Document:

exv10w4

Exhibit 10.4

EXECUTION

AMENDED AND RESTATED INTERCREDITOR

AND

COLLATERAL AGENCY AGREEMENT

Amending and Restating Amended and Restated Intercreditor Agreement dated June 18, 2009

which

Amended and Restated Intercreditor Agreement dated July 11, 2008

Among

ROYAL BANK OF CANADA,

as First Lien Agent,

ROYAL BANK OF CANADA,

as Second Lien Agent,

BP CORPORATION NORTH AMERICA INC.,

as Approved Hedge Counterparty

ROYAL BANK OF CANADA,

as Collateral Agent

and

POSTROCK ENERGY SERVICES CORPORATION

and

POSTROCK MIDCONTINENT PRODUCTION, LLC,

as Borrowers

Dated as of September 21, 2010

Amended and Restated

Intercreditor and Collateral

Agency Agreement

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1 - DEFINITIONS
	 	 	2	 
	 
	Section 1.01. Defined Terms
	 	 	2	 
	Section 1.02. Headings
	 	 	9	 
	Section 1.03. Terms Generally
	 	 	10	 
	 
	ARTICLE 2 – LIEN PRIORITIES
	 	 	10	 
	 
	Section 2.01. Subordination of Second Liens
	 	 	10	 
	Section 2.02. Nature of First Lien Obligations
	 	 	10	 
	Section 2.03 Status of Liens: Collateral
	 	 	11	 
	Section 2.04. Agreements Regarding Actions to Perfect Liens
	 	 	12	 
	Section 2.05. Legends
	 	 	12	 
	Section 2.06 No New Second Liens
	 	 	13	 
	Section 2.07. Similar Liens and Agreements
	 	 	13	 
	 
	ARTICLE 3 ENFORCEMENT RIGHTS
	 	 	14	 
	 
	Section 3.01. Separate Debts
	 	 	14	 
	Section 3.02. Limits of Enforcement of Second Lien
	 	 	14	 
	Section 3.03. Election to Pursue Remedies
	 	 	15	 
	Section 3.04. Duty of Collateral Agent
	 	 	15	 
	Section 3.05 Standstill and Waivers
	 	 	16	 
	Section 3.06. Judgment Secured Parties
	 	 	17	 
	Section 3.07. Cooperation
	 	 	17	 
	Section 3.08. No Additional Rights For the Borrowers Hereunder
	 	 	17	 
	Section 3.09. Actions Upon Breach
	 	 	17	 
	 
	ARTICLE 4 APPLICATION OF PROCEEDS OF COLLATERAL;
	 	 	17	 
	 
	DISPOSITIONS AND RELEASES OF COLLATERAL; INSPECTION AND INSURANCE
	 	 	17	 
	 
	Section 4.01. Notices under Related Documents
	 	 	18	 
	Section 4.02. Voting Procedure
	 	 	18	 
	Section 4.03. Application of Proceeds; Turnover Provisions
	 	 	18	 
	Section 4.04. Payments by Collateral Agent
	 	 	19	 
	Section 4.05. Notice of Amount of Obligations
	 	 	20	 
	Section 4.06. Pro Rata Treatment; Participations
	 	 	20	 
	Section 4.07. Release of Collateral
	 	 	20	 
	Section 4.08. Releases of Second Lien
	 	 	21	 
	Section 4.09. Form and Sufficiency of Release
	 	 	21	 
	Section 4.10. Inspection Rights and Insurance
	 	 	21	 
	 
	ARTICLE 5 INSOLVENCY PROCEEDINGS
	 	 	22	 
	 
	Section 5.01. Filing of Motions
	 	 	22	 
	Section 5.02. Financing Matters
	 	 	23	 
	Section 5.03. Relief From the Automatic Stay
	 	 	23	 
	Section 5.04. Adequate Protection
	 	 	23	 
	Section 5.05. Avoidance Issues
	 	 	24	 
	Section 5.06. Asset Dispositions in an Insolvency Proceeding
	 	 	24	 
	Section 5.07. Grants of Security and Separate Classification
	 	 	24	 
	Section 5.08. No Waivers of Rights of First Lien Secured Parties
	 	 	25	 

 Amended and Restated

Intercreditor and Collateral

Agency Agreement

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	Section 5.09. Plans of Reorganization
	 	 	25	 
	Section 5.10. Other Matters
	 	 	25	 
	Section 5.11. Effectiveness in Insolvency Proceedings
	 	 	25	 
	 
	ARTICLE 6 SECOND LIEN DOCUMENTS AND FIRST LIEN DOCUMENTS
	 	 	25	 
	 
	Section 6.01. Restriction on Second Lien Document Amendments
	 	 	25	 
	Section 6.02. Restriction on First Lien Document Amendment
	 	 	25	 
	Section 6.03. Application of First Lien Security Document Amendments to Second Lien
Security Documents
	 	 	25	 
	Section 6.04. Restriction on Second Lien Agreement Amendments
	 	 	26	 
	Section 6.05. Authorization of Actions to be Taken by Collateral Agent under the
Security Documents
	 	 	26	 
	Section 6.06. Authorization of Receipt of Funds by Collateral Agent under Security
Documents
	 	 	26	 
	Section 6.07. Property of Obligors and Owners
	 	 	26	 
	Section 6.08. Secured Party Dealings; Good Faith
	 	 	27	 
	Section 6.09. Production Proceeds Prior to Triggering Event
	 	 	27	 
	 
	ARTICLE 7 RELIANCE; WAIVERS, ETC.
	 	 	27	 
	 
	Section 7.01. Reliance
	 	 	27	 
	Section 7.02. No Warranties or Liability
	 	 	27	 
	Section 7.03. No Waivers
	 	 	28	 
	 
	ARTICLE 8 OBLIGATIONS UNCONDITIONAL
	 	 	28	 
	 
	Section 8.01. First Lien Obligations Unconditional
	 	 	28	 
	Section 8.02. Second Lien Obligations Unconditional
	 	 	28	 
	 
	ARTICLE 9 MISCELLANEOUS
	 	 	29	 
	 
	Section 9.01 Authority
	 	 	29	 
	Section 9.02 Termination/Withdrawal/Redesignation of Contracts
	 	 	29	 
	Section 9.03. Conflicts
	 	 	29	 
	Section 9.04. Marshaling
	 	 	29	 
	Section 9.05 Additional Parties
	 	 	29	 
	Section 9.06. Continuing Nature of Provisions
	 	 	30	 
	Section 9.07. Amendments
	 	 	30	 
	Section 9.08. Information Concerning Financial Condition of the Borrower and the
other Obligors
	 	 	31	 
	Section 9.09. Payment of Expenses and Taxes; Indemnification
	 	 	31	 
	Section 9.10. Governing Law
	 	 	32	 
	Section 9.11. Submission to Jurisdiction; Waivers
	 	 	32	 
	Section 9.12. Notices
	 	 	33	 
	Section 9.13. Successors and Assigns
	 	 	33	 
	Section 9.14. Further Assurances
	 	 	34	 
	Section 9.15. Subrogation
	 	 	34	 
	Section 9.16. Application of Payments
	 	 	34	 
	Section 9.17. Specific Performance
	 	 	34	 
	Section 9.18. Headings
	 	 	34	 
	Section 9.19. Severability
	 	 	34	 
	Section 9.20. Counterparts; Integration; Effectiveness
	 	 	34	 
	Section 9.21. Entire Agreement
	 	 	35	 

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Agency Agreement

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	Section 9.22. Limitation by Law
	 	 	35	 
	Section 9.23. No Impairment
	 	 	35	 
	Section 9.24. Status of Obligations
	 	 	35	 
	Section 9.25. Counterclaims and Defenses by Obligors
	 	 	35	 
	Section 9.26. Amendment and Restatement
	 	 	35	 
	 
	ARTICLE 10 COLLATERAL AGENT
	 	 	36	 
	 
	Section 10.01. Appointment of Collateral Agent
	 	 	36	 
	Section 10.02. Nature of Duties of Collateral Agent
	 	 	36	 
	Section 10.03. Lack of Reliance on Collateral Agent
	 	 	36	 
	Section 10.04. Certain Rights of Collateral Agent
	 	 	37	 
	Section 10.05. Reliance by Collateral Agent
	 	 	37	 
	Section 10.06. Collateral Agent’s Reimbursements and Indemnification
	 	 	37	 
	Section 10.07. Collateral Agent in its Individual Capacity
	 	 	38	 
	Section 10.08. Secured Parties as Owners
	 	 	38	 
	Section 10.09. Successor Collateral Agent
	 	 	38	 
	Section 10.10. Employment of Agents and Counsel
	 	 	39	 
	Section 10.11. Limitation on Liability of Secured Parties and Collateral Agent
	 	 	39	 

ANNEXES

	 	 	 

	Annex 1
	 	Security Documents

	Annex 2
	 	Form of Supplemental Amended and Restated Intercreditor and
Collateral Agency Agreement

	Annex 3
	 	Form of Joinder to Amended and Restated Intercreditor and
Collateral Agency Agreement

Amended and Restated

Intercreditor and Collateral

Agency Agreement

iv

 

AMENDED AND RESTATED INTERCREDITOR

AND COLLATERAL AGENCY AGREEMENT

     THIS AMENDED AND RESTATED INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT dated as of September
21, 2010 (the “Effective Date”) is entered into by and among ROYAL BANK OF CANADA, in its capacity
as administrative and collateral agent (in such capacities, with its successors and assigns, the
“First Lien Agent”) for the First Lien Lenders (as defined below), in its capacity as
administrative agent and collateral agent (in such capacities, with its successors and assigns, the
“Second Lien Agent”) for the Second Lien Lenders (as defined below), and as collateral agent for
Secured Parties (as defined below) (in such capacity, “Collateral Agent”), POSTROCK ENERGY SERVICES
CORPORATION, a Delaware corporation (“PESC”), and POSTROCK MIDCONTINENT PRODUCTION, LLC, a Delaware
limited liability company, f/k/a Bluestem Pipeline LLC and successor by merger to Quest Cherokee,
LLC (“PMP”; PESC and PMP individually called a “Borrower” and collectively called the “Borrowers”),
each of the other undersigned Obligors (as defined below), and BP CORPORATION NORTH AMERICA INC.

Recitals

     A. The Borrowers, the First Lien Agent and certain financial institutions (with their
respective successors and assigns, the “First Lien Lenders”) are parties to a Second Amended and
Restated Credit Agreement dated as of September 21, 2010 (as amended, supplemented, restated or
otherwise modified from time to time, the “First Lien Credit Agreement”), pursuant to which the
First Lien Lenders have agreed to make loans and issue letters of credit to or for the Borrowers.

     B. PESC together with PostRock KPC Pipeline, LLC, a Delaware limited liability company
(“KPC”), the Second Lien Agent and certain lenders (with their respective successors and assigns,
the “Second Lien Lenders”) are parties to a Second Amended and Restated Credit Agreement dated as
of September 21, 2010 (as amended, supplemented, restated or otherwise modified from time to time,
the “Second Lien Credit Agreement”), pursuant to which the Second Lien Lenders have made a
$15,000,000 term loan to PESC and KPC.

     C. Pursuant to the Security Documents (as defined below) the Borrowers and the other Obligors
have granted liens and security interests in the Collateral (i) in favor of the First Lien Agent,
on behalf of the First Lien Secured Parties, as security for the payment and performance of the
First Lien Obligations and (ii) in favor of the Second Lien Agent, on behalf of the Second Lien
Secured Parties, as security for the payment and performance of the Second Lien Obligations, which
liens and security interests are junior, subject and subordinated to the liens and security
interests in the Collateral in favor of the First Lien Agent.

     D. Pursuant to that certain Intercreditor Agreement dated as of July 11, 2008 entered into
among the First Lien Agent, on behalf of the First Lien Lenders, Royal Bank of Canada, as
administrative agent and collateral agent (“Original Second Lien Agent”), on behalf of the lenders
party to that certain Second Lien Senior Term Loan Agreement dated as of July 11, 2008, the
Collateral Agent and Quest Cherokee, LLC, now known as PMP (the “Original Intercreditor Agreement”)
(i) the First Lien Lenders agreed to permit the grant of second liens on the terms and conditions
of the Original Intercreditor Agreement and (ii) the Collateral Agent agreed to act as collateral
agent for First Lien Secured Parties (as defined in the Original Intercreditor Agreement) and
Second Lien Secured Parties (as defined in the Original Intercreditor Agreement) for the purposes
of dealing with the Collateral (as defined in the Original Intercreditor Agreement) and
apportioning payments among the First Lien Secured Parties (as defined in the Original
Intercreditor Agreement) and the Second Lien Secured Parties

Amended and Restated

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Agency Agreement

 

 

(as defined in the Original Intercreditor Agreement) with respect to proceeds thereof.
Pursuant to Section 10.1 of the Original Intercreditor Agreement the First Lien Agent and the
Original Second Lien Agent each appointed the Collateral Agent to act as collateral agent in
connection with the Security Documents (as defined in the Original Intercreditor Agreement).

