOk in its capacity as contractual administrative agent of the Lenders.

2

“Advance” means a borrowing under Article 2, (i) made by the Lenders on the same Borrowing Date, or (ii) converted or continued by the Lenders on the same date of conversion or continuation, consisting, in either case, of Loans of the same type (either Floating Rate Advance or Eurodollar Advance) and, in the case of Eurodollar Loans, for the same Interest Period.
“Affiliate” of any Person means any other Person directly or indirectly controlling, controlled by or under common control with that Person.  A Person will be deemed to control another Person if the controlling Person owns 10% or more of any class of voting securities (capital stock, general or limited partnership units or interests, limited liability company membership interests or association or other business entity shares, participations, rights or other equivalent ownership interests, however designated) of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of stock, by contract or otherwise. From and after the Superior Release Effective Date, the term “Affiliate” shall not include Superior or any of their respective Subsidiaries for any purposes of this Agreement, other than for the limited purposes of Section 7.7 hereof. 
“Alternate Base Rate” means, for any day, a rate of interest per annum equal to the higher of (i) the Prime Rate for that day, or (ii) the sum of the Federal Funds Effective Rate for that day plus one-half of one percent (0.50%); but, in no event shall the Alternate Base Rate be less than the sum of (x) the Eurodollar Rate for that day for a Eurodollar Loan with a one month Interest Period plus (y) one hundred basis points (1.00%).
“Anti-Corruption Laws” mean, collectively, the FCPA, the UK Bribery Act of 2010, and all other legal requirements and guidelines of any jurisdiction applicable to any Credit Party from time to time concerning or relating to bribery or corruption.
“Anti-Money Laundering Laws” mean, collectively, all applicable financial recordkeeping and reporting requirements and the money laundering statutes and the rules and regulations thereunder and any related or similar legal requirements or guidelines, which in each case are issued, administered or enforced by any Governmental Authority having jurisdiction over any Credit Party.
“Applicable Margin” means the percentage rate per annum set forth in the Pricing Schedule.
“Authorized Officer” means the president, the chief financial officer, any vice president, the treasurer or any assistant treasurer of the Borrowers, acting singly.
“Available Total Commitment” means, at any time, the Total Commitment then in effect minus the Total Outstanding Credit Exposure.
 “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the 

3

European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
 “Borrower(s)” means: (a) prior to the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, Unit, Unit Drilling, Unit Petroleum, Superior APP, Superior TX and Superior LLC, together with each existing Material Subsidiary of each of the foregoing Persons, and each of their respective successors and assigns, including any receiver, trustee or debtor-in-possession, is each, individually, herein referred to as a “Borrower”, and, collectively, jointly and severally, as the “Borrowers”; and (b) after the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, Unit, Unit Drilling and Unit Petroleum, together with each existing Material Subsidiary of each of the foregoing Persons, and each of their respective successors and assigns, including any receiver, trustee or debtor-in-possession, is each, individually, herein referred to as a “Borrower”, and, collectively, jointly and severally, as the “Borrowers”.
“Borrowing Base” means, at the time in question, either the amount provided for in Section 2.6.1 or the amount otherwise determined in accordance with the remaining provisions of Section 2.6.
“Borrowing Base Properties” means: (i) the Oil and Gas Properties and; (ii) until such time as the Superior Release Effective Date, if any, shall have occurred in accordance with the Fourth Amendment, the Superior Cash Flow; each as evaluated by Lenders for purposes of establishing the Borrowing Base.
“Borrowing Base Usage Percentage” means, for any day, the percentage equal to the quotient of (i) the Total Outstanding Credit Exposure on that day, divided by (ii) the Borrowing Base.
“Borrowing Date” means the date an Advance is made under this Agreement.
“Business Day” means (i) with respect to any borrowing, payment or rate selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Tulsa, Oklahoma, and New York City, New York, for the conduct of substantially all of their commercial lending activities, interbank wire transfers can be made on the Fedwire system and dealings in United States dollars are carried on in the London interbank market and (ii) for all other purposes, a day (other than a Saturday or Sunday) on which banks generally are open in Tulsa, Oklahoma, for the conduct of substantially all of their commercial lending activities and interbank wire transfers can be made on the Fedwire system.
“Capitalized Lease” of a Person, means any lease of Property by that Person as lessee which would be capitalized on that Person’s balance sheet prepared in accordance with GAAP.
“Capitalized Lease Obligations” of a Person means the amount of the obligation of that Person under Capitalized Leases which would be shown as a liability on that Persons balance sheet prepared in accordance with GAAP; provided that (i) any lease that was treated as an operating lease under GAAP at the time it was entered into that later becomes a Capital Lease as a result of a change in GAAP during the life of such lease, including any renewals, and (ii) any lease entered into after the Fourth Amendment Effective Date that would have been considered 

4

an operating lease under the provisions of GAAP, in each case, shall be treated as an operating lease for all purposes under the Fourth Amendment, provided further, in no event shall the aggregate amount of the obligations under operating leases and/or leases addressed in clauses (i) and (ii) above exceed $25,000,000.00.
“Cash Equivalent Investments” means (i) short-term obligations of, or fully guaranteed by, the United States of America, (ii) commercial paper rated A-1 or better by S&P or P-1 or better by Moody’s, (iii) demand deposit accounts maintained in the ordinary course of business, and (iv) certificates of deposit issued by and time deposits with commercial banks (whether domestic or foreign) having capital and surplus in excess of $100,000,000; provided in each case that the same provides for payment of both principal and interest (and not principal alone or interest alone) and is not subject to any contingency regarding the payment of principal or interest.
“Change in Control” means the acquisition by any Person, or two or more Persons acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of 30% or more of the outstanding shares of voting stock of Unit.
“Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time.
“Commitment” means, for each Lender, (i) the obligation of that Lender to make Loans to, and participate in LCs issued on the application of, one or more Borrowers in a total amount not to exceed the amount set forth for that Lender on the Lenders’ Schedule, or (ii) as set forth in any Notice of Assignment relating to any assignment that has become effective under Section 14.3.2, as that amount in either case may be modified from time to time under this Agreement.  In no event will a Lender’s Commitment exceed the lesser of that Lender’s Pro Rata Share of (i) the Borrowing Base, or (ii) Maximum Credit Amount.
“Commitment Fee Rate” means, at any time, the per annum percentage rate at which commitment fees are accruing on the Available Total Commitment under Section 2.5.2 at that time at the rate set forth in the Pricing Schedule.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Consolidated EBITDA” means the sum of: (I) all dividends and distributions received by Borrowers and their Subsidiaries (excluding Unrestricted Subsidiaries) from any Unrestricted Subsidiary; plus (II) Consolidated Net Income, plus, to the extent deducted in determining Consolidated Net Income, (a) Consolidated Interest Expense, (b) expense for income and income based taxes paid or accrued, (c) depreciation, depletion, and amortization, all calculated on a consolidated basis, (d) non-cash expenses of the Borrowers and their Subsidiaries associated with stock-based compensation reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, (e) any net loss reducing Consolidated Net Income in connection with any disposition of assets, (f) any extraordinary, unusual or non-cash expenses or losses of Borrowers and their Subsidiaries reducing Consolidated Net Income which do not 

5

represent a cash item in such period or any future period, and (g) all other non-cash charges, minus all non-cash income, added to Consolidated Net Income.
“Consolidated Interest Expense” means, for any period with respect to any Person, the amount which, under GAAP would be set forth opposite the caption “interest expense” or any like caption (including without limitation, imputed interest included in payments under any Capitalized Lease) on a consolidated income statement of that Person and its Subsidiaries for the period excluding the amortization of any original issue discount.
“Consolidated Net Income” means, with reference to any period, the net income (or loss) of the Borrowers and their Subsidiaries (other than Unrestricted Subsidiaries, whose net income (or loss) is hereby excluded from “Consolidated Net Income” for all purposes of this Agreement) calculated on a consolidated basis for such period; but there will not be included in Consolidated Net Income (to the extent it otherwise would be included) any of the following:  (a) any after tax extraordinary gain or loss, along with any provisions for taxes on such gain or loss and all related fees and expenses; (b) the cumulative effect of a change in accounting principles; (c) any asset impairment write-downs on Oil and Gas Properties under GAAP or SEC guidelines; (d) any consolidated impairment charges recorded in connection with the application of ASC 350 "Goodwill and Other Intangibles;" (e) any unrealized non-cash gains or losses on charges in respect of Rate Management Obligations or hedging obligations (including those resulting from the application of ASC 815); (f) income or loss attributable to discontinued operations (including operations disposed of during such period whether or not such operations were classified as discontinued), (g) all deferred financing costs written off, and premiums paid, in connection with any early extinguishment of Indebtedness, (h) non-cash expenses of the Borrowers and their Subsidiaries (other than Unrestricted Subsidiaries) associated with stock-based plans reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, and (i) any other non-cash charges; and provided further that if the Borrowers and their Subsidiaries (other than Unrestricted Subsidiaries) shall acquire or dispose of any Property during such period, then Consolidated Net Income shall be calculated after giving the pro forma effect to such acquisition or disposition in accordance with GAAP approved by the Administrative Agent, as if such acquisition or disposition had occurred on the first day of such period.
“Contingent Obligation” of a Person means any agreement, undertaking or arrangement by which that Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the payment of, or otherwise becomes or is contingently liable on, the obligation or liability of any other Person, or agrees to maintain the net worth or working capital or other financial condition of any other Person, or otherwise assures any creditor of the other Person against loss, including, without limitation, any comfort letter, take-or-pay contract or the obligations of any Person as general partner of a partnership with respect to the liabilities of the partnership.
“Controlled Group” means all members of a group of corporations or other business entities and all trades or businesses (whether or not incorporated) which, together with the Borrowers or any of their respective Subsidiaries, are treated as a single employer under Section 414 of the Code.

6

“Credit Extension” means the making of an Advance or the issuance of a LC under this Agreement.
“Credit Extension Date” means the Borrowing Date for an Advance or the issuance date for an LC.
“Credit Parties” means, collectively, the Borrowers and the Subsidiary Guarantors, and “Credit Party means any one of them.
 “Default” means any event or condition that upon notice, lapse of time or both would constitute of Event of Default.
“Defaulting Lender” means any Lender, as determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in LCs within three (3) Business Days of the date required to be funded by it hereunder, (b) notified Unit, the Administrative Agent or the LC Issuer or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit, (c) failed, within three (3) Business Days after request by the Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding LCs, (d) otherwise failed to pay over to the Administrative Agent, any other Lender or any Borrower any other amount required to be paid by it hereunder within three (3) Business Days of the date when due, unless the subject of a good faith dispute, (e) (i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian, appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment; provided, however, that a Lender shall not be a “Defaulting Lender” solely because the Federal Deposit Insurance Corporation or other applicable federal or state regulatory agency has been appointed as receiver, interim receiver, monitor, conservator, trustee or custodian for any parent company of such Lender or acquired an ownership interest in such parent company, provided that and only for as long as (i) such appointment or acquisition does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such applicable federal or state regulatory agency or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Lender, (ii) such Lender confirms in writing, upon request by the Administrative Agent, that it will continue to comply with its obligations to make Loans and fulfill all other obligations required to be made and fulfilled by it hereunder, and (iii) such Lender complies with its obligations to make all Loans and fulfill all other obligations required to be made or fulfilled 

7

by it hereunder; or (f) that has, or that has a direct or indirect parent company that has, become the subject of a Bail-In Action.
“Deficiency” has the meaning assigned thereto in Section 2.6.7.
“Determination Date” has the meaning assigned thereto in Section 2.6.3(c).
“Disclosure Schedule” means Schedule 3.
“Domestic Subsidiary”  means any Subsidiary that is not a Foreign Subsidiary.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Engineering Report” means each engineering report delivered under Section 6.1(vii) or (viii), as applicable.
“Environmental Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions relating to (i) the protection of the environment, (ii) the effect of the environment on human health, (iii) emissions, discharges or releases of pollutants, contaminants, hazardous substances or wastes into surface water, ground water or land, or (iv) the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, hazardous substances or wastes or the clean-up or other remediation thereof.
“Equity Interest” and “Equity Interests” mean, individually or collectively as the context requires, shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any rule or regulation issued thereunder.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

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“Eurodollar Advance” means an Advance which, other than as provided in Section 2.12, bears interest at the applicable Eurodollar Rate.
“Eurodollar Base Rate” means, with respect to a Eurodollar Advance for the relevant Interest Period, a rate (expressed to the fifth decimal place) equal to (i) the rate of interest which is identified and normally published by ICE Benchmark Administration (the "LIBOR") as the offered rate for loans in United States dollars for the applicable Interest Period as of 11:00 a.m. (London time), on the second full Business Day next preceding the first day of such Interest Period (unless such date is not a Business Day, in which event the next succeeding Business Day will be used); plus (ii) the maximum reserve requirement, if any, then imposed under Regulation D of the Board of Governors of the Federal Reserve System (or any successor thereto) for “Eurocurrency Liabilities” (as defined therein); provided, however, that if LIBOR determined as provided above shall be less than zero, LIBOR shall be deemed to be zero for the  purposes of this Agreement. If ICE Benchmark Administration no longer reports the LIBOR or Administrative Agent determines in good faith that the rate so reported no longer accurately reflects the rate available to Lender in the London Interbank Market or if such index no longer exists or accurately reflects the rate available to Administrative Agent in the London Interbank Market, Administrative Agent may select a replacement index.
“Eurodollar Loan” means a Loan that, except as otherwise provided in Section 2.12, bears interest at the applicable Eurodollar Rate.
“Eurodollar Rate” means, with respect to any Interest Period, an interest rate per annum equal to the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable to the Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to the Interest Period, plus (ii) the Applicable Margin, based on a 360 day year.
“Event of Default” means the occurrence of any of the events described in Section 10.1.1-10.1.15, inclusive.
“Excluded Swap Obligation” means, with respect to any Subsidiary Guarantor, any Rate Management Obligation if, and to the extent that, all or a portion of the Subsidiary Guaranty of such Subsidiary Guarantor of, or the grant by such Subsidiary Guarantor of a security interest to secure, such Rate Management Obligation (or any Subsidiary Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Future Trading Commission (or the application or official interpretation of any thereof) by virtue of such Subsidiary Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 10.20 and any other “keepwell, support or other agreement” for the benefit of such Subsidiary Guarantor and any and all guarantees of such Subsidiary Guarantor’s Rate Management Obligations by other Credit Parties) at the time the Subsidiary Guaranty of such Subsidiary Guarantor, or a grant by such Subsidiary Guarantor of a security interest, becomes effective with respect to such Rate Management Obligation.  If a Rate Management Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Rate Management Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes illegal.

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“Excluded Taxes” means, in the case of each Lender, each LC Issuer and the Administrative Agent, (a) Taxes imposed on its overall net income, and franchise taxes imposed on it, by (i) the jurisdiction under the laws of which such Lender, Administrative Agent or LC Issuer is incorporated or organized, (ii) the jurisdiction in which the Administrative Agent’s, the LC Issuer’s or the Lender’s principal executive office is or applicable lending or issuing office located (iii) the jurisdiction with which the Administrative Agent, the Lender or the LC Issuer has a present or former connection (other than a connection arising solely from the transactions specifically contemplated by this Agreement), (b) any Taxes imposed under the laws of the United States of America or any political subdivision thereof or therein that would apply if any payment were made under any of the Loan Documents to the Lender or the LC Issuer on the day the Lender becomes a Lender or the LC Issuer becomes an LC Issuer (or, in either case, designates a new lending or issuing office); (c) and Taxes that are attributable to the Lender’s or the LC Issuer’s failure to comply with Section 3.3(v) of this Agreement; and (d) any applicable Taxes imposed under Sections 1471-1474 of the Code as of the date of this Agreement and any current or future regulations or official interpretations thereof.
“Existing Subordinated Note Indenture Additional Parties” means those Subsidiaries of the Credit Parties that are signatories to the Existing Subordinated Note Indenture that are not Credit Parties under this Agreement (consisting of, as of the date of this Agreement, Unit Texas Company, Unit Drilling and Exploration Company, Petroleum Supply Company, Unit Drilling USA Columbia, L.L.C., Unit Drilling Columbia, L.L.C. and Preston County Gas Gathering, L.L.C). 
“Existing Subordinated Notes” means Unit’s 6-5/8% Senior Subordinated Notes due 2021 issued pursuant to the Existing Subordinated Notes Indenture.
“Existing Subordinated Notes Indenture” means the Indenture dated as of May 18, 2011 between Unit and Wilmington Trust FSB and the First Supplemental Indenture dated as of May 18, 2011 by and among Unit, the Subsidiary Guarantors (as therein defined) party thereto and Wilmington Trust FSB, in each case as amended, supplemented or otherwise modified from time to time.
“Facility Termination Date” means April 10, 2020, as that date may be extended pursuant to Section 3.8, or any earlier date on which the Total Commitment is reduced to zero or otherwise terminated under the terms of this Agreement.
"FATCA" means Sections 1471 through 1474 of the Code, as of the date hereof, (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any applicable intergovernmental agreements entered into by the United States that implement the foregoing.
“FCPA” means The United States Foreign Corrupt Practices Act of 1977 (Pub. L. No. 95 213, §§101 104), as amended or replaced.
“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the 

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Federal Reserve System arranged by Federal funds brokers on that day, as published for that day (or, if that day is not a Business Day, for the prior Business Day) by the Federal Reserve Bank of New York, or, if the rate is not published for any day which is a Business Day, the average of the quotations at approximately 10:00 a.m. (Tulsa time) on that day on those transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent in its sole discretion.
“Financial Contract” of a Person means (i) any exchange-traded or over-the-counter futures, forward, swap, hedge or option contract or other financial instrument with similar characteristics, (ii) any Rate Management Transaction and (iii) with respect to any Subsidiary Guarantor any obligations owed to any Lender or any Affiliate of a Lender to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.
“First Amendment” means the First Amendment and Consent to Senior Credit Agreement dated as of September 5, 2012, among the Borrowers, the Administrative Agent and the Lenders party thereto.
“Floating Rate” means, for any day, a rate per annum equal to the sum of (i) the Alternate Base Rate for that day, changing when and as the Alternate Base Rate changes, plus (ii) the Applicable Margin.
“Floating Rate Advance” means an Advance which, except as otherwise provided in Section 2.12, bears interest at the Floating Rate.
“Floating Rate Loan” means a Loan which, except as otherwise provided in Section 2.12, bears interest at the Floating Rate.
“Flood Insurance Regulations” means (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, (d) the Flood Insurance Reform Act of 2004 and (e) any regulations promulgated under any of the foregoing.
“Foreign Subsidiary” means (i) any Subsidiary that is not incorporated or organized under the laws of the United States, any State thereof or the District of Columbia, and (ii) any Subsidiary of a Subsidiary described in clause (i).
“Fourth Amendment” means the Fourth Amendment to Senior Credit Agreement dated as of the Fourth Amendment Effective Date among the Borrowers, the Administrative Agent and the Lenders party thereto.
“Fourth Amendment Effective Date” means April 2, 2018.
“Fourth Amendment Exiting Lender” has the meaning ascribed thereto in the Fourth Amendment.

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“Funded Debt” means all outstanding long term Indebtedness of the Borrowers in accordance with GAAP excluding deferred Taxes, non cash hedging obligations under ASC 815 and the plugging and abandonment accrued liabilities described in Section 7.8(iv).
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States.  At any time after the date of this Agreement, the Borrowers, may elect to apply International Financial Reporting Standards (“IFRS”) accounting principles in lieu of GAAP and, on that election, references to GAAP will then be construed to mean IFRS from time to time; provided that any such election, once made, shall be irrevocable and further provided that any calculation or determination in this Agreement that requires the application of GAAP for periods that include fiscal quarters ended before the Borrowers’ election to apply IFRS will remain as previously calculated or determined in accordance with GAAP.  The Borrowers will give notice of an election made in accordance with this definition to the Administrative Agent.
“Governmental Authority” means any federal, state, local or foreign court or governmental agency, authority, instrumentality or regulatory or legislative body.
“Highest Lawful Rate” means, on any day with respect to a Lender to whom Obligations are owed, the maximum non-usurious rate of interest that the Lender is permitted under applicable law to contract for, take, charge or receive with respect to the Obligations for that day.  All determinations of the Highest Lawful Rate, or of any interest rate determined by reference to the Highest Lawful Rate, will be made separately for each Lender as appropriate to assure that the Loan Documents are not construed to obligate any Person to pay interest to any Lender at a rate in excess of the Highest Lawful Rate applicable to that Lender.
“Hydrocarbon Interests” means all rights, titles, interests and estates now or later acquired in and to (i) Hydrocarbons and (ii) oil and gas leases, or other liquid or gaseous Hydrocarbon or mineral leases, mineral fee interests, overriding royalty and royalty interests, net profit interests, production payment interests, farm outs and farm ins, including any reserved, back in or residual interests of whatever nature.
“Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom.
“Indebtedness” of a Person means, without duplications, that Person’s (i) obligations for borrowed money, (ii) obligations representing the deferred purchase price of Property or services (other than accounts payable arising in the ordinary course of the Person’s business payable on terms customary in the trade), (iii) obligations, whether or not assumed, secured by Liens or payable out of the proceeds or production from Property owned or acquired by that Person (other than Permitted Encumbrances), (iv) obligations which are evidenced by notes, bonds, debentures, acceptances, or other similar instruments, (v) obligations to purchase securities or other Property arising out of or in connection with the sale of the same or substantially similar securities or Property, (vi) Capitalized Lease Obligations, (vii) Contingent Obligations in respect of other Indebtedness, (viii) obligations under Financial Contracts, including Rate Management Obligations, (ix) obligations to reimburse issuers of Letters of Credit, (x) obligations with respect to payments received in consideration of oil, gas, or other minerals yet to be produced at the time 

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of payment (including obligations under “take-or-pay” contracts to deliver gas in return for payments already received and the undischarged balance of any production payment created by that Person or for the creation of which the Person directly or indirectly received payment), (xi) obligations with respect to other obligations to deliver goods or services in consideration of advance payments therefor; (xii) any other obligation for borrowed money or other financial accommodation which in accordance with GAAP would be shown as a liability on the consolidated balance sheet of that Person, (xiii) all obligations of such Person secured by a Lien on any Property of such Person regardless of whether the Indebtedness secured thereby shall have been assumed by that Person or is non-recourse to the credit of such Person, and (xiv) all liabilities of such Person as a general partner of a partnership for obligations of such partnership of the nature described in clauses (i) through (xiii) above.
“Indemnified Taxes” means Taxes, other than Excluded Taxes, imposed on the Administrative Agent, any Lender or any LC Issuer with respect to any payment made by any Credit Party under any Loan Document.
 “Interest Period” means, with respect to a Eurodollar Advance, a period of one, two, three or six months commencing on a Business Day selected by Unit under this Agreement.  The Interest Period will end on the day that corresponds numerically to the date one, two, three, or six months thereafter.  If there is no numerically corresponding day in the next, second, third or sixth succeeding month, the Interest Period will end on the last Business Day of the next, second, third or sixth succeeding month.  If an Interest Period would otherwise end on a day that is not a Business Day, the Interest Period will end on the next succeeding Business Day. If the next succeeding Business Day falls in a new calendar month, the Interest Period will end on the immediately preceding Business Day.
“Investment” of a Person means any loan, advance (other than commission, travel and similar advances to officers and employees made in the ordinary course of business), extension of credit (other than accounts receivable arising in the ordinary course of business on terms customary in the trade) or contribution of capital by that Person to another Person and any stocks, bonds, mutual funds, partnership interests, notes, debentures or other securities owned by that Person.
“LC Application” has the meaning assigned to it in Section 2.19.3.
“LC Issuer” means BOk (or any subsidiary or affiliate of BOk designated by BOk) or any other Lender that agrees to be an LC Issuer in its capacity as issuer of LCs under this Agreement.
“LC Obligations” means, at any time, the sum, without duplication, of (i) the total undrawn stated amount under all LCs outstanding at that time plus (ii) the total unpaid amount at that time of all Reimbursement Obligations.
“LC Sublimit” means $50,000,000 unless otherwise agreed in writing among the LC Issuer, Unit and the Required Lenders.
“Lender Counterparty” means any Person counterparty to a Financial Contract who is (or, at the time such Financial Contract was entered into, was) a Lender or an Affiliate of a Lender.

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“Lenders” means the lending institutions now or later listed on the signature pages of this Agreement.
“Lenders’ Schedule” means Schedule 2.
“Letter of Credit” of a Person means a letter of credit or similar instrument that is issued on the application of that Person or on which that Person is an account party or for which that Person is in any way liable.
“Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, the interest of a vendor or lessor under any conditional sale, Capitalized Lease or other title retention agreement).
“Loan” means, with respect to a Lender, that Lender’s Advances made under Article 2 (or any conversion or continuation of that Advance).
“Loan Documents” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the LC Applications, the Notes, the Letters of Credit, each Subsidiary Guaranty, the Security Instruments and each compliance certificate, Borrowing Notice, and Conversion/Continuation Notice executed by Borrowers pursuant to this Agreement; as any of the foregoing may be amended, amended and restated, modified, replaced or otherwise supplemented from time to time; provided, however, that from and after the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, the Superior LLC Pledge Instruments shall no longer thereafter be deemed to constitute either Security Instruments or Loan Documents for all intent and purposes of this Agreement and the other Loan Documents.
“Material Adverse Effect” means a material adverse effect on (i) the business, Property, condition (financial or otherwise), or results of operations of the Credit Parties taken as a whole (taking into account the present value of any indemnification in favor of the Borrowers or any applicable insurance coverage), (ii) the ability of any of the Borrowers to perform their obligations under the Loan Documents, or (iii) the validity or enforceability of any of the Loan Documents or the rights or remedies of the Administrative Agent, the LC Issuer or the Lenders under the Loan Documents.
“Material Domestic Subsidiary” means any Material Subsidiary that is a Domestic Subsidiary.
“Material Indebtedness” means Indebtedness of any Credit Party in an outstanding principal amount of $25,000,000 or more (or its equivalent in any currency other than U.S. dollars).
“Material Indebtedness Agreement” means any agreement under which any Material Indebtedness was created, is governed, or which provides for the incurrence of Indebtedness in an amount which would constitute Material Indebtedness (whether or not an amount of Indebtedness constituting Material Indebtedness is outstanding thereunder).

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“Material Subsidiary” means a Subsidiary of any of the Borrowers having (i) at least ten percent (10%) of the consolidated total assets of the Borrowers and their Subsidiaries (determined as of the last day of the most recent fiscal quarter of the Borrowers) or (ii) at least ten percent (10%) of the consolidated revenues of the Borrowers and their Subsidiaries for the fiscal year of Unit then most recently ended.  For purposes of this Agreement, the term “Material Subsidiary” shall not include a Borrower. 
“Materials of Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or wastes, or pollutants, defined or regulated as such in or under any Environmental Law, including asbestos, polychlorinated biphenyls, urea formaldehyde insulation, coal combustion byproducts or waste, boiler slag, scrubber residue, or flue desulphurization residue or comparable or similar products, substances or materials (whether liquid, solid, gaseous or otherwise).
“Maximum Credit Amount” means the maximum amount of Credit Extensions available to the Borrowers under Article 2 from Lenders.
“Moody’s” means Moody’s Investors Service, Inc.
“Mortgage” means each mortgage, deed of trust or any other document creating and evidencing a Lien on real or immovable Property and other Property (including any Oil and Gas Property that constitutes real property) in favor of the Administrative Agent (on behalf of the Lenders), which shall be in a form reasonably satisfactory to the Administrative Agent, as the same may be amended, modified, supplemented or restated from time to time in accordance with the Loan Documents.
“Multiemployer Plan” means a Plan under which the Borrowers or any member of the Controlled Group is a party to which more than one employer is obligated to make contributions.
“Net Cash Proceeds” means in connection with any issuance or sale of equity interests or indebtedness securities or instruments or the incurrence of loans, the cash proceeds received from such issuance or incurrence, net of attorneys’ fees, investment banking fees, accountants’ fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection with such issuances or sales.
“Note” means each promissory note made, jointly and severally, by the Borrowers payable to the order of a Lender in substantially the same form as Exhibit A, evidencing indebtedness of the Borrowers to such Lender, as any of the foregoing may be amended, amended and restated, modified, replaced, rearranged, consolidated, renewed, extended or otherwise supplemented from time to time (collectively, the “Notes”). 
“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all Reimbursement Obligations, all Rate Management Obligations under Financial Contracts with any Lender or any Lender Counterparty, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations of the Borrowers to the Lenders or to any Lender, the Administrative Agent, the LC Issuer, or any indemnified party arising under 

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the Loan Documents, including all treasury and treasury related services; provided that the "Obligations" shall exclude any Excluded Swap Obligations.
“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Oil and Gas Properties” means all Hydrocarbon Interests from time to time owned by any Credit Party or in which one of the Credit Parties has an interest, including without limitation, (i) Property now or hereafter pooled or unitized with the Hydrocarbon Interests, (ii) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created in connection therewith (including without limitation all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests, (iii) all operating agreements, contracts and other agreements which relate to any Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to that Hydrocarbon Interests, (iv) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including as-extracted collateral and all oil in tanks and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests, (v) all tenements, hereditaments, appurtenances and Property in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests, (vi) and all Property, rights, titles, interests and estates described or referred to above, including any and all Property (real or personal) now owned or hereafter acquired and situated on, used, held for use or useful in connection with the operating, working or development of any of the Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment or other personal property which may be on the premises for the purpose of drilling a well or for other similar temporary uses), and (vii) any and all oil wells, gas wells, injection wells or other wells, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing, in each case limited to the interest of the applicable Credit Party in those assets.
“Other Taxes” means any present or future stamp or documentary Taxes, and any other excise or property Taxes which arise because of any payment made under this Agreement, any Note, LC Application or from the signing or delivery of or otherwise with this Agreement, any Note, or LC Application.
“Outstanding Credit Exposure” means, as to any Lender at any time, the sum of (i) the total principal amount of its then outstanding Loans, plus (ii) an amount equal to its Pro Rata Share of the LC Obligations at that time.
“Payment Date” means the day prescribed in Section 2.16 for payment of Eurodollar Loans and Floating Rate Loans, respectively.
“PBGC” means the Pension Benefit Guaranty Corporation.
“Permitted Encumbrances” means any Lien permitted by Section 7.6.

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“Person” means any natural person, corporation, firm, joint venture, partnership, limited liability company, association, enterprise, trust or other entity or organization, or any government or political subdivision or any of their agencies, departments, or instrumentalities.
“Plan” means an employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code as to which the Borrowers or any member of the Controlled Group may have any liability.
“Pledge Agreement” means that certain Pledge Agreement executed and delivered by Unit effective as of the date of the Third Amendment, as the same shall be deemed to have been terminated and released in accordance with the Fourth Amendment, effective as of the occurrence of the Superior Release Effective Date (if any) in accordance with the Fourth Amendment.
“Pricing Schedule” means Schedule 1.
“Prime Rate” means, as of any date, the annual rate published in the “Bonds, Rates and Yields” column of The Wall Street Journal (Southwest Edition) as the prime rate, which rate will not necessarily be the “best” or lowest rate quoted or used from time to time by a Lender or the Lenders.  Borrowers acknowledge and agree that the Lenders may make loans based on other rates or indices as well. Should that reference to such prime rate become unavailable during the term of the Loans or by Financial Contracts or should The Wall Street Journal otherwise cease to publish or quote a prime or base rate, or should The Wall Street Journal be merged, consolidated, liquidated or dissolved in a manner that it loses its separate identity, then the Prime Rate will be a substitute index selected and designated by the Administrative Agent following notice to Unit.  Any change in the Prime Rate shall be effective as of the date of the change but the Prime Rate will not change more often than once each day. Under no circumstances will the interest rate on the Notes be more than the Highest Lawful Rate.
“Pro Rata Share” means, with respect to a Lender, a portion equal to a fraction the numerator of which is that Lender’s Commitment and the denominator of which is the Total Commitment; provided, in the case of Section 2.20 when a Defaulting Lender shall exist, “Pro Rata Share” means, (a) for any Defaulting Lender, zero percent (0%), and (b) for any Lender other than a Defaulting Lender, the percentage of the Total Commitments (disregarding any Defaulting Lender’s Commitment) represented by that Lender’s Commitment.  If the Commitments have terminated or expired, the Pro Rata Share will be determined upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender.
“Property” of a Person means any interest of that Person in any kind of property, whether real, personal, tangible, intangible, or mixed, of that Person, or other assets owned, leased or operated by that Person. 
“Qualified ECP Guarantor” means, in respect of any Rate Management Obligations, at any time, each Credit Party, with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another 

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person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.
“Rate Management Obligations” of a Person means all obligations of that Person, whether absolute or contingent and regardless of how or when created, arising, evidenced or acquired (including all renewals, extensions, supplements, replacements, modifications, and substitutions of those obligations) under (i) all Financial Contracts, including Rate Management Transactions, and (ii) all cancellations, buy backs, reversals, terminations or assignments of any Financial Contracts, including Rate Management Transactions.
“Rate Management Transaction” means any transaction (including an agreement pertaining to that transaction) now existing or hereafter entered by one or more Borrowers which is a rate swap, basis swap, hedge, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction or price/commodity protection device (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices, or other financial measures. However, a “Rate Management Transaction” will not include any contract for the purchase and sale of natural gas, oil or natural gas liquids entered into in the ordinary course of business and on customary trade terms.
“Ratings Requirement” means Unit’s unsecured corporate rating is (i) BBB- or better with respect to any rating issued by S&P (without negative outlook or negative watch), or (ii) Baa3 or better with respect to any rating issued by Moody’s (without negative outlook or negative watch), provided, if Unit only satisfies one of the ratings set forth above, Unit shall still be deemed to have satisfied the Ratings Requirement so long as Unit satisfies one of the two ratings above and has an unsecured corporate rating of at least (x) BB+ with respect to S&P (without negative outlook or negative watch), if Unit otherwise satisfies the rating set forth in clause (ii) above and (y) Ba1with respect to Moody’s (without negative outlook or negative watch), if Unit otherwise satisfies the rating set forth in clause (i) above.   
“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System and any successor or other regulation or official interpretation of the Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.
“Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System and any successor or other regulation or official interpretation of the Board of Governors relating to the extension of credit by banks for the purpose of purchasing or carrying margin stocks applicable to member banks of the Federal Reserve System.
“Reimbursement Obligations” means the total of all obligations of the Borrowers under Section 2.19 to reimburse the LC Issuer for amounts paid by the LC Issuer for any one or more drawings under LCs.

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“Reportable Event” means a reportable event as defined in Section 4043 of ERISA, for which the notice requirements to the PBGC have not been waived.  A failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA will be a Reportable Event.
“Required Lenders” means those Lenders having in total at least 66.67% of the Total Commitment or, if the Total Commitment has been terminated, those Lenders having in total at least two-thirds (66.67%) of the Total Outstanding Credit Exposure.
“Reserve Requirement” means, with respect to an Interest Period, the maximum total reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D on Eurocurrency liabilities.
 “S&P” means Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc.
“Sanctioned Country” means a country subject to a comprehensive country-wide sanctions program administered and enforced by OFAC, which countries are, as of the effectiveness of the Second Amendment, limited to Cuba, Iran, North Korea, Sudan and Syria.
“Sanctioned Person” means (a) a Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time, (b) a Person named on the lists maintained by the United Nations Security Council available at http://www.un.org/sc/committees/list_compend.shtml, or as otherwise published from time to time, (c) a Person named on the lists maintained by the European Union available at http://eeas.europa.eu/cfsp/sanctions/consol-list_en.htm, or as otherwise published from time to time, (d) a Person named on the lists maintained by Her Majesty’s Treasury available at http://www.hm-treasury.gov.uk/fin_sanctions_index.htm, or as otherwise published from time to time, or (e) (i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or (iii) a Person resident in a Sanctioned Country, to the extent any Person described in clauses (i), (ii) or (iii) is the subject of a sanctions program administered by OFAC.
“Sanctions” means, collectively, economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) any U.S. Governmental Authority, including, without limitation, those administered by the OFAC or the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s Treasury of the United Kingdom; in each such case, as amended, supplemented or substituted from time to time. 
“Scheduled Redetermination” means any redetermination of the Borrowing Base under Section 2.6.3.
“SEC” means the Securities and Exchange Commission.

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“Second Amendment” means the Second Amendment and Consent to Senior Credit Agreement dated as of April 10, 2015, among the Borrowers, the Administrative Agent and the Lenders party thereto.
“Security Instruments” mean each Mortgage and all other agreements, instruments, consents and certificates now or hereafter executed and delivered by any Credit Party or other Person as security for the payment or performance of the Obligations, as the same may be amended, modified, restated or replaced from time to time (including, prior to the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, the Superior LLC Pledge Instruments). 
“Senior Indebtedness” means, with respect to the Borrowers and their Subsidiaries (other than, and excluding all, Unrestricted Subsidiaries), on a consolidated basis, the sum equal to (a) the principal amount of all outstanding Loans of such Persons and (b) all Material Indebtedness of such Persons that is secured by a Lien, excluding any Subordinated Debt or Indebtedness of such Persons permitted under Section 7.2(v).
“Single Employer Plan” means a Plan maintained by the Borrowers or any member of the Controlled Group for employees of the Borrowers or any member of the Controlled Group. 
“SPC Midstream Operating” means SPC Midstream Operating, L.L.C., an Oklahoma limited liability company, a Wholly-Owned Subsidiary of Unit and an Unrestricted Subsidiary hereunder, whose sole asset is, and even after the Superior Release Effective Date shall remain, a management contract with Superior pursuant to which Superior shall be operated after the Superior Release Effective Date. 
“Special Redetermination” means any redetermination of the Borrowing Base under Section 2.6.5 or 2.6.6.
“Specified Loan Party” means any Credit Party that is not an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 12.20).
“Subordinated Debt” means (i) the Existing Subordinated Notes and (ii) all other Indebtedness which is contractually subordinated in right of payment, collection, enforcement and lien rights to the prior payment in full of the Obligations on terms satisfactory to Administrative Agent, and includes Indebtedness in the form of subordinated convertible debentures or subordinated promissory notes.
“Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities having ordinary voting power of which will at the time be owned or controlled, directly or indirectly, by that Person or by one or more of their Subsidiaries or by that Person and one or more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which will at the time be so owned or controlled, provided that any associations, joint ventures or other relationships (a) which are established under a standard form operating agreement or similar agreement or which are partnerships for purposes of federal income taxation only, (b) which are not corporations or partnerships (or subject to the Uniform 

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Partnership Act) under applicable state law, and (c) whose businesses are limited to the exploration, development and operation of oil, gas or mineral properties and interests owned directly by the parties in those associations, joint ventures or relationships, will not be deemed to be “Subsidiaries” of that Person. Unless otherwise expressly provided, all references in this Agreement to a “Subsidiary” will mean a Subsidiary of any of the Credit Parties. From and after the Superior Release Effective Date, the Unrestricted Subsidiaries shall not be deemed to constitute Subsidiaries for any purposes of this Agreement and the other Loan Documents, other than for the limited purposes of Section 6.10 and Section 7.14, respectively, hereof.
“Subsidiary Guarantor” means each present or future Material Domestic Subsidiary and each other Subsidiary that becomes a party to the Subsidiary Guaranty.
“Subsidiary Guaranty” means the Guaranty Agreement, substantially in the form of Exhibit E to be executed on behalf of each Subsidiary Guarantor in favor of the Administrative Agent for the ratable benefit of the Lenders, for the Obligations of the Borrowers under this Agreement.
“Subsidiary Guaranty Joinder Agreement” means the Joinder Agreement, substantially in the form of Schedule 1 to the Subsidiary Guaranty, to be executed and delivered by each new Subsidiary Guarantor in accordance with the provisions of Section 9.1.
 “Superior” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Superior App” has the meaning ascribed thereto in the introductory paragraph of this Agreement. 
“Superior Cash Flow” means the loan value attributed by the Lenders or Required Lenders, as applicable, to the operations (including throughput volume in the pipeline systems) of Superior Pipeline Company, L.L.C. and its Wholly-Owned Subsidiaries in accordance with Section 2.6 which determination shall be conclusive absent manifest error.
“Superior LLC” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Superior LLC Pledge Instruments” has the meaning ascribed thereto in the Fourth Amendment.
“Superior Release” has the meaning ascribed thereto in Recital E of this Agreement.
“Superior Release Effective Date” has the meaning ascribed thereto in the Fourth Amendment.
“Superior Sale” has the meaning ascribed thereto in Recital E of this Agreement.
“Superior Sale Effective Date” has the meaning ascribed thereto in the Fourth Amendment.