     E. Pursuant to that certain Amended and Restated Intercreditor and Collateral Agency Agreement
dated as of June 18, 2009 entered into among BP, as Approved Hedge Counterparty (as defined in the
Restated Intercreditor Agreement), the First Lien Agent, on behalf of the First Lien Lenders, the
Original Second Lien Agent, on behalf of the lenders party to that certain Second Lien Senior Term
Loan Agreement dated as of July 11, 2008, the Collateral Agent and Quest Cherokee, LLC, now known
as PMP (the “Restated Intercreditor Agreement”), (i) the First Lien Lenders agreed to permit the
grant of second liens on the terms and conditions of the Restated Intercreditor Agreement and (ii)
the Collateral Agent agreed to act as collateral agent for First Lien Secured Parties (as defined
in the Restated Intercreditor Agreement) and Second Lien Secured Parties (as defined in the
Restated Intercreditor Agreement) for the purposes of dealing with the Collateral (as defined in
the Restated Intercreditor Agreement) and apportioning payments among the First Lien Secured
Parties (as defined in the Restated Intercreditor Agreement) and the Second Lien Secured Parties
(as defined in the Restated Intercreditor Agreement) with respect to proceeds thereof. Pursuant
to Section 10.1 of the Restated Intercreditor Agreement the First Lien Agent and the Original
Second Lien Agent each appointed the Collateral Agent to act as collateral agent in connection with
the Security Documents (as defined in the Restated Intercreditor Agreement).

     F. The First Lien Lenders have authorized the First Lien Agent and the Second Lien Lenders
have authorized the Second Lien Agent, on their respective behalf, to enter into this Agreement to
amend and restate in its entirety the Restated Intercreditor Agreement, and to secure, inter alia,
on a first lien basis the Approved Hedge Counterparty Obligations and the other First Lien
Obligations and to secure on a second lien basis the Second Lien Obligations.

     G. BP, as Approved Hedge Counterparty, the Borrowers, the First Lien Agent, on behalf of the
First Lien Lenders, the Second Lien Agent, on behalf of the Second Lien Lenders, and Collateral
Agent are entering into this Agreement to amend and restate the Restated Intercreditor Agreement in
its entirety to reflect the extinguishment of the second lien indebtedness referred to in the
Restated Intercreditor Agreement and the replacement thereof as second lien debt by the
indebtedness owing under the Second Lien Credit Agreement, and to establish their relative rights
with respect to payment of their respective Obligations owed by the Borrowers, to agree as to the
exercise of certain remedies and to appoint a collateral agent for the purposes of dealing with the
Security Documents and apportioning payments among Secured Parties and for other purposes as set
forth herein.

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and
other good and valuable consideration, the existence and sufficiency of which is expressly
recognized by all of the parties hereto, the parties agree to amend and restate the Restated
Intercreditor Agreement in its entirety as follows:

ARTICLE 1 — DEFINITIONS

     Section 1.01. Defined Terms. The terms defined in the recitals shall have the meanings assigned to those terms in such
recitals, and the following terms shall have the meanings assigned as follows:

     “Additional Termination Event” has the meaning given that term in Section 4.06.

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     “Affiliate” means, as to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person. A Person shall be
deemed to be controlled by any other Person if such other Person possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

     “Agreement” means this Amended and Restated Intercreditor Agreement, as it may be
supplemented, modified or amended from time to time as permitted herein, which amends and restates
in its entirety the Restated Intercreditor Agreement. Any references to the Restated Intercreditor
Agreement in any Transaction Document shall refer to this Agreement.

     “Approved Hedge Counterparty” means BP Corporation North America Inc. or any of its Affiliates
and such other Person as shall meet the requirements specified in the First Lien Credit Agreement
and shall have executed a Joinder Agreement.

     “Approved Hedge Counterparty Obligations” means all obligations of any Obligor under all
Approved Hedge Counterparty Swap Contracts, including all unpaid amounts, settlement amounts,
indemnities, costs, expenses (including reasonable attorneys’ fees), interest on past due amounts
and other liabilities and obligations then due and unpaid by such Obligor.

     “Approved Hedge Counterparty Swap Contract” means (i) any Lender Hedging Agreement to which an
Approved Hedge Counterparty has become a party by novation or otherwise and succeeded to the rights
and obligations of a First Lien Lender or an Affiliate of a First Lien Lender and (ii) any Swap
Contract entered into by the Approved Hedge Counterparty with a Borrower or any other Obligor.

     “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended
from time to time.

     “Borrower” and Borrowers” have the meanings given those terms in the introductory paragraph.

     “Borrowing Base Oil and Gas Properties” means those Oil and Gas Properties of the Borrower and
each of the other Obligors that are subject to the Liens created by the Security Documents.

     “Business Day” means any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized to close under the laws of New York, or are in fact closed.

     “Cash Management Obligations” means, with respect to any Obligor, any obligations of such
Obligor owed to the First Lien Agent or any First Lien Lender (or any of their respective
Affiliates) in respect of treasury management arrangements, depositary or other cash management
services.

     “Collateral” means the properties and rights described in the Security Documents as security
for any of the Obligations, and shall include any amounts on deposit in any deposit account or
securities account which have been pledged to secure all or any portion of the Obligations.

     “Collateral Agent” has the meaning given that term in the introductory paragraph.

     “Comparable Second Lien Security Document” means, in relation to any Collateral subject to any
First Lien Security Document, that Second Lien Security Document that creates a security interest
in the same Collateral, granted by the same Obligor, as applicable.

     “DIP Financing” has the meaning given that term in Section 5.02.

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     “Effective Date” has the meaning given that term in the introductory paragraph.

     “Enforcement Action” means, with respect to the Collateral, the exercise of any rights and
remedies with respect to any Collateral securing the Obligations or the commencement or prosecution
of enforcement of any of the rights and remedies under, as applicable, the First Lien Documents or
the Second Lien Documents, or applicable law, including without limitation the exercise of any
rights of set-off or recoupment, and the exercise of any rights or remedies of a secured creditor
under the UCC of an applicable jurisdiction or under the Bankruptcy Code.

     “Exempt LC” has the meaning given that term in Section 4.06.

     “First Lien Agent” has the meaning given that term in the introductory paragraph and includes
any successor agent under any First Lien Agreement if the First Lien Credit Agreement is replaced,
refunded or refinanced.

     “First Lien Agreement” means (i) the First Lien Credit Agreement and (ii) any other credit
agreement, loan agreement, note agreement, promissory note, indenture or other agreement or
instrument evidencing or governing the terms of any indebtedness or other financial accommodation
that has been incurred to extend, replace, refinance or refund in whole or in part the indebtedness
and other obligations outstanding under the First Lien Credit Agreement or any other agreement or
instrument referred to in this clause (ii). Any reference to the First Lien Agreement hereunder
shall be deemed a reference to any First Lien Agreement then extant.

     “First Lien Collateral” means all assets, whether now owned or hereafter acquired by a
Borrower or any other Obligor, in which a Lien is granted or purported to be granted in favor of
First Lien Secured Parties or in favor of Collateral Agent for the benefit of First Lien Secured
Parties, as security for any First Lien Obligation.

     “First Lien Credit Agreement” has the meaning given that term in Recital A.

     “First Lien Documents” means the First Lien Agreement, each Approved Hedge Counterparty Swap
Contract and each First Lien Security Document.

     “First Lien Lenders” has the meaning given that term in Recital A and includes any successor
lenders under the First Lien Credit Agreement and any successor lenders under any First Lien
Agreement if the First Lien Credit Agreement is replaced, refunded or refinanced.

     “First Lien Obligation Triggering Event” means (i) the occurrence and continuance of an Event
of Default under the First Lien Agreement or any similar provision(s) in any Approved Hedge
Counterparty Swap Contract, (ii) Collateral Agent shall have received from an Approved Hedge
Counterparty written notice (a) that either an event of default or a termination event has occurred
and is continuing under one or more of its Approved Hedge Counterparty Swap Contracts, (b) that an
early termination date has been designated as a result thereof, (c) that specifies the sum of all
unpaid amounts and settlement payments then due as the result of the designation of such early
termination date and the amount of interest and other amounts then due and payable by the Obligors
in respect thereof, and (d) that the amount set forth in clause (c) has not been paid in full or
discharged to the satisfaction of such Approved Hedge Counterparty, or (iii) Collateral Agent shall
have received from the First Lien Agent written notice (y) that an “Event of Default” under the
First Lien Agreement has occurred and is continuing and (z) that the unpaid principal amount of the
notes under the First Lien Agreement and all interest accrued and unpaid thereon have been declared
to be then due and payable.

Amended and Restated

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     “First Lien Obligations” means (i) all principal of and interest (including without limitation
any Post-Petition Interest) and premium (if any) on all loans made pursuant to the First Lien
Agreement, (ii) all reimbursement obligations (if any) and interest thereon (including without
limitation any Post-Petition Interest) with respect to any letter of credit or similar instruments
issued pursuant to the First Lien Agreement, (iii) all Hedging Obligations of any Obligor owed to a
First Lien Secured Party including, without limitation, any Approved Hedge Counterparty Swap
Contract, (iv) all Cash Management Obligations of any Obligor, and (v) all fees, expenses and other
amounts payable from time to time pursuant to the First Lien Documents, in each of the foregoing
cases whether or not allowed or allowable against any Obligor or their estates in an Insolvency
Proceeding. To the extent any payment with respect to any First Lien Obligation (whether by or on
behalf of any Obligor, as proceeds of security, enforcement of any right of setoff or otherwise) is
declared to be a fraudulent conveyance or a preference in any respect, set aside or required to be
paid to a debtor in possession, any Second Lien Secured Party, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied shall, for the purposes of this
Agreement and the rights and obligations of the First Lien Secured Parties and the Second Lien
Secured Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.

     “First Lien Obligations Payment Date” means the first date on which (i) the First Lien
Obligations (other than those that constitute Unasserted Contingent Obligations) have been
indefeasibly paid in cash in full (or cash collateralized or defeased in accordance with the terms
of the First Lien Documents), (ii) all commitments to extend credit under the First Lien Documents
have been terminated, and (iii) there are no outstanding letters of credit or similar instruments
issued under the First Lien Documents (other than such as have been cash collateralized or defeased
in accordance with the terms of the First Lien Security Documents).

     “First Lien Secured Parties” means the First Lien Agent, the First Lien Lenders (or their
Affiliates), each Approved Hedge Counterparty and any other holders of First Lien Obligations,
including replacement First Lien Lenders, and Collateral Agent, acting in its capacity as
collateral agent for the benefit of First Lien Secured Parties under any Security Document.

     “First Lien Security Documents” means (i) each Security Document granting a first priority
Lien in favor of First Lien Agent for the benefit of First Lien Secured Parties, or in favor of
Collateral Agent, for the benefit of First Lien Secured Parties, to secure First Lien Obligations
and (ii) and any other documents that are designated under the First Lien Agreement as “Collateral
Documents” for purposes of this Agreement that grant a Lien in favor of First Lien Agent for the
benefit of First Lien Secured Parties, or in favor of Collateral Agent, for the benefit of First
Lien Secured Parties, to secure First Lien Obligations. For the avoidance of doubt, First Lien
Security Documents may also secure Second Lien Obligations.

     “First Liens” means (i) the first and prior liens and security interests granted in the
Collateral in favor of the First Lien Agent on behalf of the First Lien Secured Parties, as
security for the payment and performance of the First Lien Obligations and (ii) the first and prior
liens and security interests granted in the Collateral in favor of the Collateral Agent on behalf
of the First Lien Secured Parties, as security for the payment and performance of the First Lien
Obligations.

     “Hedging Obligations” means, with respect to any Obligor, any obligations of such Obligor owed
to any First Lien Secured Party (or any of its Affiliates) in respect of any Lender Hedging
Agreement, including all unpaid amounts, settlement amounts, indemnities, costs, expenses
(including reasonable attorneys’ fees), interest on past due amounts and other liabilities and
obligations then due and unpaid by any Obligor under such Lender Hedging Agreement.

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     “Hedging Report” means a monthly report, to be provided by no later than the fifteenth
calendar day of each month, setting out for the following eighty-four (84) months, the (i) Proved
Reserves for each such month, (2) the volumes of oil and gas commodities currently hedged for each
such month and (3) the volumes of oil and gas commodities available to be hedged pursuant to the
Section 9.05 herein for each such month.

     “Indemnitee” has the meaning given that term in Section 9.09.

     “Indemnified Liabilities” has the meaning given that term in Section 9.09.

     “Insolvency Proceeding” means any proceeding in respect of bankruptcy, insolvency, winding up,
receivership, dissolution or assignment for the benefit of creditors, in each of the foregoing
events whether under the Bankruptcy Code or any similar federal, state or foreign bankruptcy,
insolvency, reorganization, receivership or similar law.

     “ISDA” means the International Swaps and Derivatives Association, Inc.

     “Joinder Agreement” means a joinder agreement substantially in the form of Annex 3 hereto.

     “KPC” has the meaning given that term in Recital B.

     “Lender Hedging Agreement” means (i) a Swap Contract between a Borrower and a First Lien
Lender or an Affiliate of a First Lien Lender and (ii) an Approved Hedge Counterparty Swap
Contract.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, deed to secure debt,
lien, pledge, hypothecation, assignment, encumbrance, charge or security interest in, on or of such
asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or any financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset, and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

     “Obligations” means the First Lien Obligations and the Second Lien Obligations.

     “Obligor” means each Borrower and each direct or indirect Affiliate or shareholder (or
equivalent) of a Borrower or any of its Affiliates (other than (i) KPC, which is excluded from the
definition of “Obligor” because no Liens granted by KPC secure Approved Hedge Counterparty Swap
Contracts, (ii) Quest Eastern Resource, LLC and all of its subsidiaries and (iii) any subsidiary of
PostRock Energy Corporation that may be formed after the date of this Agreement that is not also a
subsidiary of a Borrower) that is now or hereafter becomes a party to any Security Document.

     “Oil and Gas Properties” means fee, leasehold or other interests in or under mineral estates
or hydrocarbon leases with respect to properties situated in the United States of America,
including overriding royalty and royalty interests, leasehold estate interests, net profits
interests, production payment interests and mineral fee interests, together with contracts executed
in connection therewith and all tenements, hereditaments, appurtenances and properties, real or
personal, appertaining, belonging, affixed or incidental thereto.

     “Original Intercreditor Agreement” has the meaning given that term in Recital D.

     “Original Second Lien Agent” has the meaning given that term in Recital D.

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     “Person” means, any person, individual, sole proprietorship, partnership, joint venture,
corporation, limited liability company, unincorporated organization, association, institution,
entity, party, including any government and any political subdivision, agency or instrumentality
thereof.

     “PESC” has the meaning given that term in the introductory paragraph.

     “PMP” has the meaning given that term in the introductory paragraph.

     “Post-Petition Interest” means any interest or entitlement to fees or expenses that accrues
after the commencement of any Insolvency Proceeding, whether or not allowed or allowable in any
such Insolvency Proceeding.

     “Principal Agreements” means collectively the Principal First Lien Agreements and the
Principal Second Lien Agreements.

     “Principal First Lien Agreements” means Approved Hedge Counterparty Swap Contracts and the
First Lien Agreement.

     “Principal Second Lien Agreements” means the Second Lien Credit Agreement.

     “Proved Reserves” means “Proved Reserves” as defined in the Definitions for Oil and Gas
reserves promulgated by the Society of Petroleum Engineers (or any generally recognized successor)
as in effect at the time in question.

     “PV10” means the present worth of future net income, discounted to present value at the simple
interest rate of ten percent (10%) per year.

     “Recovery” has the meaning given that term in Section 5.05.

     “Required First Lien Lenders” means “Required Lenders” as defined in the First Lien Credit
Agreement and includes any comparable defined term under any First Lien Agreement if the First Lien
Credit Agreement is replaced, refunded or refinanced.

     “Required First Lien Secured Parties” has the meaning given that term in Section 4.02(a).

     “Reserve Report” means a report prepared by an internal petroleum engineer of the Borrower
regarding the Proved Reserves attributable to the Borrowing Base Oil and Gas Properties, using the
criteria and parameters required by and acceptable to the Securities and Exchange Commission and
incorporating the present cost of appropriate plugging and abandonment obligations to be incurred
in the future, taking into account any plugging and abandonment fund required to be accrued or
established by Borrower out of cash flow from the Borrowing Base Oil and Gas Properties covered by
such report with respect to such future obligations.

     “Restated Intercreditor Agreement” has the meaning given that term in Recital E.

     “Second Lien Agent” has the meaning given that term in the introductory paragraph and includes
any successor agent under any Second Lien Agreement if the Second Lien Credit Agreement is
replaced, refunded or refinanced.

     “Second Lien Agreement” means (i) the Second Lien Credit Agreement and (ii) any other credit
agreement, loan agreement, note agreement, promissory note, indenture, or other agreement or
instrument

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evidencing or governing the terms of any indebtedness or other financial accommodation that
has been incurred to extend, replace, refinance or refund in whole or in part the indebtedness and
other obligations outstanding under the Second Lien Credit Agreement or other agreement or
instrument referred to in this clause (ii). Any reference to the Second Lien Agreement hereunder
shall be deemed a reference to any Second Lien Agreement then extant.

     “Second Lien Collateral” means all assets, whether now owned or hereafter acquired by a
Borrower or any other Obligor, in which a Lien is granted or purported to be granted in favor of
Second Lien Secured Parties, or in favor Collateral Agent for the benefit of Second Lien Secured
Parties, as security for any Second Lien Obligation.

     “Second Lien Credit Agreement” has the meaning given that term in Recital B.

     “Second Lien Documents” means each Second Lien Agreement and each Second Lien Security
Document

     “Second Lien Lenders” has the meaning given that term in Recital B and includes any successor
lenders under the Second Lien Credit Agreement and any successor lenders under any Second Lien
Agreement if the Second Lien Credit Agreement is replaced, refunded or refinanced.

     “Second Lien Obligation Triggering Event” means (i) the occurrence and continuance of an Event
of Default under the Second Lien Agreement, or (ii) Collateral Agent shall have received from the
Second Lien Agent written notice (a) that an “Event of Default” under the Second Lien Agreement has
occurred and is continuing and (b) that the unpaid principal amount of the notes under the Second
Lien Agreement and all interest accrued and unpaid thereon have been declared to be then due and
payable.

     “Second Lien Obligations” means (i) all principal of and interest (including without
limitation any Post-Petition Interest) and premium (if any) on all indebtedness under the Second
Lien Agreement, (ii) unpaid amounts, settlement amounts, indemnities, costs, expenses (including
reasonable attorneys’ fees), interest due amounts and other liabilities and obligations of PESC
and/or KPC owed to a Second Lien Secured Party in connection with a Swap Contract; and (iii) all
fees, expenses and other amounts payable from time to time pursuant to the Second Lien Documents,
in each case whether or not allowed or allowable against PESC and/or KPC or their estates in an
Insolvency Proceeding. To the extent any payment with respect to any Second Lien Obligation
(whether by or on behalf of PESC and/or KPC, as proceeds of security, enforcement of any right of
setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set
aside or required to be paid to a debtor in possession, then the obligation or part thereof
originally intended to be satisfied shall, for the purposes of this Agreement and the rights and
obligations of the First Lien Secured Parties and the Second Lien Secured Parties, be deemed to be
reinstated and outstanding as if such payment had not occurred.

     “Second Lien Secured Parties” means the Second Lien Agent, the Second Lien Lenders (or their
Affiliates), and any other holders of Second Lien Obligations, including replacement Second Lien
Lenders, and Collateral Agent, acting in its capacity as collateral agent for the benefit of Second
Lien Secured Parties under any Security Document.

     “Second Lien Security Documents” means (i) each Security Document granting a second priority
Lien in favor of Second Lien Agent for the benefit of Second Lien Secured Parties, or in favor of
Collateral Agent, for the benefit of Second Lien Secured Parties, to secure Second Lien Obligations
and (ii) any other documents that are designated under the Second Lien Agreement as “Collateral
Documents” for purposes of this Agreement that grant a Lien in favor of Second Lien Agent for the
benefit of Second Lien Secured Parties, or in favor of Collateral Agent, for the benefit of Second
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secure Second Lien Obligations. For the avoidance of doubt, Second Lien Security Documents
may also secure First Lien Obligations.

     “Second Liens” means (i) the second and junior liens and security interests granted in the
Collateral in favor of the Second Lien Agent on behalf of the Second Lien Secured Parties, as
security for the payment and performance of the Second Lien Obligations and (ii) the second and
junior liens and security interests granted in the Collateral in favor of the Collateral Agent on
behalf of the Second Lien Secured Parties, as security for the payment and performance of the
Second Lien Obligations.

     “Secured Parties” means the First Lien Secured Parties and the Second Lien Secured Parties.

     “Security Documents” means the guaranties, deeds of trust, mortgages, security agreements,
pledge agreements, and related financing statements listed on Annex 1.

     “Standstill Period” has the meaning given that term in Section 3.02(a)(i).

     “Swap Contract” means (a) any and all interest rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the ISDA, any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together with any related
schedules, a “Master Agreement”), including any such obligations or liabilities under any Master
Agreement.

     “Transaction Documents” means this Agreement, the Principal Agreements and the Security
Documents.

     “Triggering Event” shall mean either a First Lien Obligation Triggering Event or a Second Lien
Obligation Triggering Event.

     “Unasserted Contingent Obligations” shall mean, at any time, First Lien Obligations or Second
Lien Obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities
(excluding (i) the principal of, and interest and premium (if any) on, and fees and expenses
relating to, any First Lien Obligation or Second Lien Obligation, as the case may be, and
(ii) contingent reimbursement obligations in respect of amounts that may be drawn under outstanding
letters of credit) in respect of which no assertion of liability (whether oral or written) and no
claim or demand for payment (whether oral or written) has been made (and, in the case of First Lien
Obligations for indemnification, no notice for indemnification has been issued by the indemnitee)
at such time.

     “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York.

     Section 1.02. Headings. Article and section headings of this Agreement are for convenience of reference only, and shall
not govern the interpretation of any of the provisions of this Agreement.

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     Section 1.03. Terms Generally.

     The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented, renewed, replaced, increased, restated or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth herein), (b) any
reference herein to any Person shall be construed to include such Person’s successors and assigns;
provided such successors and assigns are permitted by the Principal Agreement to which such Person
is a party and such Person complies with Sections 9.05 and 9.13 hereof, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, and (d) all references herein
to Recitals, Articles, Sections, Exhibits and Annexes shall be construed to refer to Recitals,
Articles and Sections of, and Exhibits and Annexes to, this Agreement unless otherwise indicated.

ARTICLE 2 – LIEN PRIORITIES.

     Section 2.01. Subordination of Second Liens.

     (a) Any and all Liens now existing or hereafter created or arising in favor of any Second Lien
Secured Party, or in favor of Collateral Agent for the benefit of Second Lien Secured Parties,
securing the Second Lien Obligations, regardless of how acquired, whether by grant, statute,
operation of law, subrogation or otherwise, are expressly junior in priority, operation and effect
to any and all Liens now existing or hereafter created or arising in favor of the First Lien
Secured Parties, or in favor of Collateral Agent for the benefit of First Lien Secured Parties,
securing the First Lien Obligations, notwithstanding (i) anything to the contrary contained in any
agreement or filing to which any Second Lien Secured Party may now or hereafter be a party, and
regardless of the time, order or method of grant, attachment, recording or perfection of any
financing statements or other Liens or any defect or deficiency or alleged defect or deficiency in
any of the foregoing, (ii) any provision of the UCC or any applicable law or any First Lien
Document or Second Lien Document or any other circumstance whatsoever and (iii) the fact that any
such Liens in favor of any First Lien Secured Party or in favor of the Collateral Agent for the
benefit of First Lien Secured Parties securing any of the First Lien Obligations are
(x) subordinated to any Lien securing any obligation of any Obligor other than the Second Lien
Obligations or (y) otherwise subordinated, voided, avoided, invalidated or lapsed.

     (b) No First Lien Secured Party or Second Lien Secured Party shall object to or contest, or
support any other Person in contesting or objecting to, in any proceeding (including without
limitation, any Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any security interest in the Collateral granted to the other or to the Collateral
Agent. Notwithstanding any failure by any First Lien Secured Party or Second Lien Secured Party or
by Collateral Agent on their behalf to perfect its security interests in the Collateral or any
avoidance, invalidation or subordination by any third party or court of competent jurisdiction of
the security interests in the Collateral granted to the First Lien Secured Parties or the Second
Lien Secured Parties, or to the Collateral Agent for their benefit, the priority and rights as
between the First Lien Secured Parties and the Second Lien Secured Parties with respect to the
Collateral and proceeds thereof shall be as set forth herein.

     Section 2.02. Nature of First Lien Obligations.

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     (a) The Second Lien Agent on behalf of itself and the other Second Lien Secured Parties
acknowledges that all or a portion of the First Lien Obligations are revolving in nature and that
the amount thereof that may be outstanding at any time or from time to time may be increased or
reduced and subsequently reborrowed, and that subject to Section 6.02 the terms of the First Lien
Obligations may be modified, extended or amended from time to time, and that the aggregate amount
of the First Lien Obligations may be increased, replaced or refinanced, in each event, without
notice to or consent by the Second Lien Secured Parties and without affecting the provisions
hereof. The Lien priorities provided in Section 2.01 shall not be altered or otherwise affected by
any such amendment, modification, supplement, extension, repayment, reborrowing, increase,
replacement, renewal, restatement or refinancing of either the First Lien Obligations or the Second
Lien Obligations, or any part thereof.

     (b) First Lien Agent under any First Lien Agreement, on behalf of itself and the other First
Lien Lenders, consents to Obligor entering into Approved Hedge Counterparty Swap Contracts and
agrees that each of such Swap Contracts is a Lender Hedging Agreement.

     (c) Obligors shall prepare and provide a Hedging Report to First Lien Agent and each Approved
Hedge Counterparty. Notwithstanding the foregoing, no Approved Hedge Counterparty consents to
Collateral Agent nor any Obligor sharing any trade confirmation of such Approved Hedge
Counterparty, or any information therein other than notional tenor and volumes, with any other
Approved Hedge Counterparty.

     Section 2.03 Status of Liens: Collateral.

     (a) Each Approved Hedge Counterparty, the First Lien Agent, for itself and on behalf of the
First Lien Lenders, and the Second Lien Agent, for itself and on behalf of the Second Lien Lenders,
agrees that, subject to Section 4.03 and notwithstanding anything to the contrary contained in any
First Lien Document or Second Lien Document, (i) all First Lien Secured Parties shall rank pari
passu in priority with respect to any First Lien on any Collateral securing the First Lien
Obligations, and (ii) all First Liens on any Collateral securing any First Lien Obligations shall
rank pari passu with one another.

     (b) Each Approved Hedge Counterparty and the First Lien Agent, for itself and on behalf of the
First Lien Lenders, agrees (i) that if any such Person takes any additional Collateral in respect
of any First Lien Obligations, such Person shall take any and all action necessary to create and
perfect First Liens on any such Collateral in favor of the other First Lien Lenders for the equal
and ratable benefit of all First Lien Lenders (subject to Section 4.03), including, without
limitation, executing and delivering mortgages, security agreements, financing statements,
amendments to financing statements, and any other agreements, documents, certificates or
instruments necessary to accomplish the foregoing and (ii) to take any and all action necessary to
create and perfect Second Liens on any such Collateral in favor of the Second Lien Lenders for the
equal and ratable benefit of all Second Lien Lenders (subject to Section 4.03).