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“Superior Sale Net Proceeds” has the meaning ascribed thereto in Recital E of this Agreement.
“Superior Sale Paydown Conditions” has the meaning ascribed thereto in Recital E of this Agreement.
“Superior TX” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Superior UCCs” has the meaning ascribed thereto in the Fourth Amendment.
“Taxes” means all present or future taxes, duties, levies, imposts, deductions, charges or withholdings, and any and all liabilities with respect to the foregoing.
“Third Amendment” means the Third Amendment to Senior Credit Agreement dated as of April 8, 2016, among the Borrowers, the Administrative Agent and the Lenders party thereto.
“Total Commitment” means the total of the Commitments of all Lenders, as adjusted from time to time under this Agreement.  In no event will the Total Commitment exceed the lesser of (i) the Borrowing Base or (ii) the Maximum Credit Amount.
“Total Outstanding Credit Exposure” means the total of the Outstanding Credit Exposure of all the Lenders.
“Unfunded Liabilities” means that amount by which the present value of all vested and unvested accrued benefits under all Single Employer Plans exceeds the fair market value of those Plans’ assets allocable to those benefits, all determined as of the most recent valuation date for those Plans using PBGC actuarial assumptions for single employer plan terminations. 
“Unit” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Unit Drilling” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Unit Petroleum” has the meaning ascribed thereto in the introductory paragraph of this Agreement.
“Unit TX” has the meaning ascribed thereto in the introductory paragraph of this Agreement
“Unrestricted Subsidiaries” means, collectively, from and after the Superior Release Effective Date, the following Persons (each, an “Unrestricted Subsidiary”): (i) Superior App; (ii) Superior LLC; (iii) Superior TX; (iv) SPC Midstream Operating; and (v) their respective subsidiaries.
“Wholly-Owned Subsidiary” of a Person means (i) any Subsidiary all of the outstanding voting securities of which are owned or controlled, directly or indirectly, by that Person or one or more Wholly-Owned Subsidiaries of that Person, or by that Person and one or more Wholly-

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Owned Subsidiaries of that Person, or (ii) any partnership, limited liability company, association, joint venture or similar business organization 100% of the ownership interests having ordinary voting power of which will at the time be so owned or controlled.
“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
The above definitions will be equally applicable to both the singular and plural forms of the defined terms.
1.2    Exhibits and Schedules; Additional Definitions.  All Exhibits and Schedules attached to this Agreement are a part of this Agreement for all purposes.  Unless the context otherwise requires or unless otherwise provided in this Agreement the terms defined in this Agreement which refer to a particular agreement, instrument or document also refer to and include all renewals, extensions, modifications, amendments and restatements of that agreement, instrument or document, provided that nothing in this section will be construed to authorize any such renewal, extension, modification, amendment or restatement.

1.3    Reference and Titles.  All references in this Agreement to Exhibits, Schedules, articles, sections, subsections and other subdivisions refer to the Exhibits, Schedules, articles, sections, subsections and other subdivisions of this Agreement unless expressly provided otherwise.  Exhibits and Schedules to any Loan Document are incorporated by reference into the Loan Document.  References to any document, instrument, or agreement (a) will include all exhibits, schedules, and other attachments thereto, and (b) will include all documents, instruments, or agreements issued or executed in replacement or restatement thereof.  Titles appearing at the beginning of any subdivisions are for convenience only and do not constitute any part of the subdivisions and will be disregarded in construing the language contained in the subdivisions.  The words “this Agreement,” “this instrument,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  The words “include”, “includes” and “including” will be deemed to be followed by the phrase “without limitation”.  The phrases “this section” and “this subsection” and similar phrases refer only to the sections or subsections in which these phrases occur.  Pronouns in masculine, feminine and neuter genders will be construed to include any other gender, and words in singular form will be construed to include the plural and vice versa, unless the context otherwise requires. 

1.4    Accounting Terms and Determinations.  Except only as otherwise expressly provided in this Agreement (including in the definition of GAAP), all accounting terms will be interpreted, and all financial statements and certificates and reports as to financial matters required to be delivered to the Administrative Agent or the Lenders under this Agreement shall be prepared in accordance with GAAP, as applied on a consistent basis.  References to “days” 

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will mean calendar days, unless the term “Business Day” is used.  Unless otherwise specified, references to any particular Person also refer to its successors and permitted assigns. If the Borrowers notify the Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. To avoid any confusion, if a change in GAAP, such as changes to lease accounting rules, occurring after the Effective Date hereof, affects in any way the calculation of any material terms or covenants hereunder, such terms or covenants will continue to be governed on the basis of GAAP as in effect and applied immediately before such change upon and following such notification contemplated above from the Borrower.

1.5    Calculations and Determinations.  All calculations under the Loan Documents of interest and fees will be made on the basis of actual days elapsed (including the first day but excluding the last) and a year of 360 days except only for interest accruals on Floating Rate Loans which will be based on the number of days lapsed in a 365-366 day year. 

1.6    Joint Preparation; Construction of Indemnities and Releases.  The Loan Documents have been reviewed and negotiated by sophisticated parties with access to legal counsel and no rule of construction will apply which would require or allow any Loan Document to be construed against any party because of its role in drafting that Loan Document.  All indemnification and release provisions of this Agreement will be construed broadly (and not narrowly) in favor of the Persons receiving indemnification or being released.

ARTICLE 2
THE CREDITS

2.1    Commitments; Initial Total Commitment; Maximum Credit Amount.  From and including the Fourth Amendment Effective Date and up to the Facility Termination Date, each Lender severally agrees, on the terms and conditions of this Agreement, to (i) make Loans to the Borrowers and (ii) participate in LCs issued on the request of the Borrowers, provided that, after giving effect to the making of each such Loan and the issuance of each such LC, the Lender’s Outstanding Credit Exposure does not exceed its Commitment and the Total Outstanding Credit Exposure does not exceed the Total Commitment.  Subject to the terms of this Agreement, Unit, as the designated borrowing agent on behalf of all of the Borrowers, may borrow, repay and re-borrow at any time before the Facility Termination Date. Each Lender’s Commitment will expire on the Facility Termination Date.  The LC Issuer will issue LCs on the terms and conditions set forth in Section 2.19. As of the Fourth Amendment Effective Date, and until the earlier to occur of either the next Determination Date or the occurrence of the Superior Release Effective Date (if any) in accordance with the Fourth Amendment: (a) the Total Commitment is $475,000,000; and (b) the Maximum Credit Amount is also $475,000,000. Without limitation of any of the foregoing, from and after the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, and until the next Determination Date to occur thereafter: (x) the Total Commitment shall automatically, and without any further action or documentation being required from or by any Person, be hereby reduced to $425,000,000; and 

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(y) the Maximum Credit Amount shall automatically, and without any further action or documentation being required from or by any Person, be hereby reduced to $425,000,000.  Any increases in the Total Commitment will be subject to and in accordance with Section 14.6 and any increase in the Maximum Credit Amount requires the written consent of all Lenders.

2.2    Minimum Amount of Each Advance.   Each Eurodollar Advance will be in the minimum amount of $2,000,000 (and in additional multiples of $1,000,000), and each Floating Rate Advance will be in the minimum amount of $200,000 (and in additional multiples of $100,000), provided, that any Floating Rate Advance may be in the amount of the Available Total Commitment.  

2.3    Ratable Loan.  The Lenders will make each Advance according to their Pro Rata Shares.

2.4    Types of Advances.  The Advances may be Floating Rate Advances or Eurodollar Advances, or a combination thereof.  Unit will select advances on behalf of the Borrowers in accordance with Sections 2.9 and 2.10.

2.5    Facility Fee; Commitment Fee; Late Fees; Agency and Other Fees.

2.5.1.    Facility Fee.  Borrowers will pay to the Administrative Agent for the benefit of the Lenders a fully earned and non-refundable upfront facility fee calculated by the respective invited/solicited commitment levels tendered to each Lender, as provided in Addendum I to the separate Summary of Terms and Conditions dated as of July 7, 2011 agreed to by the Administrative Agent.  Any increases in the Total Commitment above the amounts designated in Section 2.1 will be contingent on the Borrowers’ payment of an applicable market rate facility fee on the amount of the increase(s) to Administrative Agent for the benefit of the Lenders increasing its or their Commitments or on the Commitment of any Additional Lender(s) under Section 14.6.

2.5.2.    Commitment Fee.  The Borrowers shall pay the Administrative Agent for the Pro Rata Share of each Lender a commitment fee equal to the per annum Commitment Fee Rate (as set forth on the Pricing Schedule) times the average daily amount of the Available Total Commitment from the date of this Agreement through the Facility Termination Date.  Accrued commitment fees are payable in arrears within 10 days of Unit’s receipt of the quarterly invoice from the Administrative Agent following the close of each calendar quarter and on the Facility Termination Date.  All accrued commitment fees are payable on the effective date of any termination of the Commitments of the Lenders to make Credit Extensions. 

2.5.3.    Late Fees.  To the extent any payment due under a Loan Document is not paid within ten (10) calendar days of its scheduled due date, then, in addition to any interest (accrued at the contract rate of the Notes and prior to imposition of the default rate pursuant to Section 2.12) or other fees and charges due, Borrowers will pay to the Administrative Agent for the allocable benefit of the Lenders a late fee equal to five percent (5.0%) of the amount of the payment that was required to have been made.

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2.5.4.    Agency and Other Fees.  Borrowers will pay agency and other fees to the Administrative Agent in the amounts and on the terms agreed to in writing between the Administrative Agent and the Borrowers.    

2.6    Borrowing Base.  

2.6.1.  Subject to the terms, provisions, and limitations of this Agreement, as of the Fourth Amendment Effective Date, and until the earlier to occur of either the next Determination Date or the occurrence of the Superior Release Effective Date (if any) in accordance with the Fourth Amendment, the Borrowing Base is $525,000,000.00, subject, however, to all applicable terms, conditions and limitations as set forth in this Agreement. Without limitation of any of the foregoing, from and after the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment, and until the next Determination Date to occur thereafter, the Borrowing Base shall automatically, and without any further action or documentation being required from or by any Person, be hereby reduced to $425,000,000.  The Borrowing Base is based on (i) the loan value which the Lenders assign to the various Credit Parties’ Oil and Gas Properties being evaluated, (ii) until such time as the Superior Release Effective Date (if any) shall have occurred in accordance with the Fourth Amendment, the loan value which the Lenders assign to Superior Cash Flow, and (iii) any other credit factors (including without limitation the assets, liabilities, cash flow, hedged and unhedged exposure to price, foreign exchange rate, and interest rate changes, business, properties, prospects, management and ownership of Credit Parties) as the Lenders deem significant. The Lenders and the Administrative Agent have no obligation to agree on or designate the Borrowing Base at any particular amount, whether in relation to the Total Commitment or otherwise.

2.6.2.  On March 1 and September 1 of each year, beginning September 1, 2018 (it being stipulated Unit has timely furnished such information for March 1, 2018), Unit will furnish to each Lender the information Administrative Agent has then requested concerning the Credit Parties’ businesses and properties (including the information specified in Sections 6.1(vii), (viii) and (ix)).

2.6.3.  Starting no later than October 1, 2018 and no later than each following April 1st and October 1st, the Borrowing Base will be determined in accordance with the following procedure:

(a)The Administrative Agent will submit in writing to the Lenders its proposed Borrowing Base amount;

(b)  Each Lender will have ten (10) Business Days to notify the Administrative Agent in writing if it agrees or disagrees with the proposed amount; provided, however, no increase in the Borrowing Base will become effective unless approved in writing by all Lenders.  If, within the time set out in the preceding sentence,

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(1)All Lenders agree, then the new Borrowing Base will be the amount proposed by the Administrative Agent (which shall be deemed to include any Lender that has not timely notified Administrative Agent in writing of its approval or disapproval, such silence being deemed to be an approval of the proposed Borrowing Base amount by the silent (non responding) Lender); or

(2)(i) Not all Lenders agree with the proposal of the Administrative Agent, or (ii) if the Total Commitment has been terminated or has expired and the Required Lenders have not affirmatively approved the Administrative Agent’s proposal with respect to a decrease in, or maintenance of, the Borrowing Base, then the Administrative Agent and the Required Lenders will, within five (5) Business Days, diligently attempt in good faith to agree on a Borrowing Base amount. If agreement is reached then the amount determined by the Administrative Agent and the Required Lenders will be the Borrowing Base amount; or

(3)The Administrative Agent and the Required Lenders cannot agree on the amount of the Borrowing Base within the five (5) Business Day period, then the proposed Borrowing Base will be the amount calculated by the Administrative Agent as the “weighted arithmetic average” of the Borrowing Base as determined by each individual Lender and communicated to the Administrative Agent in writing.  For purposes of this paragraph, the “weighted arithmetic average” of the Borrowing Base will be determined by first multiplying the Borrowing Base proposed in writing to the Administrative Agent by each Lender’s Pro Rata Share, and then adding the results of each calculation, with the Borrowing Base then being the lesser of (i) the resulting weighted arithmetic average amount, or (ii) the amount of the Borrowing Base as last determined under this Agreement. 

(c)The Administrative Agent will then promptly notify Unit in writing of the new Borrowing Base amount.  The amount of the Borrowing Base subject to the Administrative Agent’s notice will be effective as of the date the notice is sent to Unit (a “Determination Date“) unless, within five (5) Business Days following receipt of the Administrative Agent’s notice, Unit designates in writing a lesser amount in which case the lesser amount designated by Unit will be the Borrowing Base amount effective when the Administrative Agent receives Unit’s written designation.  

2.6.4.  If Unit does not timely furnish all the information requested by the Administrative Agent in subsection 2.6.2, Administrative Agent may designate the Borrowing Base at any amount the Lenders or the Required Lenders, as applicable, reasonably determine (and may redetermine the Borrowing Base from time to time) until each Lender receives all the requested information. Once the Lenders have received all the requested information, Lenders or the Required Lenders, as applicable, in their 

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discretion, will designate a new Borrowing Base under the procedures in subsection 2.6.3.

2.6.5.  In addition to Scheduled Redeterminations, the Required Lenders are permitted to make a Special Redetermination of the Borrowing Base once between each Determination Date by notifying the Administrative Agent and Borrowers. Any Special Redetermination by the Required Lenders shall be in addition to any reduction of the Borrowing Base by the Required Lenders under Section 7.4(iv).

2.6.6.  In addition to Scheduled Redeterminations, any other Special Redeterminations pursuant to Section 2.6 and the voluntary Commitment reduction pursuant to Section 2.8.3, Unit may request a Special Redetermination of the Borrowing Base once between each Scheduled Redetermination.  In addition, Unit may request Special Determinations from time to time as significant developments, exploration or Acquisition opportunities are presented to Borrowers.  Borrower shall deliver written notice of such Special Redetermination request to the Administrative Agent which shall include (i) a reserve report or engineering report prepared as of a date not more than 30 days prior to such request, and (ii) the amount of the Borrowing Base requested by Unit and the date on which Unit requests such redetermined Borrowing Base to be effective.  Upon receipt of the reserve report or engineering report, the Administrative Agent shall, subject to approval of the Required Lenders, or all Lenders in the event of a proposed increase in the Borrowing Base, redetermine the Borrowing Base in accordance with the calculation procedures of Section 2.6.3(a), (b) and (c), provided that the Administrative Agent and the Lenders shall have thirty (30) days from Administrative Agent's receipt of the information requested of Unit under clauses (i) and (ii) above to agree with the Lenders on the redetermined amount of the Borrowing Base and so notify Unit in writing.

2.6.7.  If at any time, the Total Outstanding Credit Exposure exceeds the lesser of (i) the Borrowing Base, or (ii) the Total Commitment (a “Deficiency”) because of a reduction in the Borrowing Base resulting from a redetermination in accordance with this Section 2.6 (excluding Section 2.6.8), Administrative Agent will notify Unit in writing of the Deficiency and within ten (10) days from the date of that deficiency notice, Unit will elect one of the following options:  

(a)  To prepay the Loans in an amount equal to or more than the Deficiency; 

(b)  Dedicate to this Agreement (including the negative pledge provision of Section 7.12) other Oil and Gas Properties or assets acceptable to the Administrative Agent and the Required Lenders that are not then included in the Borrowing Base that are of a value, as determined by the Administrative Agent and the Required Lenders, such that the Outstanding Credit Exposure does not exceed the Borrowing Base (as adjusted to include the values of the additional Oil and Gas Properties and/or midstream assets); or

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(c)  Start monthly principal payments each equal to the amount of the Deficiency divided by the number of whole calendar months between the date of the Deficiency notice and the next Scheduled Redetermination.

If Unit elects to (i) prepay the Loans under clause (a) or (ii) commence monthly principal payments under clause (c), the prepayment or first monthly payment, as applicable, will be due within twenty (20) days after the date of Unit’s timely election.  The prepayment or monthly principal payments will be applied in reduction of the principal balance of the Loans.  If Unit elects to commit Oil and Gas Properties under clause (b) above, the Borrowers will provide the Administrative Agent with descriptions of the Oil and Gas Properties or other approved assets (together with any applicable current valuations and engineering reports which may be requested by the Administrative Agent).
2.6.8.  The Borrowing Base will be automatically reduced if and to the extent a Borrower issues or incurs Indebtedness (other than any Obligations) as follows: (i) a dollar ($1.00) for dollar ($1.00) reduction if the Indebtedness is on a pari passu basis in right of payment with the Obligations or (ii) an amount equal to a twenty five cents ($0.25) reduction for each one dollar ($1.00) amount of Indebtedness incurred after the effective date of this Agreement that is expressly subordinated in right of payment to the Obligations (including subordinated Indebtedness convertible to equity in Unit) so long as such Indebtedness is in compliance with the limitations of Section 7.2(ix).

2.6.9.  Unit may, from time to time upon ten (10) days prior written notice to the Administrative Agent, reduce the Borrowing Base by designating a Borrowing Base which is lower than the Borrowing Base then in effect.  Any such designation by Unit shall be effective on the tenth (10th) day following the date of the Administrative Agent's receipt of such written notice.

2.7    Repayment of Loans; Evidence of Loans.

2.7.1.  Borrowers hereby unconditionally and jointly and severally promise to pay to the Administrative Agent, for the account of each Lender, on the Facility Termination Date, the then unpaid principal amount of all Loans made to them. Borrowers agree to repay the principal amount of each Loan made to them and the interest accrued thereon in U.S. dollars. 

2.7.2.  Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of Borrowers to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

2.7.3.  The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the type and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from Borrowers to each Lender hereunder and (iii) the amount of any sum 

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received by the Administrative Agent hereunder for the account of the Lenders and each Lender's Pro-Rata Share thereof.

2.7.4.  The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Credit Parties to repay the Loans in accordance with the terms of this Agreement.

2.7.5.  Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrowers shall prepare, jointly execute and deliver to the order of such Lender one or more promissory notes payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such promissory note(s) and interest thereon shall at all times (including after assignment pursuant to Section 14.3) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if a promissory note is a registered note, to such payee and its registered assigns).

2.8    Principal Payments; Termination and Reduction of Commitment.

2.8.1.  Optional Principal Payments.  The Borrowers may at any time and from time to time, without penalty or premium, on prior notice to the Administrative Agent pay (i) all outstanding Floating Rate Advances, or (ii) a part of the outstanding Floating Rate Advance in a minimum amount of $200,000 (and any additional multiples of $100,000).  The Borrowers may from time to time, without premium or penalty (but subject to the payment of any funding indemnification amounts required by Section 3.5 including applicable breakage fees due hereunder), on three (3) Business Days’ prior written notice to the Administrative Agent, pay all (i) outstanding Eurodollar Advances, or, (ii) a part of the outstanding Eurodollar Advances in a minimum total amount of $2,000,000 (and any additional integral multiples of $1,000,000). 

2.8.2.  Mandatory Principal Payments.  In addition to the mandatory principal payments required due to a Deficiency in accordance with Section 2.6.7, if at any time a Deficiency occurs as a result of the a reduction of the Borrowing Base under Section 2.6.8 or 7.4, Borrowers will, within three (3) Business Days following written notice from Administrative Agent promptly prepay the principal of the Loans with proceeds of such Indebtedness issuance or asset sale in an amount at least equal to the Deficiency (or, if the Loans have been paid in full, deposit with the Administrative Agent the amount required to eliminate the Deficiency, which amount shall be applied by the Administrative Agent to the payment of Reimbursement Obligations with respect to any LCs as they become due and payable; any balance remaining after (i) all LCs have expired or been fully drawn on or (ii) after the Deficiency no longer exists will be returned to Unit) together with interest during the period of the Deficiency.  Any principal or interest prepaid under this subsection will be in addition to, and not in lieu of, all payments otherwise then required under the Loan Documents.

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2.8.3.  Termination and Reduction of Commitments.  

(a)    Unless previously terminated, the Commitments shall terminate on the Facility Termination Date.

(b)    The Borrowers may once between each Scheduled Redetermination reduce the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $5,000,000 and not less than $25,000,000 (or, if less, the remaining amount of the Commitments), and (ii) the Borrowers shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.6.7 or 2.8.2, the Total Outstanding Credit Exposure would exceed the Borrowing Base. 

(c)    The Borrowers shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section 2.8.3 at least three (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrowers pursuant to this paragraph (c) shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrowers may state that such notice is conditioned upon the effectiveness of other credit facilities or refinancing, in which case such notice may be revoked by the Borrowers (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent, provided that the Commitments may be increased in accordance with Section 14.6.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

2.9    Method of Selecting Loan Types and Interest Periods for New Advances.  Unit will select each type of Advance and, in the case of a Eurodollar Advance, the applicable Interest Period.  Unit will give the Administrative Agent irrevocable notice (a “Borrowing Notice“) not later than 11:00 a.m. (Tulsa time) on the same Business Day as the Borrowing Date of each Floating Rate Advance and three Business Days before the Borrowing Date for each Eurodollar Advance.  Unit’s notice will specify:

		
	(i)
	the Borrowing Date, which must be a Business Day, of the Advance;

		
	(ii)
	the total amount of the Advance;

		
	(iii)
	the type (Floating Rate or Eurodollar) of Advance selected; and

		
	(iv)
	in the case of a Eurodollar Advance, the applicable Interest Period.

Not later than 1:00 p.m. (Tulsa time) on each Borrowing Date, each Lender will make available its Loan or Loans in funds immediately available in Tulsa to the Administrative Agent at its address specified under Article 15.  The Administrative Agent will make the funds received from the Lenders immediately available to the Borrowers at the Administrative Agent’s address.

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2.10    Conversion and Continuation of Outstanding Advances.  Each Floating Rate Advance will continue as Floating Rate Advance unless converted into Eurodollar Advance under this Section 2.10 or is repaid.  Each Eurodollar Advance will continue as a Eurodollar Advance until the end of its applicable Interest Period, at which time the Eurodollar Advance will be automatically converted into a Floating Rate Advance unless (x) the Eurodollar Advance is or was repaid or (y) Unit gives the Administrative Agent a Conversion/Continuation Notice requesting that, at the end of the Interest Period, the Eurodollar Advance continue as a Eurodollar Advance for the same or another Interest Period.  Subject to the terms of Section 2.2, Unit may elect from time to time to convert all or any part of a Floating Rate Advance into a Eurodollar Advance.  Unit will give the Administrative Agent irrevocable notice (a “Conversion/Continuation Notice“) of each conversion of a Floating Rate Advance into a Eurodollar Advance or continuation of a Eurodollar Advance.  A Conversion/Continuation Notice must be given by 11:00 a.m. (Tulsa time) on a day that is at least three Business Days before the date of the requested conversion or continuation and specify:

		
	(i)
	the requested date, which must be a Business Day, of the conversion or continuation;

		
	(ii)
	the total amount of and the type of the Advance (Floating Rate Advance or Eurodollar Advance) that is to be converted or continued; and

		
	(iii)
	the duration of the applicable Interest Period.

2.11    Interest Rate.  Each Advance will bear interest at a variable per annum rate equal to the Eurodollar Rate or the Floating Rate as applicable, except as otherwise provided in Section 2.12.  Each Floating Rate Advance will bear interest on its outstanding principal amount, for each day from and including the date the Advance is made or is automatically converted from a Eurodollar Advance into a Floating Rate Advance under Section 2.10 (but excluding the date it is paid or is converted into a Eurodollar Advance under Section 2.10) at an annual rate equal to the Floating Rate for that day.  Changes in the rate of interest on that part of any Advance maintained as a Floating Rate Advance will take effect simultaneously with each change in the Alternate Base Rate.  Each Eurodollar Advance will bear interest on its outstanding principal amount from and including the first day of the Interest Period applicable to it until (but not including) the last day of that Interest Period.  The Administrative Agent will determine the applicable interest rate for each Eurodollar Advance based on Unit’s selections under Sections 2.9 and 2.10 and otherwise in accordance with the terms of this Agreement.  No Interest Period may end after the Facility Termination Date.

2.12    Effect of Default or Deficiency on Advances/Rates Applicable After Default or Deficiency. Despite Section 2.9, 2.10, or 2.11, during a Default or Deficiency the Required Lenders may, at their option by written notice to Unit, declare that no Advance will be made as, converted into, or continued as a Eurodollar Advance and no LCs will be issued.  During the continuance of an Event of Default, each Eurodollar Advance and each Floating Rate Advance will bear interest for the remainder of the applicable Interest Period at the rate otherwise applicable to the Interest Period plus an additional two hundred basis points (2.0%) per annum, and the LC Fee will be increased by an additional two hundred basis points (2.00%) per annum.  During a Default that remains uncured (prior to an Event of Default) or a Deficiency, interest 

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will be determined at the applicable Level IV Status Floating Rate per annum plus an additional fifty basis points (0.50%) as to Floating Rate Advances or applicable Level IV Status Eurodollar Rate plus an additional two hundred basis points (2.00%) as to Eurodollar Rate Loans per annum as to Eurodollar Rate. During a Default or Event of Default under Subsections 10.1.6 or 10.1.7, the interest rates set forth above and the increase in the LC Fee will apply to all Credit Extensions without any election, notice or other action on the part of the Administrative Agent or any Lender; provided, however, the default interest rate specified above shall not accrue at the same time a late fee is being assessed pursuant to Section 2.5.3, such election to be at the option of the Administrative Agent and the Required Lenders.

2.13    Method of Payment of Obligations.  All Obligation payments will be made, without setoff, deduction, or counterclaim, in immediately available funds to the Administrative Agent at the Administrative Agent’s address specified by Section 15.1, by 12:00 noon (Tulsa time) on the date when due (other than payments of Rate Management Obligations owed to Lender Counterparties, which shall be made in accordance with the applicable Financial Contracts governing such Rate Management Obligations) and will (except in the case of Reimbursement Obligations for which the LC Issuer has not been fully indemnified by the Lenders, or as otherwise required under this Agreement) be applied ratably by the Administrative Agent among the Lenders.  The Administrative Agent will promptly pay in the same type of funds that the Administrative Agent received to each Lender at the Lender’s address specified in Section 15.1 (or at the address specified in a notice received by the Administrative Agent from the Lender)any payments the Administrative Agent receives on behalf of the Lender.  The Administrative Agent may charge Borrowers’ accounts (other than any Excluded Account) at BOk for each payment of principal, interest, Reimbursement Obligations and fees due under this Agreement.  Each reference to the Administrative Agent in this Section 2.13 will also be deemed to refer, and will apply equally, to the LC Issuer, in the case of payments required to be made by the Borrowers to the LC Issuer under Section 2.19.6.

Subject to the provisions of Section 11.4, all principal or interest payments on any Note or Loan will be applied first to any interest then due and payable, then to principal, and last to any prepayment of principal and interest in compliance with Section 2.8.  All distributions of amounts described above will be made by Administrative Agent pro rata to each Lender then owed Obligations described in this section in proportion to all amounts owed to Administrative Agent and all Lenders which are described in this Section 2.13; provided that if any Lender then owes payments to LC Issuer for the purchase of a participation under Section 2.19.2 or to Administrative Agent under Section 13.7, any amounts otherwise distributable under this section to the Lender will be deemed to belong to LC Issuer, or Administrative Agent, respectively, to the extent of the unpaid payments, and Administrative Agent will apply those amounts to pay such unpaid payments rather than distribute those amounts to the Lender.

2.14    Payment of Fees.  All fees paid under this Agreement will be paid in US Dollars on the dates due, in immediately available funds to the Administrative Agent (or the LC Issuer, in the case of fees payable to it).  Fees paid will not be refundable under any circumstances except in the case of inadvertent but conclusive overpayment by Borrowers.
2.15    Telephonic Notices.  The Lenders and the Administrative Agent may extend, convert, or continue Advances, effect selections of types of Advances, and transfer funds based 

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on telephonic notices made by any person or persons the Administrative Agent or any Lender in good faith believes authorized to act on behalf of the Borrowers.  Borrowing Notices and Conversion/Continuation Notices may be given telephonically.  Unit will deliver promptly to the Administrative Agent a written confirmation executed by an Authorized Officer of each telephonic notice.  If the written confirmation differs in any material respect from the action taken by the Administrative Agent and any Lenders, the records of the Administrative Agent and the Lenders will govern absent manifest error.

2.16    Payment Date.  Interest accrued on each Floating Rate Advance will be payable on the last day of each month, on any date on which the Floating Rate Advance is prepaid (whether due to acceleration or otherwise), and on the Facility Termination Date.  Interest accrued on the principal amount of any Floating Rate Advance converted into a Eurodollar Advance on a day other than the last day of a month will be payable on the date of conversion.  Interest accrued on each one month (30 day), two months (60 days), or three months (90 days) Interest Period for a Eurodollar Advance will be payable on the last day of its applicable Interest Period, on any date on which the Eurodollar Advance is prepaid (whether by acceleration or otherwise), and on the Facility Termination Date.  Interest accrued on each Eurodollar Advance having an Interest Period longer than three months (i.e., six months (180 days) Interest Period) will also be payable on the last day of each three-month interval during the Interest Period.  Interest will be payable from the day an Advance is made but not for the day of payment if the payment is received before 12:00 noon (local time) at the place of payment.  If any payment of principal of or interest on an Advance is due on a day which is not a Business Day, that payment will be made on the next succeeding Business Day and, in the case of a principal payment, the extension of time will be included in computing interest on the payment.

2.17    Notification of Advances, Interest Rates, and LC Requests.  The Administrative Agent will promptly notify each Lender of the contents of each Borrowing Notice, Conversion/Continuation Notice, or repayment notice it receives as well as changes in the applicable per annum rate of interest pursuant to the Pricing Schedule. Promptly after notice from the LC Issuer, the Administrative Agent will notify each Lender of the contents of each request for issuance of an LC. 

2.18    Non-Receipt of Funds by the Administrative Agent.  Unless Unit or a Lender, as the case may be, notifies the Administrative Agent before the date on which it is to make a payment to the Administrative Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case of the Borrowers, a payment of principal, interest or fees, that it does not intend to make the payment, the Administrative Agent may assume that the payment has been made.  The Administrative Agent may, but will not be obligated to, make the amount of the payment available to the intended recipient in reliance on that assumption.  If the Lender or the Borrowers, as the case may be, did not make the payment, the recipient of the payment will when requested by the Administrative Agent, repay the amount of the payment with interest to Administrative Agent.  Interest will apply for each day starting the day the payment was made until the day the Administrative Agent receives the repayment.  Interest will be calculated at a rate per annum equal to (x) in the case of payment by a Lender, the Federal Funds Effective Rate for the day for the first three days and then the interest rate applicable to the relevant Loan or (y) in the case of payment by the Borrowers, the interest rate applicable to the relevant Loan.

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2.19    Letters of Credit.

2.19.1.    Issuance.  When requested by Unit, the LC Issuer will issue standby Letters of Credit (each, a “LC“) and renew, extend, increase, decrease or otherwise modify each LC (“Modify,” and each action a “Modification“), from time to time before the Facility Termination Date; but only if immediately after each LC is issued or Modified, (i) the total amount of the outstanding LC Obligations does not exceed the LC Sublimit and (ii) the Total Outstanding Credit Exposure does not exceed the Total Commitment. No LC will have an expiration date more than one year from its date of issuance (or, in the case of a Modification, one year after the Modification).  If an expiration date for any LC is within five (5) Business Days before the Facility Termination Date, Borrowers will deposit with the Administrative Agent on the Facility Termination Date immediately available funds in an amount equal to the undrawn amount of the LC.  The Administrative Agent may apply such funds to the payment of Reimbursement Obligations with respect to the LC as they become due and payable, and any balance remaining after such LC has expired or been fully drawn upon will be returned to the Borrowers.

2.19.2.    Participations.  On the issuance or Modification of an LC, the LC Issuer will be deemed, without further action by any party, to have unconditionally and irrevocably sold to each Lender, and each Lender will be deemed, without further action by any party, to have unconditionally and irrevocably purchased from the LC Issuer, a participation in the LC (and each Modification of the LC) and the related LC Obligations in proportion to its Pro Rata Share.

2.19.3.    Notice.  Unit will give the LC Issuer notice before 11:00 a.m. (Tulsa time) at least one Business Day before the proposed date of issuance or Modification of an LC, specifying the beneficiary, the proposed date of issuance (or Modification) and the expiration date of the LC.  The issuance or Modification of an LC by the LC Issuer is subject to the LC Issuer’s approval and the Borrowers signing and delivering an LC Application or other instruments and agreements relating to the LC as the LC Issuer may reasonably request (each, a “LC Application“).  In the event of a conflict between the terms of this Agreement and the terms of an LC Application, the terms of this Agreement will control.

2.19.4.    LC Fees.  The Borrowers will pay to the Administrative Agent, for the account of the Lenders in accordance with their respective Pro Rata Shares, a per annum letter of credit fee when an LC is issued.  The amount of the fee will be equal to the greater of $500.00 or a per annum rate equal to the Applicable Margin for Eurodollar Loans on the stated amount of the LC (each fee described in this sentence an “LC Fee“).  The Borrowers will also pay to the LC Issuer for its own account at the time of issuance of an LC, a fronting fee in an amount equal to 0.125% of the initial stated amount, and any documentary and processing charges incurred in connection with the issuance or Modification of and draws under LCs in accordance with the LC Issuer’s then standard schedule for those charges.

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2.19.5.    Administration; Reimbursement by Lenders.  If the LC Issuer receives demand for payment by a beneficiary under an LC, the LC Issuer will notify the Administrative Agent. The Administrative Agent will then promptly notify the Borrowers and each other Lender of the amount demanded to be paid and the proposed payment date (the “LC Payment Date“).  The responsibility of the LC Issuer to the Borrowers and each Lender will be only to determine that the documents (including each demand for payment) delivered under each LC in connection with the presentment conforms in all material respects with the LC.  In the absence of gross negligence or willful misconduct by the LC Issuer, each Lender will be unconditionally and irrevocably liable without regard to the occurrence of any Default, Event of Default or any condition precedent, to reimburse the LC Issuer on request for (i) the Lender’s Pro Rata Share of the amount of each payment made by the LC Issuer under an LC to the extent the amount is not reimbursed by the Borrowers under Section 2.19.6, plus (ii) interest on the amount to be reimbursed by the Lender for each day from the date of the LC Issuer’s demand for the reimbursement (or, if the demand is made after 12:00 noon (Tulsa time) on that date, from the next succeeding Business Day) to the date paid. The interest to be paid will be calculated at a rate of interest per year equal to the Federal Funds Effective Rate for the first three days and then at a rate of interest equal to the rate applicable to Floating Rate Advances.

2.19.6.    Reimbursement by Borrowers.  The Borrowers are irrevocably and unconditionally obligated to reimburse the LC Issuer on or before the applicable LC Payment Date for any amounts to be paid by the LC Issuer under subsection 2.19.5.  The Borrowers’ reimbursement obligation will be without presentment, demand, protest or other formalities of any kind but either the Borrowers or any Lender may assert any claim for direct (but not consequential) damages suffered by the Borrowers or the Lender to the extent, but only to the extent, caused by (i) the willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under any LC issued by it complied with the terms of the LC or (ii) the LC Issuer’s failure to pay under any LC issued by it after the presentation to it of a request strictly complying with the terms and conditions of the LC. All amounts paid by the LC Issuer and remaining unreimbursed by the Borrowers will bear interest, payable on demand, for each day until paid at a rate per year equal to (x) the rate applicable to Floating Rate Advances for that day if that day falls on or before the applicable LC Payment Date and (y) the sum of two hundred basis points (2.0%) plus the rate applicable to Floating Rate Advances for that day if that day falls after the LC Payment Date.  The LC Issuer will pay to each Lender in accordance with its Pro Rata Share all amounts received by it from the Borrowers as payment, in whole or in part, for Reimbursement Obligations in regard to any LC issued by the LC Issuer, but only if the Lender has paid the LC Issuer for the LC under Section 2.19.5.  Subject to the terms and conditions of this Agreement, the Borrowers may request an Advance to satisfy any Reimbursement Obligation. 

2.19.7.    Obligations Absolute.  The Borrowers’ obligations under this Section 2.19 are absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim, or defense to payment that the Borrowers may have or have had against the LC Issuer, any Lender, or any beneficiary of a LC.  Borrowers acknowledge and agree that the LC Issuer and the Lenders will not be responsible for, and the 

36

Borrowers’ Reimbursement Obligation in respect of any LC will not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even if those documents should in fact prove to be in any or all respects invalid, fraudulent or forged, or any dispute between or among the Borrowers, any of their Affiliates, the beneficiary of any LC, any financing institution, or other party to whom any LC may be transferred or any claims or defenses whatsoever of the Borrowers or of any of their Affiliates against the beneficiary of any LC or any transferee. The LC Issuer will not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any LC.  The Borrowers agree that any action taken or omitted by the LC Issuer or any Lender under or in connection with each LC and the related drafts and documents, if done without gross negligence or willful misconduct, will be binding on the Borrowers and will not put the LC Issuer or any Lender under any liability to the Borrowers.  Nothing in this subsection 2.19.7 will limit the right of the Borrowers to make a claim for damages as provided in subsection 2.19.6.

2.19.8.    Actions of LC Issuer.  The LC Issuer is entitled to rely, and will be fully protected in, relying on any LC, draft, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and on advice and statements of legal counsel, independent accountants, and other experts selected by the LC Issuer.  The LC Issuer will be fully justified in failing or refusing to take any action under this Agreement unless it will first have received the advice or concurrence of the Required Lenders as it reasonably deems appropriate or it will first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take such action.  Despite any other provision of this Section 2.19, the LC Issuer will in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Required Lenders, and that request and any action taken or failure to act due to that request will be binding on the Lenders and any future holders of a participation in any LC.

2.19.9.    Indemnification.  The Borrowers will indemnify and hold harmless each Lender, the LC Issuer and the Administrative Agent, and their respective directors, officers, administrative agents and employees from and against any and all claims, and damages, losses, liabilities, costs or expenses which a Lender, the LC Issuer or the Administrative Agent may incur (or which may be claimed against a Lender, the LC Issuer or the Administrative Agent by any Person) by reason of or in connection with the issuance, signing and delivery, transfer of or payment, or failure to pay under any LC or any actual or proposed use of any LC, including any claims, damages, losses, liabilities, costs, or expenses which the LC Issuer incurs by reason of or in connection with (i) the failure of any other Lender to fulfill or comply with its obligations to the LC Issuer (but this does not affect any rights the Borrowers may have against a defaulting Lender) or (ii) by reason of or on account of the LC Issuer issuing any LC which specifies that the term “Beneficiary” included in the LC includes any successor by operation of law of the named Beneficiary, but which LC does not require that any drawing by any successor Beneficiary be accompanied by a copy of a legal document, satisfactory to the LC Issuer, 

37

evidencing the appointment of such successor Beneficiary.  The Borrowers will not be required to indemnify any Lender, the LC Issuer or the Administrative Agent for any claims, damages, losses, liabilities, costs or expenses to the extent, but only to the extent, caused by (x) the willful misconduct or gross negligence of the LC Issuer in determining whether a request presented under an LC complied with the terms of the LC or (y) the LC Issuer’s failure to pay under any LC after the presentation to it of a request strictly complying with the terms and conditions of the LC. Nothing in this Section 2.19.9 is intended to limit the obligations of the Borrowers under any other provision of this Agreement, provided that to the extent of any inconsistency between this Section 2.19.9 and Section 12.6.1, the provisions of this Section 2.19.9 shall control; and provided further that this Section 2.19.9 shall not apply to Taxes, which shall be exclusively governed by Section 3.3. 

2.19.10.    Lenders’ Indemnification.  Each Lender will, in accordance with its Pro Rata Share, indemnify the LC Issuer, its Affiliates and their respective directors, officers, administrative agents and employees (to the extent not reimbursed by the Borrowers) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except resulting from the indemnitees’ gross negligence or willful misconduct or the LC Issuer’s failure to pay under any LC after the presentation to it of a request strictly complying with the terms and conditions of the LC) that the indemnitees may suffer or incur in connection with this Section 2.19 or any action taken or omitted by the indemnitees under this Section 2.19.

2.19.11.    Existing Letters of Credit.  Each letter of credit issued and outstanding under the Existing Credit Agreement as of the date hereof will be deemed to constitute an LC issued under this Agreement on the date hereof for all purposes of the Loan Documents; provided that no additional LC fees or fronting fees will be payable with respect to such letters of credit under Section 2.19.4. for which LC fees and fronting fees have been paid in full.

2.20    Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

		
	(a)
	fees pursuant to Section 2.5.2 shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender;

		
	(b)
	the Commitment and Outstanding Credit Exposure of such Defaulting Lender shall not be included for any purpose in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 11.2), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender and further provided that any redetermination or affirmation of the Borrowing Base shall occur without the participation of the Defaulting Lender, but the Commitment (i. 