     (c) Each Approved Hedge Counterparty, the First Lien Agent, for itself and on behalf of the
First Lien Lenders, and the Second Lien Agent, for itself and on behalf of the Second Lien Lenders,
agrees to take any and all action necessary to cause Collateral Agent to be designated as the sole
secured party for the benefit of the Approved Hedge Counterparties, First Lien Agent, First Lien
Lenders, Second Lien Agent and Second Lien Lenders, in respect of any Lien on any Collateral
securing the First Lien Obligations or the Second Lien Obligations, including, without limitation,
executing and delivering mortgages, security agreements, financing statements, amendments to
financing statements, and any other agreements, documents, certificates or instruments evidencing
or required or permitted to be filed to create or perfect a Lien on Collateral.

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     (d) Each Approved Hedge Counterparty, the First Lien Agent, for itself and on behalf of the
First Lien Lenders, the Second Lien Agent, for itself and on behalf of the Second Lien Lenders and
each Obligor will from time to time sign, execute, deliver and file, alone or with Collateral Agent
or any other Secured Party or any other Obligor, and hereby authorizes Collateral Agent to file,
any financing statements or security agreements pertaining to the Collateral, or any part thereof;
and take all further action that may be necessary or desirable, or that Collateral Agent may
reasonably request, to confirm, perfect, preserve and protect the security interests intended to be
granted under the Security Documents, and in addition, each of the Secured Parties and the Obligors
hereby authorizes Collateral Agent to execute and deliver on behalf of such Person and to file such
other financing statements or security agreements without the signature of such Person either in
Collateral Agent’s name or in the name of such Person and as agent and attorney-in-fact for such
Person. Each Secured Party and each Obligor shall do all such additional and further acts or
things, give such assurances and execute such agreements, documents, certificates or instruments
as Collateral Agent requires to vest more completely in and assure to Collateral Agent and Secured
Parties their rights under this Agreement (including this Section 2.03), including, without
limiting the generality of the foregoing, marking conspicuously each note or other instrument
evidencing the First Lien Obligations and Second Lien Obligations with the legend described in
Section 2.05(b) and, at the request of Collateral Agent, each of its records pertaining to the
Collateral with such legend.

     Section 2.04. Agreements Regarding Actions to Perfect Liens.

     (a) The Second Lien Agent on behalf of itself and the other Second Lien Secured Parties agrees
that UCC-1 financing statements, mortgages, patent, trademark or copyright filings or other filings
or recordings filed or recorded by or on behalf of the Second Lien Agent shall be in form
satisfactory to the First Lien Agent.

     (b) The Collateral Agent hereby acknowledges that, to the extent that it holds, or a third
party holds on its behalf, physical possession of or “control” (as defined in the UCC) over
Collateral pursuant to the First Lien Security Documents, such possession or control is also for
the benefit of the Second Lien Agent and the other Second Lien Secured Parties for purposes of
perfecting their security interest in such Collateral. Nothing in the preceding sentence shall be
construed to impose any duty on the Collateral Agent (or any third party acting on its behalf) with
respect to such Collateral or provide the Second Lien Agent or any other Second Lien Secured Party
with any rights with respect to such Collateral beyond those specified in this Agreement and the
Second Lien Security Documents; provided that subsequent to the occurrence of the First
Lien Obligations Payment Date, the Collateral Agent shall promptly deliver written notice of the
occurrence of same to Second Lien Agent and shall (x) deliver to the Second Lien Agent, at the
Borrowers’ sole cost and expense, the Collateral in its possession or control together with any
necessary endorsements to the extent required by the Second Lien Documents, and shall deliver to
Borrowers written notice of such action, or (y) direct and deliver such Collateral as a court of
competent jurisdiction otherwise directs, and provided further that the provisions of this
Agreement are intended solely to govern the respective Lien priorities as between the First Lien
Secured Parties and the Second Lien Secured Parties, and shall not impose on the Collateral Agent
or the First Lien Secured Parties any obligations in respect of the disposition of any Collateral
(or any proceeds thereof) that would conflict with prior perfected Liens or any claims thereon in
favor of any other Person that is not a Secured Party.

     Section 2.05. Legends.

     (a) The Collateral Agent, First Lien Agent (on behalf of itself and the other First Lien
Secured Parties) and Second Lien Agent (on behalf of itself and the other Second Lien Secured
Parties) agree that all mortgages, deeds of trust, deeds and similar instruments not concurrently
granting a Lien to the Collateral Agent for the benefit of the First Lien Secured Parties now or
hereafter filed against real

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property in favor of Second Lien Agent or Collateral Agent for the benefit solely of the
Second Lien Secured Parties, shall be in form satisfactory to the First Lien Agent and shall
contain the following notation: “ALL LIENS GRANTED BY THIS INSTRUMENT SHALL, TO THE EXTENT SET
FORTH IN THE AMENDED AND RESTATED INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT DATED SEPTEMBER 21,
2010 BY AND AMONG POSTROCK ENERGY SERVICES CORPORATION, POSTROCK MIDCONTINENT PRODUCTION, LLC,
ROYAL BANK OF CANADA, AS FIRST LIEN AGENT, ROYAL BANK OF CANADA, AS SECOND LIEN AGENT, ROYAL BANK
OF CANADA, AS COLLATERAL AGENT, AND PARTIES THERETO, BE SUBORDINATE AND JUNIOR TO ALL LIENS GRANTED
BY GRANTOR TO SECURE THE FIRST LIEN OBLIGATIONS REGARDLESS OF THE RELATIVE PRIORITY OF SUCH LIENS,
SUCH AMENDED AND RESTATED INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT BEING INCORPORATED HEREIN
AND BY THIS REFERENCE BEING MADE A PART HEREOF.”

     (b) Upon written request from the Collateral Agent, each Secured Party shall mark, or cause to
be marked, at all times on each note or other instrument evidencing the Obligations to which it is
a holder a legend, in form and substance satisfactory to Collateral Agent, indicating that with
respect to Obligations of an Obligor, the rights, remedies and obligations of the Obligors and the
holders of such note or other instrument shall be limited by and subject to the terms of this
Agreement.

     Section 2.06 No New Second Liens. So long as the First Lien Obligations Payment Date has not occurred, the parties hereto agree
that no Second Lien Secured Party shall acquire or hold any Lien on any assets of any Obligor
securing any Second Lien Obligation which assets are not also subject to a First Lien in favor of
the First Lien Secured Parties under the First Lien Documents or under Security Documents. If any
Second Lien Secured Party shall (nonetheless and in breach hereof) acquire or hold any Lien on any
assets of any Obligor securing any Second Lien Obligation which assets are not also subject to a
First Lien in favor of the First Lien Secured Parties under the First Lien Documents, then the
Second Lien Agent (or the relevant Second Lien Secured Party) shall, and shall be deemed to have,
without the need for any further consent of any other Second Lien Secured Party and notwithstanding
anything to the contrary in any other Second Lien Document be deemed to hold and have held such
Lien for the benefit of the First Lien Agent as security for the First Lien Obligations and shall
assign such Lien to the Collateral Agent or the First Lien Agent (in which case the Second Lien
Agent may retain a junior second priority lien on such assets subject to the terms hereof).

     Section 2.07. Similar Liens and Agreements. The parties hereto agree that it is their intention that the First Lien Collateral and the
Second Lien Collateral be identical. To the extent that, notwithstanding this Section 2.07, the
First Lien Collateral and Second Lien Collateral are not identical, the Second Lien Agent, on
behalf of Second Lien Secured Parties, agrees that any amounts received by or distributed to any of
them pursuant to or as a result of Liens on Second Lien Collateral that is not First Lien
Collateral, shall be subject to Section 4.03. In furtherance of the foregoing, the parties hereto
agree, subject to the other provisions of this Agreement:

     (a) upon reasonable request by the First Lien Agent or the Second Lien Agent, to cooperate in
good faith (and to direct their counsel to cooperate in good faith) from time to time in order to
determine the specific items included in the First Lien Collateral and the Second Lien Collateral
and the steps taken to perfect their respective Liens thereon and the identity of the respective
parties obligated under the First Lien Documents and the Second Lien Documents;

     (b) that the documents and agreements creating or evidencing the First Lien Collateral and the
Second Lien Collateral and guarantees for the First Lien Obligations and the Second Lien
Obligations

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shall be Security Documents or otherwise in all material respects the same forms of documents
other than with respect to the First Lien and Second Lien nature of the obligations and Collateral
thereunder; and

     (c) that in the event either First Lien Agent shall obtain or record any First Lien Documents
in favor of First Lien Agent granting Liens on Collateral to secure First Lien Obligations, or
Second Lien Agent shall obtain or record any Second Lien Documents in favor of Second Lien Agent
granting Liens on Collateral to secure Second Lien Obligations, and such First Lien Documents or
Second Lien Documents are not Security Documents, then First Lien Agent or Second Lien Agent, as
the case may be, shall notify the other of such documentation and provide a copy thereof.

ARTICLE 3 ENFORCEMENT RIGHTS

     Section 3.01. Separate Debts. The amounts payable by the Obligors to each Secured Party at any time under any of the Principal
Agreements to which such Secured Party is a party shall be separate and independent debts, and each
Secured Party shall be entitled to enforce any right arising out of the applicable Principal
Agreement to which it is a party, subject to the terms thereof and of this Agreement. First Lien
Agent, for itself and on behalf of the First Lien Lenders, and Second Lien Agent, for itself and on
behalf of the Second Lien Lenders and each Approved Hedge Counterparty each hereby agrees that no
Secured Party other than Collateral Agent (in its capacity as such) shall have any right
individually to realize upon any Liens granted under the Security Documents, it being understood
and agreed that such remedies may be exercised only by Collateral Agent for the benefit of Secured
Parties.

     Section 3.02. Limits of Enforcement of Second Lien. Until the First Lien Obligations Payment Date has occurred, whether or not a Insolvency
Proceeding has been commenced by or against any Obligor:

     (a) The Second Lien Agent and the Second Lien Secured Parties (and Collateral Agent, on behalf
of Second Lien Agent or Second Lien Secured Parties, under any Security Document):

     (i) will not exercise or seek to exercise any rights or remedies (including setoff)
with respect to the Collateral (including, without limitation, the exercise of any right
under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter
or similar agreement or arrangement to which the Second Lien Agent or any Second Lien
Secured Party is a party), or institute any action or proceeding with respect to such rights
or remedies (including any action of foreclosure); provided, however, that
the Second Lien Agent may exercise (and direct Collateral Agent to exercise, pursuant to any
Security Document) any or all such rights and remedies of Second Lien Secured Parties under
any Second Lien Security Document after the passage of a period of 179 days from the date of
delivery of a notice in writing to the First Lien Agent and each Approved Hedge Counterparty
that an Event of Default (as defined in the Second Lien Agreement) has occurred under the
Second Lien Documents and the Second Lien Obligations have been accelerated (with respect to
each individual Event of Default, each a “Standstill Period”) which notice may only be
delivered following the occurrence of and during the continuation of an Event of Default (as
defined in the Second Lien Agreement) under the Second Lien Documents and the Second Lien
Obligations have been accelerated; provided, further, however,
notwithstanding anything herein to the contrary, in no event shall the Second Lien Agent or
any Second Lien Secured Party exercise or continue to exercise any rights or remedies with
respect to the Collateral if, notwithstanding the expiration of any outstanding Standstill
Period, the First Lien Agent, First Lien Lenders or an Approved Hedge Counterparty (or the
Collateral Agent on their behalf) shall have commenced and are diligently pursuing the
exercise of any of their rights or remedies with respect the Collateral (prompt notice of
such exercise to be given to the Second Lien Agent),

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     (ii) will not contest, protest or object to any foreclosure proceeding or action
brought by the Collateral Agent, the First Lien Agent or any First Lien Secured Party or any
other exercise by the Collateral Agent, the First Lien Agent or any First Lien Secured
Party, of any rights and remedies relating to the Collateral under the First Lien Documents
or otherwise, and

     (iii) subject to its rights under clause (a)(i) above, will not object to the
forbearance by the Collateral Agent, the First Lien Agent or any First Lien Secured Party
from bringing or pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Collateral.

     Section 3.03. Election to Pursue Remedies. Except as provided in Section 3.02(a)(i) hereof following the expiration of a Standstill Period,
the First Lien Secured Parties shall have the exclusive right (and under any Security Document
shall have the exclusive right to instruct the Collateral Agent) to take and continue any
Enforcement Action with respect to the Collateral, without any consultation with or consent of any
Second Lien Secured Party, but subject to the proviso set forth in Section 5.01. Upon the
occurrence and during the continuance of a First Lien Obligation Triggering Event, subject to the
provisions of this Agreement, the First Lien Agent and the other First Lien Secured Parties may
(and under any Security Document may instruct the Collateral Agent on their behalf to) take and
continue any Enforcement Action in such order and manner as they may determine in their sole
discretion.

     Section 3.04. Duty of Collateral Agent.

     (a) Collateral Agent shall not be obligated to follow any instructions of Second Lien Secured
Parties if such instructions conflict with the provisions of this Agreement, any Security Document
or any applicable law or Collateral Agent determines, in its sole and absolute discretion, that
such instructions are ambiguous, inconsistent, in conflict with previously received instructions or
otherwise insufficient to direct the actions of Collateral Agent provided that Collateral Agent
explains the grounds for a refusal based on a deficiency of instructions. On and after the First
Lien Obligations Payment Date, and at any time prior thereto following the expiration of any
applicable Standstill Period pursuant to Section 3.02(a)(i) above, and subject to the last proviso
of Section 3.02(a)(i), the first sentence of this Section 3.04(a) and Article 10 hereof, Collateral
Agent agrees that it shall follow instructions of Second Lien Secured Parties with respect to the
Collateral and Security Documents.

     (b) Collateral Agent shall not be obligated to follow any instructions of Required First Lien
Secured Parties if: (i) such instructions conflict with the provisions of this Agreement, any
Principal Agreement, any Security Document or any applicable law, (ii) Collateral Agent determines,
in its sole and absolute discretion, that such instructions are ambiguous, inconsistent, in
conflict with previously received instructions or otherwise insufficient to direct the actions of
Collateral Agent; provided that Collateral Agent explains the grounds for a refusal based
on a deficiency of instructions, or (iii) Collateral Agent has not been adequately indemnified to
its satisfaction. Nothing in this Agreement shall impair the right of Collateral Agent in its
discretion to take any action authorized under this Agreement or any Security Document, to the
extent that the consent of any party hereto is not required or to the extent such action is not
prohibited by the terms hereof or thereof, which it deems proper and consistent with the
instructions given by First Lien Secured Parties as provided for herein or otherwise in the best
interest of First Lien Secured Parties. In the absence of written instructions from any party
hereto for any particular matter, Collateral Agent shall have no duty to take or refrain from
taking any action unless such action or inaction is explicitly required by the terms of this
Agreement, the Security Documents or applicable law. Collateral Agent shall have no duty with
respect to (i) a Triggering Event unless it first receives notice that a Triggering Event has
occurred or (ii) the expiration of any Standstill Period unless it first receives notice that such
Standstill Period has expired.

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     (c) Beyond its duties expressly provided herein or in the Security Documents and its duties to
account to Secured Parties and/or the Obligors for monies and other property received by it
hereunder or under any Security Document, Collateral Agent shall have no implied duty to Secured
Parties or any Obligor as to any property belonging to any Obligor (whether or not the same
constitutes Collateral) in its possession or control or in the possession or control of any of its
agents or nominees, or any income thereon or as to the preservation of rights against prior parties
or any other rights pertaining thereto or available at law or otherwise.

     (d) Nothing in this Section 3.04 shall impair the right of any Secured Party to exercise its
rights of netting or set-off, if any.

     Section 3.05 Standstill and Waivers. The Second Lien Agent, on behalf of itself and the other Second Lien Secured Parties, agrees
that, until the First Lien Obligations Payment Date has occurred, subject to the proviso set forth
in Section 5.01 and except as permitted by Section 3.02(a):

     (a) they will not take or cause to be taken any action, the purpose or effect of which is to
make any Lien in respect of any Second Lien Obligation pari passu with or senior to, or to give any
Second Lien Secured Party any preference or priority relative to, the Liens with respect to the
First Lien Obligations or the First Lien Secured Parties with respect to any of the Collateral;

     (b) they will not oppose, object to, interfere with, hinder or delay, in any manner, whether
by judicial proceedings (including without limitation the filing of an Insolvency Proceeding) or
otherwise, any foreclosure, sale, lease, exchange, transfer or other disposition of the Collateral
by the Collateral Agent, the First Lien Agent or any other First Lien Secured Party or any other
Enforcement Action taken by or on behalf of the Collateral Agent, the First Lien Agent or any other
First Lien Secured Party;

     (c) they have no right to (x) direct either the Collateral Agent, the First Lien Agent or any
other First Lien Secured Party to exercise any right, remedy or power with respect to the
Collateral or pursuant to the First Lien Security Documents or (y) consent or object to the
exercise by the Collateral Agent, the First Lien Agent or any other First Lien Secured Party of any
right, remedy or power with respect to the Collateral or pursuant to the First Lien Security
Documents or to the timing or manner in which any such right is exercised or not exercised (or, to
the extent they may have any such right described in this clause (c), whether as a junior Lien
creditor or otherwise, they hereby irrevocably waive such right), except to the extent such
exercise was in violation of this Agreement;

     (d) without waiving any rights to take action as unsecured creditors, they will not institute
any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any
claim against either Collateral Agent, First Lien Agent or any other First Lien Secured Party
seeking damages from or other relief by way of specific performance, instructions or otherwise,
with respect to, and none of the Collateral Agent, First Lien Agent nor any other First Lien
Secured Party shall be liable for, any action taken or omitted to be taken by the Collateral Agent,
the First Lien Agent or any other First Lien Secured Party with respect to the Collateral or
pursuant to the First Lien Documents, so long as such actions or omissions were not taken in
violation of this Agreement;

     (e) without waiving any rights to take action as unsecured creditors, they will not make any
judicial or nonjudicial claim or demand or commence any judicial or non-judicial proceedings
against any Obligor or any of its subsidiaries or Affiliates under or with respect to any Second
Lien Security Document seeking payment or damages from or other relief by way of specific
performance, instructions or otherwise under or with respect to any Second Lien Security Document
(other than filing a proof of claim) or exercise any right, remedy or power under or with respect
to, or otherwise take any action to enforce, other than filing a proof of claim, any Second Lien
Security Document;

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     (f) they will not commence judicial or nonjudicial foreclosure proceedings with respect to,
seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any
action to take possession of, exercise any right, remedy or power with respect to, or otherwise
take any action to enforce their interest in or realize upon, the Collateral or pursuant to the
Second Lien Security Documents; or

     (g) they will not seek, and hereby waive any right, to have the Collateral or any part thereof
marshaled upon any foreclosure or other disposition of the Collateral.

     Section 3.06. Judgment Secured Parties. In the event that any Second Lien Secured Party becomes a judgment Lien creditor in respect of
Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment
Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the
First Liens and the First Lien Obligations) to the same extent as all other Liens, securing the
Second Lien Obligations (created pursuant to the Second Lien Security Documents) subject to this
Agreement.

     Section 3.07. Cooperation. The Second Lien Agent, on behalf of itself and the other Second Lien Secured Parties, agrees
that each of them shall take such actions as the Collateral Agent, the First Lien Agent or an
Approved Hedge Counterparty shall reasonably request in connection with the exercise by the
Collateral Agent or the First Lien Secured Parties of their rights set forth herein.

     Section 3.08. No Additional Rights For the Borrowers Hereunder. Except as provided in Section 3.09, if any First Lien Secured Party or Second Lien Secured Party
shall enforce its rights or remedies in violation of the terms of this Agreement, the Borrowers
shall not be entitled to use such violation as a defense to any action by any First Lien Secured
Party or Second Lien Secured Party, nor to assert such violation as a counterclaim or basis for set
off or recoupment against any First Lien Secured Party or Second Lien Secured Party.

     Section 3.09. Actions Upon Breach.

     (a) If any Second Lien Secured Party, contrary to this Agreement, commences or participates in
any action or proceeding against the Borrowers or the Collateral, the Borrowers, with the prior
written consent of the First Lien Agent, may interpose as a defense or dilatory plea the making of
this Agreement, and any First Lien Secured Party may intervene and interpose such defense or plea
in its or their name or in the name of either Borrower or both Borrowers, as applicable.

     (b) Should any Second Lien Secured Party, contrary to this Agreement, in any way take, attempt
to or threaten to take any action with respect to the Collateral (including, without limitation,
any attempt to realize upon or enforce any remedy with respect to this Agreement), or fail to take
any action required by this Agreement, any First Lien Secured Party (in its or their own name or in
the name of either Borrower or both Borrowers, as applicable) or the Borrowers, as applicable, may
obtain relief against such Second Lien Secured Party by injunction, specific performance and/or
other appropriate equitable relief, it being understood and agreed by the Second Lien Agent on
behalf of each Second Lien Secured Party that (i) the First Lien Secured Parties’ damages from its
actions may at that time be difficult to ascertain and may be irreparable, and (ii) each Second
Lien Secured Party waives any defense that the Borrowers and/or the First Lien Secured Parties
cannot demonstrate damage and/or be made whole by the awarding of damages.

ARTICLE 4 APPLICATION OF PROCEEDS OF COLLATERAL;

DISPOSITIONS AND RELEASES OF COLLATERAL; INSPECTION AND INSURANCE

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     Section 4.01. Notices under Related Documents.

     (a) Each Secured Party agrees: (i) to deliver to Collateral Agent, at the same time it makes
delivery to the Obligors, a copy of any notice of default, notice of intent to accelerate or notice
of acceleration with respect to any of the Obligations subject to this Agreement; and (ii) to
deliver to Collateral Agent, at the same time it makes delivery to any other Person, a copy of any
notice of the commencement of any judicial proceeding and a copy of any other notice with respect
to the exercise of remedies with respect to the Obligations subject to this Agreement.

     (b) Collateral Agent shall deliver to each Secured Party (or their designated representative
if a group) promptly upon receipt thereof (and in any event within two Business Days), duplicates
or copies of any notice received by it under Section 4.01(a) and all notices, requests and other
instruments received by Collateral Agent under or pursuant to this Agreement or any Security
Document, to the extent that the same shall not have been previously furnished to such Secured
Party pursuant hereto or thereto.

     Section 4.02. Voting Procedure.

     (a) When this Agreement requires or permits a vote prior to the First Lien Obligations Payment
Date, the Collateral Agent shall poll the Approved Hedge Counterparties and each other First Lien
Secured Party in order to determine the vote of First Lien Secured Parties holding more than 662⁄3%
of the total dollar value of First Lien Obligations owing at the time of such poll (“Required First
Lien Secured Parties”). Such majority vote shall be binding upon all First Lien Secured Parties,
whether they voted with the majority or not. The Obligors and First Lien Secured Parties may rely
on Collateral Agent with regard to any such vote without any duty of further inquiry.

     (b) After the occurrence of the First Lien Obligations Payment Date, the Collateral Agent
shall poll each Second Lien Secured Party in order to determine the vote of Second Lien Secured
Parties holding at least 51% of the total dollar value of Second Lien Obligations owing at the time
of such poll. Such majority vote shall be binding upon all Second Lien Secured Parties, whether
they voted with the majority or not. The Obligors and Second Lien Secured Parties may rely on
Collateral Agent with regard to any such vote without any duty of further inquiry.

     (c) For purposes of this Section 4.02, in determining the total dollar value of First Lien
Obligations or the total dollar value of Second Lien Obligations with respect to any Lender Hedging
Agreement (including any Approved Hedge Counterparty Swap Contract in the case of First Lien
Obligations), the methodology specified in Clause “THIRD” of Section 4.03(a) shall be used to
calculate the total dollar value of any Lender Hedging Agreement.

     Section 4.03. Application of Proceeds; Turnover Provisions. Upon the occurrence and during the continuance of a Triggering Event and following any
Enforcement Action, all proceeds of Collateral (including without limitation any interest earned
thereon but net of any taxes, assessments or prior Liens) resulting from the sale, collection or
other disposition of Collateral in connection with or resulting from any Enforcement Action, and
whether or not pursuant to an Insolvency Proceeding, shall be promptly distributed by the
Collateral Agent in the following order of priority:

     (a) first, with respect to the First Lien Obligations, to the First Lien Agent for application
to the First Lien Obligations, until the First Lien Obligations Payment Date has occurred, in the
following order of priority:

     (1) FIRST: to the payment of enforcement expenses incurred by the Collateral Agent;

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     (2) SECOND: to the ratable payment of all fees, expenses and indemnities for which the
First Lien Agent, First Lien Lenders or an Approved Hedge Counterparty have not been paid or
reimbursed in accordance with the First Lien Documents (as used in this subsection, a
“ratable payment” for any First Lien Lender, the First Lien Agent or an Approved Hedge
Counterparty shall be, on any date of determination, that proportion which the portion of
the total fees, expenses and indemnities owed to such First Lien Lender, the First Lien
Agent or an Approved Hedge Counterparty bears to the total aggregate fees, expenses and
indemnities owed to all First Lien Lenders, the First Lien Agent and all Approved Hedge
Counterparties on such date of determination);

     (3) THIRD: to the ratable payment of accrued and unpaid letter of credit fees, the
outstanding amount of unreimbursed drawings under letters of credit, accrued and unpaid
interest on, and principal of, the outstanding amount of loans and the outstanding amount of
obligations under Lender Hedging Agreements; provided, however, Approved
Hedge Counterparty Obligations are netted against any Exempt LC that may be issued to an
Approved Hedge Counterparty to remedy an Additional Termination Event as described in
Section 4.06 (it being understood that for purposes of this clause (3) the “outstanding
amount of obligations under Lender Hedging Agreements” refers to payments owing in
connection with an Early Termination Date as defined in the 2002 Master Agreement form
promulgated by the ISDA (or equivalent type payment obligation if some other form of Swap
Contract is in effect)(as used in this subsection, “ratable payment” means for any First
Lien Lender (or First Lien Lender Affiliate, in the case of Lender Hedging Agreements or an
Approved Hedge Counterparty, in the case of an Approved Hedge Counterparty Swap Contract),
on any date of determination, that proportion which the outstanding amount of accrued and
unpaid letter of credit fees, unreimbursed drawings under letters of credit, accrued and
unpaid interest on, and principal of, the outstanding amount of loans and the outstanding
amount of obligations under Lender Hedging Agreements owed to such First Lien Lender (or
First Lien Lender Affiliate, in the case of Lender Hedging Agreements or Approved Hedge
Counterparty, in the case of an Approved Hedge Counterparty Swap Contract) bears to the
outstanding amount of accrued and unpaid letter of credit fees, unreimbursed drawings under
letters of credit, accrued and unpaid interest on, and principal of, the outstanding amount
of loans and the outstanding amount of obligations under Lender Hedging Agreements owed to
all First Lien Lenders)(and First Lien Lender Affiliates, in the case of Lender Hedging
Agreements or Approved Hedge Counterparties, in the case of an Approved Hedge Counterparty
Swap Contract);

     (4) FOURTH: to cash collateralize the letters of credit; and

     (5) FIFTH: to the payment of the remaining First Lien Obligations, if any, in the order
and manner the Required First Lien Secured Parties deem appropriate; and

     (b) after the First Lien Obligations Payment Date has occurred and the First Lien Obligations
have been repaid in full, to the Second Lien Agent for application to the Second Lien Obligations
in accordance with the terms of the Second Lien Documents.