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e., the Pro Rata Share of the Borrowing Base of a Defaulting Lender) will not be increased without the consent of the Defaulting Lender;
		
	(c)
	if any LC Obligations exists at the time a Lender becomes a Defaulting Lender then:  (i) all or any part of the LC Obligations of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Pro Rata Share (for the purpose of such reallocation the Defaulting Lender's Commitment will be disregarded in determining each non-Defaulting Lender's Pro Rata Share) but only to the extent (x) the sum of all non-Defaulting Lenders’ Outstanding Credit Exposures plus such Defaulting Lender’s LC Obligations does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 4.2 are satisfied at such time; (ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within two Business Days following notice by the Administrative Agent (x) first, collateralize such Defaulting Lender’s LC Obligations (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.19.10 for so long as such LC Obligations are outstanding; (iii) if the Borrowers cash collateralizes any portion of such Defaulting Lender’s LC Obligations pursuant to this Section 2.20(c), the Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.19.4 with respect to such Defaulting Lender’s LC Obligations during the period such Defaulting Lender’s LC Obligations are cash collateralized; (iv) if the LC Obligations of the non-Defaulting Lenders are reallocated pursuant to this Section 2.20(c), then the fees payable to the Lenders pursuant to Section 2.19.4 and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Pro Rata Shares; or (v) if any Defaulting Lender’s LC Obligations are neither cash collateralized nor reallocated pursuant to this Section 2.20(c), then, without prejudice to any rights or remedies of the LC Issuer or any Lender hereunder, all commitment fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender’s Commitment that was utilized by such LC Obligation) and letter of credit fees payable under Section 2.19.4 with respect to such Defaulting Lender’s LC Obligation shall be payable to the LC Issuer until such LC Obligations are cash collateralized and/or reallocated; and

		
	(d)
	so long as any Lender is a Defaulting Lender, the LC Issuer shall not be required to issue, amend or increase any LC, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrowers in accordance with Section 2.20(c), and participating interests in any such newly issued or increased LC shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(c)(i) (and Defaulting Lenders shall not participate therein). In the event that the Administrative Agent, the Borrowers and the LC Issuer each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Obligations of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as the 

39

Administrative shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Pro Rata Share.
2.21    Ratable Payments.  If any Lender, whether by setoff or otherwise, has payment made to it on its Outstanding Credit Exposure (other than payments received under Article 3) in a greater proportion than that received by any other Lender, such Lender agrees, promptly on demand, to purchase a portion of the Total Outstanding Credit Exposure held by the other Lenders so that after such purchase each Lender will hold its Pro Rata Share of the Total Outstanding Credit Exposure.  If any Lender, whether in connection with setoff or amounts which might be subject to setoff or otherwise, receives collateral or other protection for its Obligations (other than its Rate Management Obligations, if any) or such amounts which may be subject to setoff, such Lender agrees, promptly on demand, to take such action necessary such that all Lenders share in the benefits of such collateral ratably in proportion to their respective Pro Rata Shares of the Total Outstanding Credit Exposure.  

ARTICLE 3
YIELD PROTECTION; TAXES

3.1    Yield Protection.  If, on or after the date of this Agreement, the adoption of any law or any governmental or quasi-governmental rule, regulation, policy, guideline or directive (whether or not having the force of law), or any change in its interpretation or administration by any governmental or quasi-governmental authority, central bank, or comparable agency charged with its interpretation or administration thereof or compliance by any Lender or applicable banking address of the LC Issuer with any request or directive of any such authority, central bank or comparable agency:

(i)    imposes or increases or deems applicable any reserve, assessment, insurance charge, special deposit, or similar requirement against assets of, deposits with (or for the account of), or credit extended by, any Lender or the LC Issuer (other than reserves and assessments taken into account in determining the interest rate applicable to Eurodollar Advances): or
(ii)    imposes any other condition the result of which is to increase a Lender’s cost, the interbank eurocurrency deposit market cost or the LC Issuer’s costs of making, funding or maintaining its Eurodollar Loans or of issuing or participating in LCs, or reduces any receivable of a Lender, the interbank eurocurrency deposit market or the LC Issuer in connection with its Eurodollar Loans, LCs or participations therein, or requires any Lender, the interbank Eurocurrency deposit market or the LC Issuer to make any payment calculated by reference to the amount of Eurodollar Loans, LCs or participations therein held or interest or LC Fees received by it, by an amount deemed material by such Lender or the LC Issuer as the case may be and the result of any of the foregoing is to increase the cost to such Lender or the LC Issuer, as the case may be, of making or maintaining its Eurodollar Loans or Commitment or of issuing or participating in LCs or to reduce the return received by such Lender, the interbank eurocurrency deposit market or the LC Issuer, as the case may be, in connection with such Eurodollar Loans, Commitment, LCs or participations therein, 

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then, within 15 days of demand by the Administrative Agent or the LC Issuer, as the case may be, to Unit, the Borrowers will pay Administrative Agent for the account of the Lender or the LC Issuer, as the case may be, that additional amount or amounts as will compensate the Lender or the LC Issuer, as the case may be, for the increased cost or reduction in the amount received by it; provided that the Borrowers shall not be required to compensate a Lender or the LC Issuer pursuant to this Section 3.1 for any increased costs or reductions incurred more than 365 days prior to the date that such Lender or the LC Issuer, as the case may be, notifies Unit of the change giving rise to  such increased costs or reduction and of the Lender's or the LC Issuer's intentions to claim compensation therefor.
The foregoing provisions of this Section 3.1 shall not apply to Taxes, which shall be governed exclusively by Section 3.3.
3.2    Changes in Capital Adequacy Regulations.  If a Lender or the LC Issuer determines, in good faith, the amount of capital required or expected to be maintained by the Lender or the LC Issuer, or any corporation controlling the Lender or the LC Issuer is increased as a result of a Change, then, within 15 days of demand to Unit by the Lender or the LC Issuer, the Borrowers will pay the Lender or the LC Issuer the amount necessary to compensate the shortfall in the rate of return on the portion of the increased capital which the Lender or the LC Issuer determines in good faith  is attributable to this Agreement, its Outstanding Credit Exposure or its Commitment (after taking into account the Lender’s or the LC Issuer’s policies as to capital adequacy). “Change“ means (i) any change after the date of this Agreement in the Risk-Based Capital Guidelines or (ii) any adoption of or change in any other law, governmental or quasi-governmental rule, regulation, policy, guideline, interpretation, or directive (whether or not having the force of law) after the date of this Agreement which affects the amount of capital required or expected to be maintained by any Lender or the LC Issuer or any corporation controlling any Lender or the LC Issuer. “Risk-Based Capital Guidelines“ means (i) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition rules, and (ii) the corresponding capital regulations promulgated by regulatory authorities outside the United States implementing the July 1988 report of the Basle Committee on Banking Regulation and Supervisory Practices Entitled “International Convergence of Capital Measurements and Capital Standards,” including transition rules, and any amendments to the regulations adopted prior to the date of this Agreement.  Notwithstanding anything in this Agreement to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all requests, proposed or final rules, interpretations, guidelines and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, will in each case be deemed to be “Change”, regardless of the date enacted, adopted, issued or implemented.

3.3    Taxes.  (i) All payments by the Borrowers to or for the account of any Lender, the LC Issuer or the Administrative Agent or under any Note or LC Application will be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes, unless such withholding is required by any law.  If the Borrowers are required by law to deduct Indemnified Taxes or Other Taxes from any payment to a Lender, the LC Issuer, or the Administrative Agent, to the extent not prohibited by applicable law, (a) the payment will be increased so that after 

41

making all required deductions (including deductions applicable to payments under this Section 3.3) the Lender, the LC Issuer, or the Administrative Agent (as the case may be) receives an amount equal to the payment it would have received had no deductions been made, (b) the Borrowers will make the deductions, (c) the Borrowers will pay the full amount deducted to the relevant authority in accordance with applicable law, and (d) the Borrowers will furnish Administrative Agent a copy of a receipt evidencing payment within 30 days after the payment is made.

		
	(i)
	In addition, without duplication of any payments made pursuant to Section 3.3 (i), the Borrowers will pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

		
	(ii)
	The Borrowers agrees to indemnify the Administrative Agent, the LC Issuer, and each Lender for the full amount of Indemnified Taxes or Other Taxes paid by the Administrative Agent, the LC Issuer or a Lender and any liability (including penalties, interest and expenses) associated with those payments.  Payments properly due under this indemnification will be made within 30 days following the date the Administrative Agent, the LC Issuer or a Lender requests payment.

		
	(iii)
	If the U.S. Internal Revenue Service or any other governmental authority of the United States or any other country (or any of their political subdivisions) asserts a claim that the Administrative Agent did not properly withhold tax from payments to or for the account of any Lender because the appropriate form was not delivered or properly completed by such Lender, because such Lender failed to notify the Administrative Agent of a change in circumstances which rendered its exemption from withholding ineffective, or for any other reason, then such Lender will indemnify the Administrative Agent, fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax, withholding for the tax, or otherwise, including penalties and interest, and any taxes imposed by any jurisdiction on amounts payable to the Administrative Agent under this subsection, together with all related costs and expenses (including attorney’s fees and time charges of attorneys for the Administrative Agent.  The obligations of the Lenders under this Section 3.3(iii) will survive the payment of the Obligations and termination of this Agreement.  Any liability under this Section 3.3(iii) will not be a liability of the Borrowers.

		
	(iv)
	Any Lender or LC Issuer that is entitled to an exemption from or reduction of withholding Taxes (including backup withholding Taxes) with respect to payments under this Agreement shall deliver to the Borrowers (with a copy to the Administrative Agent), at the time or times upon the reasonable request of the Borrowers, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Borrowers as will permit such payments to be made without withholding or at a reduced rate of withholding; provided, no such Lender or LC Issuer will be required to deliver or submit copies of any tax returns or schedules therewith.

42

		
	(v)
	If the Administrative Agent, a Lender or an LC Issuer determines, in its reasonable discretion, that it has received a refund or credit of any Taxes or Other Taxes as to which it has been indemnified by any Borrower or with respect to which any Borrower has paid additional amounts pursuant to this Section 3.3, it shall pay over such refund to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 3.3 with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent, such Lender or such LC Issuer and without interest (other than any interest paid by the relevant Governmental Authority with regard to the refund or credit); provided that such Borrower, upon the request of the Administrative Agent, such Lender or such LC Issuer, agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or such LC Issuer in the event the Administrative Agent, such Lender or such LC Issuer is required to repay such refund to such Governmental Authority.

		
	(vi)
	If a payment made to a Lender or L/C Issuer under any Loan Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender or L/C Issuer fails to comply with any requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender or L/C Issuer shall deliver to the Borrowers and the Administrative Agent at the time or times prescribed by applicable law and at such time or times reasonably requested by the Borrowers or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrowers or the Administrative Agent as may be necessary for the Borrowers and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender or such L/C Issuer has complied with such Lender’s or such L/C Issuer’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (v), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

		
	(vii)
	To the extent that the relevant documentation provided pursuant to this Section 3.3 is rendered obsolete or inaccurate in any material respect as a result of changes in circumstances with respect to the status of a Lender or a L/C Issuer, such Lender or such L/C Issuer shall, to the extent permitted by applicable law, deliver to the Borrowers and the Administrative Agent revised and/or updated documentation  or promptly notify the Borrowers and the Administrative Agent in writing of its legal inability to do so.

		
	(viii)
	For purposes of determining withholding Taxes imposed under FATCA, from and after the effectiveness of the Second Amendment, the Borrowers and the Administrative Agent shall treat (and the Lenders and the L/C Issuers hereby authorize the Administrative Agent to treat) each of the Loans as not qualifying 

43

as “grandfathered obligations” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

3.4    Availability of Eurodollar Advances.  If a Lender determines that maintenance of its Eurodollar Loans at a suitable banking location would violate any applicable law, rule, regulation, or directive, whether or not having the force of law, then, upon notice by that Lender to the Borrowers and the Administrative Agent, such Lender’s obligation to continue to make or convert Eurodollar Loans shall be suspended until that Lender notifies the Borrowers and the Administrative Agent that the circumstances giving rise to such determination no longer exist and (ii) any Eurodollar Advances of that Lender shall be converted to Floating Rate Advances, to the extent required to comply with such Laws or change, subject to the payment of any funding indemnification amounts required by Section 3.5.  If the Required Lenders determine that (i) deposits of a type and maturity appropriate to match fund Eurodollar Advances are not available or (ii) the interest rate applicable to Eurodollar Advances does not accurately reflect the cost of making or maintaining Eurodollar Advances, then, upon notice by the Required Lenders to the Borrowers and the Administrative Agent, the availability of Eurodollar Advances, and continuations thereof and conversions thereto, will be suspended to the extent required to comply with such Laws or change until the Required Lenders notify the Borrowers and the Administrative Agent that the circumstances giving rise to such determination no longer exist and (ii) require any affected Eurodollar Advances to be repaid or converted to Floating Rate Advances, subject to the payment of any funding indemnification amounts required by Section 3.5.

3.5    Funding Indemnification.  If for any reason a payment of a Eurodollar Advance occurs on a date which is not the last day of the applicable Interest Period or a Eurodollar Advance is not made on the date specified by the Borrowers for any reason other than a breach of this Agreement by one or more Lenders, the Borrowers will indemnify each Lender for any resulting loss or cost incurred by it.

3.6    Mitigation Obligations.  If any Lender requests compensation under Sections 3.1, 3.2 or 3.4 or if any Credit Party is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender or indemnify any Lender pursuant to Section 3.3, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the reasonable judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Sections 3.1, 3.2, 3.3 or 3.3, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  

3.7    Replacement Lenders.  If a Lender (i) has notified Unit and the Administrative Agent of the circumstances described in Sections 3.1 or 3.4, (ii) has required Borrowers to make payments for Indemnified Taxes or Other Taxes under Section 3.3, (iii) becomes a Defaulting Lender, (iv) is a Non-Extending Lender under Section 3.8, or (v) objects to an increase in the Borrowing Base proposed by the Administrative Agent under the provisions of Section 2.6.2, then Unit may, at its sole cost, expense and effort, within ninety (90) days of Unit’s learning of any of the items in (i) - (v) provided that no Event of Default then exists, terminate, in whole but not in part, the Commitment of that Lender (other than the Administrative Agent) (a “Terminated 

44

Lender“), on ten (10) days’ prior written notice to the Terminated Lender and the Administrative Agent (a “Notice of Termination“) of Unit's decision under this Section 3.7.  If, at any time during the ninety day period and before Unit issues a Notice of Termination, the Terminated Lender notifies Unit in writing that the circumstances giving rise to the notice, event or circumstance no longer apply or the Terminated Lender otherwise withdraws its request for additional compensation or approves the proposed Borrowing Base increase tendered by the Administrative Agent, as the case may be, then Unit will no longer be permitted to terminate the Commitment of that Lender by reason of the particular circumstances that no longer apply, the request that was withdrawn or the Borrowing Base increase that was approved, as the case may be.

To effect the termination of the Commitment of the Terminated Lender, Unit will: obtain either or both (i) an agreement by one or more Lenders to increase their Commitment or Commitments or (ii) an agreement by one or more other banking or lending institutions to become parties to this Agreement in place and instead of Terminated Lender and agree to accept a Commitment or Commitments; provided, however, that the new banking or lending institutions are reasonably acceptable to the Administrative Agent and become parties by executing an Assignment (the Lenders or other banking institutions that agree to accept in whole or in part the Commitment of the Terminated Lender being referred to herein as the “Replacement Lenders“) without recourse from the Terminated Lender, and that the aggregate increased and/or accepted Commitments of the Replacement Lenders under clauses (i) and (ii) above equal the Commitment of the Terminated Lender.

The Notice of Termination shall include the name of the Terminated Lender, the date the termination will occur (the “Lender Termination Date“), and within twenty (20) days of the Notice of Termination, Unit shall designate in writing the Replacement Lender or Replacement Lenders to which the Terminated Lender will assign its Commitment and, if there will be more than one Replacement Lender, the portion of the Terminated Lender’s Commitment to be assigned to each Replacement Lender.

On the Lender Termination Date, (i) the Terminated Lender shall by execution and delivery of an Assignment assign, without recourse, its Commitment and all of its interests, rights and obligations under this Agreement and the related Loan Documents to the Replacement Lender or Replacement Lenders (pro rata, if there is more than one Replacement Lender, in proportion to the Pro Rata Share of the Terminated Lender’s Commitment to be assigned to each Replacement Lender) indicated in the Notice of Termination and shall assign to the Replacement Lender or Replacement Lenders each of its Loans (if any) then outstanding and participation interests in Letters of Credit (if any) then outstanding pro rata as aforesaid), (ii) the Terminated Lender shall endorse its Note, if any, payable without recourse, representation or warranty to the order of the Replacement Lender or Replacement Lenders (Pro Rata Share as aforesaid), (iii) the Replacement Lender or Replacement Lenders shall purchase the Note, if any, or Commitment held by the Terminated Lender (pro rata as aforesaid) at a price equal to the unpaid principal amount (including its participation in and Pro Rata Share of the LC Exposure) plus interest, facility fees, Commitment Fee and other fees accrued and unpaid to the Lender Termination Date, and (iv) the Replacement Lender or Replacement Lenders will thereon (pro rata as aforesaid) succeed to and be substituted in all respects for the Terminated Lender with like effect as if becoming a Lender under the terms of Section 14.3, and the Terminated Lender will have 

45

the rights and benefits of an assignor under Section 14.3.  To the extent not in conflict, the terms of Section 14.3 shall supplement the provisions of this Section 3.7. For each assignment made under this Section 3.7, the Replacement Lender shall pay to the Agent the processing fee provided for in Section 14.3.  The Borrower will be responsible for the concurrent payment of any breakage costs associated with termination and Replacement Lenders, as set forth in Section 3.5.

3.8    Extension of Maturity Date.

3.8.1.    Requests for Extension.  Unit may, by notice to the Administrative Agent (who shall promptly notify the Lenders) not earlier than eighteen (18) months and not later than twelve (12) months before the stated Facility Termination Date then in effect (the “Existing Maturity Date”), request that each Lender extend the Lender’s Facility Termination Date for an additional one (1) year period from the Existing Maturity Date; but the Borrowers may request only two extensions under this Agreement and Borrowers will pay at the closing of an extension a reasonable extension fee, the amount of which will be negotiated and agreed to by the Lenders and Unit.

3.8.2.    Lender Elections to Extend.  Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than the date (the “Notice Date”) that is sixty (60) days after Unit has given notice in accordance with Section 3.8.1, advise the Administrative Agent whether or not the Lender agrees to the extension (and each Lender that determines not to so extend its Facility Termination Date (a “Non-Extending Lender”) and shall notify the Administrative Agent of that fact promptly after that determination (but in any event no later than the Notice Date) and any Lender that does not so advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending Lender. The election of any Lender to agree to the extension shall not obligate any other Lender to so agree.

3.8.3.    Notification by Administrative Agent.  The Administrative Agent shall notify the Borrower of each Lender’s determination under this Section no later than the date seven (7) days after the Notice Date (or, if the date is not a Business Day, on the next succeeding Business Day).

3.8.4.    Additional Commitment Lenders.  The Borrowers shall have the right on or before the Existing Maturity Date to replace each Non-Extending Lender with, and add as “Lenders” under this Agreement one or more Replacement Lenders (each, an “Additional Commitment Lender“) as provided in Section 3.7, each of which Additional Commitment Lenders shall have entered into an Assignment and Assumption under which the Additional Commitment Lender shall, effective as of the Existing Maturity Date, undertake a Commitment (and, if any Additional Commitment Lender is already a Lender, its Commitment will be in addition to the Lender’s Commitment on that date).

3.8.5.    Minimum Extension Requirement.  Only if the total of the Commitments of the Lenders that have agreed to extend their Facility Termination Date and the additional Commitments of the Additional Commitment Lenders is more than 50% of the total amount of the Commitments in effect immediately before the Existing Maturity 

46

Date, then, effective as of the Existing Maturity Date, the Facility Termination Date of each Lender (other than each Non-Extending Lender) and of each Additional Commitment Lender will be extended to the date which is one year after the Existing Maturity Date.  If that date is not a Business Day, then the Facility Termination Date as extended will be the next preceding Business Day.  Each Additional Commitment Lender will as a result become a “Lender” for all purposes of this Agreement.

3.8.6.    Conditions to Effectiveness of Extensions.  Notwithstanding the above provisions of this Section, the extension of the Facility Termination Date will not be effective with respect to any Lender unless:

		
	(i)
	no Default, Event of Default or Deficiency has occurred and is continuing on the date of the extension and after giving effect to the extension;

		
	(ii)
	the representations and warranties contained in this Agreement are true and correct on and as of the date of the extension and after giving effect to the extension, as though made on and as of that date (or, if any representation or warranty is expressly stated to have been made as of a specific date, as of that specific date); and

		
	(iii)
	on the Facility Termination Date of each Non-Extending Lender, the Borrower prepays any Obligations (other than any Rate Management Obligations owed to such Non-Extending Lender) outstanding on that date to each Non-Extending Lender (and pays any additional amounts required under Section 3.5).

3.8.7.    Conflicting Provisions.  This Section 3.8 will supersede any conflicting provisions in Section 11.2. 

ARTICLE 4
CONDITIONS PRECEDENT

4.1    Credit Extension.  The Lenders will not be required to make any initial Credit Extension unless:

4.1.1.    Unit has furnished to the Administrative Agent at its main banking offices in Tulsa, Oklahoma, each of the following, duly executed by the applicable Credit Parties and delivered in form, substance and date satisfactory to the Administrative Agent, with sufficient copies for all of the Lenders:

		
	(i)
	copies of the certificate of incorporation or certificate of organization or formation, as applicable, of each of the Credit Parties, together with all amendments, and a certificate of good standing, each certified by the appropriate governmental officer in their respective jurisdiction of organization;

		
	(ii)
	copies, certified by the Secretary or Assistant Secretary of the Credit Parties, of their respective by-laws or operating agreement or regulations, as applicable, and of their respective Board of Directors’ or members/managers’ resolutions 

47

and of resolutions or actions of any other body authorizing the authentication of the Loan Documents to which each Borrower is a party, 

		
	(iii)
	an incumbency certificate, executed by the Secretary or Assistant Secretary of the Credit Parties, identifying by name and title and bearing the signatures of the Authorized Officers and any other officers of the Credit Parties authorized to execute the Loan Documents to which the Credit Party is a party, with the Administrative Agent and the Lenders being entitled to rely on the certificate until informed of any change in writing by the Credit Party, 

		
	(iv)
	a certificate, executed by the chief financial officer of Unit (on behalf of all of the Credit Parties), stating that on the initial Credit Extension Date no Default, Event of Default or Deficiency has occurred and is continuing, that all representations and warranties in the Loan Documents are true and correct in all material requests as of the Initial Credit Extension Date (except to the extent a representation or warranty is stated to relate solely to an earlier date, in which case the representation or warranty will have been true and correct on and as of such earlier date) and that no Material Adverse Effect has occurred;

		
	(v)
	a favorable written closing opinion of counsel to the Borrowers (in the event Borrowers use an outside counsel then that counsel will be acceptable to the Administrative Agent), addressed to the Administrative Agent and the Lenders in form, scope and substance satisfactory to the Administrative Agent;

		
	(vi)
	this Agreement and a Note payable to the order of each Lender requesting the issuance thereof;

		
	(vii)
	arrangements satisfactory to the Administrative Agent and the LC Issuer concerning payment in full of any Indebtedness owing to the Original Lenders under the Original Credit Agreement;  

		
	(viii)
	any other documents, certificates, instruments and information as any Lender or its counsel may have reasonably requested and satisfactory review by the Lenders of all environmental, litigation, insurance (including in compliance with Sections 5.20 and 6.6) and other matters deemed appropriate by the Administrative Agent, including without limitation, data sufficient for analysis and projection of the Superior Cash Flow (until such time as the Superior Release Effective Date, if any, shall have occurred in accordance with the Fourth Amendment,) and the Oil and Gas Properties portion of the Borrowing Base Property (division orders, production payment checks or other evidence of payment by the purchaser of production) as reasonably deemed necessary by the Administrative Agent or the Required Lenders; and

		
	(ix)
	all facility fees owed to the Lenders and all fees and expenses owed by Borrowers to Administrative Agent that have been billed and submitted to the Administrative Agent and Unit as of that date including the reasonable 

48

attorney’s fees and expenses of legal counsel for the Administrative Agent will have been paid.

4.1.2    The Administrative Agent will (i) attempt to promptly obtain the surrender to of and deliver to Unit all of the promissory notes held by the Original Lenders under the Original Credit Agreement and .(ii) notify Unit and the Lenders of the date that the initial Credit Extension was made.
4.2    Each Credit Extension.  The Lenders are not required to make a Credit Extension unless on the applicable Credit Extension Date:

		
	(i)
	at the time of and immediately after giving effect to such Credit Extension, there exists no Default, Event of Default or Deficiency and the representations and warranties contained in Article 5 are then true and correct in all material respects as of the Credit Extension Date (except to the extent a representation or warranty is stated to relate solely to an earlier date, in which case the representation or warranty will have been true and correct on and as of the earlier date);

		
	(ii)
	the making of the Loan or the issuance, amendment, renewal or extension of such LC, as applicable, would not conflict with, or cause any Lender or the LC Issuer to violate or exceed, any applicable governmental requirement, and no Change shall have occurred;

		
	(iii)
	the Credit Parties are, on a consolidated basis, solvent; and

		
	(iv)
	the Administrative Agent has received all documents and instruments it has then reasonably requested (in addition to those described in Section 4.1) as to (i) the accuracy and validity of or compliance with all representations, warranties, and covenants made by any Borrower or Subsidiary Guarantor in this Agreement in all material respects and the other Loan Documents, in each case in all material respects, and (ii) the satisfaction of all applicable conditions contained in this Agreement. 

Each Borrowing Notice or request for issuance of an LC will constitute a representation and warranty by the Borrowers that the applicable conditions contained in Section 4.2 have been satisfied or will be satisfied by the applicable Credit Extension Date.
ARTICLE 5
REPRESENTATIONS AND WARRANTIES

The Credit Parties represent and warrant to the Lenders that as of the Fourth Amendment Effective Date:

5.1    Existence and Good Standing.  Each Credit Party is a corporation or limited liability company, duly and properly incorporated or organized, as the case may be, validly existing and (to the extent applicable to such entity) in good standing under the laws of its 

49

jurisdiction of incorporation or organization and has all requisite authority to carry on its business in each jurisdiction as now conducted.

5.2    Authorization and Validity.  Each Credit Party has the power and authority and legal right to execute and deliver the Loan Documents to which it is a party and to perform its obligations thereunder. The authentication and delivery by each Credit Party of the Loan Documents to which it is a party and the performance of its obligations thereunder have been duly authorized by proper corporate or limited liability company proceedings. The Loan Documents to which a Credit Party is a party constitute legal, valid and binding obligations of that Credit Party enforceable against it in accordance with their terms, except as may be limited by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally and general principles of equity (“Enforceability Exceptions”).

5.3    No Conflict; Government Consent.  Neither the authentication and delivery of the Loan Documents by any of the Credit Parties which is a party to those documents, nor the consummation of the transactions contemplated by the Loan Documents, nor compliance with the provisions of the Loan Documents will violate in any material respect (i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Credit Parties, (ii) any of the Credit Parties’ articles or certificate of incorporation, partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating or other management agreement, as the case may be, or (iii) the provisions of any indenture, instrument or agreement to which any of the Credit Parties is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default, or result in, or require, the creation or imposition of any Lien in, of, or on the Property of the Credit Parties under the terms of any such indenture, instrument or agreement. No order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by the applicable Credit Parties, and the failure of which to obtain could reasonably be expected to have a Material Adverse Effect is required to be obtained by the Credit Parties in connection with the authentication and delivery of the Loan Documents, the borrowings under this Agreement, the payment and performance by the Borrowers of the Obligations or the legality, validity, binding effect or enforceability of any of the Loan Documents.

5.4    Financial Statements.  The audited annual and unaudited quarterly, consolidated financial statements of Unit and its consolidated Subsidiaries previously delivered to the Lenders were prepared in accordance with GAAP (except that the unaudited interim financial statements were subject to normal and recurring year-end adjustments) in effect on the date the statements were prepared and fairly present, in all material respects, the consolidated financial position and consolidated results of operations and cash flows of Unit and its consolidated subsidiaries at that date and the consolidated results of their operations for the period then ended.

5.5    Material Adverse Effect.  Since the filing of Unit’s most recent SEC Form 10-K on February 27, 2018, there has been no change in the business, Property, prospects, condition (financial or otherwise) or results of operations of the Credit Parties which could reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Borrowers which has a Material Adverse Effect or in the future is reasonably likely to have (so far as the Credit Parties 

50

can now foresee) a Material Adverse Effect and which has not been set forth in this Agreement or the other documents, certificates and statements furnished to the Administrative Agent by or on behalf of the Credit Parties before, or on, the date of this Agreement.

5.6    Taxes.  The Credit Parties have filed all United States federal Tax returns and all other material Tax returns which are required to be filed and have paid all Taxes due under those returns or under any assessment received by the Credit Parties or any of their Subsidiaries, except (i) Taxes, if any, that are being contested in good faith and as to which adequate reserves have been provided in accordance with GAAP, and (ii) other Taxes where the failure to file or the failure to timely pay could not reasonably be expected to have a Material Adverse Effect. No material tax Liens have been filed and no material claims are being asserted with respect to any Taxes. 

5.7    Litigation and Contingent Obligations.  There is no litigation, arbitration, governmental investigation, proceeding or inquiry pending or, to the knowledge of any of their officers, threatened against or affecting the Credit Parties which could reasonably be expected to have a Material Adverse Effect or which seeks to prevent, enjoin or delay the making of any Credit Extensions.  Other than any liability incident to any litigation, arbitration or proceeding which could not reasonably be expected to have a Material Adverse Effect, the Credit Parties have no material Contingent Obligations not provided for or disclosed in the financial statements referred to in Section 5.4 except as set forth on Schedule 7 of this Agreement.

5.8    Subsidiaries.  The Disclosure Schedule contains an accurate list of all Subsidiaries of Unit as of the date of this Agreement, setting forth their respective jurisdictions of organization and the percentage of their respective capital stock or other ownership interests owned by the Unit or the other Credit Parties.  All of the issued and outstanding shares of capital stock or other ownership interests of the Subsidiaries have been (to the extent those concepts are relevant with respect to those ownership interests) duly authorized and issued and are fully paid and non-assessable.

5.9    ERISA.  Neither the Credit Parties nor any other member of the Controlled Group has incurred, or is reasonably expected to incur, any Withdrawal Liability to Multiemployer Plans which could reasonably be expected to have a Material Adverse Effect.  Each Plan complies in all material respects with all applicable requirements of law and regulations (ii), no Reportable Event has occurred with respect to any Plan, (iii) neither the Credit Parties nor any other member of the Controlled Group has withdrawn from any Plan or initiated steps to do so, and (iv) no steps have been taken to reorganize or terminate any Plan, except as disclosed in the Disclosure Schedule.

5.10    Accuracy of Information.  No information, exhibit or report furnished by the Credit Parties to the Administrative Agent or to any Lender in connection with the negotiation of, or compliance with, the Loan Documents contained any material misstatement of fact or omitted to state a material fact or any fact necessary to make the statements contained therein not misleading, in each case as of the date furnished and when taking all such information, exhibits and reports as a whole; provided, that, with respect to projected financial information, the Borrowers represent only that such information was prepared in good faith based on assumptions 

51

believed by Borrowers to be reasonable both at the time made and as of the effective date of this Agreement.

5.11    Margin Stock.  No part of the Loan proceeds of any Advances will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying margin stock.  If requested by the Administrative Agent or the Required Lenders, the Credit Parties will furnish to the Administrative Agent a statement in conformity with the requirements of Federal Reserve Form U-1, referred to in Regulation U, to the foregoing effect.  No indebtedness being reduced or retired out of the proceeds of the Advances was or will be incurred for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U or any “margin security” within the meaning of Regulation T. “Margin Stock” within the meaning of Regulation U does not constitute more than 25% of the value of the consolidated assets of Unit and its Subsidiaries.

5.12    Material Agreements; Default.  Unit has no actual knowledge of (i) any material agreement or material instrument to which any Credit Party is a party or (ii) any charter or other corporate restriction, either of which (i) or (ii), under current conditions and circumstances known to Unit, constitutes or could reasonably be expected to have a Material Adverse Effect.  No Credit Party is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (i) any agreement to which it is a party, which default could reasonably be expected to have a Material Adverse Effect or (ii) any agreement or instrument evidencing or governing Indebtedness, which default could reasonably be expected to have a Material Adverse Effect.  No Default exists.

5.13    Compliance With Laws.  The Credit Parties have complied with all applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign government or any instrumentality or agency thereof having jurisdiction over the conduct of their respective businesses or the ownership of their respective Property except for any failure to comply with any of the foregoing which could not reasonably be expected to have a Material Adverse Effect.

5.14    Ownership of Properties.  Each of the Credit Parties and their respective Subsidiaries has marketable title to all of the properties and assets reflected as owned in the consolidated financial statements of Unit, in each case free and clear of all Liens other than Permitted Encumbrances and all other Liens or title defects as do not materially and adversely affect the value of the property for, and do not materially interfere with the use made or proposed to be made of such property by Unit or its Subsidiaries, which such other Liens or title defects do not exceed $2,000,000 in total. The real property, improvements, equipment and personal property held under lease by the Credit Parties are held under valid enforceable leases, except for Permitted Encumbrances, and all other Liens or title defects as are not material and do not materially interfere with the use made or proposed to be made of the real property, improvements, equipment, or personal property by the Credit Parties. The Credit Parties possess all licenses, permits, franchises, patents, copyrights, trademarks and trade names, and other intellectual property (or otherwise possess the right to use the intellectual property without violation of the rights of any other Person) which are necessary to carry out their business as presently conducted and as proposed to be conducted hereafter, except to the extent that the failure to have such rights would not have or be reasonably expected to have a Material Adverse Effect. 

52

5.15    Plan Assets; Prohibited Transactions.  Neither the signing of this Agreement nor the making of Loans gives rise to a prohibited transaction within the meaning of Section 406 of ERISA or Section 4975 of the Code.  During the last ten (10) years, no Reportable Event has occurred with respect to any Plan that has not been timely cured with any Lien imposed as a result thereof fully released of record.  The Credit Parties have (i) fulfilled all their obligations under the funding standards of ERISA and the Code and (ii) are in compliance in all material respects with the applicable ERISA and Code provisions with respect to each Plan.  During the last ten (10) years, there have not been any nor are there now existing any events or conditions that would permit any Plan to be terminated under circumstances which would cause the lien provided under Section 4068 of ERISA to attach to the assets of the Credit Parties or any of the Subsidiary Guarantors.  No Credit Party has (i) sought any waiver of the minimum funding standard under Section 412 of the Code, (ii) failed to make any contribution or payment to any Plan, or made any amendment to any Plan, which has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Code, or (iii) incurred any liability under Title IV of ERISA.

5.16    Environmental Matters.  Except as set forth on Schedule 4:

		
	(i)
	To the best of the Credit Parties’ knowledge and belief after diligent inquiry, each Property owned, leased or operated by the Credit Parties do not contain, and during their period of ownership, lease or operation of such Property, have not previously contained, any Materials of Environmental Concern which are currently a concern, in amounts or concentrations which (i) currently constitute or constituted a violation of, or (ii) under current law could give rise to liability under, any Environmental Law, except in either case insofar as the violation or liability, individually or collectively, is not reasonably likely to result in a Material Adverse Effect.

		
	(ii)
	To the best of the Credit Parties’ knowledge and belief after diligent inquiry, each Property and all their operations at such Property are in compliance in all material respects, and have, for the lesser of the last five years or for the duration of, their ownership, lease, or operation by the Credit Parties, been in compliance in all material respects with all applicable Environmental Laws, and there is no current contamination by Materials of Environmental Concern at, under or about such Property or violation of any Environmental Law with respect to such Property or the business operated by the Credit Parties or any of their Subsidiaries (collectively, the “Business“) which either has not been remediated (or is not in the process of being remediated) or could materially interfere with the continued operation of the Properties or materially impair the fair saleable value thereof.

		
	(iii)
	None of the Credit Parties has received any written notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with applicable Environmental Laws with regard to any Property or the Business, except in all cases insofar as the notice individually or collectively, does not involve a matter or matters that is or are reasonably likely to result in a Material Adverse Effect.

53

		
	(iv)
	To the best of the Credit Parties’ knowledge and belief, Materials of Environmental Concern have not been transported or disposed of from any Property in violation of, or in a manner or to a location which could give rise to liability under, any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at, on or under any Property in violation of, or in a manner that could give rise to liability under, any applicable Environmental Law except in each case insofar as any violation or liability referred to in this subsection, individually or collectively, is not reasonably likely to result in a Material Adverse Effect.

		
	(v)
	No judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Credit Parties, threatened, under any Environmental Law to which the Credit Parties are or will be named as a party with respect to each Property or the Business, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to each Property or the Business, except in each case insofar as those proceeding, action, decree, order or other requirement, individually or collectively, is not reasonably likely to result in a Material Adverse Effect.

		
	(vi)
	To the best of the Credit Parties’ knowledge and belief after diligent inquiry, there has been no release or, to the best of Credit Parties knowledge and belief, threat of release of Materials of Environmental Concern at or from any Property, or arising from or related to the operations of the Borrower in connection with any Property or otherwise in connection with the Business, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws, except in each case insofar as any violation or liability referred to in this subsection, individually or collectively, is not reasonably likely to result in a Material Adverse Effect. 

5.17    Names and Places of Business.  No Credit Party has, during the preceding five years, had, been known by, or used any other trade or fictitious name.  The chief executive office and principal place of business of each Credit Party are located at the address of the Credit Parties specified in Section 15.1. 

5.18    Possession of Franchises, Licenses.  The Credit Parties have in their possession, or have timely applied for, all franchises, certificates, licenses, permits and other authorizations from governmental political subdivisions or regulatory authorities, that are necessary in any material respect for the ownership, maintenance and operation of each Property, and none of the Credit Parties is in violation of any thereof in any material respect.

5.19    Rate Management Transactions.  As of the date of this Agreement, Schedule 5 sets forth a true and complete list of all current Rate Management Transactions (including contracts of sale which provide for prepayment for deferred shipment or delivery of oil, gas or other commodities) of the Credit Parties and their counterparties.

5.20    Insurance.  The insurance certificate provided under Section 4.1(viii) contains an accurate and complete description of all material policies of fire, liability, workmen’s 

54

compensation and other forms of insurance owned or held by the Credit Parties.  All such policies are in full force and effect, all premiums with respect thereto covering all periods up to and including the date of this Agreement have been paid, and no notice of cancellation or termination has been received with respect to any such policy.  Such policies are sufficient for compliance with all applicable requirements of law and of all agreements to which any Credit Party is a party; are valid, outstanding and enforceable (subject to Enforceability Exceptions) policies; Borrowers will take no action to terminate the policies earlier than the respective dates set forth in such insurance certificate; and will not in any way be affected by, or terminate or lapse by reason of, the transactions contemplated by this Agreement. Except as disclosed by Unit in writing to the Administrative Agent, none of the Credit Parties have been refused any insurance with respect to its material assets or operations, nor has its coverage for its material assets been limited below usual and customary policy limits, by an insurance carrier to which it has applied for any such insurance or with which it has carried insurance during the last three years. 

5.21    Solvency.  The Borrowers and their Subsidiaries (and with respect to their Subsidiaries, after taking into account each Subsidiary's rights of contribution), on a consolidated basis, are not insolvent, the Borrowers' and its Subsidiaries' assets (and with respect to their Subsidiaries, after taking into account each Subsidiary's rights of contribution), on a consolidated basis, exceed their liabilities, and neither the Borrowers nor any of their Subsidiaries (and with respect to their Subsidiaries, after taking into account each Subsidiary's rights of contribution) will be rendered insolvent by the execution and performance of this Agreement and the Loan Documents.

5.22    EEA Financial Institutions.  No Credit Party is an EEA Financial Institution.

5.23    Investment Company Act.  No Credit Party is or is required to be registered as an "investment company" under the Investment Company Act of 1940.

ARTICLE 6
AFFIRMATIVE COVENANTS

During the term of this Agreement, unless the Required Lenders will otherwise consent in writing:
6.1    Reports.  Unit will maintain and furnish to the Administrative Agent:

		
	(i)
	Within 80 days after the close of each of its fiscal years, the financial statements of Unit and its Consolidated Subsidiaries, together with an unqualified audit report certified by Unit’s independent certified public accountants, prepared in accordance with GAAP on a consolidated basis, including a balance sheet as of the end of such period and statements of operations, stockholders equity and cash flows for such period;

		
	(ii)
	Within 45 days after the close of the first three quarterly periods of each of its fiscal years, consolidated unaudited balance sheets as at the close of each such period and statements of operations, stockholders equity and cash flows for the 

55

period from the beginning of such fiscal year to the end of such quarter, all certified by its chief financial officer;

		
	(iii)
	Together with the financial statements required under Sections 6.1(i) and (ii), (a) copies of all certifications made by officers of Unit to the SEC in connection with such financial statements, (b) a compliance certificate substantially in the form of Exhibit B executed by Unit’s chief financial officer showing the calculations necessary to determine compliance with this Agreement and stating that no Default or Event of Default exists, or if any Default or Event of Default exists, stating the nature and status of that Default or Event of Default, and (c) a summary of Rate Management Transactions (itemized by term or duration of hedge (i. e. itemized by each calendar year) categorized by oil, gas and ngl; to which any Credit Party is a party on such date;

		
	(iv)
	As soon as practicable and in any event within 10 days after the Credit Parties know that a Reportable Event has occurred with respect to any Plan, a statement, executed by the chief financial officer of Unit, describing the Reportable Event and a summary of the action which the Credit Parties propose to take or have taken regarding the Reportable Event and prompt written notice of the amendment, modification or termination of any Rate Management Agreement or the termination of any Rate Management Transaction;

		
	(v)
	As soon as practicable and in any event within 10 days after receipt by the Credit Parties, a copy of (a) any notice or claim to the effect that the Credit Parties is or may be liable to any Person as a result of the release by the Credit Parties, or any other Person of any toxic or hazardous waste or substance into the environment, and (b) any notice alleging any violation of any federal, state or local environmental, health or safety law or regulation by the Credit Parties, which, in either case, could reasonably be expected to have a Material Adverse Effect;

		
	(vi)
	To the extent not publicly filed with the SEC, copies of all financial statements, reports and proxy statements so furnished to Unit’s stockholders;

		
	(vii)
	By March 1 of each year (commencing March 1, 2019, it being stipulated Unit has timely furnished such information for March 1, 2018), an Engineering Report prepared as of the prior December 31, by petroleum engineers who are employees of Credit Parties and audited by Ryder Scott Company, or any other firm of independent petroleum engineers chosen by Unit and reasonably acceptable to the Administrative Agent.  The reserve report will pertain to all Oil and Gas Properties and interests owned by any Credit Parties and their Subsidiaries located in the United States and which have attributable to them proved oil or gas reserves. The reserve audit described above will encompass a review of the reserves associated with Oil and Gas Properties comprising at least 80% of the value stated in the report. The report will be satisfactory to Administrative Agent, will contain sufficient information to enable Credit Parties to meet the reporting requirements concerning oil and gas reserves 

56

contained in Regulations S-K and S-X promulgated by the SEC, will take into account any “over/under produced” status under gas balancing arrangements, and will contain information and analysis comparable in scope (subject to changes necessary to comply with future laws); to that contained in the Engineering Report previously furnished to the Administrative Agent;

		
	(viii)
	By September 1 of each year (commencing September 1, 2018), and promptly following notice of a Special Redetermination under Section 2.6, an Engineering Report prepared as of the preceding June 30 (or the last day of the prior calendar month in the case of an additional redetermination) by petroleum engineers who are employees of Credit Parties, together with an accompanying report on property sales, property purchases and changes in categories, both in the same form and scope as the reports in (vii) above;

		
	(ix)
	By March 1st and September 1st of each year, beginning September 1, 2018 (it being stipulated Unit has timely furnished such information for March 1, 2018), a report describing the gross volume of production and sales attributable to production during the prior six-month period from the properties described in the Engineering Report in Section 6.1(vii) or Section 6.1(viii) and describing the related severance taxes, other taxes, and leasehold operating expenses.  By each March 1st and September 1st of each year, beginning September 1, 2018 (it being stipulated Unit has timely furnished such information for March 1, 2018), the following internally prepared and generated information and data concerning Superior and the Superior Cash Flow (until such time as the Superior Release Effective Date, if any, shall have occurred in accordance with the Fourth Amendment): (i) most recent three (3) year historical volumes gathered and processed of Superior, on the one hand, and third Persons, on the other hand, and cash flows, (ii) summary of material contracts and calculation of third party payments (i. e., processing fees, keepwhole or percentage of proceeds contracts) and (iii) budget for its current fiscal year, each in form, scope and substance reasonably acceptable to the Administrative Agent including such accurate volume information as necessary for review and confirmation by the Banks' engineers; and

		
	(x)
	Any other information (including non-financial information) as the Administrative Agent or any Lender may from time to time reasonably request.

6.2    Use of Proceeds.  Credit Extension proceeds will be used, as necessary, (i) to arrange for the refinancing of any Original Indebtedness and the commitments issued in the Original Credit Agreement, (ii) to provide financing for general working capital requirements for (a) exploration, development, production and acquisition of Oil and Gas Properties, (b) acquisitions and operation of midstream assets, (c) issuance of standby Letters of Credit and, (d) contract drilling services, and (iii) for general corporate purposes of the Borrowers.

6.3    Notice of Default.  Unit will give prompt notice in writing to the Lenders of the occurrence of any Default known to it and of any other development, financial or otherwise, known to it which could reasonably be expected to have a Material Adverse Effect.

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6.4    Conduct of Business.  Except as otherwise permitted under Section 7.3, the Credit Parties will conduct their respective business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted and do all things necessary to remain duly incorporated or organized, validly existing and (to the extent the concept applies to the entity) in good standing as a domestic corporation, partnership or limited liability company in its jurisdiction of incorporation or organization, as the case may be, and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except only where the failure to so qualify could not reasonably be expected to have or result in a Material Adverse Effect.

6.5    Taxes.  The Credit Parties will, timely file complete and correct United States federal and applicable foreign, state and local Tax returns required by law and pay, when due, all Taxes on it or its income, profits or Property, except any material Taxes which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been provided in accordance with GAAP.

6.6    Insurance.  The Credit Parties will, maintain with, to the best of Unit’s knowledge and belief, financially sound and reputable insurance companies insurance on their Property in amounts and covering those risks consistent with their prior reasonable and prudent business practices.  On or prior to the initial Credit Extension and thereafter on reasonable written request from the Administrative Agent, Unit will furnish to any Lender information as to the insurance carried.

6.7    Compliance With Laws.  The Credit Parties will, comply, in all material respects, with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject including, without limitation, all Environmental Laws.

6.8    Maintenance of Properties.  The Credit Parties will do all things reasonably necessary, consistent with their prior prudent practices, to maintain, preserve, protect and keep their respective Property in good repair, working order and condition, ordinary wear and tear excepted and make all necessary and proper repairs, renewals and replacements so that its business carried on in connection with those Properties may be conducted consistent with the Credit Parties’ prior customary business practices.

6.9    Inspection.  The Credit Parties will permit the Administrative Agent and the Lenders, by their respective representatives, to inspect any of the Property, books and financial records of the Credit Parties, exclusive of records subject in good faith to attorney work product or privileged communications rules and standards, to examine and make copies of the books of accounts and other financial records of the Credit Parties, and to discuss the affairs, finances and accounts of the Credit Parties with, and to be advised as to the same by, their respective officers at such reasonable times and intervals as the Administrative Agent or any Lender may designate.  Any inspection by a Lender of the Property of the Credit Parties will be at the sole risk and liability of such Lender.

6.10    Compliance with OFAC Rules and Regulations.

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(a)  To the knowledge of the Borrowers, none of the Borrowers or any of its Subsidiaries or their respective directors, officers, employees and agents is in violation of (or will take any action that would violate) any of the country or list based economic and trade sanctions administered and enforced by OFAC that are described or referenced at  http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from time to time;

(b) None of the Borrowers or any of its Subsidiaries or, to the knowledge of the Borrowers, their respective directors, officers, employees and agents (i) is a Sanctioned Person, (ii) has more than 10% of its assets located in Sanctioned Countries, or (iii) derives more than 10% of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Countries;

(c)  No Credit Party has heretofore or will hereafter knowingly become associated with or act on behalf of any Person that: (i) has used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) offered, paid, given, promised to pay, authorized the payment of, or taken any action in furtherance of the payment of anything of value directly or indirectly to a Government Authority or any other Person to improperly influence the recipient’s action or otherwise to obtain or retain business or to secure an improper business advantage; or (iii) violated or is in violation of any provision of any Anti-Corruption Law; and

(d)  Each Credit Party has implemented and maintains in effect policies and procedures designed to promote compliance by such Credit Party and its respective directors, officers and employees with Anti-Money Laundering Laws, Anti-Corruption Laws and applicable Sanctions, and each Credit Party and their respective officers and employees and, to the knowledge of each such Loan Party, its directors, are in compliance with all Anti-Money Laundering Laws, Anti-Corruption Laws and all applicable Sanctions in all material respects. No Advance, other borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this Agreement or the other Loan Documents will violate any Anti-Money Laundering Laws, any Anti-Corruption Laws, or any applicable Sanctions.

6.11    Pledged Collateral.  

(a)Subject to clause (c) below, the applicable Borrowers shall execute and deliver to the Administrative Agent as additional security for the Obligations (and, if necessary,  shall cause any Subsidiary and each other applicable Person that is Affiliated with any Person comprising the Borrowers and any Subsidiary, as applicable, to execute and deliver to Administrative Agent), the following additional Loan Documents and any related information and materials, and Borrowers shall pay all costs and expenses in connection with Administrative Agent negotiation, enforcement, amendment, administration, filing and recording any such Security Instrument (including, without limitation, any mortgage or 

59

intangible tax) and reviewing and evaluating any such related information and materials:
 
(i)one or more Mortgages encumbering Oil and Gas Properties of the Credit Parties and granting the Administrative Agent (on behalf of the Lenders) a first-priority Lien interest (subject only to Permitted Encumbrances) therein such that after giving effect thereto, the mortgaged Oil and Gas Properties will represent at least 85% of the proved developed producing (discounted at present worth at 8% (“PDP PW8”) total value of the Oil and Gas Properties evaluated in the most recently completed reserve report or engineering report (as applicable) after giving effect to exploration and production activities, acquisitions, dispositions and production, all as determined by Administrative Agent in accordance with Administrative Agent’s then-current practices, economic and pricing parameters, methodology, assumptions, and prudent oil and gas banking industry standards established by Administrative Agent from time to time for its petroleum industry customers. All such Liens will be created and perfected by and in accordance with the provisions of the Mortgages and UCC financing statements, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficiently executed (and acknowledged where necessary or appropriate) counterparts for recording purposes with accurate and complete legal descriptions (which instruments Administrative Agent shall then cause to be recorded, at Borrowers’ cost, in all applicable jurisdictions as determined by Administrative Agent); provided, however, that notwithstanding any provision in any Mortgage or any other Loan Documents to the contrary, in no event is any Building (as defined in the applicable Flood Insurance Regulations) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulations) owned by any Borrower included as Property encumbered by any Mortgage or any other Security Instrument; provided, further, that (A) the applicable Borrower’s interests in all lands and Hydrocarbon Interests situated under any such Building or Manufactured (Mobile) Home shall be included as Property encumbered by all applicable Mortgages and other Security Instruments, and (B) the Borrowers shall not, and shall not permit any of its Subsidiaries to, permit to exist any Lien on any such Building or Manufactured (Mobile) Home, except Permitted Encumbrances; 

(ii)  all documents, if any, required by the applicable jurisdictions for filing in connection with the recording of any such Oil and Gas Properties Mortgage(s);

(iii)  all title information and materials respecting the Oil and Gas Properties that will be encumbered by such Mortgage(s).  Borrowers shall at all times, promptly following Administrative Agent’s request, provide Administrative Agent access to all title opinions, assurances or such other reasonable title information and data requested by and/or reasonably 

60

acceptable to Administrative Agent to the extent related to the Oil and Gas Properties and covering enough of the Oil and Gas Properties so that the Administrative Agent shall have received together with title information previously delivered to the Administrative Agent, satisfactory title information on at least 85% of the PDP PW8 total value of the Oil and Gas Properties evaluated in the most recently completed reserve report or engineering report (as applicable). Without limitation of any of the foregoing, but in furtherance thereof, a correct, complete and accurate schedule of the Oil and Gas Properties that will be encumbered by such Mortgage(s) is attached to and incorporated into this Fourth Amendment as Exhibit A hereto; and

(iv)  until such time as the Superior Release Effective Date, if any, shall have occurred in accordance with the Fourth Amendment, the Pledge Agreement which shall provide the Administrative Agent (on behalf of the Lenders) a first-priority Lien interest in all of the Equity Interests of Superior Pipeline Company, L.L.C.

(b)Subject to clause (c) below, in connection with each redetermination of the Borrowing Base, the Administrative Agent shall review the reserve report or engineering report (as applicable) and the list of current mortgaged Oil and Gas Properties to ascertain and determine (in accordance with Administrative Agent’s then-current practices, economic and pricing parameters, methodology, assumptions, and prudent oil and gas banking industry standards established by Administrative Agent from time to time for its petroleum industry customers) whether the mortgaged Oil and Gas Properties represent at least 85% of the PDP PW8 total value of the Oil and Gas Properties evaluated in the most recently completed reserve report or engineering report (as applicable). In the event that the mortgaged Oil and Gas Properties do not represent at least 85% of such PDP PW8 total value, then the Borrowers shall, and, if necessary, shall cause the Subsidiaries or any such other Persons to, grant to the Administrative Agent, within thirty (30) days after written request from Administrative Agent as security for the Obligations a first-priority Lien (subject only to Permitted Encumbrances) interest on additional Oil and Gas Properties of the Credit Parties not already subject to a Lien of the Security Instruments such that after giving effect thereto, the mortgaged Oil and Gas Properties will represent at least 85% of such PDP PW8 total value. All such Liens will be created and perfected by and in accordance with the provisions of Mortgages or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes.

(c)Notwithstanding the foregoing, the Credit Parties’ obligations under this Section 6.11 shall not apply during any period in which Unit is in compliance with the Ratings Requirement.  Borrowers’ shall have the right to request Administrative Agent, at Borrowers’ sole cost and expense, to release 

61

and/or terminate any Security Instrument outstanding during any period in which Borrowers are in compliance with the Ratings Requirement and, so long as no Event of Default exists and Borrowers are in compliance with the Ratings Requirement as of the date of such request and as of the effective date of such release and/or termination, Administrative Agent shall record and/or file such termination or otherwise cause such release to occur, provided, in the event at any time from and after such release and/or termination, Borrowers’ fail to satisfy (or remain in compliance with) the Ratings Requirement, Borrowers shall, within thirty (30) days after notice thereof, execute and deliver (or cause to be executed and delivered) all such Security Instruments as are required under clauses (a) and (b) above as security for the Obligations.  The rights granted the Credit Parties under this section will be available from time to time to the extent Unit satisfies the Ratings Requirement.       

(d)Any material failure by Borrowers or any other Credit Party or Person to timely perform and comply with the covenants and requirements as set forth in this Section 6.11 shall constitute an Event of Default under Section 10.1 of this Agreement, provided, for purposes hereof, any failure by any Borrower, other Credit Party or other Person to provide all information and materials respecting the Oil and Gas Properties that will be encumbered by such Mortgage(s) (including, without limitation, legal descriptions) or other information necessary for Administrative Agent to properly record the Mortgage(s) within 60 days following the Fourth Amendment Effective Date (as such 60 days may be extended by Administrative Agent in its sole discretion) shall constitute a material failure under this Agreement.     

ARTICLE 7
NEGATIVE COVENANTS

During the term of this Agreement, unless the Required Lenders will otherwise consent in writing:
7.1    Dividends.  The Borrowers will not, nor will they permit any other Credit Party to, declare or pay any dividends or make any distributions on its capital stock (other than dividends payable in their own capital stock) or redeem, repurchase or otherwise acquire or retire any of its capital stock at any time outstanding, including within the scope of such prohibition, any such dividends or distributions of whatever kind or type, contemplated above to any Existing Subordinated Note Indenture Additional Parties; provided, however, if (a) no Default, Event of Default or Deficiency has occurred and continues in effect or remains uncured or will result from or be caused by such dividend or distribution, and (b) Unit is in compliance with the limitations of Section 3.04 of the Existing Subordinated Notes Indenture and such dividend, distribution, redemption, repurchase or other acquisition or retirement of capital stock, together with other Restricted Payments (as that term is defined in the Existing Subordinated Notes Indenture) does not cause or result in a breach of Section 3.04 of the Existing Subordinated Notes Indenture, (i) any Subsidiary may declare and pay dividends or make distributions to, or redeem, purchase or otherwise acquire or retire any of its capital stock from, Unit or any Subsidiary (other than and 

62

expressly excluding the Existing Subordinated Note Indenture Additional Parties), so long as such Subsidiary is not a Wholly-Owned Subsidiary, if the dividend, distribution, redemption, purchase, acquisition or retirement, as the case may be, is made on a pro rata basis (or with respect to Unit or its Subsidiaries, better than a pro rata basis), (ii) during any fiscal year Unit may pay cash dividends in amounts not exceeding thirty (30%) of its Consolidated Net Income (after taxes) for the preceding fiscal year, (iii) Unit may make any purchases of its outstanding common stock under a stock repurchase program approved by the Unit Board of Directors and conducted in compliance with the applicable rules and regulations of the SEC, and (iv) Unit may declare and pay dividends with respect to its capital stock payable solely in additional shares of its capital stock (other than Disqualified Stock as that term is defined in the Existing Subordinated Notes Indenture).

7.2    Indebtedness.  The Borrowers will not, nor will they permit any Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

		
	(i)
	The Loans and the Reimbursement Obligations;

		
	(ii)
	Indebtedness (including Contingent Obligations) existing on the date hereof and described in the Disclosure Schedule;

		
	(iii)
	Indebtedness arising under Financial Contracts permitted by Section 7.9;

		
	(iv)
	Contingent Obligations permitted by Section 7.8;

		
	(v)
	non-recourse Indebtedness in a restricted or special purpose Subsidiary (for which consent of the Required Lenders must be obtained) and as to which none of the Credit Parties (i) provides any guaranty or credit support of any kind (including any undertaking, guarantee, indemnity, agreement or instrument that would constitute Indebtedness) or (ii) is directly or indirectly liable (as a guarantor or otherwise); provided, that after giving effect to such Indebtedness outstanding from time to time, the Credit Parties are not in violation of any of the financial covenants of Article 8;

		
	(vi)
	normal and ordinary course trade Indebtedness and customary obligations relating to the operation of oil and gas producing properties, drilling rigs and gathering and processing systems and midstream asset operations which are not greater than 90 days past invoice or delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP;

		
	(vii)
	unsecured senior indebtedness not in excess of $20,000,000 in total;

		
	(viii)
	lease obligations (including building and office leases and leases for equipment) which would cause the aggregate amount of all rental payments in any calendar year to be greater than $20,000,000;

		
	(ix)
	(a) the Existing Subordinated Notes and (b) other subordinated Indebtedness (including subordinated Indebtedness convertible to equity) provided that (i) at 

the time of incurring such subordinated Indebtedness (A) no Default, Event of Default or Deficiency has occurred and is then continuing and (B) no Default, Event of Default 

63

or Deficiency would result from the incurrence of any such subordinated Indebtedness after giving effect to the incurrence of such Indebtedness (and any concurrent repayment of Indebtedness with the proceeds of such incurrence), (ii) no subordinated Indebtedness has any scheduled amortization prior to six (6) months after the Facility Termination Date; (iii) no subordinated Indebtedness matures sooner than six (6) months after the Facility Termination Date; (iv) the other material terms of all such subordinated Indebtedness are not generally more restrictive, taken as a whole, than the terms of this Agreement and the other Loan Documents or the Existing Subordinated Notes; and (v) the Borrowing Base is adjusted as contemplated by Section 2.6.8 and the Borrowers make any prepayment required under Section 2.8.2;

		
	(x)
	usual and customary insurance premiums financed in the normal course of business;

		
	(xi)
	Indebtedness regarding self-insured liabilities, including retentions under insurance policies;

		
	(xii)
	miscellaneous items of unsecured Indebtedness not described in subsections (i) through (xi) above which do not in the total (taking into account all such Indebtedness of the Credit Parties) exceed $40,000,000 at any one time outstanding; and 

		
	(xiii)
	extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof or result in an earlier maturity date or decreased remaining weighted average life to maturity thereof;

7.3    Limitation on Fundamental Changes.  Borrowers will not enter into (nor permit any other Credit Party to enter into) any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise dispose of all or substantially all of its property, businesses and assets, or make any material change in its present method of conducting business, except:

		
	(i)
	 any Subsidiary of a Credit Party may be merged, consolidated or with or into such Credit Party (provided that such Credit Party will be the continuing or surviving business entity or other entity)  or with or into any one or more wholly owned Subsidiaries of the Credit Party that is a Borrower or Subsidiary Guarantor (provided that the wholly owned Borrower or Subsidiary Guarantor will be the continuing or surviving business entity or other entity); 

		
	(ii)
	any Wholly Owned Subsidiary of a Credit Party may convey, sell, lease, assign, transfer or otherwise dispose of any or all of its properties, business and assets (on voluntary liquidation or otherwise) to or liquidate, wind up or dissolve into, such Credit Party or any other Wholly Owned Subsidiary of such Credit Party that is a Borrower or Subsidiary Guarantor; and

		
	(iii)
	so long as no Default, Event of Default or Deficiency will exist or be caused as a result, a Person may be merged, consolidated or amalgamated with or into a Borrower or a 

64

Subsidiary Guarantor so long as the Borrower or Subsidiary Guarantor, as applicable, is the continuing or surviving business entity or other entity.

7.4    Sale of Property.  The Borrowers will not (nor will they permit any other Credit Party to) lease, sell or otherwise dispose of its Property to any other Person, except:

		
	(i)
	 sales of inventory in the ordinary course of business or the sale of other assets not included in the Borrowing Base and not in excess of $125,000,000 in total from the effective date of this Agreement; provided further, however, in no event shall any drilling rigs or such other assets of any of the Credit Parties be sold or otherwise disposed of after the occurrence of a Default, an Event of Default or a Deficiency that remains uncured or would be caused by or result from such sale or disposition without the prior written consent of the Required Lenders, and, in such event, the net proceeds of such sale or disposition of drilling rigs and such other assets shall be applied as a mandatory principal prepayment of the Loans;

		
	(ii)
	dispositions of equipment and other personal property that is replaced by equivalent property or consumed in the normal operation of the Property of the respective Credit Parties;

		
	(iii)
	dispositions of a portion of its Property in connection with operating agreements, farmouts, farmins, joint exploration and development agreements and other agreements customary in the oil and gas industry that are entered into for the purposes of developing its Property and under which it receives relatively equivalent consideration;

		
	(iv)
	leases, sales or other dispositions of its Property that, together with all other Property of the Credit Parties and their Subsidiaries previously leased, sold or disposed of (other than (i), (ii) and (iii) above and clauses (v) and (vi) below) as permitted by this Section 7.4 during the period since the most recent Determination Date, do not, together with any Financial Contract concerning hedged production that is unwound or otherwise modified or liquidated prior to scheduled termination to the extent included in the estimated future price of production from the Borrowing Base Properties in the calculations of the Borrowing Base as of such Determination Date under Section 2.6, constitute more than fifteen percent (15%) of the Borrowing Base as determined by Administrative Agent, such amount being promptly furnished to Unit by the Administrative Agent; further provided, however, to the extent such total consideration for the sum of all asset sales or other dispositions of Properties plus any such unwound or liquidated commodity hedge contracts, in excess fifteen percent (15%) of the Borrowing Base during any period between Scheduled Redetermination Dates, the Required Lenders will have the option to reduce the Borrowing Base by the amount equal to the reduction in the 

65

Borrowing Base attributable to the sum of the Properties so disposed plus unwound commodity hedge contracts and, further, provided, that any resulting Deficiency (as defined in Section 2.6.7) must be cured by the Borrowers in compliance with  Section 2.8.2;

		
	(v)
	Hydrocarbon Interests to which no proved reserves of Hydrocarbons are properly attributed; and 

		
	(vi)
	leases, sales or other dispositions permitted under Section 7.3(ii).

7.5    Investments and Acquisitions.  The Borrowers will not (nor will they permit any other Credit Party to) make or suffer to exist any Investments, or to make any Acquisition of any Person, except:
 
		
	(i)
	Cash Equivalent Investments;

		
	(ii)
	Investments between Credit Parties or in any Credit Party’s Subsidiaries (other than in Existing Subordinated Note Additional Parties);

		
	(iii)
	(1) Investments in existence on, or contractually committed as of, the date hereof and described on the Disclosure Schedule and (2) any extensions, renewals or reinvestments thereof, so long as the aggregate amount of all Investments pursuant to this clause (iii) is not increased at any time above the amount of such Investments existing or contractually committed on the date hereof;

		
	(iv)
	Investments in associations, joint ventures, and other relationships existing as of the Fourth Amendment Effective Date (a) that are established under standard form operating agreements or similar agreements or which are partnerships for purposes of federal income taxation only, (b) that are not corporations or partnerships (or subject to the Uniform Partnership Act or other applicable state partnership act) under applicable state law, (c) which are limited partnerships formed for investment by employees and Directors of Unit and its Subsidiaries in the oil and gas exploration and development operations of Unit and its Subsidiaries, or (d) whose businesses are limited to the exploration, development and operation of oil, gas or mineral properties, gathering and processing systems and midstream asset operations and in which the ownership interest of any Credit Party or its Subsidiary is no less favorable than in direct proportion to the amount of such Investment; provided, further, however, that any such Investments in any Unrestricted Subsidiaries shall be subject to the applicable terms, conditions and limitations as set forth in clause (vi) of this Section 7.5; 

		
	(v)
	any Acquisition in the same line of business as, or businesses related or ancillary to, the business of the Credit Parties, provided that (i) immediately prior to and after giving effect to the Acquisition, no Default, Event of Default or Deficiency has occurred and is continuing, (ii) any Person that becomes a Subsidiary of Unit as a result of the Acquisition shall become a Subsidiary Guarantor, in accordance with and to the extent required under Section 9.1; and (iii) after taking into

66

consideration any such Acquisition, the Credit Parties are in compliance with Article 8 hereof; and

		
	(vi)
	Investments in Unrestricted Subsidiaries, provided that, on a pro forma basis (i) the aggregate amount of all such Investments at any time outstanding do not exceed $200,000,000 for so long as this Agreement remains in effect, (ii) no Default, Event of Default or Deficiency exists or would result from or be caused by any such Investment, and (iii) the Available Total Commitment at such time (both before and after giving effect to the making of any such Investments) is greater than or equal to twenty percent (20%) of the Total Commitment in effect at such time hereunder.

7.6    Liens.  The Borrowers will not (nor will they permit any other Credit Party to) create, incur, or suffer to exist any Lien in, of or on the Property of the Credit Parties or any of their Subsidiaries, except:
 
		
	(i)
	Liens for Taxes, assessments or governmental charges or levies on its Property if the same will not at the time be delinquent or thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings and for which adequate reserves in accordance with GAAP will have been set aside on its books;

		
	(ii)
	Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and other similar Liens arising in the ordinary course of business which secure payment of obligations not more than 90 days past due or which are being contested in good faith by appropriate proceedings and for which adequate reserves, in accordance with GAAP, will have been set aside on its books;

		
	(iii)
	Liens arising out of pledges or deposits under workers' compensation laws, unemployment insurance, old age pensions, or other social security or retirement benefits, or similar legislation;

		
	(iv)
	utility easements, building restrictions, servitudes, permits, conditions, covenants, exceptions or reservations and such other encumbrances or charges against any Property of the Borrowers or any Subsidiary thereof for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of oil, gas, coal or other minerals to timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment. that do not secure any monetary obligation or which, in the aggregate, impair in any material way the use or marketability of such Property for the purposes of which such Property is held by any of the Credit Parties or their Subsidiaries or materially impair the value of such Property in the Businesses of the Credit Parties or their Subsidiaries;

		
	(v)
	Liens existing on the date hereof and described on the Disclosure Schedule;

		
	(vi)
	Liens in favor of the Administrative Agent, for the benefit of the Lenders;

67

		
	(vii)
	Liens on Property to secure not more than $50,000,000 in total of the Indebtedness permitted by Sections 5.14 and 7.2(v);

		
	(viii)
	with respect to Property subject to any Loan Document, Liens burdening such Property that are expressly allowed by such Loan Document;

		
	(ix)
	Liens arising under operating agreements, unitization, pooling agreements and other agreements customary in the oil and gas industry securing amounts owed to operators and joint owners of Oil and Gas Properties that will not at the time be delinquent, or thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings and for which adequate reserves in accordance with GAAP will have been set aside on its books;

		
	(x)
	contracts, agreements, instruments, obligations, defects and irregularities affecting the Property that individually or in total are not such as to interfere materially with the use, operation or value of the Property;

		
	(xi)
	any Lien existing on any asset prior to its acquisition by a Borrower or one of its Subsidiaries and not created in contemplation of the acquisition; 

		
	(xii)
	judgment and attachment Liens not giving rise to a Default or Event of Default, provided that any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; and 

		
	(xiii)
	Liens securing the Indebtedness permitted by Section 7.2(xiii);

		
	(xiv)
	INTENTIONALLY OMITTED;

		
	(xv)
	Liens in favor of issuers of surety or performance bonds or letters of credit or bankers’ acceptances issued pursuant to the request of and for the account of such Person in the ordinary course of its business;

		
	(xvi)
	Liens reserved in or exercisable under any lease, license, sublease and sublicense of Property to which any Borrower or any Subsidiary is a lessee (including, without limitation, real property and intellectual property rights) which was entered into in the ordinary course of business and which secures the payment of rent or compliance with the terms of such lease, license, sublease or sublicense; provided, that the rent under such lease, license, sublease and sublicense is not then overdue and such Borrower or such Subsidiary is in material compliance with the terms and conditions thereof

		
	(xvii)
	Liens for the purpose of securing the payment of all or a part of the purchase price of, or Capital Lease Obligations or purchase money obligations incurred to finance the acquisition, lease, improvement or construction of or repairs or additions to, Property acquired or constructed in the ordinary course of business, provided that such Liens are only in respect of the Property subject to, and 

68

secure only, the respective Capital Lease Obligations or purchase money obligations;

		
	(xviii)
	Liens arising solely by virtue of any statutory or common law provisions relating to customary banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a depositary institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board of Governors of the Federal Reserve Systems of the United States (or any successor entity) and no such deposit account is intended by any Borrower or any of their respective Subsidiaries to provide collateral to the depository institution (other than for the payment of administrative fees and expenses incurred in the ordinary course of business in connection with the maintenance of such deposit account) or any other Person (other than the Lenders or otherwise to secure the Obligations);

 
		
	(xix)
	Liens arising from UCC financing statement filings arising out of the Loan Documents or regarding operating leases entered into by the Borrowers and Credit Parties in the ordinary course of business, provided, that such Liens regarding operating leases do not secure Indebtedness of any Borrower or any Subsidiary and do not encumber any Property of any Borrower or any Subsidiary other than the Property that is the subject of such grants and leases and items located thereon;

		
	(xx)
	Liens on Property at the time Borrowers or Credit Parties acquired the Property, including any acquisition by means of a merger or consolidation with or into any Borrowers or Credit Parties, provided that (w) such Liens shall be created substantially simultaneously with the acquisition of the related Property, (x) such Liens do not at any time encumber any Property other than the Property financed by such Indebtedness, (y) the amount of Indebtedness secured thereby is not increased and (z) the principal amount of Indebtedness secured by any such Lien shall at no time exceed one hundred percent (100%) of the original price for the purchase of such Property at the time of purchase;

 
		
	(xxi)
	Liens securing the Existing Subordinated Notes provided, that (x) such Liens do not at any time encumber any Oil and Gas Property or any other Property other than the Property originally secured by such Indebtedness, and (y) the amount of Indebtedness secured thereby is not increased;

		
	(xxii)
	Liens on pipelines or pipeline facilities that arise by operation of law;

		
	(xxiii)
	Liens made in the ordinary course of business to secure liability to insurance carriers respecting the financing of insurance premiums;

		
	(xxiv)
	Liens securing Financial Contracts subject to Section 7.9 of the Existing Credit Agreement as amended by the Third Amendment;

69

		
	(xxv)
	minor defects and irregularities in title to any Oil and Gas Property, so long as such defects and irregularities do not secure Indebtedness, deprive the applicable Borrower of any material right in respect of such Oil and Gas Property or constitute a Material Adverse Effect (as determined by Administrative Agent, in its sole discretion);

		
	(xxvi)
	deposits of cash, securities or instruments (including payment or performance bonds, but excluding appeal bonds) to secure the performance of bids, trade contracts, leases, statutory obligations and other obligations of like nature incurred in the ordinary course of business;

		
	(xxvii)
	royalties, overriding royalties, reversionary interests, production payments and similar burdens respecting the Oil and Gas Properties, which do not constitute a Material Adverse Effect (as determined by Administrative Agent, in its sole discretion);

		
	(xxviii)
	sales contracts or other arrangements for the sale of oil, natural gas and other hydrocarbons in the ordinary course of business which would not (when considered cumulatively with the items referenced in clause referenced in clause (xxvii) immediately preceding) constitute a Material Adverse Effect (as determined by Administrative Agent, in its sole discretion);

		
	(xxix)
	Liens to secure plugging and abandonment obligations, which do not constitute a Material Adverse Effect (as determined by Administrative Agent, in its sole discretion);

		
	(xxx)
	other Liens (if any) expressly permitted by the Oil and Gas Mortgages; and

		
	(xxxi)
	any extension, renewal or replacement (or successive extensions, renewals or replacements), as a whole or in part, of any Liens referred to in (i) - (xxx) above for amounts not exceeding the principal amount of the Indebtedness secured by the Lien so extended, renewed or replaced.

provided, in no event shall any Permitted Encumbrance encumber any Oil and Gas Property other than a Lien in favor of the Administrative Agent (on behalf of the Lenders) or Liens permitted in clause (xxix) above.
7.7    Affiliates.  The Borrowers will not (nor will they permit any other Credit Party to) enter into any transaction (including, without limitation, the purchase or sale of any Property or service) with, or make any payment or transfer to, any Affiliate except on terms no less favorable to the Credit Party than it would obtain in a comparable arms-length transaction, and (ii) transactions, payments or transfers permitted by Section 7.1, 7.3 or 7.5.

7.8    Contingent Obligations.  The Borrowers will not (nor will they permit any other Credit Party to) make or suffer to exist any Contingent Obligation (including, without limitation, any Contingent Obligation with respect to the obligations of a Subsidiary), except (i) by endorsement of instruments for deposit or collection in the ordinary course of business, (ii) the Reimbursement Obligations, (iii) the Subsidiary Guaranty, (iv) liabilities associated or accrued 

70

for abandonment and plugging of Credit Parties’ Oil and Gas Properties, (v) as general partner of the limited partnerships formed annually to allow employees and directors of Unit to participate in certain of its oil and gas exploration and production operations; (vi) existing Contingent Obligations set forth on Schedule 7 and the Disclosure Schedule, (vii) Contingent Obligations in respect of Indebtedness permitted to be incurred under Section 7.2(ix), and (viii) other Contingent Obligations not to exceed an outstanding total amount of $50,000,000 at any time.

7.9    Financial Contracts.  None of the Credit Parties will be a party to or in any manner be liable on any Financial Contract except:
    
		
	(i)
	contracts entered into with the purpose and effect of fixing prices on commodities expected to be produced, gathered or processed by the Credit Parties and their Subsidiaries, provided that at all times: (i) no such contract fixes a price for a term of more than 60 months (subject to the reporting requirements of Section 6.1(iii)); (ii) the total monthly volumes produced, gathered and processed covered by all such contracts for any single month does not in total exceed ninety percent (90%) of the Total Projected Proved Production (as defined below) of the Credit Parties and their Subsidiaries anticipated to be sold in the ordinary course of their businesses for such month, (iii) no such contract requires or permits the Credit Parties or any of their Subsidiaries to post or put up money, assets, letters of credit or other security or margin against the event of its nonperformance of their obligations thereunder and (iv) each such contract is with a counterparty or has a guarantor of the obligation of the counterparty who (unless such counterparty of such contract is a Lender Counterparty) at the time the contract is made has long-term obligations rated BBB+ or Baal or better, respectively, by either Moody’s or S&P; 

As used in this subsection, the term “Total Projected Proved Production” means the internally reasonably projected production, gathering and processing of commodities (measured by volume unit or BTU equivalent, not sales price) for the term of the contracts or a particular month, as applicable, from properties and interests owned or volumes gathered and processed (and with respect to such volumes gathered or processed, such volumes are equity volumes (i.e., the Credit Parties or their Subsidiaries have ownership or equity interests therein)) by the Credit Parties and their Subsidiaries that are located in or offshore of the United States; and 

		
	(ii)
	contracts entered into by Credit Parties or their Subsidiaries effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other contracts of the Credit Parties and their Subsidiaries then in effect converting interest rates from fixed to floating) do not exceed 50% of the then outstanding principal amount of the Credit Parties' Indebtedness for borrowed money which bears interest at a fixed rate and contracts entered into by Credit Parties or their Subsidiaries effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other contracts entered into by Credit Parties or their 

71

Subsidiaries then in effect from floating to fixed) do not exceed 75% of the then outstanding principal amount of Credit Parties Indebtedness for borrowed money which bears interest at a floating rate; provided that no contract will be entered into by any Credit Party or its Subsidiaries for speculative purposes; and

		
	(iii)
	So long as no Event of Default shall exist either before or after giving effect to such payment or posting, the Credit Parties shall have the right to post-margin as and to the extent required under the terms of any Financial Contract with a third party counterparty which is not a Lender or an Affiliate of a Lender, provided, in no event shall the aggregate amount of any margin or other posted security exceed $25,000,000 at any time.

Notwithstanding the exceptions described in clauses (i) and (ii) above, in no event shall any Credit Party speculate on the movement of commodity prices, securities prices, financial markets, currency market or other items or otherwise enter into any Financial Contract for speculative purposes; provided, however nothing in this Section 7.9 shall prohibit Unit or other Credit Parties from entering into interest rate swaps or interest rate hedge transactions pursuant to which Unit hedges interest rate risk with respect to interest reasonably anticipated to be incurred under this Agreement or in compliance with Section 7.9(ii).
7.10    Letters of Credit.  The Borrowers will not (nor will they permit any other Credit Party to) apply for or become liable on or in respect of any Letter of Credit other than LCs issued under this Agreement.

7.11    Prohibited Contracts.  Borrowers will not (nor will they permit any other Credit Party to) enter into, create, or otherwise allow to exist any contractual or other consensual restriction on the ability of any Subsidiary of a Borrower to: (a) pay dividends or make other distributions to the Credit Parties, (b) to redeem equity interests held in it by other Credit Parties, or (c) to repay loans and other indebtedness owing by it to the Credit Parties: except (i) restrictions contained in this Agreement or the other Loan Documents, (ii) restrictions existing on the date hereof and set forth on the Disclosure Schedule and extensions, renewals or replacements thereof not expanding the scope thereof, (iii) restrictions contained in the Existing Subordinated Notes Indenture or in any other agreement governing or evidencing any other Indebtedness permitted under Section 7.2, provided that the restrictions contained in any such other agreement are no less favorable in any material respect to the Lenders than the restrictions contained in the Existing Subordinated Notes Indenture (iv) with respect to any Subsidiary that is not a Wholly-Owned Subsidiary, restrictions in such Subsidiary’s organizational documents or pursuant to any joint venture agreement or equity holders agreement, (v) restrictions contained in any agreement in effect at the time any Person becomes a Subsidiary, so long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary, (vi) restrictions created by virtue of any sale, transfer, lease or other disposition of, or any agreement with respect thereto, any specific property, assets or equity interests permitted to be so transferred under this Agreement, and (vii) in any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i) through (vi) above; provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are, in the good faith judgment of Unit, no more restrictive with respect to the 

72

restrictions referred to in clauses (a) through (c) above than prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing Credit Parties.    

7.12    Negative Pledge.  Except only for Liens permitted by applicable subsections of Section 7.6, none of the Borrowers will (nor will they permit any other Credit Party or any Material Subsidiary thereof) cause or permit the pledging, encumbrance, mortgaging, granting of a consensual security interest or any other type of pledge, charge or imposition of a Lien against any Credit Parties’ or any Subsidiaries’ (i) oil and gas mining and mineral interests, rights and properties, proved, developed, producing or otherwise or (ii) any midstream assets (whether now owned or hereafter created or acquired), to the extent either clause (i) or (ii) above constitute a part of the Borrowing Base Properties, to secure any Indebtedness (including Contingent Obligations), without the prior written consent of the Administrative Agent and the Required Lenders. This covenant, to the fullest extent permitted by applicable law, will be deemed and construed as a “negative pledge” of all such assets referenced in clauses (i) and (ii) above in favor of the Administrative Agent for the benefit of the Lenders; provided, that, prior to the occurrence of a Default, Event of Default or Deficiency, the Credit Parties may continue to receive the  production proceeds of the Oil and Gas Properties and revenues of their midstream assets.

7.13    Redemption of Existing Subordinated Notes; Amendment of Existing Subordinated  Notes Indenture.  The Borrowers will not, and will not permit any Subsidiary, prior to the Facility Termination Date:  

(i) call, make or offer to make any optional or voluntary redemption of or otherwise optionally or voluntarily redeem (whether in whole or in part) the Existing Subordinated Notes; except only with (A) the Net Cash Proceeds of any sale of equity interests, or (B) the Net Cash Proceeds of any issuance of Indebtedness pursuant to Section 7.2(ix) or 7.2(xiii); provided that at the time of such redemption (x) no Default, Event of Default or Deficiency exists or would result from or be caused by any such payment, redemption or actions contemplated in clauses (i) and/or (ii) above, and (y) immediately following such payment, redemption or action contemplated in clauses (i) and/or (ii) above, not less than twenty percent (20%) of the Total Commitment then in effect remains available for Borrowers under this Agreement, or 
(ii) amend, modify, waive or otherwise change, consent or agree to any amendment, supplement, modification, waiver or other changes to, any of the terms of the Existing Subordinated Notes or the Existing Subordinated Notes Indenture if (A) the effect thereof would be to shorten its maturity to a date sooner than six (6) months after the Facility Termination Date or cause the weighted average life to maturity to be less than the weighted average life to maturity of the Loans, or increase the amount of any payment of such principal thereof or increase the rate of interest thereon, or (B) such action requires the payment of a consent fee (howsoever described) if the payment of such consent fee would have the pro forma effect causing Default under Section 8.1 or 8.2 hereof, provided that the foregoing limitations shall not prohibit the execution of supplemental indentures to add guarantors if required by the terms of the Existing Subordinated Notes Indenture provided such Person complies with Section 9.1 to the extent required thereby.