     Section 4.04. Payments by Collateral Agent. All payments hereunder by Collateral Agent to First Lien Agent, for the benefit of First Lien
Lenders, and Second Lien Agent, for the benefit of Second Lien Lenders, shall be for distribution
in the manner set forth in the First Lien Agreement or Second Lien Agreement, respectively. In the
event any other payment is due to a group of Secured Parties under a Principal Agreement to which
they are a party, Collateral Agent shall make such payment to their representative for distribution
by it in accordance with the terms of such Principal Agreement.

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     Section 4.05. Notice of Amount of Obligations. Upon receipt of any proceeds of Collateral to be distributed pursuant to Section 4.03,
Collateral Agent shall give Secured Parties notice thereof, and each Secured Party (or its
representative) shall within five (5) Business Days notify Collateral Agent of the amount of
Obligations owing to it or its group. Such notification shall state the amount of its (or their)
Obligations and how much is then due and owing. If requested by Collateral Agent, each Secured
Party (or its representative) shall demonstrate that the amounts set forth in its notice are
actually owing to such Secured Party to the satisfaction of Collateral Agent. Notwithstanding the
foregoing, Collateral Agent may conclusively rely on information in such notices without
investigation.

     Section 4.06. Pro Rata Treatment; Participations. It is agreed that (a) prior to the occurrence and continuance of a Triggering Event, each
Secured Party shall be entitled to receive and retain for its own account, and shall never be
required to disgorge to Collateral Agent or any other Secured Party hereunder or acquire direct or
participating interests in such Secured Party’s Obligations, scheduled payments or voluntary
prepayments, payments for the redemption or purchase of principal, interest, fees and premium, if
any, settlement payments and any other payments in respect of the First Lien Documents or Second
Lien Documents, all in compliance with the terms thereof (subject to any provision otherwise in the
First Lien Agreement or Second Lien Agreement dealing with sharing among First Lien Lenders and
Second Lien Lenders, respectively), and (b) after the occurrence and during the continuance of a
Triggering Event, all proceeds shall be applied by Collateral Agent and shared first, by the First
Lien Secured Parties ratably as set forth in Section 4.03 and after the First Lien Obligations
Payment Date, then shared by the Second Lien Secured Parties to be shared ratably by them. In the
event that any First Lien Secured Party shall obtain payment after the occurrence and during the
continuance of a Triggering Event, whether in whole or in part, from proceeds (other than (a)
payments made by Collateral Agent in accordance with Section 4.03 or (b) the exercise by an
Approved Hedge Counterparty of netting or offset rights under an Approved Hedge Counterparty Swap
Contract) in respect of its portion of the First Lien Obligations, such First Lien Secured Party
shall (i) promptly notify Collateral Agent (which may conclusively rely on such notice) and (ii)
purchase for cash from such other First Lien Secured Party(ies) holding a First Lien Obligation a
participation in such Obligations held by such other First Lien Secured Party(ies) holding a First
Lien Obligation in the priority set forth in Section 4.03; provided, however, no
Approved Hedge Counterparty shall be obligated to hold in trust, pay over, or share with Collateral
Agent or any other party, as applicable, any portion of the proceeds of any letter of credit which
has been issued to such Approved Hedge Counterparty to remedy an Additional Termination Event (as
defined in and in accordance with Part 1(h) of the Schedule to the applicable Approved Hedge
Counterparty Swap Contract) or to secure any hedge transaction(s) between an Obligor and Approved
Hedge Counterparty that exceeds the limitations on Swap Contracts specified in the First Lien
Credit Agreement (“Exempt LC”). Collateral Agent consents to such letter of credit. Each Obligor
expressly consents to the foregoing arrangements and agrees that any Secured Party holding such a
participation may exercise any and all rights of banker’s lien, setoff or counterclaim with respect
to any and all moneys owing by any Obligor to such Secured Party as fully as if such Secured Party
had made a loan directly to such Obligor in the amount of such participation.

     Section 4.07. Release of Collateral.

     (a) Collateral Agent may not release any Collateral under any of the First Lien Security
Documents prior to the payment in full and termination of the Approved Hedge Counterparty
Obligations, except (i) Collateral destroyed, lost, worn out, damaged or having only salvage value
or no longer used or useful in the business in which it is used, (ii) to the extent that one or
more Obligors have provided replacement Collateral and (iii) releases of Collateral (A) permitted
by Section 7.07 or Section 10.21 of the First Lien Credit Agreement, and (B) between
redeterminations of the Borrowing Base (as defined in the First Lien Credit Agreement) equal to ten
percent (10%) or less of the PV10 of the Borrowing Base Oil and Gas Properties (based on the most
recent Reserve Report).

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     (b) The release of any Collateral from the terms of the Security Documents shall not be deemed
to impair the security under the Security Documents in contravention of the provisions thereof if
and to the extent the Collateral is released pursuant to Section 4.07 and the Security Documents.

     Section 4.08. Releases of Second Lien.

     (a) Upon any release, sale or disposition of Collateral permitted pursuant to the terms of
Section 4.07 that results in the release of the First Lien on any Collateral (including without
limitation any sale or other disposition pursuant to any Enforcement Action), the Second Lien on
such Collateral (but not on any proceeds of such Collateral not required to be paid to the First
Lien Secured Parties) shall be automatically and unconditionally released with no further consent
or action of any Person; provided, however, that the Second Lien shall not be
released without the consent of the Second Lien Agent in the case of an Enforcement Action, as to
any Collateral the net proceeds of the disposition of which will not be applied to repay (and, to
the extent applicable, to reduce permanently commitments with respect to) the First Lien
Obligations. The First Lien Agent hereby appoints the Collateral Agent and any officer or duly
authorized person of the Collateral Agent, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power of attorney in the place and stead of the First Lien
Agent and in the name of the First Lien Agent or in the Collateral Agent’s own name, from time to
time, in the Collateral Agent’s sole discretion, for the purposes of carrying out the terms of this
Section, to take any and all appropriate action and to execute and deliver any and all documents
and instruments as may be necessary or desirable to accomplish the purpose of this Section,
including, without limitation, any financing statements, endorsements, assignments, releases or
other documents or instruments of transfer (which appointment, being coupled with an interest, is
irrevocable).

     (b) The Second Lien Agent shall promptly execute and deliver such release documents and
instruments and shall take such further actions as the First Lien Agent shall reasonably request to
evidence any release of the Second Lien described in Section 4.08(a). The Second Lien Agent hereby
appoints the Collateral Agent and the First Lien Agent and any officer or duly authorized person of
the Collateral Agent or the First Lien Agent, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power of attorney in the place and stead of the
Second Lien Agent and in the name of the Second Lien Agent or in the Collateral Agent’s or the
First Lien Agent’s own name, from time to time, in the Collateral Agent’s or the First Lien Agent’s
sole discretion, for the purposes of carrying out the terms of this Section, to take any and all
appropriate action and to execute and deliver any and all documents and instruments as may be
necessary or desirable to accomplish the purpose of this Section, including, without limitation,
any financing statements, endorsements, assignments, releases or other documents or instruments of
transfer (which appointment, being coupled with an interest, is irrevocable).

     Section 4.09. Form and Sufficiency of Release. In the event that (a) any Obligor has sold, exchanged, or otherwise disposed of or proposes to
sell, exchange or otherwise dispose of any portion of the Collateral in compliance with the
Principal Agreements, and (b) such Obligor requests, pursuant to the Security Documents or the
Principal Agreements, Collateral Agent to furnish a written disclaimer, release or quit-claim of
any interest in such property under the Security Documents, then Collateral Agent, in its capacity
as such under the Security Documents, shall execute, acknowledge and deliver to such Obligor (in
proper form) such an instrument promptly after satisfaction of the conditions set forth in Section
4.07 hereof for delivery of any such release.

     Section 4.10. Inspection Rights and Insurance.

     (a) In connection with any Enforcement Action with respect to the First Lien Obligations, the
First Lien Security Documents and the other First Lien Documents, any First Lien Secured Party and
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representatives and invitees may at any time inspect, repossess, remove and otherwise deal
with the Collateral, and the Collateral Agent or the First Lien Agent may advertise and conduct
public auctions or private sales of the Collateral, in each case without notice to, the involvement
of, or interference by, any Second Lien Secured Party or liability to any Second Lien Secured
Party.

     (b) In connection with any Enforcement Action with respect to the Second Lien Obligations, the
Second Lien Security Documents and the other Second Lien Documents, any Second Lien Secured Party
and its representatives and invitees may, consistent with the terms and limitations on Second Lien
Agent and Second Lien Secured Parties imposed hereby, at any time inspect, repossess, remove and
otherwise deal with the Collateral, and the Collateral Agent or the Second Lien Agent may advertise
and conduct public auctions or private sales of the Collateral, in each case after notice to the
First Lien Agent.

     (c) Until the First Lien Obligations Payment Date has occurred, the Collateral Agent, for the
benefit of Secured Parties, will have the sole and exclusive right (i) to be named as additional
insured and loss payee under any insurance policies maintained from time to time by any Obligor;
(ii) to adjust or settle any insurance policy or claim covering the Collateral in the event of any
loss thereunder and (iii) to approve any award granted in any condemnation or similar proceeding
affecting the Collateral.

ARTICLE 5 INSOLVENCY PROCEEDINGS

     Section 5.01. Filing of Motions. Until the First Lien Obligations Payment Date has occurred, the Second Lien Agent agrees on
behalf of itself and the other Second Lien Secured Parties that no Second Lien Secured Party shall,
in or in connection with any Insolvency Proceeding, file any pleadings or motions, take any
position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, in
each case in respect of any of the Collateral, including, without limitation, with respect to the
determination of any Liens or claims held by the Collateral Agent, the First Lien Agent (including
the validity and enforceability thereof) or any other First Lien Secured Party or the value of any
claims of such parties under Section 506(a) of the Bankruptcy Code or otherwise; provided
that, in accordance with and subject to the limitations contained in this Agreement, and only if
consistent with the terms and limitations on Second Lien Agent and Second Lien Secured Parties
imposed hereby:

     (a) in any Insolvency Proceeding, Second Lien Agent may file a claim or statement of interest
with respect to the Second Lien Obligations;

     (b) Second Lien Agent may take any action not adverse to Liens on Collateral securing the
First Lien Obligations or adverse to the rights of any First Lien Secured Party with respect
thereto, in order to preserve or protect Liens on Collateral securing the Second Lien Obligations;

     (c) Second Lien Secured Parties may file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleading made by any Person
objecting to or otherwise seeking the disallowance of claims of Second Lien Secured Parties
including, without limitation, claims secured by Collateral, if any; it being agreed and understood
that the Standstill Period shall be tolled during the pendency of any Insolvency Proceeding;

     (d) in any Insolvency Proceeding, Second Lien Secured Parties may file any pleadings,
objections, motions or agreements which assert rights or interests available to unsecured creditors
of Obligors arising under the Bankruptcy Code or other bankruptcy, insolvency, reorganization,
receivership or similar law; and

     (e) Second Lien Agent or Second Lien Secured Parties may exercise any of their respective
rights and remedies with respect to Collateral after the expiration of any Standstill Period.

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     Section 5.02. Financing Matters. If any Obligor becomes subject to any Insolvency Proceeding, and if the Collateral Agent, the
First Lien Agent or the First Lien Secured Parties desire to consent (or not object) to the sale,
use or lease of cash or other Collateral under the Bankruptcy Code or to provide financing to any
Obligor under the Bankruptcy Code or to consent (or not object) to the provision of such financing
to any Obligor by any third party (“DIP Financing”), then the Second Lien Agent agrees, on behalf
of itself and the other Second Lien Secured Parties, that each Second Lien Secured Party (i) will
be deemed to have consented to, will raise no objection to, nor support any other Person objecting
to, the sale, use or lease of such cash or other Collateral or to such DIP Financing, (ii) will not
request or accept any form of adequate protection or any other relief in connection with the sale,
use or lease of such cash or other Collateral or such DIP Financing except as set forth in Section
5.04 below, (iii) will subordinate (and will be deemed hereunder to have subordinated) the Second
Liens (x) to such DIP Financing with the same terms and conditions as the First Liens are
subordinated thereto (and such subordination will not alter in any manner the terms of this
Agreement), (y) to any adequate protection provided to the First Lien Secured Parties and (z) to
any “carve-out” for professional and United States Trustee fees agreed to by the Collateral Agent,
the First Lien Agent or the First Lien Secured Parties, and (iv) agrees that notice received three
(3) Business Days prior to the entry of an order approving such usage of cash collateral or
approving such financing shall be adequate notice.

     Section 5.03. Relief From the Automatic Stay. Except as permitted pursuant to Section 5.01(e), the Second Lien Agent agrees, on behalf of
itself and the other Second Lien Secured Parties, that none of them will seek relief from the
automatic stay or from any other stay in any Insolvency Proceeding or take any action in derogation
thereof, in each case in respect of any Collateral, without the prior written consent of the
Collateral Agent, each Approved Hedge Counterparty and First Lien Agent.