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7.14    Prohibited Action.  Without limiting anything contained in this Agreement to the contrary, Borrowers will, and will cause each of its Subsidiaries to, ensure that no person who owns a controlling interest in or otherwise controls any Borrower or any Subsidiary is or shall be a Sanctioned Person. Borrowers covenant and agree that they shall not use any proceeds of any Credit Extension to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country, or in any other manner that will result in any violation by any Person (including any Lender, the Administrative Agent or any L/C Issuer) of any Anti-Money Laundering Laws, any Anti-Corruption Laws, or any applicable Sanctions.
ARTICLE 8
FINANCIAL COVENANTS

8.1    Current Ratio.  Unit will not permit the ratio, determined as of the end of each of Unit’s fiscal quarters, of (i) consolidated current assets of Unit and its Subsidiaries (including the then Available Total Commitment but excluding non-cash hedging assets resulting from the requirements of ASC 815 for any period of determination) to (ii) consolidated current liabilities of Unit and its Subsidiaries (excluding the current portion of the Loans and non-cash hedging obligations or liabilities resulting from the requirements of ASC 815 for any period of determination), to be less than 1.0 to 1.0.

8.2    Leverage Ratio.  Commencing with Unit’s fiscal quarter ending June 30, 2019 and for each fiscal quarter ending thereafter, Unit will not permit the ratio, determined as of the end of each such applicable fiscal quarter, of (i) Funded Debt to (ii) Consolidated EBITDA for the then most-recently ended rolling four (4) fiscal quarters to be greater than 4.0 to 1.0.

8.3    Senior Indebtedness Ratio.  Commencing with Unit’s fiscal quarter ending March 31, 2018 and for each fiscal quarter thereafter through the fiscal quarter ending March 31, 2019, Unit will not permit the ratio, determined as of the end of each such applicable fiscal quarter, of (i) Senior Indebtedness to (ii) Consolidated EBITDA for the then most-recently ended rolling four (4) fiscal quarters to be greater than 2.75 to 1.0.

ARTICLE 9
GUARANTEES

9.1    Guarantees.  Unit will cause each current Material Domestic Subsidiary and each future Material Domestic Subsidiary to guarantee the prompt payment and performance when due of the Obligations in accordance with the terms and provisions of the Subsidiary Guaranty.  As soon as practicable and in any event within ten (10) days after any Person becomes a Material Domestic Subsidiary, Unit will provide the Administrative Agent written notice thereof and will cause such Person to execute a Subsidiary Guaranty Joinder Agreement in substantially the same form as Schedule 1 to the Subsidiary Guaranty.  Prior to any Investments being permitted to be made in any other Subsidiary of the Credit Parties, such Subsidiary will also execute and deliver such a Subsidiary Guaranty to the Administrative Agent for the ratable benefit of each Lender, together with such other certificates or documents as Administrative Agent reasonably deems necessary or appropriate to confirm such Subsidiary Guaranty, including without limitation, closing opinions (supplementing the closing opinion required by Section 4.1.1(v) of this 

74

Agreement) as required by the Administrative Agent or the Required Lenders in connection with the Subsidiary Guaranty instruments executed from time to time by Material Subsidiaries under this Section 9.1.

9.2    Releases of Guarantees.  If, as a result of the consummation of any transaction permitted by this Agreement, any Subsidiary Guarantor ceases to be a Subsidiary of Unit, the guarantee of such Subsidiary Guarantor of the Obligations shall be automatically discharged and released without any further action by any Credit Party or any other Person effective as of the time of such transaction.  Upon request of Unit, the Administrative Agent shall take (at the Credit Parties’ cost), and the Lenders hereby authorize the Administrative Agent to take, such actions as shall be reasonably requested to evidence the termination and release of the guarantee of such Subsidiary Guarantor.

9.3    Production Proceeds.  Upon the occurrence of an Event of Default or a Deficiency not timely cured in accordance with Section 2.6.7, Administrative Agent and the Lenders may obtain possession of all production proceeds then held by the Credit Parties and their Subsidiaries to receive directly from the purchaser of production or the first purchaser of midstream assets all production proceeds and revenues therefrom.

ARTICLE 10
EVENTS OF DEFAULTS

10.1    Events of Default.  The occurrence of any one or more of the following events will constitute an Event of Default:

10.1.1.    Any representation or warranty made or deemed made by or on behalf of any of the Credit Parties to the Lenders or the Administrative Agent under or in connection with this Agreement, any Credit Extension, or any certificate, report or information delivered in connection with this Agreement or any other Loan Document is materially false on the date as of which made or deemed made.

10.1.2.    Nonpayment of principal of any Loan when due, nonpayment of any Reimbursement Obligation within one Business Day after the same becomes due, or nonpayment of interest on any Loan or of any commitment fee, LC Fee or other obligations under any of the Loan Documents within ten (10) days after the same becomes due.

10.1.3.    The failure of any of the Borrowers to observe or perform any covenant or agreement applicable thereto in Section 2.6.8, Section 6.2, Section 6.3, Article 7 and Article 8 of this Agreement and, only insofar as Article 9 is concerned, failure of Borrowers to cure, within ten (10) days following written notice from the Administrative Agent or any Lender to Unit, any violation or failure to observe any agreement applicable thereto in such Article 9.

10.1.4.    The breach by any of the Borrowers (other than a breach which constitutes a Default or Event of Default under another Section of this Article 10) of any of the terms or provisions of this Agreement which is not remedied within thirty (30) days after written notice from the Administrative Agent or any Lender to Unit.

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10.1.5.    Failure of any Credit Party to pay when due any Material Indebtedness; (other than a Rate Management Obligation) or the default by any Credit Party in the performance (beyond the applicable grace period with respect thereto, if any) of any term, provision or condition contained in any Material Indebtedness Agreement (other than resulting from a Rate Management Transaction), or any other event occurs or condition exists, the effect of which default, event or condition is to cause, or to permit the holder(s) or lender(s) under such Material Indebtedness evidenced by such Material Indebtedness Agreement to cause (after the expiration of any applicable grace period with respect thereto), such Material Indebtedness to become due prior to its stated maturity or any commitment to lend under such Material Indebtedness Agreement to be terminated prior to its stated expiration date; or any Material Indebtedness will be declared to be due and payable or required to be prepaid or repurchased (other than by a regularly scheduled payment) prior to the stated maturity thereof; or the Credit Parties will not pay, or admit in writing their inability to pay, their Indebtedness generally as they become due.

10.1.6.    Any Credit Party will (i) have an order for relief entered with respect to it under the Federal bankruptcy laws as now or hereafter in effect, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial portion of its Property, (iv) institute any proceeding seeking an order for relief under the Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its Indebtedness under any law relating to bankruptcy, insolvency or reorganization or relief of Indebtedness or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (v) take any corporate or partnership action to authorize or effect any of the foregoing actions set forth in this Section 10.1.6 or (vi) fail to contest in good faith any appointment or proceeding described in Section 10.1.7.

10.1.7.    Without the application, approval or consent of the Credit Parties, a receiver, trustee, examiner, liquidator or similar official will be appointed for any Credit Party or a proceeding described in Section 10.1.6(iv) will be instituted against any Credit Party and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 consecutive days.

10.1.8.    Any court, government or governmental agency condemns, seizes or otherwise appropriates, or takes custody or control of, all or any portion of the Property of any Credit Party which, when taken together with all other Property of such Credit Party so condemned, seized, appropriated, or taken custody or control of, during the twelve-month period ending with the month in which any such action occurs, constitutes a Material Adverse Effect.

10.1.9.    Any of the Credit Parties fails within 30 days to pay, bond or otherwise discharge one or more (i) judgments or orders for the payment of money in excess of $1,000,000 (or the equivalent thereof in currencies other than U.S. Dollars) in total (to the extent not covered by independent third party insurance provided by insurers of the highest claims paying rating or financial strength as to which the insurer does not dispute 

76

coverage and is not subject to insolvency proceedings, or (ii) non-monetary judgments or orders which, in each case, individually or in total, could reasonably be expected to have a Material Adverse Effect, which judgment(s), in any such case, is/are not stayed on appeal or otherwise being appropriately contested in good faith.

10.1.10. Unfunded Liabilities with respect to Single Employer Plans or the occurrence of or any material Reportable Event in connection with any Plan, which, in either case or in the aggregate exceeds $1,000,000.

10.1.11. Nonpayment by any Credit Party of any Rate Management Obligation when due or the breach by any Credit Party of any term, provision or condition contained in any Rate Management Transaction or any transaction of the type described in the definition of “Rate Management Transactions,” whether or not any Lender or Affiliate of a Lender is a party thereto, after taking into account any applicable grace period, but only if such nonpayment or breach constitutes a Material Adverse Effect.

10.1.12. Any Change in Control occurs.

10.1.13. Any Credit Party (i) is the subject of any proceeding or investigation pertaining to the release by any Credit Party of any toxic or hazardous waste or substance into the environment, or (ii) violates any Environmental Law, which, in the case of an event described in clause (i) or clause (ii), could reasonably be expected to have a Material Adverse Effect.

10.1.14. Except to the extent expressly permitted by the Loan Documents, any Subsidiary Guaranty fails to remain in full force or effect or any action is taken to discontinue or to assert the invalidity or unenforceability of any Subsidiary Guaranty, or any Subsidiary Guarantor fails to comply with any of the terms or provisions of any Subsidiary Guaranty to which it is a party, or any Subsidiary Guarantor denies that it has any further liability under any Subsidiary Guaranty to which it is a party, or gives notice to such effect, or any Subsidiary Guaranty shall be revoked or terminated or any Credit Party attempts to revoke or terminate a Subsidiary Guaranty. For the avoidance of doubt, the Fourth Amendment expressly permits the release and discharge of each Person constituting Superior and their respective Subsidiaries as Subsidiary Guarantors effective as of and upon the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment.

10.1.15. Any Credit Party fails to comply in any material respect with any of the terms or provisions of any Loan Document (other than this Agreement, Notes issued hereunder and, insofar as representations and warranties made or deemed made in any other Loan Document, the other Loan Documents) beyond any applicable grace or curative period therein specified and if not so specified, if not cured within twenty (20) days following written notice from the Administrative Agent.

10.1.16. Except to the extent expressly permitted by the Loan Documents, any Security Instrument fails to remain in full force or effect and/or ceases to create a valid and perfected first priority lien in and to the property subject to such Security Instrument 

77

or any action is taken to discontinue or to assert the invalidity or unenforceability of any Security Instrument, or any Credit Party fails to comply with any of the terms or provisions of any Security Instrument to which it is a party, or any Credit Party denies that it has any further liability under any Security Instrument to which it is a party, or gives notice to such effect, or any Security Instrument shall be revoked or terminated or any Credit Party attempts to revoke or terminate a Security Instrument. For the avoidance of doubt, the Fourth Amendment expressly permits the termination of the Pledge Agreement effective as of and upon the occurrence of the Superior Release Effective Date, if any, in accordance with the Fourth Amendment.

10.1.17. Borrowers or Unit consummate the Superior Sale in any manner contrary to the requirements and conditions as set forth with respect thereto in the Fourth Amendment (including, without limitation, if Borrowers fail to timely and fully satisfy the Superior Sale Paydown Conditions). Any such occurrence shall constitute an automatic and immediate Event of Default under this Agreement and the other Loan Documents and no additional notice or cure period shall apply to any such Event of Default.

ARTICLE 11
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

11.1    Acceleration.
  
11.1.1. If any Event of Default described in Section 10.1.6 or 10.1.7 occurs with respect to the Credit Parties, the obligations of the Lenders to make Advances and Loans hereunder and the obligation and power of the LC Issuer to issue LCs will automatically terminate and the Obligations (other than Rate Management Obligations owed to Lender Counterparties) will immediately become due and payable without any election or action on the part of the Administrative Agent, the LC Issuer or any Lender and the Credit Parties will be and become thereby unconditionally obligated, without any further notice, act or demand, to deposit in an account with the Administrative Agent an amount in immediately available funds equal to the amount of LC Obligations in cash or cash equivalents reasonably satisfactory to the Administrative Agent, which funds will be applied pursuant to Section 11.1.2. If any other Event of Default occurs and is continuing, the Required Lenders (or the Administrative Agent with the consent of the Required Lenders) may (a) terminate or suspend the obligations of the Lenders to make Loans hereunder and the obligation and power of the LC Issuer to issue LCs, or declare the Obligations (other than Rate Management Obligations owed to Lender Counterparties) to be due and payable, or both, in which event such Obligations will become immediately due and payable, without presentment, demand, protest or notice of any kind, all of which the Borrowers hereby expressly waive, and (b) on notice to the Borrowers and in addition to the continuing right to demand payment of all amounts payable under this Agreement, make demand on the Borrowers to pay, and the Borrowers will, forthwith on such demand and without any further notice or act, immediately pay to the Administrative Agent the amount in immediately available funds equal to the amount of such LC Obligations, which funds will be applied pursuant to Section 11.1.2.

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11.1.2. The Administrative Agent may at any time or from time to time, after such funds are deposited with the Administrative Agent, apply such funds to the payment of the Obligations in accordance with Section 11.4 and any other amounts as may have become due and payable by the Credit Parties to the Lenders or the LC Issuer under the Loan Documents.  Such funds (to the extent not applied as aforesaid) will be returned to the Borrowers (i) after all such Obligations and other amounts have been paid in full or (ii) within three (3) Business Days after all Events of Default have been cured or waived.

11.2    Amendments. Subject to the provisions of this Section 11.2, the Required Lenders (or the Administrative Agent with the consent in writing of the Required Lenders) and the Credit Parties may enter into supplemental agreements for the purpose of adding or modifying any provisions to the Loan Documents to which they are parties or changing in any manner the rights of the Lenders or the Borrowers under this Agreement or waiving any Default, Event of Default or Deficiency under this Agreement, provided that no supplemental agreement will, without the consent of all of the Lenders:

		
	(i)
	Extend the final maturity of any Loan, or extend the expiration date of an LC to a date after the Facility Termination Date or postpone any regularly scheduled payment of principal of any Loan or forgive all or any portion of the principal amount thereof or any Reimbursement Obligation related thereto, or reduce the rate or extend the time of payment of interest or fees thereon or Reimbursement Obligations related thereto;

		
	(ii)
	Reduce the percentage specified in the definition of Required Lenders or eliminate, delete or modify the Borrowing Base concept of Section 2.6;

		
	(iii)
	Extend the Facility Termination Date (other than pursuant to Section 3.8), or reduce the amount or extend the payment date for, the mandatory principal payments required under Section 2.8.2, or increase the (a) Maximum Credit Amount, (b) Total Commitment Amount, (c) Borrowing Base (other than pursuant to Section 2.6), (d) amount of the Commitment of any non-consenting Lender under this Agreement or (e) commitment to issue LCs (other than as provided in the definition of “LC Sublimit”); or

		
	(iv)
	Amend this Section 11.2 or permit the Borrowers to assign their rights under this Agreement.

Further provided, that no amendment of any provision of this Agreement relating to the Administrative Agent will be effective without the written consent of the Administrative Agent, and no amendment of any provision relating to the LC Issuer will be effective without the written consent of the LC Issuer.

11.3    Preservation of Rights.  No delay or omission of the Lenders, the LC Issuer or the Administrative Agent to exercise any right under the Loan Documents will impair such right or be construed to be a waiver of any Default, Event of Default or Deficiency or an acquiescence in such Default, Event of Default or Deficiency, and the making of a Credit Extension notwithstanding the existence of a Default, Event of Default or Deficiency or the inability of the 

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Credit Parties to satisfy the conditions precedent to such Credit Extension will not constitute any waiver or acquiescence. Any single or partial exercise of any such right will not preclude other or further exercise of such right or the exercise of any other right, and no waiver, amendment or other variation of the terms, conditions or provisions of the Loan Documents whatsoever will be valid unless in writing executed by the Lenders required under Section 11.2, and then only to the extent specifically set forth in writing.  All remedies contained in the Loan Documents or by law or equity afforded will be cumulative and will be available to the Administrative Agent, the LC Issuer and the Lenders until the Obligations have been paid in full.

11.4    Allocation of Payments After Event of Default.  Notwithstanding any other provisions of this Agreement to the contrary, after the occurrence and during the continuance of an Event of Default, all amounts collected or received on or in respect of the Obligations (or other amounts owing under the Loan Documents in connection therewith) shall be paid over or delivered as follows:

FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including reasonable attorneys' fees) of the Administrative Agent, the LC Issuer or the Lenders in connection with enforcing the rights and remedies of the Administrative Agent or the Lenders under the Loan Documents and any protective advances made with respect thereto or otherwise with respect to the Obligations owing to the Lenders, the LC Issuer or the Administrative Agent;

SECOND, to payment of any fees owed to the Lenders, the LC Issuer or the Administrative Agent hereunder;

THIRD, to the payment of all accrued interest and fees on or in respect of the Obligations;

FOURTH, to the payment of the outstanding principal amount of the Obligations hereunder (including the payment or cash collateralization of the outstanding LC Obligations and Rate Management Obligations owed to Lender Counterparties being paid on a pari passu basis with the repayment of other Obligations);

FIFTH, to all other Obligations hereunder and other obligations which shall have become due and payable under the Loan Documents otherwise and not repaid pursuant to clauses "FIRST" through "FOURTH" above; and

SIXTH, to the payment of the surplus, if any, to Unit or such other Persons as may be lawfully entitled to receive such surplus.

In carrying out the foregoing, (i) amounts received shall be applied in the order provided until exhausted prior to application to the next succeeding category to the Administrative Agent or in accordance with each Lender's Pro Rata Share, as applicable, (unless a Lender is a Defaulting Lender); and (ii) to the extent that any amounts available for distribution pursuant to clause "FOURTH" above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Administrative Agent in a cash collateral account and applied (A) first, to reimburse the LC Issuer for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types 

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described in clauses "THIRD" and "FOURTH" above in the manner provided in this Section 11.4. Excluded Swap Obligations with respect to any Subsidiary Guarantor shall not be paid with amounts received from such Subsidiary Guarantor or its assets, but appropriate adjustments shall be made to payments from other Credit Parties to preserve the allocation to Obligations otherwise set forth above in this Section 11.4.
ARTICLE 12
GENERAL PROVISIONS

12.1    Survival of Agreements.  All covenants, agreements, representations and warranties contained in this Agreement will survive the making of the Credit Extensions during the term of this Agreement and any amendments of this Agreement (other than to the extent expressly modified therein).

12.2    Governmental Regulation.  Anything contained in this Agreement to the contrary notwithstanding, neither the LC Issuer nor any Lender will be obligated to extend credit to the Borrowers in violation of any limitation or prohibition provided by any applicable statute or regulation.

12.3    Headings.  Section headings in the Loan Documents are for convenience of reference only, and will not govern the interpretation of any of the provisions of the Loan Documents.

12.4    Entire Agreement.  The Loan Documents embody the entire agreement and understanding among the Credit Parties, the Administrative Agent, the LC Issuer and the Lenders and supersede all prior agreements and understandings among the Credit Parties, the Administrative Agent, the LC Issuer and the Lenders relating to the subject matter of the Loan Documents other than the Administrative Agent Fee Letter, all of which will survive and remain in full force and effect during the term of this Agreement.

12.5    Several Obligations; Benefits of this Agreement.  The respective obligations of the Lenders hereunder are several and not joint and no Lender will be the partner or Administrative Agent of any other (except to the extent to which the Administrative Agent is authorized to act in such capacity).  The failure of a Lender to perform any of its obligations hereunder will not relieve any other Lender from any of its obligations hereunder.  This Agreement will not be construed so as to confer any right or benefit on any Person other than the parties to this Agreement and their respective successors and assigns.

12.6    Expenses; Indemnification. 

12.6.1.    Expenses.  The Borrowers will promptly reimburse the Administrative Agent for any filing and recording fees, reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees), time charges and expenses advanced of attorneys for the Administrative Agent or for any of the Lenders) paid or incurred by the Administrative Agent or the Co-Syndication Agents in connection with the preparation, negotiation, execution, closing, delivery, syndication, review, amendment, waiver, consent or modification, refinancing, Lien perfection, administration, collection and enforcement of the Loan Documents, regardless of whether or not the transactions 

81

provided for in this Agreement are eventually closed and regardless of whether or not any or all sums evidenced by the Notes are advanced to the Borrowers by the Lenders. 

12.6.2    Indemnification.  The Borrowers hereby also agree to indemnify against and, where applicable, reimburse for, the Administrative Agent, the Co-Syndication Agents, the LC Issuer and each Lender, its directors, officers and employees, all losses, claims, damages, penalties, judgments, liabilities and expenses (including, without limitation, the prompt reimbursement of all legal fees and expenses of attorneys for the Administrative Agent, the Co-Syndication Agents, the LC Issuer or any of the Lenders in connection with (i) restructure as a part of loan work out or special asset modification or fees and expenses from enforcement or collection actions or proceedings, and (ii) collection and enforcement actions or proceedings, including litigation or preparation therefor whether or not the Administrative Agent, the Co-Syndication Agents, the LC Issuer or any Lender is a party to such litigation) which any of them may pay or incur in good faith as a result of this Agreement, the other Loan Documents, the transactions contemplated by the Loan Documents except to the extent that they are determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the party seeking indemnification, and (iii) any civil penalty or fine assessed by OFAC against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, by the Administrative Agent or any Lender as a result of conduct of any Borrower or any Subsidiary that violates a sanction enforced by OFAC. 

The foregoing provisions of this Section 12.6 shall not apply to Taxes, which shall be governed exclusively by Section 3.3.  The obligations of the Borrowers under this Section 12.6 will survive the termination of this Agreement.

12.7    Severability of Provisions.  Any provision in any Loan Document that is held to be inoperative, unenforceable, or invalid in any jurisdiction will, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction.  The provisions of all Loan Documents are severable.

12.8    Environmental Indemnities.

Each of the Borrowers hereby agrees to indemnify, defend and hold harmless the Administrative Agent and the Lenders and their respective officers, directors, employees, agents, consultants, attorneys, contractors and their respective affiliates, successors or assigns, or transferees from and against, and reimburse said Persons in full with respect to, any and all loss, liability, damage, fines, penalties, costs and expenses, of every kind and character, including reasonable attorneys’ fees and court costs, known or unknown, fixed or contingent, occasioned by or associated with any claims, demands, causes of action, suits and/or enforcement actions, including any administrative or judicial proceedings, and any remedial, removal or response actions ever asserted, threatened, instituted or requested by any Persons, including any Governmental Authority, arising out of or related to:  (a) the breach of any representation or warranty of the Borrowers contained in Section 5.16; (b) the failure of the Borrowers to perform any of their respective covenants contained in Section 6.7; (c) the ownership, construction, 

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occupancy, operation, use of the Credit Parties’ Properties prior to the date on which the Indebtedness and obligations secured hereby have been paid and performed in full; provided, however, this indemnity shall not apply with respect to matters caused by or arising solely from the Administrative Agent’s or the Lenders’ activities during any period of time the Administrative Agent or the Lenders acquire ownership of the Credit Parties’ Properties.

The indemnities contained in this Section 12.8 apply, without limitation, to any violation on or before the Release Date of any Environmental Laws and any liability or obligation relating to the environmental conditions on, under or about the Credit Parties’ Properties on or prior to the Release Date (including, without limitation:  (a) the presence on, on or in the Credit Parties’ Properties or release, discharge or threatened release on, on or from the Credit Parties’ Properties of any polluting substances generated, used, stored, treated, disposed of or otherwise released prior to the Release Date, and (b) any and all damage to real or personal property or natural resources and/or harm or injury including wrongful death, to persons alleged to have resulted from such release of any polluting substances regardless of whether the act, omission, event or circumstances constituted a violation of any Environmental Law at the time of its existence or occurrence). The term “release” shall have the meaning specified in applicable Environmental Laws and the terms “stored,” “treated” and “disposed” shall have the meanings specified in applicable Environmental Laws; provided, however, any broader meanings of such terms provided by applicable laws of the State of Oklahoma shall apply.

The provisions of this Section 12.8 shall be in addition to any other obligations and liabilities Credit Parties may have to the Administrative Agent or the Lenders at common law and shall survive the Release Date and shall continue thereafter in full force and effect.

The Administrative Agent and the Lenders agree that in the event that such claim, suit or enforcement action is asserted or threatened in writing or instituted against them or any of their officers, employers, agents or contractors or any such remedial, removal or response action is requested of them or any of their officers, employees, agents or contractors for which the Administrative Agent or the Lenders may desire indemnity or defense hereunder, the Administrative Agent or the Lenders shall give prompt written notification thereof to Unit.

Notwithstanding anything to the contrary stated herein, the indemnities created by this Section 12.8 shall only apply to losses, liabilities, damages, fines, penalties, costs and expenses actually incurred by the Administrative Agent or the Lenders as a result of claims, demands, actions, suits or proceedings brought by Persons who are not the beneficiaries of any such indemnity.  The Administrative Agent or the Lenders shall act as the exclusive agent for all indemnified Persons under this Section 12.8.  With respect to any claims or demands made by such indemnified Persons, the Administrative Agent shall notify Unit within ten (10) days after the Administrative Agent’s receipt of a writing advising the Administrative Agent of such claim or demand.  Such notice shall identify (i) when such claim or demand was first made, (ii) the identity of the Person making it, (iii) the indemnified Person and (iv) the substance of such claim or demand.  Failure by the Administrative Agent to so notify Unit within said ten (10) day period shall reduce the amount of the Credit Parties’ obligations and liabilities under this Section 12.8 by an amount equal to any damages or losses suffered by the Credit Parties resulting from any prejudice caused the Credit Parties by such delay in notification from the Administrative Agent.  On receipt of such notice, the Credit Parties shall have the exclusive right and obligation to 

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contest, defend, negotiate or settle any such claim or demand through counsel of their own selection (but reasonably satisfactory to the Administrative Agent and the Lenders) and solely at Credit Parties’ own cost, risk and expense; provided, that the Administrative Agent and the Lenders, at their own cost and expense, shall have the right to participate in any such contest, defense, negotiations or settlement.  The settlement of any claim or demand hereunder by the Credit Parties, unless such settlement fully releases the Lenders from any and all liability thereon, may be made only on the prior approval of the Lenders of the terms of the settlement, which approval shall not be unreasonably withheld.

12.9    Nonliability of Lenders.  The relationship between the Borrowers on the one hand and the Lenders, the LC Issuer and the Administrative Agent on the other hand will, to the extent that relationship is the subject of this Agreement, be solely that of borrowers and lenders.  Neither the Administrative Agent, the Syndication Agents, the LC Issuer nor any Lender will have any fiduciary responsibilities to the Credit Parties.  Neither the Administrative Agent, the Syndication Agent, the LC Issuer nor any Lender undertakes any responsibility to the Credit Parties to review or inform the Credit Parties of any matter in connection with any phase of the Credit Parties’ business or operations.  The Credit Parties agree that neither the Administrative Agent, the Syndication Agent, the LC Issuer nor any Lender will have liability to the Credit Parties (whether sounding in tort, contract or otherwise) for losses suffered by the Credit Parties in connection with, arising out of, or in any way related to, the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought. Neither the Administrative Agent, the Syndication Agent, the LC Issuer nor any Lender will have any liability with respect to, and the Credit Parties hereby waive, release and agree not to sue for, any special, indirect or consequential damages suffered by the Credit Parties in connection with, arising out of, or in any way related to the Loan Documents or the transactions contemplated thereby.

12.10    No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), Borrowers acknowledge and agree that:  (i) (A) the arranging and other services regarding this Agreement provided by Administrative Agent are arm’s-length commercial transactions between Borrowers and their Affiliates, on the one hand, and Administrative Agent, on the other hand, (B) Borrowers have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate, and (C) Borrowers are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) Administrative Agent is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will not be acting ad an advisor, agent of fiduciary for Borrowers or any of their Affiliates, or any other Person and (B) Administrative Agent has not obligation to Borrowers or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in other Loan Documents; and (iii) Administrative Agent and its Affiliates may be engaged in a broad range of transactions that involve interest that differ from those of the Borrowers and their Affiliates, and the Administrative Agent has no obligation to disclose any of such interests to Borrowers or their Affiliates.  To the fullest extent permitted by law, Borrowers hereby waive and release any 

claims that it may have against Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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12.11    Confidentiality.  Each Lender agrees to hold as confidential any information which it may receive from the Credit Parties or any of its Subsidiaries under this Agreement or any other Loan Document in confidence, except for disclosure (i) to its Affiliates and to other Lenders and their respective Affiliates, (ii) to legal counsel, accountants, and other professional advisors to such Lender or to a Transferee (so long as such Persons are apprised of the confidential nature of such information), (iii) to regulatory officials, (iv) to any Person as requested under or as required by law, regulation, or legal process, (v) to any Person in connection with any legal proceeding relating to any of the Loan Documents to which such Lender is a party, (vi) to such Lender’s direct or indirect contractual counterparties in swap agreements, to legal counsel, accountants and other professional advisors to such counterparties or to any credit insurance provider relating to Borrowers and their obligations (so long as such Persons agree to be bound by the provisions of this Section 12.11), (vii) permitted by Section 14.4, (viii) to rating agencies if requested or required by such agencies in connection with a rating relating to the Advances, and (ix) of information that the Credit Parties have made available to the general public.

12.12    Disclosure.  The Borrowers and each Lender hereby acknowledge and agree that BOk and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with the Borrowers and/or their Subsidiaries.

12.13    Place of Payment.  All amounts to be paid by the Borrowers or the Subsidiary Guarantors under this Agreement will be paid in immediately available funds to the Administrative Agent at its principal banking offices at Bank of Oklahoma Tower, One Williams Center, Tulsa, Oklahoma 74192, Attention: Energy Department - 8th Floor, or at such other place as the Administrative Agent or the Required Lenders will notify Unit in writing.  If any interest, principal or other payment falls due on a date other than a Business Day, then (unless otherwise provided in this Agreement) such due date will be extended to the next succeeding Business Day, and such extension of time will in such case be included in computing interest, if any, in connection with such payment.

12.14    Interest.  It is the intention of the parties to this Agreement that the Lenders  conform strictly to usury laws applicable to it.  Accordingly, if the transactions contemplated by this Agreement would be usurious as to a Lender under laws applicable to it (including the laws of the United States of America or any other jurisdiction whose laws may be mandatorily applicable to Lenders notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection with or as security for the Notes, it is agreed as follows: 

		
	(i)
	the total of all consideration which constitutes interest under law applicable to Lenders that is contracted for, taken, reserved, charged or received by Lenders under any of the Loan Documents or agreements or otherwise in connection with the Notes will under no circumstances exceed the Highest Lawful Rate allowed by such applicable law, and any excess will be canceled automatically 

and if theretofore paid will be credited by the Administrative Agent or the Lenders on the principal amount of the Obligations (or, to the extent that the principal amount of 

85

the Obligations will have been or would thereby be paid in full, refunded by Administrative Agent or the Lenders to the Borrowers); and 

		
	(ii)
	in the event that the maturity of any of the Notes is accelerated by, because of or resulting from an Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to Administrative Agent or the Lenders may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise will be canceled automatically by Lenders as of the date of such acceleration or prepayment and, if theretofore paid, will be credited by Administrative Agent or the Lenders on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations will have been or would thereby be paid in full, refunded by Lenders to the Borrowers). 

All sums paid or agreed to be paid to Administrative Agent or the Lenders for the use, forbearance or detention of sums due under this Agreement will, to the extent permitted by law applicable to Administrative Agent and/or the Lenders, be amortized, prorated, allocated and spread throughout the full term of the Loans evidenced by the Notes until payment in full so that the rate or amount of interest on account of any Loans under this Agreement does not exceed the Highest Lawful Rate allowed by such applicable law. If at any time and from time to time (i) the amount of interest payable to Lenders on any date will be computed at the highest lawful rate applicable to Lenders under this Section 12.14; and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to Lenders would be less than the amount of interest payable to Lenders computed at the highest lawful rate applicable to such Lenders, then the amount of interest payable to Lenders regarding such subsequent interest computation period will continue to be computed at the Highest Lawful Rate applicable to Lenders until the total amount of interest payable to Lenders equals the total amount of interest which would have been payable to Lenders if the total amount of interest had been computed without giving effect to this Section 12.14. 

None of the terms and provisions contained in this Agreement or in any other Loan Document which directly or indirectly relate to interest will ever be construed without reference to this Section 12.14, or be construed to create a contract to pay for the use, forbearance or detention of money at an interest rate in excess of the Highest Lawful Rate.

12.15    Automatic Debit of Borrowers’ Operating Account.  On Borrowers’ failure to pay all such costs and expenses owed by Borrowers under Section 12.6 of this Agreement within thirty (30) days of the Administrative Agent’s submission of invoices therefore, the Administrative Agent will pay such costs and expenses by debit to the operating account of Borrowers with the Administrative Agent without further or other notice to Borrowers.

12.16    Exceptions to Covenants.  The Borrowers are not permitted to take any action or fail to take any action which is permitted as an exception to any of the covenants contained in this 

Agreement or which is within the permissible limits of any of the covenants contained in this Agreement if such action or omission would result in the breach of any other covenant contained in this Agreement.

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12.17    Conflict with Other Loan Documents.  To the extent the terms and provisions of any of the other Loan Documents are in conflict with the terms and provisions hereof, the terms and provisions of this Agreement will be deemed controlling.

12.18    Lost Documents.  On receipt of an affidavit of an officer of the Administrative Agent as to the loss, theft, destruction or mutilation of the Notes or Loan Documents which is not of public record, and, in the case of any mutilation, on the surrender and cancellation of the Notes or Loan Documents, the Borrowers or any Subsidiary Guarantors will issue, in lieu thereof, a replacement Note(s) or other Loan Documents in the same principal amount thereof (in the case of any of the Notes) and otherwise of like tenor.

12.19    Setoff.  At any time and from time to time during the continuance of any Event of Default, each Lender is hereby authorized to setoff and apply (a) any and all moneys, securities and other property (and the proceeds therefrom) of such Credit Party now or hereafter held or received by or in transit to such Lender from or for the account of such Credit Party, whether for safekeeping, custody, pledge, transmission, collection or otherwise, (b) any and all deposits and deposit accounts (general or special, time or demand, provisional or final) of such Credit Party with such Lender, and (c) any other credits and claims of such Credit Party at any time existing against such Lender, including claims under certificates of deposit (excluding from the foregoing clauses (a) though (c) the accounts at BOk as specified on Schedule 6 (collectively, the “Excluded Accounts“)) against the Obligations then due and payable and held by such Lender (without notice to any Credit Party) and concerning any such action in clauses (a) through (c) taken by a Lender, prompt notice thereof shall be provided by such Lender to the Administrative Agent.  The rights of each Lender under this Section 12.19 are in addition to all other interests and rights of such Lender at common Law, under the Loan Documents, or otherwise.

12.20    Keepwell.  Each Credit Party that is a Qualified ECP Guarantor at the time the Subsidiary Guaranty or the grant of a security interest under the Loan Documents, in each case, by any Specified Loan Party becomes effective with respect to any Rate Management Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Rate Management Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under its Subsidiary Guaranty and the other Loan Documents in respect of such Rate Management Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Section 12.20 voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations and undertakings of each Qualified ECP Guarantor under this Section 12.20 shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full.  Each Qualified ECP Guarantor intends this Section 12.20 to constitute, and this Section 12.20 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.

ARTICLE 13
THE ADMINISTRATIVE AGENT

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13.1    Appointment; Nature of Relationship.  Administrative Agent is hereby appointed by each of the Lenders as its contractual representative hereunder and under each other Loan Document, and each of the Lenders irrevocably authorizes the Administrative Agent to act as the contractual representative of such Lender with the rights and duties expressly set forth herein and in the other Loan Documents.  The Administrative Agent agrees to act as such contractual representative on the express conditions contained in this Article 13.  Notwithstanding the use of the defined term “Administrative Agent,” it is expressly understood and agreed that the Administrative Agent will not have any fiduciary responsibilities to any Lender by reason of this Agreement or any other Loan Document and that the Administrative Agent is merely acting as the contractual representative of the Lenders with only those duties as are expressly set forth in this Agreement and the other Loan Documents.  In its capacity as the Lenders’ contractual representative, the Administrative Agent (i) does not hereby assume any fiduciary duties to any of the Lenders, (ii) is a “representative” of the Lenders within the meaning of the term “secured party” as defined in the Oklahoma Uniform Commercial Code, and (iii) is acting as an independent contractor, the rights and duties of which are limited to those expressly set forth in this Agreement and the other Loan Documents.  Each of the Lenders hereby agrees to assert no claim against the Administrative Agent on any agency theory or any other theory of liability for breach of fiduciary duty, all of which claims each Lender hereby waives.

13.2    Powers.  The Administrative Agent will have and may exercise such powers under the Loan Documents as are specifically delegated to the Administrative Agent by the terms of each thereof, together with such powers as are reasonably incidental thereto.  The Administrative Agent has no implied duties to the Lenders, or any obligation to the Lenders to take any action thereunder except any action specifically provided by the Loan Documents to be taken by the Administrative Agent.

13.3    General Immunity.  Neither the Administrative Agent nor any of its directors, officers or employees will be liable to the Credit Parties, the Lenders or any Lender for any action taken or omitted to be taken by it or them hereunder or under any other Loan Document or in connection herewith or therewith except to the extent such action or inaction is determined in a final non-appealable judgment by a court of competent jurisdiction to have arisen from the gross negligence or willful misconduct of such Person provided that nothing in this Section 13.3 is intended to impair or otherwise limit (i) the rights of the Credit Parties to make claims against the LC Issuer for damages as contemplated by either proviso (ii) to the first sentence of Section 2.19.6 or proviso (y) to the penultimate sentence of Section 2.19.9 or (ii) the liabilities of the LC Issuer or the Administrative Agent to the Credit Parties based on a standard of care otherwise expressly designated or stipulated to in other provisions of this Agreement. 

13.4    No Responsibility for Loans, Recitals.  Neither the Administrative Agent nor any of its directors, officers or employees will be responsible for or have any duty to ascertain, inquire into, or verify (a) any statement, warranty or representation made in connection with any Loan Document or any borrowing hereunder; (b) the performance or observance of any of the covenants or agreements of any obligor under any Loan Document, including, without limitation, any agreement by an obligor to furnish information directly to each Lender; (c) the satisfaction 

of any condition specified in Article 4, except receipt of items required to be delivered solely to the Administrative Agent; (d) the existence or possible existence of any Default; (e) the validity, enforceability, effectiveness, sufficiency or genuineness of any Loan Document or any other instrument or writing furnished in connection therewith; (f) the value, sufficiency, creation, perfection or priority of any Lien in any collateral 

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security; or (g) the financial condition of the Credit Parties or any Subsidiary Guarantor  of any of the Obligations or of any of the Credit Parties’ or any such Subsidiary Guarantor ‘s respective Subsidiaries. The Administrative Agent has no duty to disclose to the Lenders information that is not required to be furnished by the Credit Parties to the Administrative Agent at such time, but is voluntarily furnished by the Credit Parties to the Administrative Agent (either in its capacity as Administrative Agent or in its individual capacity).

13.5    Action on Instructions of Lenders.  The Administrative Agent will in all cases be fully protected in acting, or in refraining from acting, hereunder and under any other Loan Document in accordance with written instructions executed by the Required Lenders, and such instructions and any action taken or failure to act pursuant thereto will be binding on all of the Lenders.  The Lenders hereby acknowledge that the Administrative Agent will be under no duty to take any discretionary action permitted to be taken by it under the provisions of this Agreement or any other Loan Document unless it is requested in writing to do so by the Required Lenders.  The Administrative Agent will be fully justified in failing or refusing to take any action hereunder and under any other Loan Document unless it is first indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may incur by reason of taking or continuing to take any such action.

13.6    Employment of Administrative Agents; Counsel; Reliance.  The Administrative Agent may assign any of its duties as Administrative Agent under any Loan Document by or through employees, agents, and attorneys-in-fact and is not answerable to the Lenders, except as to money or securities received by it or its authorized agents, for the default or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.  The Administrative Agent will be entitled to advice of counsel concerning the contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining to the Administrative Agent’s duties under any Loan Document.  The Administrative Agent will be entitled to rely on any Note, notice, consent, certificate, affidavit, letter, telegram, statement, paper or document believed by it to be genuine and correct and to have been executed or sent by the proper Person or Persons, and, in respect to legal matters, on the opinion of counsel selected by the Administrative Agent, which counsel may be employees of the Administrative Agent.

13.7    Administrative Agent’s Reimbursement and Indemnification.  The Lenders agree to reimburse and indemnify the Administrative Agent ratably in proportion to their respective Commitments (or, if the Commitments have been terminated, in proportion to their Commitments immediately prior to such termination) (i) for any amounts not reimbursed by the Borrowers for which the Administrative Agent is entitled to reimbursement by the Borrowers under the Loan Documents, (ii) for any other expenses incurred by the Administrative Agent on behalf of the Lenders, in connection with the preparation, execution, delivery, administration and enforcement of the Loan Documents (including, without limitation, for any expenses incurred by the Administrative Agent in connection with any dispute between the Administrative Agent and any Lender or between two or more of the Lenders) and (iii) for any liabilities, obligations, 

losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of the Loan Documents or any other document delivered in connection therewith or the transactions contemplated thereby (including, without limitation, for any such amounts incurred by or asserted against the Administrative Agent in connection with any dispute between the Administrative Agent 

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and any Lender or between two or more of the Lenders), or the enforcement of any of the terms of the Loan Documents or of any such other documents, provided that (i) no Lender will be liable for any of the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Administrative Agent and (ii) any indemnification required under Section 3.3 will, notwithstanding the provisions of this Section 13.7, be paid by the relevant Lender in accordance with the provisions thereof. The obligations of the Lenders under this Section 13.7 will survive payment of the Obligations and termination of this Agreement.

13.8    Notice of Default.  The Administrative Agent will not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default under this Agreement unless the Administrative Agent has received written notice from a Lender or the Borrowers referring to this Agreement describing such Default or Event of Default and stating that such notice is a “notice of default.”  In the event that the Administrative Agent receives such a notice, the Administrative Agent will give prompt notice thereof to the Lenders.

13.9    Rights as a Lender.  In the event the Administrative Agent is a Lender, the Administrative Agent will have the same rights and powers hereunder and under any other Loan Document with respect to its Commitment and its Loans as any Lender and may exercise the same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” will, at any time when the Administrative Agent is a Lender, unless the context otherwise indicates, include the Administrative Agent in its individual capacity.  The Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, financial advisory, trust, Indebtedness, equity or other transaction without notice to or consent of the Lenders, in addition to those contemplated by this Agreement or any other Loan Document, with the Credit Parties in which the Credit Parties are not restricted hereby from engaging with any other Person.

13.10    Lender Credit Decision.  Each Lender acknowledges that it has, independently and without reliance on the Administrative Agents, the Syndication Agents or any other Lender and based on the financial statements prepared by the Credit Parties and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the other Loan Documents.  Each Lender also acknowledges that it will, independently and without reliance on the Administrative Agent, the Syndication Agents or any other Lender and based on such documents and information as it deems appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents.

13.11    Successor Administrative Agent.  The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and Unit, such resignation to be effective on the appointment of a successor Administrative Agent or, if no successor Administrative Agent 

has been appointed, 45 days after the retiring Administrative Agent gives notice of its intention to resign.  The Administrative Agent may be removed at any time with or without cause by written notice received by the Administrative Agent from the Required Lenders, such removal to be effective on the date specified by the Required Lenders.  On any such resignation or removal, the Required Lenders will have the right to appoint, on behalf of the Credit Parties and the Lenders, a successor Administrative Agent.  If no successor Administrative Agent will have been so appointed by the Required Lenders within thirty days after the 

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resigning Administrative Agent’s giving notice of its intention to resign, then the resigning Administrative Agent may appoint, on behalf of the Credit Parties and the Lenders, a successor Administrative Agent.  Notwithstanding the previous sentence, the Administrative Agent may at any time without the consent of the Credit Parties or any Lender, appoint any of its Affiliates which is a commercial bank as a successor Administrative Agent hereunder.  If the Administrative Agent has resigned or been removed and no successor Administrative Agent has been appointed, the Lenders may perform all the duties of the Administrative Agent hereunder and the Borrowers will make all payments in respect of the Obligations to the applicable Lender and for all other purposes will deal directly with the Lenders.  No successor Administrative Agent will be deemed to be appointed hereunder until such successor Administrative Agent has accepted the appointment.  Any such successor Administrative Agent will be a commercial bank having capital and retained earnings of at least $100,000,000.  On the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent will thereupon succeed to and become vested with all the rights, powers, privileges and duties of the resigning or removed Administrative Agent.  On the effectiveness of the resignation or removal of the Administrative Agent, the resigning or removed Administrative Agent will be discharged from its duties and obligations hereunder and under the Loan Documents.  After the effectiveness of the resignation or removal of an Administrative Agent, the provisions of this Article 13 will continue in effect for the benefit of such Administrative Agent in respect of any actions taken or omitted to be taken by it while it was acting as the Administrative Agent hereunder and under the other Loan Documents. 

13.12    Syndication Agents; Other Agents; Arrangers.  No Lender identified on the facing page or signature pages of this Agreement as a Co-Syndication Agent, Documentation Agent, “arranger” or “bookrunner” will have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, no Lender so identified will have or be deemed to have a fiduciary relationship with any other Lender.  Each Lender hereby makes the same acknowledgments with respect to such Lenders as it makes with respect to the Administrative Agent in Section 13.10 and acknowledges that is has note relied, and will not rely, on any of the Lenders so identified in deciding to enter into this Agreement or in taking or not taking any action hereunder.

13.13    Delegation to Affiliates.  The Borrowers and the Lenders agree that the Administrative Agent may delegate any of its duties under this Agreement to any of its Affiliates.  Any Affiliate of the Administrative Agent which performs duties in connection with this Agreement will be entitled to the same benefits of the indemnification, waiver and other protective provisions to which the Administrative Agent is entitled under Articles 12 and 13.

ARTICLE 14
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

14.1    Successors and Assigns.  The terms and provisions of the Loan Documents will be binding on and inure to the benefit of the Credit Parties which are parties thereto and the Lenders and their respective successors and assigns permitted hereby, except that (i) the Credit Parties will not have the right to assign their rights or obligations under the Loan Documents to which they are parties without the prior written consent of each Lender, (ii) any assignment by any Lender must be made in compliance with Section 14.3, (iii) any transfer by any Lender by participation must be made in compliance with Section 14.2 and (iv) no 

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Lender may assign, or sell a participation to, any Credit Party. Any attempted assignment or transfer by any party not made in compliance with this Section 14.1 will be null and void, unless such attempted assignment or transfer is treated as a participation in accordance with Section 14.3.2.  The parties to this Agreement acknowledge that clause (ii) of this Section 14.1 relates only to absolute assignments and this Section 14.1 does not prohibit assignments creating security interests, including, without limitation, any pledge or assignment by any Lender of all or any portion of its rights under this Agreement and any Note to a Federal Reserve Bank; provided, however, that no such pledge or assignment creating a security interest will release the transferor Lender from its obligations hereunder unless and until the parties thereto have complied with the provisions of Section 14.3. The Administrative Agent may treat the Person which made any Loan or which holds any Note as the owner thereof for all purposes hereof unless and until such Person complies with Section 14.3; provided, however, that the Administrative Agent may in its discretion (but will not be required to) follow instructions from the Person which made any Loan or which holds any Note to direct payments relating to such Loan or Note to another Person.  Any assignee of the rights to any Loan or any Note agrees by acceptance of such assignment to be bound by all the terms and provisions of the Loan Documents.  Any request, authority or consent of any Person, who at the time of making such request or giving such authority or consent is the owner of the rights to any Loan (whether or not a Note has been issued in evidence thereof), will be conclusive and binding on any subsequent holder or assignee of the rights to such Loan.

14.2    Participations.

14.2.1.    Permitted Participants; Effect.  Any Lender may, in the ordinary course of its business and in accordance with applicable law, at any time on obtaining the prior written consent of the Administrative Agent and Unit, sell to one or more banks or other entities (“Participants”) participating interests in any Outstanding Credit Exposure of such Lender, any Note held by such Lender, any Commitment of such Lender or any other interest of such Lender under the Loan Documents.  In the event of any such sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents will remain unchanged, such Lender will remain solely responsible to the other parties hereto for the performance of such obligations, such Lender will remain the owner of its Outstanding Credit Exposure and the holder of any Note issued to it in evidence thereof for all purposes under the Loan Documents, all amounts payable by the Borrowers under this Agreement will be determined as if such Lender had not sold such participating interests, and the Borrowers and the Administrative Agent will continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under the Loan Documents.  Voting Rights.  Each Lender will retain the sole right to approve, without the consent of any Participant, any amendment, modification or waiver of any provision of the Loan Documents other than any amendment, modification 

or waiver with respect to any Credit Extension or Commitment in which such Participant has an interest which would require consent of all of the Lenders under the terms of Section 11.2 or of any other Loan Document. Benefit of Certain Provisions.  The Borrowers agree that each Participant will be deemed to have the right of setoff provided in Section 12.19 in respect of its participating interest in amounts owing under the Loan Documents to the same extent as if the amount of its participating interest were owing directly to it as a Lender under the Loan Documents, provided that each Lender will retain the right of setoff provided in Section 12.19 with respect to the amount of participating 

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interests sold to each Participant.  The Lenders agree to share with each Participant, and each Participant, by exercising the right of setoff provided in Section 12.19, agrees to share with each Lender, any amount received under the exercise of its right of setoff, such amounts to be shared in accordance with Section 2.21 as if each Participant were a Lender.  The Borrowers further agree that each Participant will be entitled to the benefits of Sections 3.1, 3.2, 3.4 and 3.5 to the same extent as if it were a Lender and had acquired its interest by assignment under Section 14.3, provided that (i) a Participant will not be entitled to receive any greater payment under Section 3.1, 3.2 or 3.5 than the Lender who sold the participating interest to such Participant would have received had it retained such interest for its own account, unless the sale of such interest to such Participant is made with the prior written consent of the Borrowers, and (ii) any Participant agrees to comply with the provisions of Section 3.3 to the same extent as if it were a Lender.

14.3    Assignments.

14.3.1.    Permitted Assignments.  Any Lender may, in the ordinary course of its business and in accordance with applicable law, at any time assign to one or more banks or other entities other than any Credit Party (“Purchasers“) all or any part of its rights and obligations under the Loan Documents.  Such assignment will be substantially in the form of Exhibit C or in such other form as may be agreed to by the parties thereto.  The consent of Unit, the Administrative Agent and the LC Issuer will be required prior to an assignment becoming effective with respect to a Purchaser which is not a Lender or an Affiliate thereof; provided, however, that if a Default, Event of Default or Deficiency has occurred and is continuing, the consent of the Unit will not be required.  Such consent of Unit will not be unreasonably withheld or delayed.  Each such assignment with respect to a Purchaser which is not a Lender or an Affiliate thereof will (unless each of the Credit Parties and the Administrative Agent otherwise consent) be in an amount not less than the lesser of (i) $15,000,000 or (ii) the remaining amount of the assigning Lender’s Commitment (calculated as at the date of such assignment) or outstanding Loans (if the applicable Commitment has been terminated).

14.3.2.    Effect; Effective Date.  On (i) delivery to the Administrative Agent of a notice of assignment, substantially in the form attached as Exhibit I to Exhibit C (a “Notice of Assignment“), together with any consents required by Section 14.3.1, and (ii) payment of a $2,500 fee to the Administrative Agent for processing such assignment, such assignment will become effective on the effective date specified in such Notice of Assignment.  The Notice of Assignment will contain a representation by the Purchaser to the effect that none of the consideration used to make the purchase of the Commitment 

and Outstanding Credit Exposure under the applicable assignment agreement are “plan assets” as defined under ERISA and that the rights and interests of the Purchaser in and under the Loan Documents will not be “plan assets” under ERISA.  On and after the effective date of such assignment, such Purchaser will for all purposes be a Lender to this Agreement and any other Loan Document executed by or on behalf of the Lenders and will have all the rights and obligations of a Lender under the Loan Documents, to the same extent as if it were an original party hereto, and no further consent or action by the Credit Parties, the Lenders or the Administrative Agent will be required to release the transferor Lender with respect to the percentage of the Total Commitment and Outstanding Credit 

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Exposure assigned to such Purchaser. On the consummation of any assignment to a Purchaser under this Section 14.3.2, the transferor Lender, the Administrative Agent and the Borrowers will, if the transferor Lender or the Purchaser desires that its Loans be evidenced by Notes, make appropriate arrangements so that new Notes or, as appropriate, replacement Notes are issued to such transferor Lender and new Notes or, as appropriate, replacement Notes, are issued to such Purchaser, in each case in principal amounts reflecting their respective Commitments, as adjusted under such assignment.

14.3.3    Register.  The Administrative Agent, acting solely for this purpose as an Administrative Agent of the Borrowers, will maintain at its main banking offices in Tulsa, Oklahoma, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender under the terms hereof from time to time (the “Register“).  The entries in the Register will be conclusive, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register under the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register will be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time on reasonable prior notice.

14.4    Dissemination of Information.  Subject to the confidentiality requirements of this Agreement, the Borrowers authorize each Lender to disclose to any Participant or Purchaser or any other Person acquiring an interest in the Loan Documents by operation of law (each a “Transferee“) and any prospective Transferee any and all information in such Lender’s possession concerning the creditworthiness of the Credit Parties and their Subsidiaries, including without limitation any information contained in any reports provided to Administrative Agent; provided that each Transferee and prospective Transferee agrees to be bound by this Agreement.

14.5    Tax Treatment.  If any interest in any Loan Document is transferred to any Transferee, the transferor Lender will cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the provisions of Section 3.3(iv).

14.6    Procedure for Increases and Additional Lenders.  In the event that neither (i) a Default, an Event of Default or a Deficiency has occurred and remains uncured hereunder nor (ii) a Default, an Event of Default or a Deficiency would be caused by or result from the Borrowers’ exercise of the provisions of this Section 14.6, Unit, on behalf of the Borrowers may from time to time after the date of this Agreement request in writing to the Administrative Agent and each 

of the Lenders specified increases (an “Increase Request“) in the Lenders’ Total Commitment above the then applicable Total Commitment amount (but in no event shall any such Increase Requests cause the Total Commitment amount to exceed the lesser of the Maximum Credit Amount or Borrowing Base then in effect), subject to the following terms, provisions, conditions and limitations:

14.6.1.    Minimum Increased Amount.  The minimum amount of each increase in the Total Commitment requested by Unit in writing as set forth above shall be not less than $25,000,000 and $5,000,000 integrals in excess thereof.  Such written request shall also specify the proposed effective date of such Increase Request. 

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14.6.2.    Existing Lenders or Additional Lenders.  In order to effect an Increase Request of the Total Commitments, the Borrowers shall: (i) obtain an agreement with one or more existing Lenders signatory party hereto to increase its or their Commitment(s) in an total minimum amount of $25,000,000 and in minimum multiple increments in excess thereof of $5,000,000; and/or (ii) provided, if one or more of the existing Lenders elects not to increase its Commitment (or increases its Commitment by an amount less than the Pro Rata Share of the requested increased in the Total Commitments), request any one or more other banking or lending institutions to become parties to this Agreement and agree to issue Commitment(s) such that the total increased amount of the Total Commitment Complies with Section 14.6.1; provided that such one or more other banking or lending institutions are reasonably acceptable to the Administrative Agent and become parties to the Agreement by executing an Increase Request Agreement in the form of Exhibit “D” annexed hereto (the Lenders or other banking institutions that agree to issue such a new or increased Commitment being referred to herein as the “Additional Lenders”). Administrative Agent shall have a period of five (5) days from receipt of written notification from Borrowers of the name of any financial institution that shall have agreed to become an Additional Lender in which to consent or withhold consent to the admission of any one or more proposed Additional Lender(s) (which such consent not to be unreasonably withheld or delayed.

14.6.3.    Additional Documentation.  Borrowers shall executed and deliver to the Administrative Agent such replacement or additional Notes, closing opinions and other loan documents and certificates as may be deemed reasonably necessary or appropriate by the Administrative Agent in connection with the consummation of each Increase Request.

14.6.4.    Legal Fees and Expenses.  Borrowers shall pay to the Administrative Agent the reasonable legal fees and expenses incurred by the Administrative Agent in connection with the consummation of each Increase Request.

14.6.5.    Conditions to Effectiveness of Increase Request.  Notwithstanding the foregoing, no Increase Request under this Section 14.6 will be effective with respect to any Lender or Additional Lender unless:

(a)no Default, Event of Default or Deficiency shall have occurred and be continuing on the date of such Increase Request and after giving effect thereto;

(b)the representations and warranties contained in this Agreement are true and correct in all material respects on and as of the date of such Increase Request and after giving effect thereto, as though made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); 

(c)each Additional Lender shall have executed and delivered to the Administrative Agent the Increase Request Agreement and such other documents as the Administrative Agent shall have reasonably required in order for it to subscribe to the terms and conditions of this Agreement and the other Loan Documents;

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(d)the secretary or assistant secretary of Unit shall have provided to the Administrative Agent a certified copy of directors’ resolutions authorizing such increase in the Total Commitment and the outstanding Loans shall have been reallocated ratably among the Lenders (including the Additional Lenders) after giving effect to such increase;

(e)all legal matters incident to such increase and the admission of any Additional Lenders under this Agreement shall be reasonably satisfactory to the Administrative Agent and its legal counsel; 

(f)the Borrowers shall pay any fees required under Article 2 and this Section 14.6, and for all losses, expenses and liabilities incurred by any Lender in connection with the reallocation of any outstanding Eurodollar Loans; and

(g)Within fifteen (15) days after Unit’s delivery of the Increase Request, Borrowers obtain approval from the Lenders to so increase their Commitment and/or secures Commitment(s) from Additional Lenders for the full amount of the Increase Request, otherwise, the Increase Request shall become effective only to the extent of the increased or new Commitments actually obtained; and

(h)Administrative Agent shall have approved such Increase Request and change in the Total Commitment (in all respects) in Administrative Agent’s sole and absolute discretion.

ARTICLE 15
NOTICES/CONSENTS

15.1    Notices.  Except as otherwise permitted by Section 2.9 with respect to Borrowing Notices and except for other communications expressly permitted to be given in accordance with Section 15.5, all notices, requests and other communications to any party hereunder will be in writing (including facsimile transmission or similar writing) and will be given to such party: (x) in the case of the Borrowers, the Administrative Agent and existing Lenders signatory parties hereto, at its address or facsimile number set forth on the signature pages hereof, (y) in the case of any future or additional Lender, at its address or facsimile number set forth on the Lenders Schedule or the executed Exhibit D pertaining thereto or (z) in the case of any party, at such other address or facsimile number as such party may hereafter specify for the purpose by notice 

to the Administrative Agent and the Borrowers in accordance with the provisions of this Section 15.1. Each such notice, request or other communication will be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid, or (iii) if given by any other means, when delivered at the address specified in this Section; provided that notices to the Administrative Agent under Article 2 will not be effective until received.

15.2    Change of Address.  The Borrowers, the Administrative Agent and any Lender (i) may each change the address for service of notice on it by a notice in writing to the other parties hereto and (ii) will give such a notice if its address will change.

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15.3    Consent to Amendments.  To the extent any Notes are issued under this Agreement, each holder of any of the Notes at the time or thereafter outstanding will be bound by any consent authorized by Section 11.2, whether or not the Notes will have been marked to indicate such consent, but any Notes issued thereafter may bear a notation referring to any such consent.  No course of dealing between the Credit Parties and any holder of any of the Notes nor any delay in exercising any rights hereunder or under the Notes will operate as a waiver of any rights of any holder of any of the Notes.  As used herein and in the Notes, the term “this Agreement” and references thereto will mean this Agreement as it may from time to time be amended, modified or supplemented.

15.4    USA PATRIOT Act Notice.  To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account, including any deposit account, treasury management account, loan, other extension of credit, or other financial services product.  Each Lender that is subject to the requirements of the USA PATRIOT Act, Pub. L. No. 107-56 hereby notifies each Borrower of the following: When a Borrower opens an account, the Lender will ask for the Borrower’s name, address, tax identification number, and other information that will allow the Lender to identify the Borrower.  The Lender will verify and record the information the Lender obtains from the Borrower under the USA PATRIOT Act, and will maintain and retain that record in accordance with the regulations promulgated under the USA PATRIOT Act.

15.5    Electronic Communications.  Notices and other communications to the Lenders and the LC Issuer hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or Intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the LC Issuer pursuant to Article 2 if such Lender or the LC Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise prescribes, (i) notices and other communication sent to an e-mail shall be deem received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgment), provided that 

is such notice or other communication is not sent during normal business hours of the recipient on the next business day for the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an internet or intranet website shall be deemed received by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address thereof.

15.6    Acknowledgment and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 

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(a)     the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

(b)     the effects of any Bail-in Action on any such liability, including, if applicable:

(i)     a reduction in full or in part or cancellation of any such liability;

(ii)     a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

(iii)    the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

ARTICLE 16
COUNTERPARTS

16.1    Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together will constitute one agreement, and any of the parties hereto may execute this Agreement by authenticating any such counterpart.  This Agreement will be effective when it has been executed by the Borrowers, the Administrative Agent, the LC Issuer and the Lenders and each party has notified the Administrative Agent by facsimile transmission or electronic transmission (e-mail) that it has taken such action. All closing documents will be furnished to the Administrative Agent with sufficient counterparts so that the Administrative Agent may furnish one to each of the Lenders.

ARTICLE 17
CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

17.1    Choice of Law.  THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW PROVISION) WILL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF OKLAHOMA, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS AND WILL BE DEEMED TO HAVE BEEN MADE OR INCURRED UNDER THE LAWS OF THE STATE OF OKLAHOMA EXCEPT ONLY WHERE THE APPLICABLE REMEDIAL OR PROCEDURAL LAWS OF OTHER JURISDICTIONS IN WHICH PORTIONS OF THE COLLATERAL ARE SITUATED ARE APPLICABLE THERETO.

17.2    Consent to Jurisdiction.  THE BORROWERS, THE ADMINISTRATIVE AGENT AND LENDERS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR OKLAHOMA STATE COURT SITTING IN TULSA, OKLAHOMA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS 

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AND THE BORROWERS, THE ADMINISTRATIVE AGENT AND LENDERS HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN WILL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWERS IN THE COURTS OF ANY OTHER JURISDICTION.

17.3    No Oral Agreements.  THE LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES AND SUPERSEDE ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF, THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

17.4    Exculpation Provisions.  EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT, THE NOTES AND THE LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS 

OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

17.5    Waiver Of Jury Trial, Punitive Damages, Suretyship Defenses.  THE BORROWERS, THE ADMINISTRATIVE AGENT, THE LC ISSUER AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MANNER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER. EACH BORROWER AND EACH LENDER HEREBY FURTHER (A) IRREVOCABLY WAIVE, TO THE MAXIMUM EXTENT NOT 

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PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY “SPECIAL DAMAGES,” AS DEFINED BELOW, (B) CERTIFY THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (C) ACKNOWLEDGE THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION. AS USED IN THIS SECTION, “SPECIAL DAMAGES” INCLUDES ALL SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE ANY PAYMENTS OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY HERETO.  

EACH BORROWER UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, (A) NOTICE TO SUCH BORROWER (OTHER THAN UNIT) OF THE INCURRENCE OF ANY OBLIGATIONS, (B) NOTICE TO SUCH BORROWER (OTHER THAN UNIT) OF ANY BREACH OR DEFAULT WITH RESPECT TO THE OBLIGATIONS OR ANY OTHER NOTICE TO SUCH BORROWER THAT MAY BE REQUIRED BY STATUTE, RULE OF LAW OR OTHERWISE, TO PRESERVE ANY RIGHTS OF THE ADMINISTRATIVE AGENT OR THE LENDERS AGAINST SUCH BORROWER, (C) ANY REQUIREMENT OF ADMINISTRATIVE AGENT OR LENDERS TO EXERCISE DILIGENCE OR EXHAUSTION OF REMEDIES OR TO MITIGATE DAMAGES RESULTING FROM ANY DEFAULT UNDER THE LOAN DOCUMENTS, OR (D) SUBROGATION TO ANY RIGHTS (CONTRACTUAL, UNDER THE UNITED STATES BANKRUPTCY CODE OR UNDER COMMON LAW) OF ANY LENDER AGAINST ANOTHER BORROWER OR ANY OTHER CIRCUMSTANCE WHATSOEVER WHICH MIGHT OTHERWISE CONSTITUTE A LEGAL OR EQUITABLE DISCHARGE, RELEASE OR DEFENSE OF SUCH BORROWER AS A SURETY OR WHICH MIGHT OTHERWISE LIMIT 

RECOURSE AGAINST SUCH BORROWER.  THE PROVISIONS OF THIS SECTION 17.5 SHALL SURVIVE THE TERM OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE PAYMENT IN FULL OF THE OBLIGATIONS.SIGNATURE PAGES TO FOLLOW

100EX-10.1

 Exhibit 10.1 

Targa Resources Partners LP 

and 
 Targa Resources
Partners Finance Corporation 
 $1,000,000,000 

5.875% Senior Notes Due 2026 

PURCHASE AGREEMENT 

April 5, 2018 
 MERRILL
LYNCH, PIERCE, FENNER & SMITH 

INCORPORATED 
 As
representative of the 
 several Initial Purchasers listed 
 in
Schedule 1 hereto 
 One Bryant Park 
 New York, New York 10036

 Ladies and Gentlemen: 
 Targa Resources
Partners LP, a limited partnership organized under the laws of Delaware (the “Partnership”), along with Targa Resources Partners Finance Corporation, a Delaware corporation (“Finance Co” and, together with the
Partnership, the “Issuers”), hereby confirm their agreement with the several Initial Purchasers listed in Schedule 1 hereto (the “Initial Purchasers”), for whom Merrill Lynch, Pierce, Fenner & Smith
Incorporated is acting as representative (the “Representative”) as set forth below. 
 Targa Resources GP LLC, a Delaware
limited liability company (the “General Partner”), owns a 2% general partnership interest in the Partnership. The Partnership’s direct or indirect majority-owned subsidiaries are listed in Schedule 2 hereto and are
referred to herein as the “Subsidiaries”; and the Subsidiaries listed in Schedule 3 hereto are referred to herein as the “Non-Guarantor Subsidiaries.” 

Section 1. The Securities. Subject to the terms and conditions herein contained, the Issuers propose to issue and
sell to the Initial Purchasers $1,000,000,000 aggregate principal amount of their 5.875% Senior Notes due 2026 (the “Notes”), which will be unconditionally guaranteed on a senior basis as to principal, premium, if any, and interest
(the “Guarantees”) by the Subsidiaries of the Partnership named in Schedule 4 hereto (each individually, a “Guarantor” and collectively, the “Guarantors” and, together with the entities named
in Schedule 5 hereto, the “Material Subsidiaries”). The Guarantors, other than Targa SouthOk 

 
NGL Pipeline LLC, an Oklahoma limited liability company (“SouthOk”), are referred to herein as the “Covered Guarantors,” and the Guarantors, other than the
entities named on Schedule 6 hereto, are referred to herein as the “Non-Excluded Guarantors.” The Notes are to be issued under an indenture (the “Indenture”) to be
dated as of April 12, 2018, by and among the Issuers, the Guarantors and U.S. Bank National Association, as Trustee (the “Trustee”). 

The Notes will be offered and sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the
“Act”), in reliance on exemptions therefrom. 
 In connection with the sale of the Notes, the Issuers have prepared a
preliminary offering memorandum dated April 5, 2018 (including any documents incorporated therein by reference, the “Preliminary Memorandum”) setting forth or including a description of the terms of the Notes, the terms of the
offering of the Notes, a description of the Partnership and any material developments relating to the Partnership after the date of the most recent historical financial statements included therein. As used herein, “Pricing Disclosure
Package” shall mean the Preliminary Memorandum, as supplemented or amended by the written communications listed on Annex A hereto in the most recent form that has been prepared and delivered by the Issuers to the Initial Purchasers
in connection with their solicitation of offers to purchase Notes prior to the time when sales of the Notes were first made (the “Time of Execution”). Promptly after the Time of Execution and in any event no later than the second
Business Day following the Time of Execution, the Issuers will prepare and deliver to each Initial Purchaser a final offering memorandum (including any documents incorporated therein by reference, the “Final Memorandum”), which will
consist of the Preliminary Memorandum with such changes therein as are required to reflect the information contained in the amendments or supplements listed on Annex A hereto. The Issuers hereby confirm that each of the Issuers has authorized
the use of the Pricing Disclosure Package, the Final Memorandum and the Recorded Road Show (defined below) in connection with the offer and sale of the Notes by the Initial Purchasers. 

All references in this Agreement to financial statements and schedules and other information which are “contained,”
“included” or “stated” in the Offering Memorandum (as defined below) (or other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which are
incorporated by reference in the Offering Memorandum; and all references in this Agreement to amendments or supplements to the Offering Memorandum shall be deemed to mean and include the filing of any document under the Securities Exchange Act of
1934 (the “Exchange Act”) which is incorporated by reference in the Offering Memorandum. 
 The Initial Purchasers and
their direct and indirect transferees of the Notes will be entitled to the benefits of a Registration Rights Agreement (the “Registration Rights Agreement”), pursuant to which the Issuers and the Guarantors will agree, among
other things, to file a registration statement (the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”) registering the Notes or the Exchange Notes (as defined in the
Registration Rights Agreement) under the Act, unless (i) the Notes are freely transferable without volume restrictions by holders that are not affiliates of the Issuers in accordance with Rule 144 (or any similar provision then in effect), (ii)
the Notes do not bear a restrictive legend and (iii) the Notes do not bear a restricted CUSIP number as of the 370th day after the Closing Date. 

  
 2 

 Section 2. Representations and Warranties. As of the Time of
Execution and at the Closing Date, the Issuers and the Guarantors jointly and severally represent and warrant to and agree with each of the Initial Purchasers as follows (references in this Section 2 to the “Offering
Memorandum” are to (i) the Pricing Disclosure Package in the case of representations and warranties made as of the Time of Execution and (ii) both the Pricing Disclosure Package and the Final Memorandum in the case of
representations and warranties made at the Closing Date): 
 (a) The Preliminary Memorandum, on the date thereof, did not
contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. At the Time of Execution, the Pricing
Disclosure Package did not, and on the Closing Date, will not, and the Final Memorandum as of its date and on the Closing Date will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Issuers and the Guarantors make no representation or warranty as to the information contained in or omitted
from the Pricing Disclosure Package and Final Memorandum, in reliance upon and in conformity with information furnished in writing to the Partnership by or on behalf of the Initial Purchasers through the Representative specifically for inclusion
therein. The Issuers and the Guarantors have not distributed or referred to and will not distribute or refer to any written communications (as defined in Rule 405 of the Act) that constitute an offer to sell or solicitation of an offer to buy the
Notes (each such communication by the Issuers and the Guarantors or each of their agents and representatives (other than the Pricing Disclosure Package and Final Memorandum), an “Issuer Written Communication”) other than the Pricing
Disclosure Package, the Final Memorandum and the recorded electronic road show made available to investors (the “Recorded Road Show”). Any information in an Issuer Written Communication that is not otherwise included in the Pricing
Disclosure Package and the Final Memorandum does not conflict with the Pricing Disclosure Package or the Final Memorandum and, each Issuer Written Communication, when taken together with the Pricing Disclosure Package does not at the Time of
Execution and when taken together with the Final Memorandum at the Closing Date will not, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. 
 (b) Each of the Partnership, the General Partner and the
Material Subsidiaries has been duly organized or formed and is validly existing as a limited partnership or limited liability company, as applicable, in good standing under the laws of the jurisdiction set forth opposite its name in Schedule
2 attached hereto, with full power and authority to own or lease its properties and to conduct its business, in each case as described in the Offering Memorandum in all material respects. Each of the Partnership, the General Partner and the
Material Subsidiaries is duly registered or qualified to do business as a foreign limited partnership or limited liability company, as applicable, and 

  
 3 

 
is in good standing under the laws of each jurisdiction which requires such registration or qualification, except where the failure to be so registered or qualified would not reasonably be
expected to have a Material Adverse Effect. “Material Adverse Effect” shall mean a material adverse effect on (i) the business or properties, earnings, condition (financial or otherwise) or prospects, taken as a whole, of the
Partnership and its Subsidiaries, considered as one enterprise, whether or not in the ordinary course of business, or (ii) the ability of each Issuer and each Guarantor to perform its obligations under the Notes. 

(c) Finance Co has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State
of Delaware. 
 (d) The General Partner is the sole general partner of the Partnership with an approximate 2.0% general
partner interest in the Partnership, taking into account the general partner interests which will be issued on or before a record date, end of a month or end of a quarter pursuant to Section 5.2(c) of the Partnership Agreement; such general
partner interest has been duly and validly authorized and issued in accordance with the agreement of limited partnership of the Partnership (as the same has been amended or restated, the “Partnership Agreement”); and the General
Partner owns such general partner interest free and clear of all liens, encumbrances, security interests, charges or other claims (“Liens”) other than (i) those created by or arising under the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”) or the Partnership Agreement, (ii) restrictions on transferability and other Liens described in the Offering Memorandum, (iii) those arising under that certain Third Amended and
Restated Credit Agreement, dated October 7, 2016, by and among the Partnership, Bank of America, N.A., as Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Barclays Bank PLC, Citigroup Global Markets Inc., Deutsche Bank AG—New York Branch, RBC Capital Markets, and Wells Fargo Bank, National Association, as Co-Syndication Agents, BBVA Compass, Capital One,
National Association, JPMorgan Chase Bank, N.A., and TD Bank, N.A., as Co-Documentation Agents and the other lenders party thereto (as the same will be supplemented, amended or restated at or prior to the
Closing Date and, together with the agreements, exhibits, and attachments contemplated or included therein, the “Partnership Credit Agreement”), or (iv) those arising under the Credit
Agreement, dated February 27, 2015, by and among Targa Resources Corp., Bank of America, N.A. as administrative agent, collateral agent, swing line lender and letter of credit issuer and each lender from time to time party thereto (the
“TRC Credit Agreement”). 
 (e) All of the issued and outstanding equity interests of each Material
Subsidiary (i) have been duly authorized and validly issued (in accordance with the limited partnership or limited liability company agreement (collectively, the “Organizational Agreements”) or the certificate of limited
partnership, formation or conversion or other similar organizational document (in each case as in effect on the date hereof and as the same has been amended or restated) (collectively with the Organizational Agreements, the “Material
Subsidiary Organizational Documents”), as applicable, of such Material Subsidiary), are fully paid (except in the case of an interest in a limited partnership or limited liability company, to the extent required under the

  
 4 

 
Organizational Documents of such Material Subsidiary) and nonassessable (except as such nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware LP Act, Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act (the “Delaware LLC
Act”) or Sections 153.102, 153.103, 153.202 and 153.210 of the Texas Business Organizations Code (“TBOC”), as applicable), other than equity interests that are not owned, directly or indirectly, by the Partnership, and
(ii) other than Cedar Bayou Fractionators, L.P., a Delaware limited partnership (“CBF”), Targa Pipeline Mid-Continent WestOk LLC, a Delaware limited liability company
(“WestOk”) and Targa Pipeline Mid-Continent WestTex LLC, a Delaware limited liability company (“WestTex”), are owned, directly or indirectly, by the Partnership, free and
clear of all Liens, other than those arising under the Partnership Credit Agreement and the applicable Material Subsidiary Organizational Documents. The Partnership owns, directly or indirectly, (A) an 88.24% interest in CBF, (B) all of
the outstanding Class B Units in WestOk and (C) all of the outstanding Class B Units in WestTex, in each case free and clear of all Liens except those arising under the Partnership Credit Agreement and the applicable Organizational
Documents. The Subsidiaries other than the Material Subsidiaries did not, individually or in the aggregate, account for (x) more than 10% of the total assets of the Subsidiaries, taken as a whole, as of December 31, 2017 or (y) more
than 10% of the net income of the Partnership and the Subsidiaries, taken as a whole, for the year ended December 31, 2017. 

(f) The authorized, issued and outstanding equity interests of the Partnership are as set forth in the Offering Memorandum as
of the dates specified therein. All of the issued equity interests of the Partnership and all of the issued shares of capital stock of Finance Co have been duly authorized and validly issued and are fully paid (to the extent required in the
Partnership Agreement with respect to the Partnership) and nonassessable (except as such nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware
LP Act with respect to the Partnership); and none of the outstanding equity interests of the Partnership and none of the outstanding shares of capital stock of Finance Co were issued in violation of the preemptive or other similar rights of any
security holder of the Partnership or Finance Co, respectively. 
 (g) Except as otherwise disclosed in the Offering
Memorandum and except with respect to the incentive distribution rights held by the General Partner, there are no outstanding (i) securities or obligations of the Partnership convertible into or exchangeable for any equity interests of the
Partnership, (ii) warrants, rights or options to subscribe for or purchase from the Partnership any such equity interests or any such convertible or exchangeable securities or obligations or (iii) obligations of the Partnership to issue
any such equity interests, any such convertible or exchangeable securities or obligations, or any such warrants, rights or options. 

(h) Each of the Issuers and each Guarantor has all requisite corporate, partnership or limited liability company power and
authority to execute, deliver and perform each of its obligations under the Notes, the Exchange Notes and the Private Exchange Notes (as defined in the Registration Rights Agreement). The Notes, the Exchange Notes and the Private Exchange Notes have
each been duly authorized by the Issuers and, when executed by each of the Issuers and authenticated by the Trustee in 

  
 5 

 
accordance with the provisions of the Indenture and, in the case of the Notes, when delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, and, in the
case of any Exchange Notes or Private Exchange Notes, when issued in exchange for the Notes as provided in the Registration Rights Agreement, will constitute valid and legally binding obligations of each of the Issuers, entitled to the benefits of
the Indenture, and enforceable against each of the Issuers in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors’ rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought (collectively, the “Enforceability Exceptions”). The
Guarantees have been duly authorized and, upon the due issuance and delivery of the related Notes and the due endorsement of the notations of Guarantee thereon, will constitute valid and legally binding obligations of each Guarantor, enforceable
against each Guarantor in accordance with their terms, except that the enforcement thereof may be subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 

(i) Each of the Issuers and each Guarantor has all requisite corporate, partnership or limited liability company power and
authority to execute, deliver and perform each of its obligations under the Indenture. The Indenture meets the requirements for qualification under the Trust Indenture Act of 1939, as amended (the “TIA”). The Indenture has been duly
authorized by each of the Issuers and Guarantors and, when executed and delivered by each of the Issuers and each Guarantor (assuming the due authorization, execution and delivery by the Trustee), will constitute a valid and legally binding
agreement of each of the Issuers and each Guarantor, enforceable against each of the Issuers and each Guarantor in accordance with its terms, except that the enforcement thereof may be subject to the Enforceability Exceptions. 

(j) Each of the Issuers and each Guarantor has all requisite corporate, partnership or limited liability company power and
authority to execute, deliver and perform each of its obligations under the Registration Rights Agreement. The Registration Rights Agreement has been duly authorized by the Issuers and the Guarantors and, when executed and delivered by each of the
Issuers and each Guarantor (assuming the due authorization, execution and delivery by the Initial Purchasers), will constitute a valid and legally binding agreement of each of the Issuers and each Guarantor, enforceable against each of the Issuers
and each Guarantor in accordance with its terms, except that (A) the enforcement thereof may be subject to the Enforceability Exceptions and (B) any rights to indemnity or contribution thereunder may be limited by federal and state
securities laws and public policy considerations. 
 (k) Each of the Issuers and each Guarantor has all requisite corporate,
partnership or limited liability company power and authority to execute, deliver and perform each of its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and the consummation by each of the
Issuers and each Guarantor of the transactions contemplated hereby have been duly authorized by each of the Issuers and each Guarantor. This Agreement has been duly executed and delivered by each of the Issuers and each Guarantor. 

  
 6 

 (l) No permit, consent, approval, authorization, order, registration, filing or
qualification (“Permits”) of or with any court or governmental agency or body having jurisdiction over any of the Issuers or any Material Subsidiary or any of their respective properties or assets is required in connection with the
issuance and sale by the Issuers of the Notes to the Initial Purchasers or the consummation by the Issuers of the other transactions contemplated hereby, except (i) such Permits as may be required under the Act, the Exchange Act and state
securities or “Blue Sky” laws of any jurisdiction, (ii) such Permits as have been obtained or will be obtained prior to the Closing Date, (iii) such Permits that, if not obtained, could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect and (iv) such Permits as are disclosed in the Offering Memorandum. 

(m) Neither of the Issuers nor any Material Subsidiary is in (i) violation of its Organizational Documents,
(ii) violation of any statute, law, rule or regulation, or any judgment, order, injunction or decree of any court, governmental agency or body or arbitrator having jurisdiction over any of the Issuers or Material Subsidiaries or any of their
respective properties or assets or (iii) breach, default (or an event which, with notice or lapse of time or both, would constitute such an event) or violation in the performance of any obligation, agreement or condition contained in any
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by which it or any of its properties may be bound, which in the case of either clause (ii) or (iii) would, if continued, have a
Material Adverse Effect. 
 (n) None of (i) the execution, delivery and performance by either of the Issuers or any
Guarantor of this Agreement, the Indenture and the Registration Rights Agreement or (ii) the consummation by either of the Issuers or any Guarantor of the transactions contemplated hereby (including, without limitation, the issuance and sale of
the Notes to the Initial Purchasers) (A) constitutes or will constitute a violation of the Organizational Documents of either of the Issuers or any Guarantor, (B) conflicts or will conflict with or constitutes or will constitute a breach
or violation of, or a default (or an event that, with notice or lapse of time or both, would constitute such a default) under any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which either of the
Issuers or any Guarantor is a party or by which any of them or any of their respective properties may be bound, or (C) (assuming compliance with all applicable state securities or “Blue Sky” laws and assuming the accuracy of the
representations and warranties of the Initial Purchasers in Section 8 hereof) violates or will violate any statute, judgment, decree, order, rule or regulation applicable to either of the Issuers or any Guarantor or any of their respective
properties or assets, except, with respect to clauses (B) and (C) only, for any such breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect or materially impair the ability of the Issuers or the
Guarantors, as applicable, to consummate the transactions contemplated by this Agreement. 
 (o) The Partnership Agreement
has been duly authorized, executed and delivered by the General Partner, and is a valid and legally binding agreement of the General Partner, enforceable against the General Partner in accordance with its terms; provided, that, with respect
to the Partnership Agreement, the enforceability thereof may be limited by the Enforceability Exceptions; provided, further, that the indemnity, contribution and exoneration provisions contained in any of such agreements may be limited
by applicable laws and public policy. 