     Section 5.04. Adequate Protection. The Second Lien Agent, on behalf of itself and the other Second Lien Secured Parties, agrees
that none of them shall object, contest, or support any other Person objecting to or contesting,
(i) any request by the Collateral Agent, the First Lien Agent or the First Lien Secured Parties for
adequate protection or (ii) any objection by the Collateral Agent, the First Lien Agent or any
other First Lien Secured Party to any motion, relief, action or proceeding based on a claim of a
lack of adequate protection or (iii) the payment of interest, fees, expenses or other amounts to
the Collateral Agent or the First Lien Agent or any other First Lien Secured Party under section
506(b) or 506(c) of the Bankruptcy Code or otherwise. Notwithstanding anything contained in this
Section and in Section 5.02, in any Insolvency Proceeding, (x) the Second Lien Agent and the Second
Lien Secured Parties, may seek, support, accept or retain adequate protection (A) only if the First
Lien Secured Parties are granted adequate protection that includes replacement Liens on additional
collateral and superpriority claims and the First Lien Secured Parties do not object to the
adequate protection being provided to the Second Lien Secured Parties and (B) solely in the form of
(a) a replacement Lien on such additional collateral, subordinated to the Liens securing the First
Lien Obligations and any DIP Financing on the same basis as the other Liens securing the Second
Lien Obligations are so subordinated to the First Lien Obligations under this Agreement and
(b) superpriority claims junior in all respects to the superpriority claims granted to the First
Lien Secured Parties, and (y) in the event the Second Lien Agent, on behalf of itself and the
Second Lien Secured Parties, receives adequate protection, including in the form of additional
collateral, then the Second Lien Agent, on behalf of itself or any of the Second Lien Secured
Parties, agrees that the First Lien Secured Parties shall have a senior Lien and claim on such
adequate protection as security for the First Lien Obligations and that any Lien on any additional
collateral securing the Second Lien Obligations shall be subordinated to the Liens on such
collateral securing the First Lien Obligations and any DIP Financing and any other Liens granted to
the First Lien Secured Parties as adequate protection, with such subordination to be on the same
terms that the other Liens securing the Second Lien Obligations are subordinated to the Liens
securing such First Lien Obligations under this Agreement.

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     Section 5.05. Avoidance Issues. If any First Lien Secured Party is required in any Insolvency Proceeding or otherwise to
disgorge, turn over or otherwise pay to the estate of any Obligor, because such amount was avoided
or ordered to be paid or disgorged for any reason, including without limitation because it was
found to be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received as
proceeds of security, enforcement of any right of set-off or otherwise, then (i) such First Lien
Secured Party shall have a claim under Section 4.03 as if payment in respect of such amount had
never been made by the Collateral Agent to such First Lien Secured Party; provided,
however, that any amounts payable by Collateral Agent to a First Lien Secured Party
pursuant to this Section 5.05 shall be payable solely from proceeds of Collateral, if any, and no
First Lien Secured Party shall acquire direct or participating interests in such First Lien Secured
Party’s Obligations or be required to pay to Collateral Agent, such First Lien Secured Party or any
other Person any amounts in respect of any such amounts and (ii) the First Lien Obligations shall
be reinstated to the extent of such Recovery and deemed to be outstanding as if such payment had
not occurred and the First Lien Obligations Payment Date shall be deemed not to have occurred. If
this Agreement shall have been terminated prior to such Recovery, this Agreement shall be
reinstated in full force and effect, and such prior termination shall not diminish, release,
discharge, impair or otherwise affect the obligations of the parties hereto until such time as the
First Lien Obligations Payment Date shall have fully and finally occurred with respect to all such
reinstated First Lien Obligations. The Second Lien Agent, on behalf of itself and the other Second
Lien Secured Parties, agrees that none of them shall be entitled to benefit from any avoidance
action affecting or otherwise relating to any distribution or allocation made in accordance with
this Agreement, whether by preference or otherwise, it being understood and agreed that the benefit
of such avoidance action otherwise allocable to them shall instead be allocated and turned over for
application in accordance with the priorities set forth in this Agreement.

     Section 5.06. Asset Dispositions in an Insolvency Proceeding. Neither the Second Lien Agent nor any other Second Lien Secured Party shall, in an Insolvency
Proceeding or otherwise, oppose any sale or disposition of any assets of any Obligor that is
supported by the Required First Lien Secured Parties, and the Second Lien Agent and each other
Second Lien Secured Party will be deemed to have consented under Section 363 of the Bankruptcy Code
(and otherwise) to any sale supported by the Required First Lien Secured Parties and to have
released their Liens in such assets.

     Section 5.07. Grants of Security and Separate Classification. Each Second Lien Secured Party acknowledges and agrees that (i) the grants of Liens under any
Security Documents that secure both the First Lien Obligations and the Second Lien Obligations
constitute Liens in favor of the Collateral Agent for the benefit of both the First Lien Secured
Parties and the Second Lien Secured Parties, (ii) any grants of Liens pursuant to separate First
Lien Security Documents and Second Lien Security Documents constitute two separate and distinct
grants of Liens, and (iii) because of, among other things, their differing rights in the
Collateral, the Second Lien Obligations are fundamentally different from the First Lien Obligations
and must be separately classified in any plan of reorganization proposed or adopted in an
Insolvency Proceeding. To further effectuate the intent of the parties as provided in the
immediately preceding sentence, if it is held that the claims of the First Lien Secured Parties and
Second Lien Secured Parties in respect of the Collateral constitute only one secured claim (rather
than separate classes of senior and junior secured claims), then the Second Lien Secured Parties
hereby acknowledge and agree that all distributions shall be made as if there were separate classes
of senior and junior secured claims against the Obligors in respect of the Collateral, with the
effect being that, to the extent that the aggregate value of the Collateral is sufficient (for this
purpose ignoring all claims held by the Second Lien Secured Parties), the First Lien Secured
Parties shall be entitled to receive, in addition to amounts distributed to them in respect of
principal, pre-petition interest and other claims, all amounts owing in respect of Post-Petition
Interest before any distribution is made in respect of the claims held by the Second Lien Secured
Parties, with the Second Lien Secured Parties hereby acknowledging and agreeing to turn over to the
First Lien Secured Parties amounts otherwise received or receivable by them to the extent necessary
to effectuate

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the intent of this sentence, even if such turnover has the effect of reducing the claim or recovery
of the Second Lien Secured Parties.

     Section 5.08. No Waivers of Rights of First Lien Secured Parties. Nothing contained herein shall prohibit or in any way limit the Collateral Agent, the First Lien
Agent or any other First Lien Secured Party from objecting in any Insolvency Proceeding or
otherwise to any action taken by any Second Lien Secured Party, including the seeking by any Second
Lien Secured Party of adequate protection or the asserting by any Second Lien Secured Party of any
of its rights and remedies under the Second Lien Documents or otherwise, except with respect to
such actions expressly permitted hereby.

     Section 5.09. Plans of Reorganization. No Second Lien Secured Party shall support or vote in favor of any plan of reorganization (and
each shall be deemed to have voted to reject any plan of reorganization) unless such plan (i) pays
off, in cash in full, all First Lien Obligations or (ii) is accepted by the class of holders of
First Lien Obligations voting thereon and is supported by the First Lien Agent.

     Section 5.10. Other Matters. To the extent that the Second Lien Agent or any Second Lien Secured Party has or acquires rights
under Section 363 or Section 364 of the Bankruptcy Code with respect to any of the Collateral, the
Second Lien Agent agrees, on behalf of itself and the other Second Lien Secured Parties not to
assert any of such rights without the prior written consent of the First Lien Agent;
provided that if requested by the First Lien Agent, the Second Lien Agent shall timely
exercise such rights in the manner requested by the First Lien Agent, including any rights to
payments in respect of such rights.

     Section 5.11. Effectiveness in Insolvency Proceedings. This Agreement, which the parties hereto expressly acknowledge is a “subordination agreement”
under section 510(a) of the Bankruptcy Code, shall be effective before, during and after the
commencement of Insolvency Proceeding. All references in this Agreement to any Obligor shall
include such Obligor as a debtor-in-possession and any receiver or trustee for such Obligor in any
Insolvency Proceeding.

ARTICLE 6 SECOND LIEN DOCUMENTS AND FIRST LIEN DOCUMENTS.

     Section 6.01. Restriction on Second Lien Document Amendments. Each Obligor and the Second Lien Agent, on behalf of itself and the Second Lien Secured Parties,
agrees that it shall not at any time execute or deliver any amendment or other modification to any
of the Second Lien Documents inconsistent with or in violation of this Agreement.

     Section 6.02. Restriction on First Lien Document Amendment. Each Obligor and the First Lien Agent, on behalf of itself and the First Lien Secured Parties,
agrees that it shall not at any time execute or deliver any amendment or other modification to any
of the First Lien Documents inconsistent with or in violation of this Agreement. Notwithstanding
any other provision in this Agreement, no amendment to any of the First Lien Security Documents may
be effected without the prior written consent of each Approved Hedge Counterparty (which consent
shall not be withheld or delayed unreasonably), if the effect of such amendment would be to (i)
cause the First Lien Security Documents to secure obligations other than the First Lien Obligations
and Approved Hedge Counterparty Obligations, (ii) change the priority of or subordinate the Liens
created thereby or (iii) materially modify any material remedy provided for therein. Any such
amendment made without such consent shall be null and void.

     Section 6.03. Application of First Lien Security Document Amendments to Second Lien
Security Documents. In the event the First Lien Agent enters into any amendment, waiver or consent in respect of any
of the First Lien Security Documents for the purpose of adding to, or deleting from, or waiving or
consenting to any departures from any provisions of, any First Lien Security Document or

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changing in any manner the rights of any parties thereunder, then such amendment, waiver or consent
shall apply automatically to any comparable provision of the Comparable Second Lien Security
Document without the consent of or action by any Second Lien Secured Party (with all such
amendments, waivers and modifications subject to the terms hereof); provided that (other
than with respect to amendments, modifications or waivers that secure additional extensions of
credit and add additional secured creditors and do not violate the express provisions of the Second
Lien Agreements), (A) no such amendment, waiver or consent shall have the effect of removing assets
subject to the Lien of any Second Lien Security Document, except to the extent that a release of
such Lien is permitted by Section 4.08, (B) any such amendment, waiver or consent that materially
and adversely affects the rights of the Second Lien Secured Parties and does not affect the First
Lien Secured Parties in a like or similar manner shall not apply to the Second Lien Security
Documents without the consent of the Second Lien Agent and (C) notice of such amendment, waiver or
consent shall be given to the Second Lien Agent no later than 30 days after its effectiveness;
provided that the failure to give such notice shall not affect the effectiveness and
validity thereof.

     Section 6.04. Restriction on Second Lien Agreement Amendments. Unless a similar amendment, supplement or modification to the applicable First Lien Agreement(s)
has been or is concurrently being made, without the prior written consent of the First Lien Agent,
no Second Lien Agreement may be amended, supplemented or otherwise modified or entered into to the
extent such amendment, supplement or modification, or the terms of any new Second Lien Agreement,
would (i) contravene the provisions of this Agreement; (ii) add Collateral (unless such Collateral
is also provided to the Collateral Agent on behalf of Secured Parties or the First Lien Agent), or
(iii) confer any additional rights on the Second Lien Secured Parties which would be adverse to the
First Lien Secured Parties.

     Section 6.05. Authorization of Actions to be Taken by Collateral Agent under the Security
Documents. Subject to the provisions of the applicable Security Document and this Agreement, (a) Collateral
Agent may, in its sole discretion and without the consent of Secured Parties, take all actions it
deems necessary or appropriate in order to (i) enforce any of the terms of the Security Documents
and (ii) collect and receive any and all amounts payable in respect of the First Lien Obligations
or Second Lien Obligations and (b) Collateral Agent shall have power to institute and to maintain
such suits and proceedings as it may deem expedient to prevent any impairment of the Collateral by
any act that may be unlawful or in violation of the Security Documents or the First Lien Documents,
and such suits and proceedings as Collateral Agent may deem expedient to preserve or protect its
interests and the interests of Secured Parties in the Collateral (including the power to institute
and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative
or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if
the enforcement of, or compliance with, such enactment, rule or order would impair the security
interest thereunder or be prejudicial to the interests of Secured Parties). Notwithstanding the
above, Collateral Agent may choose not to take any action authorized by this Section 6.05 until it
receives written direction from Secured Parties.

     Section 6.06. Authorization of Receipt of Funds by Collateral Agent under Security
Documents. Collateral Agent is authorized to receive any funds for the benefit of Secured Parties
distributed under the Security Documents, and to make further distributions of such funds to
Secured Parties in accordance with the provisions of this Agreement.

     Section 6.07. Property of Obligors and Owners. Each of the Approved Hedge Counterparties, First Lien Agent, for itself and on behalf of the
First Lien Lenders, and Second Lien Agent, for itself and on behalf of the Second Lien Lenders,
agrees all the provisions of this Agreement shall apply to any and all properties and rights of the
Obligors and any other Obligor against which Collateral Agent (in its capacity as such) or any
Secured Party at any time acquires a right of set-off or Lien pursuant to the Security Documents,
the Principal Agreements or a judgment thereunder, including

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without limitation, real property or rights in, on or over real property, notwithstanding any
provision to the contrary in any mortgage, leasehold mortgage or other document purporting to grant
or perfect any Lien in favor of any Secured Party or Collateral Agent.

     Section 6.08. Secured Party Dealings; Good Faith. Nothing contained in this Agreement shall prevent any Secured Party from dealing directly or
negotiating with any other Secured Party for any purpose, including, but not limited to, the
purpose of attempting to reach agreement as to any vote or proposed vote relating to Collateral
Agent’s actions hereunder, whether or not any Triggering Event or other “Default”, “Event of
Default” or “Termination Event” has occurred under the Principal Agreements.