  
 7 

 (p) The Organizational Agreements of the Material Subsidiaries, as applicable,
have been duly authorized, executed and delivered by the parties thereto, and are valid and legally binding agreements of such parties, enforceable against such parties in accordance with their terms; provided, that, with respect to such
agreements, the enforceability thereof may be limited by the Enforceability Exceptions; provided, further, that the indemnity, contribution and exoneration provisions contained in any of such agreements may be limited by applicable laws and
public policy. 
 (q) The historical consolidated financial statements of the Partnership and its Subsidiaries included in
the Offering Memorandum present fairly in all material respects the financial position, results of operations and cash flows of the Partnership and its consolidated Subsidiaries purported to be shown thereby on the basis stated therein at the
respective dates or for the respective periods to which they apply, and have been prepared in accordance with generally accepted accounting principles consistently applied throughout the periods involved, except to the extent disclosed therein. The
summary and selected financial, statistical and operating information in the Offering Memorandum is accurately presented in all material respects and prepared on a basis consistent with the audited and unaudited historical consolidated financial
statements, as applicable, from which it has been derived. PricewaterhouseCoopers LLP (the “Independent Accountants”), which has certified certain financial statements of the Partnership and its Subsidiaries and delivered its report
with respect to the audited consolidated financial statements incorporated by reference in the Offering Memorandum, is an independent public accounting firm within the meaning of the Act and the rules and regulations promulgated thereunder. The
interactive data in eXtensbile Business Reporting Language included or incorporated by reference in the Pricing Disclosure Package and the Final Memorandum fairly presents the information called for in all material respects and has been prepared in
accordance with the Commission’s rules and guidelines applicable thereto in all material respects. 
 (r) Except as set
forth or contemplated in the Offering Memorandum, there is (i) no action, suit or proceeding before or by any court, arbitrator or governmental agency, body or official, domestic or foreign, now pending or, to the knowledge of the Partnership,
threatened, to which any of the Issuers or Material Subsidiaries is or may be a party or to which the business or property of any of the Issuers or Material Subsidiaries is or may be subject, (ii) to the knowledge of the Partnership, no
statute, rule, regulation or order that has been enacted, adopted or issued by any governmental agency and (iii) no injunction, restraining order or order of any nature issued by a federal or state court or foreign court of competent
jurisdiction to which any of the Issuers or Material Subsidiaries is or may be subject, that, in the case of clauses (i), (ii) and (iii) above, is reasonably expected to (A) individually or in the aggregate have a Material Adverse Effect,
(B) prevent the consummation of the issuance or sale of the Notes to be sold hereunder, or (C) draw into question the validity of this Agreement. 

  
 8 

 (s) Each of the Issuers and the Material Subsidiaries possesses such permits,
licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary to conduct their respective
businesses, except where the failure so to possess would not, individually or in the aggregate, result in a Material Adverse Effect; each of the Issuers and each Material Subsidiary is in compliance with the terms and conditions of all such
Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate, result in a Material Adverse Effect; all of the Governmental Licenses are valid and in full force and effect, except when the invalidity of
such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, individually or in the aggregate, result in a Material Adverse Effect; and except as described in the Offering Memorandum, neither of
the Issuers and no Material Subsidiary has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would result in a Material Adverse Effect. 
 (t) Since the date of the most recent financial statements appearing
in the Offering Memorandum and except as set forth or contemplated in the Offering Memorandum, (i) none of the Issuers or the Material Subsidiaries has incurred any liabilities or obligations, direct or contingent, or entered into or agreed to
enter into any transactions or contracts (written or oral) not in the ordinary course of business, which liabilities, obligations, transactions or contracts would, individually or in the aggregate, be material to the general affairs, management,
business, condition (financial or otherwise), prospects or results of operations of the Partnership and its Subsidiaries, taken as a whole and (ii) the Partnership has not purchased any of its outstanding equity interests, nor declared, paid or
otherwise made any distribution of any kind on its equity interests (other than (A) the Partnership’s quarterly or monthly distributions on its common units and the Partnership’s monthly distributions on its Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Units, (B) with respect to any of the Subsidiaries, the purchase of, or dividend or distribution on, capital stock
or equity interests owned by the Partnership and (C) distribution equivalent rights on any of the Partnership’s equity-based awards). 

(u) Except as set forth or contemplated in the Offering Memorandum, each of the Issuers and the Material Subsidiaries has filed
all foreign, federal, state and local tax returns that are required to be filed or has requested extensions thereof, except in any case in which the failure so to file, individually or in the aggregate, would not have a Material Adverse Effect, and
has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that is currently being
contested in good faith or as, individually or in the aggregate, would not have a Material Adverse Effect. 

  
 9 

 (v) Immediately after the consummation of the transactions contemplated by this
Agreement, the fair value and present fair saleable value of the assets of each of the Issuers and the Material Subsidiaries (each on a consolidated basis) will exceed the sum of its stated liabilities and identified contingent liabilities. Each of
the Issuers and the Guarantors is not now nor, after giving effect to the issuance of the Notes and the execution, delivery and performance of this Agreement, the Registration Rights Agreement and the Indenture and the consummation of the
transactions contemplated thereby or described in the Offering Memorandum, will be (i) insolvent, (ii) left with unreasonably small capital with which to engage in its anticipated business or (iii) incurring debts or other obligations
beyond its ability to pay such debts or obligations as they become due. 
 (w) Any statistical and market-related data
included in the Offering Memorandum are based on or derived from sources that each of the Issuers and the Guarantors believe to be reliable and accurate, and the Issuers have obtained the written consent to the use of such data from such sources to
the extent required. 
 (x) Each of the Issuers and the Material Subsidiaries has good and marketable title to all real
property and good title to all personal property described in the Offering Memorandum as being owned by it free and clear of all Liens, except (i) as described, and subject to limitations contained, in the Offering Memorandum, (ii) Liens
that arise under the Partnership Credit Agreement or the TRC Credit Agreement or (iii) to the extent the failure to have such title or the existence of such Liens would not, individually or in the aggregate, have a Material Adverse Effect;
provided that, with respect to any real property and buildings held under lease by the Partnership and the Material Subsidiaries, such real property and buildings are held under valid and subsisting and enforceable leases with such exceptions
as do not materially interfere with the use of the properties of the Partnership and the Material Subsidiaries taken as a whole as they have been used in the past as described in the Offering Memorandum and are proposed to be used in the future as
described in the Offering Memorandum, except to the extent the failure to hold such valid and subsisting and enforceable leases would not, individually or in the aggregate, have a Material Adverse Effect. 

(y) The Partnership and the Material Subsidiaries have such easements or rights-of-way (collectively, “rights-of-way”) as are necessary to conduct their business in the manner
described, and subject to the limitations contained, in the Offering Memorandum, except for (i) qualifications, reservations and encumbrances that would not have, individually or in the aggregate, a Material Adverse Effect, (ii) such rights-of-way that, if not obtained, would not have, individually or in the aggregate, a Material Adverse Effect and (iii) rights-of-way held by affiliates of the Partnership as nominee for the benefit of the Partnership and the Material Subsidiaries. 

(z) Except for such exceptions that would not reasonably be expected to result in a Material Adverse Effect, (i) each of
the Issuers and each Material Subsidiary owns or possesses, or can acquire or use on reasonable terms, adequate patents, patents rights, licenses, inventions, copyrights, know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary to carry
out their respective businesses now or proposed to be operated by them as described in the Offering Memorandum, and (ii) each 

  
 10 

 
of the Issuers and each Material Subsidiary has not received any notice and is not otherwise aware of any infringement of or conflict with asserted rights of others with respect to any
Intellectual Property or of any facts or circumstances that would render any Intellectual Property invalid or inadequate to protect any of its interest therein. 

(aa) There are no legal or governmental proceedings pending or, to the knowledge of the Partnership, threatened or
contemplated, against either of the Issuers or the Material Subsidiaries or any of their respective properties or assets that would be required to be described in a prospectus pursuant to the Act that are not described in the Offering Memorandum,
nor are there any agreements, contracts, indentures, leases or other instruments that would be required to be described in a prospectus pursuant to the Act that are not described in the Offering Memorandum. Except as set forth or contemplated in the
Offering Memorandum, to the knowledge of the Partnership, no legal or governmental proceedings are pending or threatened to which either of the Issuers or any of the Material Subsidiaries is a party or to which the property or assets of the Issuers
or any Material Subsidiary is subject that, if determined adversely to the Issuers or the Material Subsidiaries, could be reasonably expected to result, individually or in the aggregate, in a Material Adverse Effect. 

(bb) The Partnership is in compliance in all material respects with all applicable provisions of the Sarbanes Oxley Act of 2002
and the rules and regulations promulgated in connection therewith (the “Sarbanes Oxley Act”). 
 (cc) Except
as disclosed in the Offering Memorandum and as would not, individually or in the aggregate, result in a Material Adverse Effect: (i) the Partnership and the Material Subsidiaries are and, during the relevant time periods specified in all
applicable statutes of limitation, have been in compliance with applicable Environmental Laws (as defined below); (ii) the Partnership and the Material Subsidiaries have obtained and are in compliance with all Environmental Permits (as defined
below) required of them under applicable Environmental Laws to conduct the Partnership’s business as presently conducted; (iii) none of the Partnership or the Material Subsidiaries has received any written notice of an action, suit,
demand, claim, hearing, notice of violation or investigation, or proceeding, which matter remains unresolved and alleges liability of the Partnership or any Material Subsidiary under, or violation by the Partnership or any Material Subsidiary of,
any Environmental Law, and to the knowledge of the Partnership, no facts, circumstances or conditions exist that would reasonably be expected to result in the receipt of such notice; and (iv) to the knowledge of the Partnership, there are no
releases of Hazardous Materials (as defined below) that would reasonably be expected to give rise to liabilities or obligations under any Environmental Law. 

For purposes of this Agreement: (i) “Environmental Law” means all federal, state and local laws, rules (including but not
limited to rules of common law), regulations, ordinances, orders, decrees and other legally-enforceable requirements of any governmental entity relating to pollution, protection of human health (to the extent relating to exposure to Hazardous
Materials) or the Environment, including those relating to the generation, storage, treatment, disposal, transport or release of Hazardous Materials; (ii) “Hazardous Materials” means any pollutant or contaminant, chemical,

  
 11 

 
material, waste or substance in any form regulated under any applicable Environmental Law including, but not limited to any: (A) “hazardous substance” as defined in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended; (B) “hazardous waste” as defined in the Resource Conservation and Recovery Act, as amended; (C) petroleum or petroleum product, natural
gas, natural gas liquids, or crude oil or any fraction thereof; (D) polychlorinated biphenyls; and (E) naturally occurring radioactive materials; (iii) “Environmental Permits” means any permit, authorization, license,
variance, and approvals required under applicable Environmental Law; and (iv) “Environment” means ambient air, indoor air, surface water, groundwater, drinking water, land surface and subsurface strata, and natural resources such as
wetlands, flora and fauna. 
 (dd) There is no strike, labor dispute, slowdown or work stoppage with the employees of the
Issuers or the Material Subsidiaries that is pending or, to the knowledge of the Partnership, threatened that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 

(ee) Except as disclosed in the Offering Memorandum, no proceedings for the merger, consolidation, liquidation or dissolution
of either of the Issuers or the Material Subsidiaries or the sale of all or a material part of the assets of either of the Issuers or the Material Subsidiaries or any material acquisition by either of the Issuers or any Material Subsidiary are
pending that would be required by the Act to be disclosed in a prospectus included in a Registration Statement on Form S-1 under the Act. 

(ff) (i) The Issuers and the Material Subsidiaries have not sustained, since the date of the latest audited financial
statements included in the Offering Memorandum (exclusive of any amendment or supplement thereto), any material loss or interference with its business or properties from fire, explosion, flood, accident or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree (whether domestic or foreign) otherwise than as set forth in the Offering Memorandum (exclusive of any amendment or supplement thereto) and (ii) since such
date, there has not occurred any change or development, in each case, that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 

(gg) Each of the Issuers and the Material Subsidiaries carries or is entitled to the benefits of insurance relating to their
assets, with financially sound and reputable insurers, in such amounts and covering such risks as is commercially reasonable, and all such insurance is in full force and effect. Each of the Issuers and the Material Subsidiaries has no reason to
believe that it will not be able (i) to renew their existing insurance coverage relating to their respective assets as and when such policies expire or (ii) to obtain comparable coverage relating to their respective assets from similar
institutions as may be necessary or appropriate to conduct such business as now conducted and at a cost that would not reasonably be expected to have a Material Adverse Effect. 

  
 12 

 (hh) Except (i) as disclosed in the Offering Memorandum and (ii) in
regard to regulation by the Federal Energy Regulation Commission, neither of the Issuers nor any Material Subsidiary is subject to rate regulation under federal law. 

(ii) Except as would not, individually or in the aggregate, have a Material Adverse Effect, each of the Issuers and each
Material Subsidiary is in compliance with its obligations under all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder
(“ERISA”); with respect to each “plan” (as defined in Section 3(3) of ERISA) in which any current or former employees of the Partnership or of any trade or business that, together with the Partnership, is or has been
treated, within the six years preceding such date, as a single employer under Section 4001(b)(1) of ERISA or Section 414 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder
(the “Code”), are or have been eligible to participate, no “reportable event” (as defined in ERISA) has occurred with respect to any such plan that is a “pension plan” (as defined in ERISA, hereinafter, a
“Pension Plan”) for which any of the Issuers or a Material Subsidiary would have any liability, excluding any reportable event for which a waiver could apply; none of the Issuers or Material Subsidiaries expects to incur liability
under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any Pension Plan or (ii) Sections 430 or 4971 of the Code with respect to any Pension Plan. 

(jj) Except as disclosed in the Offering Memorandum, the Partnership and the Material Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the Offering Memorandum, the
Partnership’s and the Material Subsidiaries’ internal controls over financial reporting are effective and none of the Partnership and the Material Subsidiaries is aware of any material weakness in their internal control over financial
reporting. 
 (kk) Except as disclosed in the Offering Memorandum (i) the Partnership has established and maintains
disclosure controls and procedures (to the extent required by and as such term is defined in Rule 13a-15 under the Exchange Act), (ii) such disclosure controls and procedures are designed to ensure that the
information required to be disclosed by the Partnership in the reports filed or to be filed or submitted under the Exchange Act, as applicable, is accumulated and communicated to management of the General Partner, including its principal executive
officers and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure to be made and (iii) such disclosure controls and procedures are effective in all material respects to perform the functions for
which they were established to the extent required by Rule 13a-15 of the Exchange Act. 

  
 13 

 (ll) Neither of the Issuers nor any Guarantor is an “investment
company” or “promoter” or “principal underwriter” for an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”), and the
rules and regulations thereunder. 
 (mm) The descriptions of the Notes, the Indenture and the Registration Rights Agreement
contained in the Offering Memorandum are accurate in all material respects. 
 (nn) No holder of securities of either of the
Issuers or the Material Subsidiaries will be entitled to have such securities registered under the registration statements that may be required to be filed by the Issuers pursuant to the Registration Rights Agreement other than as expressly
permitted thereby. 
 (oo) None of the Issuers, any Material Subsidiary or, to the knowledge of the Issuers, any of their
respective Affiliates (as defined in Rule 501(b) of Regulation D under the Act) 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 Act) that is or could be integrated with the sale of the Notes in a manner that would require the registration under the Act of the Notes or (ii) engaged in any form of general solicitation or general advertising (as those terms
are used in Regulation D under the Act) in connection with the offering of the Notes or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Act. Assuming the accuracy of the representations and warranties of
the Initial Purchasers in Section 8 hereof, it is not necessary in connection with the offer, sale and delivery of the Notes to the Initial Purchasers or the endorsement of the Guarantees by the Guarantors in the manner contemplated by this
Agreement to register any of the Notes under the Act or to qualify the Indenture under the TIA. 
 (pp) No securities of
either of the Issuers or the Guarantors are of the same class (within the meaning of Rule 144A under the Act) as the Notes 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. 
 (qq) None of the Issuers or the Material Subsidiaries has taken, nor will any of
them take, directly or indirectly, any action designed to, or that would constitute or that might be reasonably expected to result in, stabilization or manipulation of the price of the Notes. 

(rr) None of the Issuers, the Material Subsidiaries or, to the knowledge of the Issuers, any of their respective Affiliates or
any person acting on its or their behalf (other than the Initial Purchasers) has engaged in any directed selling efforts (as that term is defined in Regulation S under the Act (“Regulation S”)) with respect to the Notes; the
Issuers, the Material Subsidiaries and, to the knowledge of the Issuers, their respective Affiliates and any person acting on its or their behalf (other than the Initial Purchasers) have complied with the offering restrictions requirement of
Regulation S. 

  
 14 

 (ss) There are no stamp or other issuance or transfer taxes or duties or other
similar fees or charges required to be paid in the United States in connection with the execution and delivery of this Agreement or the issuance or sale by the Issuers of the Notes. 

(tt) None of the Issuers, the Subsidiaries or, to the knowledge of the Issuers, any director, officer, agent, employee or
Affiliate of the Issuers or any of the Subsidiaries (in their capacity as directors, officers, agents or employees) is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an
offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or
any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA; and the Issuers, the Subsidiaries and, to the knowledge of the Issuers, their affiliates have conducted their businesses in
compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. 

(uu) The operations of the Issuers and the Subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the USA PATRIOT Act, the rules and regulations thereunder, and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Issuers or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Issuers, threatened. 

(vv) No Material Subsidiary is currently prohibited, directly or indirectly, from paying any distributions to the Partnership,
from making any other distribution on such Material Subsidiary’s equity interests, from repaying to the Partnership any loans or advances to such Material Subsidiary from the Partnership or from transferring any of such Material
Subsidiary’s property or assets to the Partnership or any other Subsidiary of the Partnership, except (i) as described in or contemplated by the Offering Memorandum, (ii) arising under the Partnership Credit Agreement, (iii) such
prohibitions mandated by the laws of each such Material Subsidiary’s state of formation or the terms of any such Material Subsidiary’s governing instruments or (iv) where such prohibition would not reasonably be expected to have a
Material Adverse Effect. 
 (ww) None of the Issuers, the Subsidiaries or, to the knowledge of the Issuers, any director,
officer, agent, employee or Affiliate of the Issuers or any of the Subsidiaries (in their capacity as directors, officers, agents or employees) is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. 

  
 15 

 
Department of the Treasury (“OFAC”) nor is either Issuer or the Subsidiaries located, organized or resident in a country or territory that is the subject or target of U.S.
sanctions; and the Issuers will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of
financing or facilitating the activities of any person currently subject to any U.S. sanctions administered by OFAC or in any sanctioned country. 

Any certificate signed by any officer of the Issuers or the Guarantors and delivered to any Initial Purchaser or to counsel
for the Initial Purchasers in connection with the offering of the Notes shall be deemed a representation and warranty by each of the Issuers or each Guarantor to the Initial Purchasers as to the matters covered thereby. 

Section 3. Purchase, Sale and Delivery of the Notes. On the basis of the representations, warranties, agreements
and covenants herein contained and subject to the terms and conditions herein set forth, the Issuers agree to issue and sell to the Initial Purchasers, and the Initial Purchasers, acting severally and not jointly, agree to purchase the Notes in the
respective amounts set forth on Schedule 1 hereto from the Issuers at 99.250% of their principal amount. One or more certificates in global form for the Notes that the Initial Purchasers have agreed to purchase hereunder, each in such
principal amount as the Initial Purchasers request upon notice to the Issuers at least 36 hours prior to the Closing Date, shall be delivered by or on behalf of the Issuers to the Trustee, as custodian for The Depository Trust Company
(“DTC”), and the Notes in book-entry form shall be delivered to the Initial Purchasers through the facilities of DTC, against payment by or on behalf of the Initial Purchasers of the purchase price therefor by wire transfer (same
day funds), to such account or accounts as the Partnership shall specify prior to the Closing Date, or by such means as the parties hereto shall agree prior to the Closing Date. Such delivery of the certificates and payment for the Notes shall be
made at the offices of Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas at 9:00 A.M. Houston time, on April 12, 2018, or at such other place, time or date as the Initial Purchasers, on the one hand, and the
Issuers, on the other hand, may agree upon, such time and date of delivery against payment being herein referred to as the “Closing Date.” 

Section 4. Offering by the Initial Purchasers. The Initial Purchasers propose to make an offering of the Notes at
the price and upon the terms set forth in the Pricing Disclosure Package and the Final Memorandum as soon as practicable after this Agreement is entered into and as in the judgment of the Initial Purchasers is advisable. 

Section 5. Covenants of the Issuers and the Guarantors. Each Issuer and each Guarantor covenants and agrees with
each of the Initial Purchasers as follows: 
 (a) Until the later of (i) the completion of the distribution of the Notes
by the Initial Purchasers and (ii) the Closing Date, the Issuers will not amend or supplement the Pricing Disclosure Package or the Final Memorandum or otherwise distribute or refer to any Issuer Written Communication (other than the Recorded
Road Show) unless the Initial Purchasers shall previously have been advised and furnished a copy for a reasonable period of time prior to the proposed amendment or supplement. The Issuers will promptly, upon the reasonable request of the Initial
Purchasers or counsel for the Initial Purchasers, make any amendments or supplements to the Pricing Disclosure Package and the Final Memorandum that may be necessary or advisable in connection with the resale of the Notes by the Initial Purchasers.

  
 16 

 (b) The Issuers will cooperate with the Initial Purchasers in arranging for the
qualification of the Notes for offering and sale under the securities or “Blue Sky” laws of such jurisdictions as the Initial Purchasers may designate and will continue such qualifications in effect for as long as may be necessary to
complete the resale of the Notes; provided, however, that in connection therewith, the Issuers shall not be required to qualify as a foreign limited partnership or corporation or to execute a general consent to service of process in
any jurisdiction or subject itself to taxation in any such jurisdiction where it is not then so subject. 
 (c) (1) If, at
any time prior to the completion of the sale by the Initial Purchasers of the Notes, any event occurs or information becomes known as a result of which the Final Memorandum as then amended or supplemented would include 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, or if for any other reason it is necessary at any time to amend or supplement the
Final Memorandum to comply with applicable law, the Issuers will promptly notify the Initial Purchasers thereof and will prepare, at the expense of the Partnership, an amendment or supplement to the Final Memorandum that corrects such statement or
omission or effects such compliance and (2) if at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which any of the Pricing Disclosure Package as then amended or supplemented would
include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or any Issuer Written Communication
would conflict with the Pricing Disclosure Package as then amended or supplemented, or (ii) it is necessary to amend or supplement any of the Pricing Disclosure Package so that any of the Pricing Disclosure Package or any Issuer Written
Communication will comply with law, the Issuers will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (a) above, furnish to the Initial Purchasers such amendments or supplements to any of the
Pricing Disclosure Package or any Issuer Written Communication (it being understood that any such amendments or supplements may take the form of an amended or supplemented Final Memorandum) as may be necessary so that the statements in any of the
Pricing Disclosure Package as so amended or supplemented will not, in light of the circumstances under which they were made, be misleading or so that any Issuer Written Communication will not conflict with the Pricing Disclosure Package or so that
the Pricing Disclosure Package or any Issuer Written Communication as so amended or supplemented will comply with law. 
 (d)
The Issuers will, without charge, provide to the Initial Purchasers and to counsel for the Initial Purchasers as many copies of the Pricing Disclosure Package, any Issuer Written Communication and the Final Memorandum or any amendment or supplement
thereto as the Initial Purchasers may reasonably request. 

  
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 (e) The Partnership will apply the net proceeds from the sale of the Notes as set
forth under “Use of Proceeds” in the Pricing Disclosure Package and the Final Memorandum. 
 (f) Prior to the
Closing Date, the Issuers will furnish to the Initial Purchasers, as soon as they have been prepared, a copy of any unaudited interim financial statements of the Issuers for any period subsequent to the period covered by the most recent financial
statements appearing in the Pricing Disclosure Package and the Final Memorandum; provided, however, that the Issuers do not need to furnish such financial statements to the Initial Purchasers if they are available on the Commission’s website.

 (g) None of the Issuers or any of its affiliates that it controls will, and the Issuers will use their commercially
reasonable efforts to cause their other affiliates not to, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the Act) that could be integrated with the sale of the Notes in a
manner which would require the registration under the Act of the Notes. 
 (h) The Issuers will not, and will not permit any
of their subsidiaries or their respective affiliates that they control or persons acting on their behalf to, and the Issuers will use their commercially reasonable efforts to cause their other affiliates not to, engage in any form of general
solicitation or general advertising (as those terms are used in Regulation D under the Act) in connection with the offering of the Notes or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Act. 

(i) For so long as any of the Notes remain outstanding, the Issuers or Targa Resources Corp. will make available at their
expense, upon request, to any holder of such Notes and any prospective purchasers thereof the information specified in Rule 144A(d)(4) under the Act, unless either of the Issuers or Targa Resources Corp. is then subject to Section 13 or
15(d) of the Exchange Act. 
 (j) The Issuers will use their commercially reasonable efforts to permit the Notes to be
eligible for clearance and settlement through DTC. 
 (k) During the period beginning on the date hereof and continuing to
the date that is 45 days after the Closing Date, without the prior written consent of the Representative, the Issuers will not offer, sell, contract to sell or otherwise dispose of, except as provided hereunder, any securities of the Issuers (or
guaranteed by the Issuers) that are substantially similar to the Notes (except for the Notes which would be issuable pursuant to the exchange offer described in the Preliminary Memorandum and the Final Memorandum). 

(l) In connection with Notes offered and sold in an offshore transaction (as defined in Regulation S) the Issuers will not
register any transfer of such Notes not made in accordance with the provisions of Regulation S and will not, except in accordance with the provisions of Regulation S, if applicable, issue any such Notes in the form of definitive securities. 

  
 18 

 (m) None of the Issuers or any of their affiliates that they control will engage
in any directed selling efforts (as that term is defined in Regulation S) with respect to the Notes. 
 (n) For a period of
one year (calculated in accordance with paragraph (d) of Rule 144 under the Act) following the date any Notes are acquired by either of the Issuers or any of their affiliates, if the Notes are Registrable Securities (as defined in the
Registration Rights Agreement), neither of the Issuers nor any of their respective affiliates that they control will sell any such Notes. 

(o) For so long as any Notes are outstanding, the Issuers and the Guarantors will conduct their operations in a manner that
will not subject the Issuers or any Guarantor to registration as an investment company under the Investment Company Act. 

(p) Each Note will bear a legend substantially to the following effect until such legend shall no longer be necessary or
advisable because the Notes are no longer subject to the restrictions on transfer described therein: 
 “THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY
ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”)), (2) AGREES THAT IT WILL
NOT WITHIN [IN THE CASE OF NOTES SOLD IN RELIANCE ON RULE 144A: ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH AN ISSUER OR ANY AFFILIATE OF AN ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY)] [IN THE CASE OF NOTES SOLD IN RELIANCE ON REGULATION S: 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE DATE ON WHICH THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN
DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S)] (THE “RESALE RESTRICTION TERMINATION DATE”) RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO AN ISSUER OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE 

  
 19 

 
RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY PRIOR TO THE RESALE RESTRICTION TERMINATION DATE, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE TRUSTEE AND THE ISSUERS SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS ANY OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION, NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AS USED HEREIN. THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
ACT. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER OR AN ISSUER ON OR AFTER THE RESALE RESTRICTION TERMINATION DATE.” 

Section 6. Expenses. The Partnership agrees to pay all costs and expenses incident to the performance of the
Issuers’ and Guarantors’ obligations under this Agreement, whether or not the transactions contemplated herein are consummated or this Agreement is terminated pursuant to Section 11 hereof, including all costs and expenses incident to
(i) the printing, word processing or other production of documents with respect to the transactions contemplated hereby, including any costs of printing the Pricing Disclosure Package and the Final Memorandum and any amendment or supplement
thereto, and any “Blue Sky” memoranda, (ii) all arrangements relating to the delivery to the Initial Purchasers of copies of the foregoing documents, (iii) the fees and disbursements of the counsel, the accountants and any other
experts or advisors retained by the Issuers, (iv) preparation (including printing), issuance and delivery to the Initial Purchasers of the Notes, (v) the qualification of the Notes under state securities and “Blue Sky” laws,
including filing fees and fees and disbursements of counsel for the Initial Purchasers relating thereto, (vi) one half of the expenses in connection with the “roadshow” and any other meetings with prospective investors in the Notes,
(vii) fees and expenses of the Trustee including fees and expenses of counsel, and (viii) any fees charged by investment rating agencies for the rating of the Notes. If the sale of the Notes provided for herein is not consummated because
any condition to the obligations of the Initial Purchasers set forth in Section 7 hereof is not satisfied, because this Agreement is terminated pursuant to Sections 11(a)(i), (ii) or (vi) or because of any failure, refusal or inability on
the part of the Issuers to perform all obligations and satisfy all conditions on their part to be performed or satisfied hereunder (other than solely by 

  
 20 

 
reason of a default by the Initial Purchasers of their obligations hereunder after all conditions hereunder have been satisfied in accordance herewith), the Issuers agree to promptly reimburse
the Initial Purchasers upon demand for all out-of-pocket expenses (including reasonable fees, disbursements and charges of Gibson, Dunn & Crutcher LLP, counsel
for the Initial Purchasers) that shall have been incurred by the Initial Purchasers in connection with the proposed purchase and sale of the Notes. 

Section 7. Conditions of the Initial Purchasers’ Obligations. The obligation of the Initial Purchasers to
purchase and pay for the Notes shall, in their sole discretion, be subject to the satisfaction or waiver of the following conditions on or prior to the Closing Date: 

(a) On the Closing Date, the Initial Purchasers shall have received the opinion, dated as of the Closing Date and addressed to
the Initial Purchasers, of Vinson & Elkins L.L.P., counsel for the Issuers, in form and substance satisfactory to counsel for the Initial Purchasers, to the effect that: 

(i) Each of the Issuers and the Non-Excluded Guarantors has been duly incorporated or
formed, as the case may be, under the laws of its jurisdiction of incorporation or formation, as the case may be. 
 (ii)
Each of the Issuers and the Covered Guarantors is validly existing as a limited partnership, limited liability company or corporation, as applicable, and is in good standing under the laws of its jurisdiction of formation or incorporation, as
applicable, and has all requisite limited partnership, limited liability company or corporate power and authority necessary to own or lease its properties and to conduct its business, in each case as described in the Pricing Disclosure Package and
the Final Memorandum in all material respects. 
 (iii) The Partnership has the authorized, issued and outstanding
capitalization set forth in the Pricing Disclosure Package and the Final Memorandum as of the dates specified therein; all of the issued and outstanding equity interests (other than general partner interests) of each of the Issuers and the Non-Excluded Guarantors have been duly authorized and validly issued (in accordance with the Organizational Documents of each such entity), are fully paid (in the case of an interest in a limited partnership or
limited liability company, to the extent required under the Organizational Documents of such entity) and nonassessable (except as such nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware LP Act, Sections 18-607 and 18-804 of the Delaware LLC Act or Sections 153.102, 153.103, 153.202 and 153.210 of
the TBOC, as applicable) and, to the knowledge of such counsel, were not issued in violation of any preemptive or similar right; all of the issued and outstanding equity interests of Finance Co and each
Non-Excluded Guarantor are owned, directly or indirectly, by the Partnership, free and clear of all Liens (other than (i) those created by or arising under the Delaware General Corporation Law, the
Delaware LLC Act or the Delaware LP Act, as the case may be; (ii) restrictions on transferability and other Liens described in the Pricing Disclosure Package, the Final Memorandum or the Organizational Documents; (iii) those arising under
the 

  
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Partnership Credit Agreement; and (iv) those imposed by the Act and the securities or “Blue Sky” laws of certain jurisdictions) (A) in respect of which a financing statement
under the Uniform Commercial Code of the State of Delaware naming the Partnership as debtor or, in the case of equity interests of a Non-Excluded Guarantor owned directly by one or more other Non-Excluded Guarantors, naming any such other Non-Excluded Guarantors as debtor(s), is on file as of a recent date in the office of the Secretary of State of the State of
Delaware or (B) otherwise known to such counsel, without independent investigation. 
 (iv) The Issuers and each
Covered Guarantor have all requisite corporate, limited partnership or limited liability company power and authority to execute, deliver and perform each of their obligations under the Indenture, the Notes, the Exchange Notes and the Private
Exchange Notes (each as defined in the Registration Rights Agreement); the Indenture meets the requirements for qualification under the TIA; the Indenture has been duly and validly authorized by the Issuers and each Covered Guarantor and, when duly
executed and delivered by the Issuers and each Covered Guarantor (assuming the due authorization, execution and delivery thereof by the Trustee and SouthOk), will constitute the valid and legally binding agreement of the Issuers and each Guarantor,
enforceable against the Issuers and each Guarantor in accordance with its terms, except that the enforcement thereof may be subject to the Enforceability Exceptions. 

(v) The Notes have each been duly and validly authorized by the Issuers and, when duly executed and delivered by the Issuers
and paid for by the Initial Purchasers in accordance with the terms of this Agreement (assuming the due authorization, execution and delivery of the Indenture by the Trustee and due authentication and delivery of the Notes by the Trustee in
accordance with the Indenture), will constitute the valid and legally binding obligations of the Issuers, entitled to the benefits of the Indenture, and enforceable against the Issuers in accordance with their terms, except that the enforcement
thereof may be subject to the Enforceability Exceptions. 
 (vi) The Guarantees have been duly and validly authorized by the
Covered Guarantors and when the Notes have been paid for by the Initial Purchasers in accordance with the terms of this Agreement (assuming the due authorization, execution and delivery of the Indenture by the Trustee and SouthOk and the due
authentication of the Notes by the Trustee in accordance with the Indenture), will constitute the valid and legally binding obligations of the Guarantors, entitled to the benefits of the Indenture, and enforceable against the Guarantors in
accordance with their terms, except that the enforcement thereof may be subject to the Enforceability Exceptions. 

  
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 (vii) The Exchange Notes and the Private Exchange Notes have been duly and
validly authorized by the Issuers, and if and when the Exchange Notes and the Private Exchange Notes are duly executed and delivered by the Issuers in accordance with the terms of the Registration Rights Agreement and the Indenture (assuming the due
authorization, execution and delivery of the Indenture by the Trustee and due authentication and delivery of the Exchange Notes and the Private Exchange Notes by the Trustee in accordance with the Indenture), will constitute the valid and legally
binding obligations of the Issuers, entitled to the benefits of the Indenture, and enforceable against the Issuers in accordance with their terms, except that the enforcement thereof may be subject to the Enforceability Exceptions. 

(viii) The Issuers and the Covered Guarantors have all requisite partnership, limited liability company or corporate power and
authority to execute, deliver and perform their obligations under the Registration Rights Agreement; the Registration Rights Agreement has been duly and validly authorized by the Issuers and the Covered Guarantors and, when duly executed and
delivered by the Issuers and the Covered Guarantors (assuming due authorization, execution and delivery thereof by the Initial Purchasers and SouthOk), will constitute the valid and legally binding agreement of the Issuers and the Guarantors,
enforceable against the Issuers and the Guarantors in accordance with its terms, except that (A) the enforcement thereof may be subject to the Enforceability Exceptions and (B) any rights to indemnity or contribution thereunder may be
limited by federal and state securities laws and public policy considerations. 
 (ix) The Issuers and the Covered
Guarantors have all requisite corporate, partnership or limited liability company power and authority to execute, deliver and perform their obligations under this Agreement and to consummate the transactions contemplated hereby; this Agreement and
the consummation by the Issuers and the Covered Guarantors of the transactions contemplated hereby have been duly and validly authorized by the Issuers and the Covered Guarantors. This Agreement has been duly executed and delivered by the Issuers
and the Covered Guarantors. 
 (x) (a) The descriptions of the Indenture, the Notes and the Registration Rights Agreement
contained in the Pricing Disclosure Package and the Final Memorandum are accurate in all material respects, and (b) the statements under the caption “Certain United States Federal Income Tax Considerations” in the Pricing Disclosure
Package and the Final Memorandum insofar as they purport to constitute a summary of United States federal tax law and regulations or legal conclusions with respect thereto, constitute accurate summaries of the matters described therein in all
material respects, subject to the assumptions and qualifications set forth therein. 
 (xi) The execution, delivery and
performance of this Agreement, the Indenture, the Registration Rights Agreement and the consummation of the transactions contemplated hereby and thereby (including, without limitation, the issuance and sale of the Notes to the Initial Purchasers)
will not constitute or result in a breach or a default under (or an event that with notice or passage of 

  
 23 

 
time or both would constitute a default under) any of (i) the terms or provisions of any Contract listed on Annex B hereto, (ii) the Organizational Documents of any of the
Issuers or the Covered Guarantors, or (iii) any statute, judgment, decree, order, rule or regulation (excluding any securities laws, rules or regulations) known to such counsel to be applicable to the Issuers or any of the Covered Guarantors or
any of their respective properties or assets, except, with respect to clauses (i) and (iii) only, for any such conflict, breach or violation that could not reasonably be expected to, individually or in the aggregate, have a Material Adverse
Effect. 
 (xii) No consent, approval, authorization or order of any governmental authority is required for the issuance and
sale by the Issuers of the Notes to the Initial Purchasers or the consummation by the Issuers of the other transactions contemplated hereby, except such as may be required under securities laws, as to which such counsel need express no opinion in
this paragraph, and those which have previously been obtained. 
 (xiii) None of the Issuers or the Covered Guarantors is,
or immediately after the sale of the Notes to be sold hereunder and the application of the proceeds from such sale (as described in the Pricing Disclosure Package and the Final Memorandum under the caption “Use of Proceeds”) will be, an
“investment company” as such term is defined in the Investment Company Act of 1940, as amended. 
 (xiv) No
registration under the Act of the Notes is required in connection with the sale of the Notes to the Initial Purchasers or in connection with the initial resale of the Notes by the Initial Purchasers, in each case, as contemplated by this Agreement
and the Pricing Disclosure Package and the Final Memorandum, and prior to the commencement of the Exchange Offer (as defined in the Registration Rights Agreement) or the effectiveness of the Shelf Registration Statement (as defined in the
Registration Rights Agreement), the Indenture is not required to be qualified under the TIA.
 At the time the foregoing
opinion is delivered, Vinson & Elkins L.L.P. shall additionally state that it has participated in conferences with officers and other representatives of the Issuers, representatives of the independent registered public accountants for the
Issuers, representatives of the Initial Purchasers and counsel for the Initial Purchasers, at which conferences the contents of the Pricing Disclosure Package and the Final Memorandum and related matters were discussed, and, although it has not
independently verified, and is not passing on and assumes no responsibility for the accuracy, completeness or fairness of the statements contained in the Pricing Disclosure Package and the Final Memorandum (except to the extent specified in
subsection 7(a)(x)), no facts have come to its attention which lead it to believe that the Pricing Disclosure Package, as of the Time of Execution or at the Closing Date, or that the Final Memorandum, as of its date or at the Closing Date,
contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading (it being understood that such firm
need make no comment with respect to the financial statements and related notes thereto and the other financial and accounting data derived from the Issuers’ books and records included in the Pricing Disclosure Package or the Final Memorandum).

  
 24 

 The opinion and advice of Vinson & Elkins L.L.P. described in this
Section 7 shall be rendered to the Initial Purchasers at the request of the Partnership and shall so state therein. 

(b) On the Closing Date, the Initial Purchasers shall have received the opinion, in form and substance satisfactory to the
Initial Purchasers, dated as of the Closing Date and addressed to the Initial Purchasers, of Gibson, Dunn & Crutcher LLP, counsel for the Initial Purchasers, with respect to certain legal matters relating to this Agreement and such other
related matters as the Initial Purchasers may reasonably require. In rendering such opinion, Gibson, Dunn & Crutcher LLP shall have received and may rely upon such certificates and other documents and information as it may reasonably
request to pass upon such matters. 
 (c) On the date hereof, the Initial Purchasers shall have received from the Independent
Accountants a comfort letter dated the date hereof, in form and substance satisfactory to counsel for the Initial Purchasers with respect to the audited and any unaudited financial information in the Pricing Disclosure Package. On the Closing Date,
the Initial Purchasers shall have received from the Independent Accountants a comfort letter dated the Closing Date, in form and substance satisfactory to counsel for the Initial Purchasers, which shall refer to the comfort letter dated the date
hereof and reaffirm or update as of a more recent date, the information stated in the comfort letter dated the date hereof and similarly address the audited and any unaudited financial information in the Final Memorandum. 

(d) The representations and warranties of the Issuers and the Guarantors contained in this Agreement shall be true and correct
on and as of the Time of Execution and on and as of the Closing Date as if made on and as of the Closing Date; the statements of the Issuers’ officers made pursuant to any certificate delivered in accordance with the provisions hereof shall be
true and correct on and as of the date made and on and as of the Closing Date; the Issuers shall have performed all covenants and agreements and satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing
Date; and, except as described in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), subsequent to the date of the most recent financial statements in such Pricing
Disclosure Package and the Final Memorandum, there shall have been no event or development, and no information shall have become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect. 

(e) The sale of the Notes hereunder shall not be enjoined (temporarily or permanently) on the Closing Date. 

  
 25 

 (f) Subsequent to the date of the most recent financial statements in the Pricing
Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), none of the Issuers nor any of the Material Subsidiaries shall have sustained any loss or interference with respect to its business
or properties from fire, flood, hurricane, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute, slow down or work stoppage or from any legal or governmental proceeding, order or decree, which loss or
interference, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect. 
 (g)
The Initial Purchasers shall have received: 
 (x) a certificate, dated the Closing Date, signed by the Chief Executive
Officer or Chief Financial Officer of the General Partner, to the effect that: 
 (i) the representations and warranties of
the Partnership and the Guarantors contained in this Agreement are true and correct on and as of the Time of Execution and on and as of the Closing Date, and the Partnership and the Guarantors have performed all covenants and agreements and
satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date; 
 (ii) at
the Closing Date, since the date hereof or since the date of the most recent financial statements in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), no event or
development has occurred, and no information has become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect; and 

(iii) the sale of the Notes hereunder has not been enjoined (temporarily or permanently); and 

(y) a certificate, dated the Closing Date, signed by the Chief Executive Officer or the Chief Financial Officer of Finance Co,
to the effect that: 
 (i) the representations and warranties of Finance Co contained in this Agreement are true and correct
on and as of the Time of Execution and on and as of the Closing Date, and Finance Co has performed all covenants and agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; 

(ii) at the Closing Date, since the date hereof or since the date of the most recent financial statements in the Pricing
Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), no event or development has occurred, and no information has become known, that, individually or in the aggregate, has or would be
reasonably likely to have a Material Adverse Effect; and 
 (iii) the sale of the Notes hereunder has not been enjoined
(temporarily or permanently). 

  
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 (h) On the Closing Date, the Initial Purchasers shall have received the
Registration Rights Agreement executed by the Issuers and the Guarantors and such agreement shall be in full force and effect. 

On or before the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers shall have received such further
documents, opinions, certificates, letters and schedules or instruments relating to the business, corporate, legal and financial affairs of the Issuers and the Guarantors as they shall have heretofore reasonably requested from the Issuers. 

All such documents, opinions, certificates, letters, schedules or instruments delivered pursuant to this Agreement will comply
with the provisions hereof only if they are reasonably satisfactory in all material respects to the Initial Purchasers and counsel for the Initial Purchasers. The Issuers shall furnish to the Initial Purchasers such conformed copies of such
documents, opinions, certificates, letters, schedules and instruments in such quantities as the Initial Purchasers shall reasonably request. 

Section 8. Offering of Notes; Restrictions on Transfer. 

(a) Each of the Initial Purchasers agrees with the Issuers (as to itself only) that (i) it has not and will not solicit
offers for, or offer or sell, the Notes by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) or in any manner involving a public offering within the meaning of Section 4(a)(2) of the
Act; and (ii) it has and will solicit offers for the Notes only from, and will offer the Notes only to (A) in the case of offers inside the United States, persons whom the Initial Purchasers reasonably believe to be qualified institutional
buyers in transactions under Rule 144A (each, a “QIB”) and (B) in the case of offers outside the United States, to persons other than U.S. persons (“non-U.S.
purchasers,” which term shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for non-U.S. beneficial owners (other than an estate or trust));
provided, however, that, in the case of this clause (B), in purchasing such Notes such persons are deemed to have represented and agreed as provided under the caption “Transfer Restrictions” contained in the Pricing
Disclosure Package and the Final Memorandum. 
 (b) Each of the Initial Purchasers represents and warrants (as to itself
only) that (1) it is a QIB and (2) with respect to offers and sales outside the United States that (i) the Notes have not been and will 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 Regulation S under the Act or pursuant to an exemption from the registration requirements of the Act; and (ii) it has offered the Notes and will offer and sell the Notes (A) as part of its 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 and, accordingly, neither it nor any persons acting on its behalf have
engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Notes, and any such persons have complied and will comply with the offering restrictions requirement of Regulation S. 

Terms used in this Section 8 and not defined in this Agreement have the meanings given to them in Regulation S. 

  
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 Section 9. Indemnification and Contribution. 

(a) The Issuers and the Guarantors, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers, their
directors, officers, affiliates and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which any
Initial Purchaser, any such director, officer, affiliate or controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon the following: 
 (i) any untrue statement or alleged untrue statement of any material fact contained in
the Pricing Disclosure Package, any Issuer Written Communication or Final Memorandum or any amendment or supplement thereto; or 

(ii) the omission or alleged omission to state, in the Pricing Disclosure Package, any Issuer Written Communication or the
Final Memorandum or any amendment or supplement thereto, a material fact necessary to make the statements therein not misleading; 
 and
will reimburse, as incurred, the Initial Purchasers, any such director, officer, affiliate and controlling person for any legal or other expenses reasonably incurred by the Initial Purchasers, their directors, officers, affiliates or controlling
persons in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, neither the Issuers nor the Guarantors will be
liable in any such case to the extent that any such loss, claim, damage, expense or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Pricing Disclosure Package or
Final Memorandum or any amendment or supplement thereto in reliance upon and in conformity with written information concerning such Initial Purchaser furnished to the Partnership by the Initial Purchasers through the Representative specifically for
use therein. The indemnity provided for in this Section 9 will be in addition to any liability that the Partnership may otherwise have to the indemnified parties. Neither the Issuers nor the Guarantors will be liable under this Section 9
for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld. 

(b) Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold harmless each of the Issuers and
Guarantors, and their respective directors, officers and each person, if any, who controls the Issuers or Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Issuers or Guarantors or any such director, officer or controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in the Pricing Disclosure Package or Final Memorandum or any amendment or supplement thereto, or (ii) the omission
or the alleged omission to state therein a material fact necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information concerning the Initial Purchasers, furnished to the Issuers and Guarantors by 

  
 28 

 
the Initial Purchasers through the Representative specifically for use therein; and subject to the limitation set forth immediately preceding this clause, will reimburse, as incurred, any legal
or other expenses reasonably incurred by the Issuers or Guarantors or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action in respect thereof. The indemnity provided for in this Section 9 will be in addition to any liability that the Initial Purchasers may otherwise have to the indemnified parties. The Initial Purchasers shall not
be liable under this Section 9 for any settlement of any claim or action effected without their consent, which shall not be unreasonably withheld. 

(c) Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement of any action for
which such indemnified party is entitled to indemnification under this Section 9, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9, notify the indemnifying party
of the commencement thereof in writing; but the omission to so notify the indemnifying party (i) will not relieve it from any liability under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture
by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraphs (a)
and (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, that if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall
have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the
indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of
such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and approval by such indemnified party of counsel appointed to defend such action, the
indemnifying party will not be liable to such indemnified party under this Section 9 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense
thereof, unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall
not be liable for the expenses of more than one separate counsel (in addition to local counsel) in any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances,
designated by the Initial Purchasers in the case of paragraph (a) of this Section 9 or the Issuers and Guarantors in the case of paragraph (b) of this Section 9, representing the indemnified parties under such paragraph (a)
or paragraph (b), as the case may 

  
 29 

 
be, who are parties to such action or actions) or (ii) the indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying
party. All fees and expenses reimbursed pursuant to this paragraph (c) shall be reimbursed as they are incurred. After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs
and expenses of any settlement of such action effected by such indemnified party without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld), unless such indemnifying party waived in writing its
rights under this Section 9, in which case the indemnified party may effect such a settlement without such consent. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement or compromise of
any pending or threatened proceeding in respect of which any indemnified party is or could have been a party, or indemnity could have been sought hereunder by any indemnified party, unless such settlement (A) includes an unconditional written
release of the indemnified party, in form and substance reasonably satisfactory to the indemnified party, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an admission of
fault, culpability or failure to act by or on behalf of any indemnified party. 
 (d) In circumstances in which the indemnity
agreement provided for in the preceding paragraphs of this Section 9 is unavailable to, or insufficient to hold harmless, an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), each
indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party on the other from the offering of the Notes or if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or
omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof). The relative benefits received by the Issuers and Guarantors on the one hand and the Initial Purchasers on the
other shall be deemed to be in the same proportion as the total proceeds from the offering (after deducting discounts and commissions but before deducting expenses) received by the Issuers and Guarantors bear to the total discounts and commissions
received by such Initial Purchaser. The relative fault of the parties 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 Issuers and Guarantors on the one hand, or such Initial Purchaser on the other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Issuers, the Guarantors and the Initial Purchasers agree that it would not be equitable if the amount of such contribution were
determined by pro rata or per capita allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the first sentence of this paragraph (d). Notwithstanding any other provision of
this paragraph (d), no Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Initial Purchaser under this Agreement, less the
aggregate amount of any damages that such Initial Purchaser has otherwise been required to pay by reason 

  
 30 

 
of the untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The obligations of the Initial Purchasers are several and not joint. For purposes of this paragraph (d),
each director, officer and affiliate of the Initial Purchasers and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Initial Purchasers, and each director of either of the Issuers or any of the Guarantors, each officer of either of the Issuers or any of the Guarantors and each person, if any, who controls either of the Issuers or any of the
Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Partnership. 

Section 10. Survival Clause. The respective representations, warranties, agreements, covenants, indemnities and
other statements of each of the Issuers, Guarantors, their respective officers and the Initial Purchasers set forth in this Agreement or made by or on behalf of them pursuant to this Agreement shall remain in full force and effect, regardless of
(i) any investigation made by or on behalf of any of the Issuers, Guarantors, any of their respective officers or directors, the Initial Purchasers, any of their officers, directors, affiliates or controlling persons referred to in
Section 9 hereof and (ii) delivery of and payment for the Notes. The respective agreements, covenants, indemnities and other statements set forth in Sections 6, 9, 10 and 15 hereof shall remain in full force and effect, regardless of
any termination or cancellation of this Agreement. 
 Section 11. Termination. 

(a) This Agreement may be terminated in the sole discretion of the Initial Purchasers by notice to the Issuers given prior to
the Closing Date in the event that the Issuers shall have failed, refused or been unable to perform all obligations and satisfy all conditions on its part to be performed or satisfied hereunder at or prior thereto or, if, after the date hereof and
at or prior to the Closing Date, 
 (i) trading in securities of the Partnership or Targa Resources Corp. shall have been
suspended by the Commission or the New York Stock Exchange; 
 (ii) there shall have been, in the sole judgment of the
Representative, any event or development that, individually or in the aggregate, has or could be reasonably likely to have a Material Adverse Effect (including without limitation a change in control of the Issuers or the Guarantors), except in each
case as described in the Pricing Disclosure Package and the Final Memorandum (exclusive of any amendment or supplement thereto); 

(iii) trading in securities generally on the New York Stock Exchange shall have been suspended or materially limited or
minimum or maximum prices shall have been established on any such exchange or market; 

  
 31 

 (iv) a banking moratorium shall have been declared by New York or United States
authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States shall have occurred; 

(v) there shall have been (A) an outbreak or escalation of hostilities between the United States and any foreign power or
(B) an outbreak or escalation of any other insurrection or armed conflict involving the United States or any other national or international calamity or emergency, which in the case of (A) and (B) above and in the sole judgment of the
Representative, makes it impracticable or inadvisable to proceed with the offering or the delivery of the Notes as contemplated by the Pricing Disclosure Package and the Final Memorandum; or 

(vi) any securities of the Partnership shall have been downgraded by any nationally recognized statistical rating organization
or any such organization shall have publicly announced that it has under surveillance or review, or has changed its outlook with respect to, its ratings of any securities of the Partnership (other than an announcement with positive implications of a
possible upgrading). 
 (b) Termination of this Agreement pursuant to this Section 11 shall be without liability of any
party to any other party except as provided in Section 10 hereof. 
 Section 12. Default of One or More of the
Several Initial Purchasers. 
 (a) If any one or more of the several Initial Purchasers shall fail or refuse to purchase
the Notes that it or they have agreed to purchase hereunder on the Closing Date, and the aggregate number of the Notes which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does not exceed 10% of the
aggregate number of the Notes to be purchased on such date, the other Initial Purchasers shall be obligated, severally, in the proportions that the number of Notes set forth opposite their respective names
on Schedule 1 bears to the aggregate number of the Notes set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as may be
specified by the Initial Purchasers with the consent of the non-defaulting Initial Purchasers, to purchase the Notes which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused
to purchase on the Closing Date. If any one or more of the Initial Purchasers shall fail or refuse to purchase the Notes and the aggregate number of the Notes with respect to which such default occurs exceeds 10% of the aggregate number of the Notes
to be purchased on the Closing Date, and arrangements satisfactory to the Initial Purchasers and the Issuers for the purchase of such Notes are not made within 48 hours after such default, this Agreement shall terminate without liability of any
party to any other party except that the provisions of Sections 6 and 9 hereof shall at all times be effective and shall survive such termination. In any such case either the Initial Purchasers or the Issuers shall have the right to postpone
the Closing Date, as the case may be, but in no event for longer than seven days in order that the required changes, if any, to the Final Offering Memorandum or any other documents or arrangements may be effected. 

  
 32 

 (b) As used in this Agreement, the term “Initial Purchaser”
shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section 12. Any action taken under this Section 12 shall not relieve any defaulting Initial Purchaser from liability in respect of any default
of such Initial Purchaser under this Agreement. 
 Section 13. Information Supplied by the Initial Purchasers.
The statements set forth in the last paragraph on the front cover page (as such paragraph is supplemented by the item on Annex A) and in the fourth paragraph and the tenth through twelfth paragraphs under the heading “Plan of
Distribution” in the Preliminary Memorandum and the Final Memorandum (to the extent such statements relate to the Initial Purchaser) constitute the only information furnished by the Initial Purchasers to the Issuers for the purposes of
Sections 2(a) and 9 hereof. 
 Section 14. Notices. All communications hereunder shall be in writing and,
if sent to the Initial Purchasers, shall be mailed or delivered to Merrill Lynch, Pierce, Fenner & Smith Incorporated at One Bryant Park, New York, New York 10036, Attention: High Yield Legal Department, Facsimile: (212) 901-7897; and if sent to the Partnership, shall be mailed or delivered to the Partnership at 1000 Louisiana Street, Suite 4300, Houston, Texas 77002, Attention: Chief Financial Officer; with a copy to
Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas 77002, Attention: Christopher S. Collins. 

All such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered;
five business days after being deposited in the mail, postage prepaid, if mailed; and one business day after being timely delivered to a next-day air courier. 

Section 15. Successors. This Agreement shall inure to the benefit of and be binding upon the Initial Purchasers,
the Issuers and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect
of this Agreement, or any provisions herein contained; this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person except that
(i) the indemnities of the Issuers contained in Section 9 of this Agreement shall also be for the benefit of the directors, officers and employees of the Initial Purchasers and any person or persons who control the Initial Purchasers
within the meaning of Section 15 of the Act or Section 20 of the Exchange Act and (ii) the indemnities of the Initial Purchasers contained in Section 9 of this Agreement shall also be for the benefit of the directors of the
Issuers, their officers and any person or persons who control the Issuers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act. No purchaser of Notes from the Initial Purchasers will be deemed a successor because
of such purchase. 
 Section 16. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, ANY CLAIM,
COUNTERCLAIM OR DISPUTE OF ANY KIND OR NATURE WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT, DIRECTLY OR INDIRECTLY, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT GIVING EFFECT TO ANY PROVISIONS THEREOF RELATING TO CONFLICTS OF LAW. 

  
 33 

 Section 17. No Advisory or Fiduciary Responsibility. The Issuers and
the Guarantors acknowledge and agree that (i) the purchase and sale of the Notes pursuant to this Agreement is an arm’s-length commercial transaction between the Issuers, on the one hand, and the
Initial Purchasers, on the other, (ii) in connection therewith and with the process leading to such transaction each Initial Purchaser is acting solely as a principal and not the agent or fiduciary of either of the Issuers, (iii) no
Initial Purchaser has assumed an advisory or fiduciary responsibility in favor of either of the Issuers with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser has advised or is
currently advising either of the Issuers on other matters) or any other obligation to the Issuers except the obligations expressly set forth in this Agreement and (iv) each of the Issuers has consulted its own legal and financial advisors to
the extent it deemed appropriate. Each of the Issuers agrees that it will not claim that any Initial Purchaser has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to either of the Issuers, in connection with
such transaction or the process leading thereto. 
 Section 18. USA PATRIOT Act. In accordance with the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their
respective clients, including the Issuers, which information may include the name and address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their respective clients. 

Section 19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 

  
 34 

 If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof
in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Issuers and the Initial Purchasers. 
  

					
	Very truly yours,
	
	TARGA RESOURCES PARTNERS LP
		
	By:	 	Targa Resources GP LLC,
		 	Its general partner
		
	By:	 	 /s/ Chris M. McEwan

		 	Name:	 	Chris M. McEwan
		 	Title:	 	Vice President and Treasurer
	
	TARGA RESOURCES PARTNERS FINANCE     CORPORATION
		
	By:	 	 /s/ Chris M. McEwan

		 	Name:	 	Chris M. McEwan
		 	Title:	 	Vice President and Treasurer

 Signature Page to the Purchase Agreement 

 
					
	 FCPP PIPELINE, LLC
  

FLAG CITY PROCESSING PARTNERS, LLC
  

SLIDER WESTOK GATHERING, LLC
  

TARGA BADLANDS LLC
  

TARGA CAPITAL LLC
  

TARGA CHANEY DELL LLC
  

TARGA COGEN LLC
  

TARGA CRUDE MARKETING LLC
  

TARGA CRUDE PIPELINE LLC
  

TARGA DOWNSTREAM LLC
  

TARGA GAS MARKETING LLC
  

TARGA GAS PIPELINE LLC
  

TARGA GAS PROCESSING LLC
  

TARGA INTRASTATE PIPELINE LLC
  

TARGA LIQUIDS MARKETING AND TRADE LLC
  

TARGA LOUISIANA INTRASTATE LLC
  

TARGA MIDKIFF LLC
  

TARGA MIDSTREAM SERVICES LLC
  

TARGA MLP CAPITAL LLC
  

TARGA NGL PIPELINE COMPANY LLC
  

TARGA PIPELINE MID-CONTINENT HOLDINGS LLC
  

TARGA PIPELINE MID-CONTINENT LLC
  

TARGA PIPELINE PARTNERS GP LLC
  

TARGA RESOURCES OPERATING GP LLC
  

TARGA RESOURCES OPERATING LLC
  

TARGA SOUND TERMINAL LLC
  

TARGA SOUTHOK NGL PIPELINE LLC
  

TARGA TERMINALS LLC
  

TARGA TRANSPORT LLC
  

TPL ARKOMA HOLDINGS LLC
  

TPL ARKOMA INC.
  

TPL ARKOMA MIDSTREAM LLC
  

TPL GAS TREATING LLC
  

TPL SOUTHTEX MIDSTREAM LLC
  

TPL SOUTHTEX PIPELINE COMPANY LLC
  

VELMA INTRASTATE GAS TRANSMISSION COMPANY,
    LLC

			
	    	 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title: Vice President and Treasurer

 Signature Page to the Purchase Agreement 

 
					
	TARGA PIPELINE OPERATING PARTNERSHIP LP TARGA PIPELINE PARTNERS LP
		
	By:	 	Targa Pipeline Partners GP LLC, its general partner
			
		 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title:   Vice President and Treasurer
	
	TPL BARNETT LLC
		
	By:	 	Targa Pipeline Mid-Continent Holdings LLC, its sole member
			
		 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title:   Vice President and Treasurer
	
	PECOS PIPELINE LLC
	TESUQUE PIPELINE, LLC
		
	By:	 	TPL Barnett LLC, its sole member
		
	By:	 	Targa Pipeline Mid-Continent Holdings LLC, its sole member
			
		 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title:   Vice President and Treasurer

 Signature Page to the Purchase Agreement 

 
					
	VELMA GAS PROCESSING COMPANY, LLC
	
	By: Targa Pipeline Mid-Continent LLC, its sole member
			
	    	 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title: Vice President and Treasurer
	
	TARGA SOUTHTEX MIDSTREAM COMPANY LP
	TPL SOUTHTEX GAS UTILITY COMPANY LP
	TPL SOUTHTEX MIDSTREAM HOLDING COMPANY LP
	TPL SOUTHTEX PROCESSING COMPANY LP
	TPL SOUTHTEX TRANSMISSION COMPANY LP
		
	By:	 	TPL SouthTex Pipeline Company LLC, its general partner
			
		 	By:	 	 /s/ Chris M. McEwan

		 		 	Name: Chris M. McEwan
		 		 	Title: Vice President and Treasurer

 Signature Page to the Purchase Agreement 

					
	The foregoing Agreement is hereby confirmed and accepted as of the date first above written.
	
	MERRILL LYNCH, PIERCE, FENNER & SMITH
                        INCORPORATED
	Acting on behalf of itself and as the
	Representative of the several Initial Purchasers
		
	By:	 	Merrill Lynch, Pierce, Fenner & Smith
		 	                    Incorporated
			
		 	By:	 	 /s/ Ben Lett

		 		 	Managing Director

 Signature Page to the Purchase Agreement 

 SCHEDULE 1 
  

					
	 Initial Purchasers
	  	Principal Amount of the Notes	 
	 Merrill Lynch, Pierce, Fenner & Smith

                   
 Incorporated
	  	$	200,000,000	 
	 Barclays Capital Inc.
	  	$	100,000,000	 
	 Citigroup Global Markets Inc.
	  	$	100,000,000	 
	 Deutsche Bank Securities Inc.
	  	$	100,000,000	 
	 RBC Capital Markets, LLC
	  	$	100,000,000	 
	 Wells Fargo Securities, LLC
	  	$	100,000,000	 
	 Credit Suisse Securities (USA) LLC
	  	$	40,000,000	 
	 Goldman Sachs & Co. LLC
	  	$	40,000,000	 
	 J.P. Morgan Securities LLC
	  	$	40,000,000	 
	 Morgan Stanley & Co. LLC
	  	$	40,000,000	 
	 SunTrust Robinson Humphrey, Inc.
	  	$	40,000,000	 
	 TD Securities (USA) LLC
	  	$	40,000,000	 
	 ING Financial Markets LLC
	  	$	15,000,000	 
	 SMBC Nikko Securities America, Inc.
	  	$	15,000,000	 
	 Citizens Capital Markets, Inc.
	  	$	10,000,000	 
	 The Huntington Investment Company
	  	$	10,000,000	 
	 Scotia Capital (USA) Inc.
	  	$	10,000,000	 
		  	  
	  
	 
	 Total
	  	$	1,000,000,000	 

  

  
 Schedule 1-1 

 SCHEDULE 2 

Jurisdiction of Formation for the Partnership and General Partner 

 

			
	 Name
	  	 Jurisdiction of Organization

	 Targa Resources Partners LP
	  	 Delaware

	 Targa Resources GP LLC
	  	 Delaware

 Subsidiaries of the Partnership 

 

			
	 Name
	  	 Jurisdiction of Organization

	Cedar Bayou Fractionators, L.P.	  	Delaware
	Centrahoma Processing, LLC	  	Delaware
	DEVCO Holdings LLC	  	Delaware
	Downstream Energy Ventures Co., L.L.C.	  	Delaware
	FCPP Pipeline, LLC	  	Delaware
	Flag City Processing Partners, LLC	  	Delaware
	Floridian Natural Gas Storage Company, LLC	  	Delaware
	Grand Prix Pipeline LLC	  	Delaware
	Pecos Pipeline LLC	  	Delaware
	Sajet Development LLC	  	 Delaware

	Sajet Properties LLC	  	 Delaware

	Sajet Resources LLC	  	 Delaware

	Salta Properties LLC	  	Delaware
	Setting Sun Pipeline Corporation	  	Delaware
	Slider WestOk Gathering, LLC	  	Delaware
	T2 LaSalle Gas Utility LLC	  	Texas
	T2 LaSalle Gathering Company LLC	  	Delaware
	Targa Badlands LLC	  	Delaware
	Targa Canada Liquids Inc.	  	 British Columbia, Canada

	Targa Capital LLC	  	Delaware
	Targa Chaney Dell LLC	  	Delaware
	Targa Cogen LLC	  	Delaware
	Targa Crude Marketing LLC	  	Delaware
	Targa Crude Pipeline LLC	  	Delaware
	Targa Delaware LLC	  	Delaware
	Targa Downstream LLC	  	Delaware
	Targa Gas Marketing LLC	  	Delaware
	Targa Gas Pipeline LLC	  	Delaware
	Targa Gas Processing LLC	  	Delaware
	Targa Holding LLC	  	Delaware
	Targa Intrastate Pipeline LLC	  	Delaware
	Targa Liquids Marketing and Trade LLC	  	Delaware

  
 Schedule 2-1 

			
	Targa Louisiana Intrastate LLC	  	Delaware
	Targa Midkiff LLC	  	Delaware
	Targa Midland Gas Pipeline LLC	  	 Delaware

	Targa Midland LLC	  	 Delaware

	Targa Midstream Services LLC	  	Delaware
	Targa MLP Capital LLC	  	Delaware
	Targa NGL Pipeline Company LLC	  	Delaware
	Targa Pipeline Escrow LLC	  	Delaware
	Targa Pipeline Finance Corporation	  	Delaware
	Targa Pipeline Mid-Continent Holdings LLC	  	Delaware
	Targa Pipeline Mid-Continent LLC	  	Delaware
	Targa Pipeline Mid-Continent WestOk LLC	  	Delaware
	Targa Pipeline Mid-Continent WestTex LLC	  	Delaware
	Targa Pipeline Operating Partnership LP	  	Delaware
	Targa Pipeline Partners GP LLC	  	Delaware
	Targa Pipeline Partners LP	  	Delaware
	Targa Receivables LLC	  	Delaware
	 Targa Resources Operating GP LLC
	  	Delaware
	 Targa Resources Operating LLC
	  	Delaware
	Targa Resources Partners Finance Corporation	  	Delaware
	Targa Sound Terminal LLC	  	Delaware
	Targa Southern Delaware LLC	  	Delaware
	Targa SouthOk NGL Pipeline LLC	  	Oklahoma
	Targa SouthTex Midstream Company LP	  	Texas
	Targa Terminals LLC	  	Delaware
	Targa Transport LLC	  	Delaware
	Tesla Resources LLC	  	Delaware
	Tesuque Pipeline, LLC	  	Delaware
	 TPL Arkoma Holdings LLC
	  	 Delaware

	 TPL Arkoma Inc.
	  	 Delaware

	 TPL Arkoma Midstream LLC
	  	 Delaware

	 TPL Barnett LLC
	  	 Delaware

	 TPL Gas Treating LLC
	  	 Delaware

	 TPL SouthTex Gas Utility Company LP
	  	 Texas

	 TPL SouthTex Midstream Holding Company LP
	  	 Texas

	 TPL SouthTex Midstream LLC
	  	 Delaware

	 TPL SouthTex Pipeline Company LLC
	  	 Texas

	 TPL SouthTex Processing Company LP
	  	 Texas

	 TPL SouthTex Transmission Company LP
	  	 Texas

	 Velma Gas Processing Company, LLC
	  	Delaware
	 Velma Intrastate Gas Transmission Company, LLC
	  	Delaware
	Venice Energy Services Company, L.L.C.	  	Delaware
	Versado Gas Processors, L.L.C.	  	Delaware
	Warren Petroleum Company LLC	  	Delaware

  
 Schedule 2-2 

 SCHEDULE 3 

Non-Guarantor Subsidiaries 

 

			
	 Name
	  	 Jurisdiction of Organization

	Cedar Bayou Fractionators, L.P.	  	Delaware
	 Centrahoma Processing, LLC
	  	 Delaware

	 DEVCO Holdings LLC
	  	 Delaware

	 Downstream Energy Ventures Co., L.L.C.
	  	 Delaware

	 Floridian Natural Gas Storage Company, LLC
	  	 Delaware

	Grand Prix Pipeline LLC	  	Delaware
	Sajet Development LLC	  	 Delaware

	Sajet Properties LLC	  	 Delaware

	Sajet Resources LLC	  	 Delaware

	 Salta Properties LLC
	  	 Delaware

	 Setting Sun Pipeline Corporation
	  	 Delaware

	 T2 LaSalle Gas Utility LLC
	  	 Texas

	 T2 LaSalle Gathering Company LLC
	  	 Delaware

	 Targa Canada Liquids Inc.
	  	 British Columbia, Canada

	 Targa Delaware LLC
	  	 Delaware

	 Targa Midland LLC
	  	 Delaware

	 Targa Midland Gas Pipeline LLC
	  	 Delaware

	 Targa Pipeline Escrow LLC
	  	 Delaware

	 Targa Pipeline Finance Corporation
	  	 Delaware

	 Targa Pipeline Mid-Continent WestOk LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent WestTex LLC
	  	 Delaware

	 Targa Receivables LLC
	  	 Delaware

	 Targa Resources Partners Finance Corporation
	  	 Delaware

	 Targa Southern Delaware LLC
	  	 Delaware

	Tesla Resources LLC	  	Delaware
	 Venice Energy Services Company, L.L.C.
	  	 Delaware

	 Versado Gas Processors, L.L.C.
	  	 Delaware

	 Warren Petroleum Company LLC
	  	 Delaware

  
 Schedule 3-1 

 SCHEDULE 4 

Guarantors 
  

			
	 Name
	  	 Jurisdiction of Organization

	FCPP Pipeline, LLC	  	Delaware
	Flag City Processing Partners, LLC	  	Delaware
	Pecos Pipeline LLC	  	Delaware
	Slider WestOk Gathering, LLC	  	Delaware
	Targa Badlands LLC	  	Delaware
	Targa Capital LLC	  	Delaware
	Targa Chaney Dell LLC	  	Delaware
	Targa Cogen LLC	  	Delaware
	Targa Crude Marketing LLC	  	Delaware
	Targa Crude Pipeline LLC	  	Delaware
	Targa Downstream LLC	  	Delaware
	Targa Gas Marketing LLC	  	Delaware
	Targa Gas Pipeline LLC	  	Delaware
	Targa Gas Processing LLC	  	Delaware
	Targa Intrastate Pipeline LLC	  	Delaware
	Targa Liquids Marketing and Trade LLC	  	Delaware
	Targa Louisiana Intrastate LLC	  	Delaware
	Targa Midkiff LLC	  	Delaware
	Targa Midstream Services LLC	  	Delaware
	Targa MLP Capital LLC	  	Delaware
	Targa NGL Pipeline Company LLC	  	Delaware
	Targa Pipeline Mid-Continent Holdings LLC	  	Delaware
	Targa Pipeline Mid-Continent LLC	  	Delaware
	Targa Pipeline Operating Partnership LP	  	Delaware
	Targa Pipeline Partners GP LLC	  	Delaware
	Targa Pipeline Partners LP	  	Delaware
	Targa Resources Operating GP LLC	  	Delaware
	Targa Resources Operating LLC	  	Delaware
	Targa Sound Terminal LLC	  	Delaware
	Targa SouthOk NGL Pipeline LLC	  	Oklahoma
	Targa SouthTex Midstream Company LP	  	Texas
	Targa Terminals LLC	  	Delaware
	Targa Transport LLC	  	Delaware
	Tesuque Pipeline, LLC	  	Delaware
	TPL Arkoma Holdings LLC	  	Delaware
	TPL Arkoma Inc.	  	Delaware
	TPL Arkoma Midstream LLC	  	Delaware
	TPL Barnett LLC	  	Delaware
	TPL Gas Treating LLC	  	Delaware
	TPL SouthTex Gas Utility Company LP	  	Texas

  
 Schedule 4-1 

			
	 TPL SouthTex Midstream Holding Company LP
	  	 Texas

	 TPL SouthTex Midstream LLC
	  	 Delaware

	 TPL SouthTex Pipeline Company LLC
	  	 Texas

	 TPL SouthTex Processing Company LP
	  	 Texas

	 TPL SouthTex Transmission Company LP
	  	 Texas

	 Velma Gas Processing Company, LLC
	  	 Delaware

	 Velma Intrastate Gas Transmission Company, LLC
	  	 Delaware

  
 Schedule 3-2 

 SCHEDULE 5 

Material Subsidiaries 
  

			
	 Name
	  	 Jurisdiction of Organization

	 Cedar Bayou Fractionators, L.P.
	  	 Delaware

	 Targa Chaney Dell LLC
	  	 Delaware

	 Targa Delaware LLC
	  	 Delaware

	 Targa Downstream LLC
	  	 Delaware

	 Targa Liquids Marketing and Trade LLC
	  	 Delaware

	 Targa Midkiff LLC
	  	 Delaware

	 Targa Midland LLC
	  	 Delaware

	 Targa Midstream Services LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent WestOk LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent WestTex LLC
	  	 Delaware

	 TPL SouthTex Processing Company LP
	  	 Texas

	 Versado Gas Processors, L.L.C.
	  	 Delaware

  
 Schedule 5-1 

 SCHEDULE 6 

Non-Excluded Guarantors 

 

			
	 Name
	  	 Jurisdiction of Organization

	 FCPP Pipeline, LLC
	  	 Delaware

	 Flag City Processing Partners, LLC
	  	 Delaware

	 Pecos Pipeline LLC
	  	 Delaware

	 Slider WestOk Gathering, LLC
	  	 Delaware

	 Targa Chaney Dell LLC
	  	 Delaware

	 Targa Crude Marketing LLC
	  	 Delaware

	 Targa Crude Pipeline LLC
	  	 Delaware

	 Targa Midkiff LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent Holdings LLC
	  	 Delaware

	 Targa Pipeline Mid-Continent LLC
	  	 Delaware

	 Targa Pipeline Operating Partnership LP
	  	 Delaware

	 Targa Pipeline Partners GP LLC
	  	 Delaware

	 Targa Pipeline Partners LP
	  	 Delaware

	 Targa SouthOk NGL Pipeline LLC
	  	 Oklahoma

	 Targa SouthTex Midstream Company LP
	  	 Texas

	 Tesuque Pipeline, LLC
	  	 Delaware

	 TPL Arkoma Holdings LLC
	  	 Delaware

	 TPL Arkoma Inc.
	  	 Delaware

	 TPL Arkoma Midstream LLC
	  	 Delaware

	 TPL Barnett LLC
	  	 Delaware

	 TPL Gas Treating LLC
	  	 Delaware

	 TPL SouthTex Gas Utility Company LP
	  	 Texas

	 TPL SouthTex Midstream Holding Company LP
	  	 Texas

	 TPL SouthTex Midstream LLC
	  	 Delaware

	 TPL SouthTex Pipeline Company LLC
	  	 Texas

	 TPL SouthTex Processing Company LP
	  	 Texas

	 TPL SouthTex Transmission Company LP
	  	 Texas

	 Velma Gas Processing Company, LLC
	  	 Delaware

	 Velma Intrastate Gas Transmission Company, LLC
	  	 Delaware

  
 Schedule 5-2 

 ANNEX A 

US $1,000,000,000 
  

 
 TARGA RESOURCES PARTNERS LP 

TARGA RESOURCES PARTNERS FINANCE CORPORATION 

5.875% Senior Notes due 2026 

April 5, 2018 
  

 
 This Pricing Supplement is qualified in its entirety
by reference to the Preliminary Offering Memorandum dated April 5, 2018. The information in this Pricing Supplement supplements the Preliminary Offering Memorandum and supersedes the information in the Preliminary Offering Memorandum to the
extent inconsistent with the information in the Preliminary Offering Memorandum. Capitalized terms used but not defined in this Pricing Supplement have the respective meanings ascribed to them in the Preliminary Offering Memorandum. 

The notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered only to
qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The notes are not
transferable except in accordance with the restrictions described under “Transfer Restrictions” in the Preliminary Offering Memorandum. 
  

			
	Terms Applicable to the 5.875% Senior Notes due 2026
		
	Issuers:	  	 Targa Resources Partners LP
 Targa Resources
Partners Finance Corporation

		
	Principal Amount:	  	$1,000,000,000
		
	Title of Securities:	  	5.875% Senior Notes due 2026
		
	Final Maturity Date:	  	April 15, 2026
		
	Issue Price:	  	100%, plus accrued interest, if any, from April 12, 2018
		
	Coupon:	  	5.875%
		
	Yield to Maturity:	  	5.875%
		
	Interest Payment Dates:	  	April 15 and October 15, beginning on October 15, 2018
		
	Record Dates:	  	April 1 and October 1
		
	Make-Whole Redemption	  	Make-whole redemption at T+50 basis points prior to April 15, 2021

  
 Annex A-1 

			
		
	Optional Redemption:	  	In addition, on or after April 15, 2021, the Issuers may redeem all or a part of the Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Liquidated
Damages, if any, on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on April 15 of each year indicated below:

  

					
	 Year
	  	Price	 
	 2021
	  	 	104.406	% 
	 2022
	  	 	102.938	% 
	 2023
	  	 	101.469	% 
	 2024 and thereafter
	  	 	100.000	% 

  

			
	Optional Redemption After Certain Equity Offerings:	  	Up to 35% at 105.875% prior to April 15, 2021
		
	Initial Purchasers:	  	 Merrill Lynch, Pierce, Fenner & Smith

Incorporated
 Barclays Capital Inc.

Citigroup Global Markets Inc.
 Deutsche Bank Securities Inc.

RBC Capital Markets, LLC
 Wells Fargo Securities, LLC

Credit Suisse Securities (USA) LLC
 Goldman Sachs & Co.
LLC
 J.P. Morgan Securities LLC
 Morgan Stanley & Co.
LLC
 SunTrust Robinson Humphrey, Inc.
 TD Securities (USA)
LLC
 ING Financial Markets LLC
 SMBC Nikko Securities America,
Inc.
 Citizens Capital Markets, Inc.
 The Huntington Investment
Company
 Scotia Capital (USA) Inc.

		
	Trade Date:	  	April 5, 2018
		
	Settlement Date:	  	April 12, 2018 (T+5 business days)
		
	Denominations:	  	$2,000 and integral multiples of $1,000 in excess thereof
		
	Distribution:	  	144A and Regulation S with registration rights as set forth in the Preliminary Offering Memorandum

  

					
	CUSIP and ISIN Numbers:	  	144A Notes:	  	Reg S Notes:
		  	CUSIP: 87612B BH4	  	CUSIP: U87569 AC0
		  	ISIN: US87612BBH42	  	ISIN: USU87569AC09

  

			
	Changes to the Preliminary Offering Memorandum	  	The following changes will be made to the Preliminary Offering Memorandum:

 The following disclosure in each location where such information appears in the Preliminary Offering Memorandum
is amended to read as follows: 
 “As of December 31, 2017, and after giving effect to this offering and the application of the
estimated net proceeds from this offering as described under “Use of Proceeds,” we estimate that we would have had total cash and cash equivalents of approximately $747.0 million, total indebtedness of approximately
$5,240.3 million with no borrowings outstanding and $1,572.8 million of borrowing capacity under our senior secured revolving credit facility, and total capitalization of approximately $13,098.5 million.” 

 Other information (including financial information) presented in the Preliminary Offering Memorandum is deemed
to have changed to the extent effected by the changes described herein. 
 This material is confidential and is for your information only and is not
intended to be used by anyone other than you. This information does not purport to be a complete description of these notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete description. 

Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers or other notices
were automatically generated as a result of this communication being sent via Bloomberg email or another communication system. 

 ANNEX B 
  

	1.	Third Amended and Restated Credit Agreement, dated October 7, 2016, among Targa Resources Partners LP, as Borrower, Bank of America, N.A., as Administrative Agent, Collateral Agent, Swing Line Lender and L/C
Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Bank PLC, Citigroup Global Markets Inc., Deutsche Bank AG—New York Branch, RBC Capital Markets, and Wells Fargo Bank, National Association, as Co-Syndication Agents, BBVA Compass, Capital One, National Association, JPMorgan Chase Bank, N.A., and TD Bank, N.A., as Co-Documentation Agents and the other lenders party
thereto, as amended 

  

	2.	Indenture dated as of February 2, 2011, among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	3.	Indenture dated as of January 31, 2012, among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	4.	Indenture dated as of October 25, 2012, among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	5.	Indenture dated as of May 14, 2013, among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	6.	Indenture dated as of October 28, 2014, among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	7.	Indenture dated as of January 30, 2015 among Targa Resources Partners LP, Targa Resources Partners Finance Corporation and the Guarantors named therein and U.S. Bank National Association, as supplemented

  

	8.	Indenture dated as of May 11, 2015, among Targa Resources Partners LP, Targa Resources Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented 

 

	9.	Indenture dated as of September 14, 2015, among Targa Resources Partners LP, Targa Resources Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented 

 

	10.	Indenture dated as of October 6, 2016, among Targa Resources Partners LP, Targa Resources Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented 

  
 Annex B-1 

	11.	Indenture dated as of October 17, 2017, among Targa Resources Partners LP, Targa Resources Finance Corporation, the Guarantors named therein and U.S. Bank National Association, as supplemented

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