     Section 6.09. Production Proceeds Prior to Triggering Event. The Security Documents contain an assignment by Obligors unto and in favor the First Lien Agent,
for the benefit of the First Lien Lenders and/or the Collateral Agent, for the benefit of the First
Lien Secured Parties, on a first lien basis, and unto and in favor of the Second Lien Agent, for
the benefit of the Second Lien Secured Parties, on a second lien basis, of all production and all
proceeds attributable thereto which may be produced from or allocated to the Collateral consisting
of producing oil and gas properties. The Security Documents further provide in general for the
application of such proceeds to the satisfaction of the First Lien Obligations and Second Lien
Obligations. Notwithstanding the assignment contained in such Security Documents, until the
occurrence of a Triggering Event, Collateral Agent, First Lien Agent, for itself and on behalf of
the First Lien Secured Parties, and Second Lien Agent, for itself and on behalf of the Second Lien
Secured Parties, agree that they will (i) neither notify the purchaser or purchasers of such
production nor take any other action to cause such proceeds to be remitted to Collateral Agent,
First Lien Agent, Second Lien Agent or Secured Parties, but Collateral Agent, First Lien Agent, for
itself and on behalf of the First Lien Secured Parties, and Second Lien Agent, for itself and on
behalf of the Second Lien Secured Parties, will instead permit such proceeds to be paid to the
Obligor entitled thereto and (ii) instruct Collateral Agent and/or First Lien Agent, for itself and
on behalf of the First Lien Secured Parties, and Second Lien Agent, for itself and on behalf of the
Second Lien Secured Parties, to take (and Collateral Agent and/or First Lien Agent and/or Second
Lien Agent shall take) such action as may be requested by such Obligor to cause such proceeds to be
so paid to such Obligor.

ARTICLE 7 RELIANCE; WAIVERS, ETC.

     Section 7.01. Reliance. The First Lien Documents are deemed to have been executed and delivered, and all extensions of
credit thereunder are deemed to have been made or incurred, in reliance upon this Agreement. The
Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, expressly waives all
notice of the acceptance of and reliance on this Agreement by the First Lien Agent and the First
Lien Secured Parties. The Second Lien Documents are deemed to have been executed and delivered,
and all extensions of credit thereunder are deemed to have been made or incurred, in reliance upon
this Agreement. The First Lien Agent, on behalf of itself and the First Lien Secured Parties,
expressly waives all notices of the acceptance of and reliance on this Agreement by the Second Lien
Agent and the Second Lien Secured Parties.

     Section 7.02. No Warranties or Liability. The Second Lien Agent and the First Lien Agent acknowledge and agree that neither has made any
representation or warranty with respect to the execution, validity, legality, completeness,
collectability or enforceability of any First Lien Document or any Second Lien Document, nor has
the Collateral Agent made any such representations or warranties with respect to the Security
Documents. Except as otherwise provided in this Agreement, the Second Lien Secured Parties and the
First Lien Secured Parties will be entitled to manage and supervise their respective extensions of
credit to any Obligor in accordance with law and their usual practices, modified from time to time
as they deem appropriate.

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     Section 7.03. No Waivers. No right or benefit of any party hereunder shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of such party or any other party hereto or by any
noncompliance by any Obligor with the terms and conditions of any of the First Lien Documents or
the Second Lien Documents.

ARTICLE 8 OBLIGATIONS UNCONDITIONAL.

     Section 8.01. First Lien Obligations Unconditional. All rights of the Collateral Agent (on behalf of the First Lien Secured Parties) and the First
Lien Agent hereunder, and all agreements and obligations of the Collateral Agent (on behalf of the
Second Lien Secured Parties) and the Second Lien Agent, the Borrowers and the other Obligors (to
the extent applicable) hereunder, shall remain in full force and effect irrespective of:

     (a) any lack of validity or enforceability of any First Lien Document;

     (b) any change in the time, place or manner of payment of, or in any other term of, all or any
portion of the First Lien Obligations, or any amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any
First Lien Document;

     (c) prior to the First Lien Obligations Payment Date, any exchange, release, voiding,
avoidance or non-perfection of any security interest in any Collateral or any other collateral, or
any release, amendment, waiver or other modification, whether by course of conduct or otherwise, or
any refinancing, replacement, refunding or restatement of all or any portion of the First Lien
Obligations or any guarantee or guaranty thereof; or

     (d) any other circumstances that otherwise might constitute a defense available to, or a
discharge of, any Obligor in respect of the First Lien Obligations, or the Second Lien Agent, or
any Obligor, to the extent applicable, in respect of this Agreement.

     Section 8.02. Second Lien Obligations Unconditional. All rights and interests of the Collateral Agent (on behalf of the Second Lien Secured Parties)
and Second Lien Agent under this Agreement, and all agreements and obligations of the Collateral
Agent (on behalf of the First Lien Secured Parties), the First Lien Agent, the Borrowers and the
other Obligors (to the extent applicable), hereunder, shall remain in full force and effect
irrespective of:

     (a) any lack of validity or enforceability of any Second Lien Document;

     (b) any change in the time, place or manner of payment of, or in any other term of, all or any
portion of the Second Lien Obligations, or any amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of any
Second Lien Document;

     (c) any exchange, release, voiding, avoidance or non-perfection of any security interest in
any Collateral, or any release, amendment, waiver or other modification, whether by course of
conduct or otherwise, or any refinancing, replacement, refunding or restatement of all or any
portion of the Second Lien Obligations or any guarantee or guaranty thereof; or

     (d) any other circumstances that otherwise might constitute a defense available to, or a
discharge of, any Obligor in respect of the Second Lien Obligations, or of the First Lien Agent or
any Obligor, to the extent applicable, in respect of this Agreement.

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ARTICLE 9 MISCELLANEOUS.

     Section 9.01 Authority. The parties hereto represent and warrant that they have all requisite power to, and have been
duly authorized to, enter into this Agreement.

     Section 9.02 Termination/Withdrawal/Redesignation of Contracts.

     (a) Subject to Section 5.05 and Section 9.02(b), this Agreement shall terminate upon receipt
by Collateral Agent of evidence satisfactory to it that (i) all First Lien Obligations have been
paid in full and all obligations in respect of the Principal First Lien Agreements have been
satisfied in full, and (ii) the termination of the Principal First Lien Agreements and the First
Lien Security Documents has occurred pursuant to the terms thereof.

(b) (i) If all of the Approved Hedge Counterparty Swap Contracts with an Approved Hedge
Counterparty have been paid in full, terminated (and all settlement amounts, unpaid amounts,
interest and other amounts then due to such Approved Hedge Counterparty have been paid in
full) or the terms of all such contracts have otherwise expired, then Borrowers may, by
written notice to Collateral Agent, First Lien Agent and Second Lien Agent and such
counterparty, remove such counterparty as an “Approved Hedge Counterparty” under this
Agreement and the Security Documents; and upon delivery of such notice, such counterparty
shall cease to be an “Approved Hedge Counterparty” for all such purposes.

     (ii) Any “Approved Hedge Counterparty” under this Agreement and the Security Documents
may at any time elect to no longer be an “Approved Hedge Counterparty” under this Agreement
by giving notice to Collateral Agent, First Lien Agent and Second Lien Agent and Borrowers,
and upon delivery of such notice, such counterparty shall cease to be an “Approved Hedge
Counterparty” for all such purposes, and each Swap Contract of such Approved Hedge
Counterparty shall cease to be an Approved Hedge Counterparty Swap Contract.

     Section 9.03. Conflicts.

In the event of any conflict between the provisions of this Agreement and the provisions of any
First Lien Document or any Second Lien Document, the provisions of this Agreement shall govern.

     Section 9.04. Marshaling. Collateral Agent shall not be required to marshal any present or future security (including
without limitation any Collateral described in any of the Security Documents), or guaranties of the
Obligations or any part or portion thereof, or to resort to such Collateral or guaranties in any
particular order; and all rights in respect of such Collateral and guaranties shall be cumulative
and in addition to all other rights, however existing or arising. To the extent that they lawfully
may, each Obligor hereby agrees that it will not invoke any law relating to the marshaling of
collateral which might cause delay or impede the enforcement of Secured Parties’ rights under any
Principal Agreement or the Security Documents or under any other instrument evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations
is secured or guaranteed.

     Section 9.05 Additional Parties. If any Person shall become a Obligor under any of the Principal First Lien Agreements, Borrowers
covenant and agree to promptly cause such Person to become a party hereto by executing and
delivering to Collateral Agent a Supplement in the form of Annex 2 hereto. If any Person desires
to become an “Approved Hedge Counterparty” for purposes of this Agreement and the Security
Documents, then it shall become a party hereto upon entering into an Approved Hedge Counterparty
Swap Contract and delivering to Collateral Agent a Supplement in the form of Annex 3 hereto;
provided, Borrowers hereby covenants and agrees with each First Lien Secured Party that all
Swap Contracts relating to oil and gas cover monthly notional volumes of that do not exceed

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the greater of (i) ninety percent (90%) of an Obligor’s forecasted oil and gas production for the
next five years from the date hereof for each of such Obligor’s crude oil and natural gas
properties calculated separately, from proved developed producing reserves, and (ii) eighty-five
percent (85%) of forecasted production for the next five years from the date hereof from total
proved reserves and seventy-five percent (75%) of forecasted production from total proved reserves
thereafter (such amounts computed on an annual basis and applied to crude oil and natural gas
properties calculated separately); provided that the aggregate amount of all such Swap
Contracts shall not exceed one hundred percent (100%) of actual oil or gas production, calculated
separately, in any given month (or if as a result of a force majeure event the foregoing
limitations are breached, then in any given three consecutive month period). In each case, upon
such execution and delivery, such Person shall be deemed a party hereto as if an original
signatory. Supplements executed pursuant to this Section 9.05 do not require the signatures of all
parties to this Agreement.

     Section 9.06. Continuing Nature of Provisions. This Agreement shall continue to be effective, and shall not be revocable by any party hereto,
until the First Lien Obligations Payment Date shall have occurred. This is a continuing agreement
and the First Lien Secured Parties and the Second Lien Secured Parties may continue, at any time
and without notice to the other parties hereto, to extend credit and other financial
accommodations, lend monies and provide indebtedness to, or for the benefit of, the Borrowers or
any other Obligor on the faith hereof.

     Section 9.07. Amendments. Amendments, modifications, supplements, waivers, consents and approvals of or in connection
with:

     (a) this Agreement and any Security Document may be effectuated only upon the written consent
of Collateral Agent, each Approved Hedge Counterparty, First Lien Agent and Second Lien Agent, for
and on behalf of First Lien Secured Parties and Second Lien Secured Parties, respectively;
provided, however, that (i) releases of Collateral (other than in accordance with
the terms of this Agreement) requires approval of each Approved Hedge Counterparty, Collateral
Agent, First Lien Agent and Second Lien Agent, (ii) waiver of a First Lien Triggering Event
requires approval of each Approved Hedge Counterparty and First Lien Agent, (iii) waiver of a
Second Lien Triggering Event requires approval of Second Lien Agent, (iv) release of any Obligor
under any First Lien Document (other than in connection with payment in full of the First Lien
Obligations, in which event release is automatic) requires approval of each Approved Hedge
Counterparty and First Lien Agent, (v) release of any Obligor liable under any Second Lien Document
(other than in connection with payment in full of the Second Lien Obligations, in which event
release is automatic) requires approval of Second Lien Agent;

     (b) any Security Document may be effectuated only upon the written consent of Collateral
Agent, each Approved Hedge Counterparty, First Lien Agent and Second Lien Agent, for and on behalf
of First Lien Secured Parties and Second Lien Secured Parties, respectively, including any
amendment if the effect thereof would be (i) to secure indebtedness or obligations owed in favor of
any other creditor or groups of creditors, (ii) to change the priority of or subordinate the Liens
created thereby, (iii) to modify any material remedy provided for therein, or (iv) to cause the
Obligations owed to First Lien Lenders and the Approved Hedge Counterparty Obligations to not be
equally and ratably secured thereby (subject to the priorities set forth herein); provided, consent
of Second Lien Agent on behalf of Second Lien Secured Parties is not required in connection with
clause (iv) of this Section;

     (c) the Principal Agreements shall not be affected by this Agreement and any provision of the
Principal Agreements may be amended, modified, supplemented, waived, consented to and approved as
provided by the terms of such Principal Agreement; and

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     (d) this Agreement or any Security Document that would have the effect of increasing any
Obligor’s obligations and indemnities hereunder or materially affect its rights or duties under
this Agreement or the Security Documents, shall be effectuated only with the written consent of
such Obligor.

     Section 9.08. Information Concerning Financial Condition of the Borrower and the other
Obligors. Each of the Approved Hedge Counterparties, Second Lien Agent and the First Lien Agent hereby
assume responsibility for keeping itself informed of the financial condition of the Borrowers and
each of the other Obligors and all other circumstances bearing upon the risk of nonpayment of the
First Lien Obligations or the Second Lien Obligations. Each Approved Hedge Counterparty, the
Second Lien Agent and the First Lien Agent hereby agree that no party shall have any duty to advise
any other party of information known to it regarding such condition or any such circumstances. In
the event an Approved Hedge Counterparty, Second Lien Agent or the First Lien Agent, in its sole
discretion, undertakes at any time or from time to time to provide any information to any other
party to this Agreement, it shall be under no obligation (A) to provide any such information to
such other party or any other party on any subsequent occasion, (B) to undertake any investigation
not a part of its regular business routine, or (C) to disclose any other information.

     Section 9.09. Payment of Expenses and Taxes; Indemnification.
Each Obligor jointly and severally agrees, subject to the $1,000,000 aggregate expense cap
set forth in Section 10.04 of the First Lien Agreement and the other terms and provisions thereof,
(a) to pay or reimburse Collateral Agent and each Approved Hedge Counterparty for all of their
respective out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and any amendment, supplement or modification to, this Agreement and
the other Transaction Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions contemplated hereby and
thereby, including the reasonable fees and disbursements of counsel to Collateral Agent and an
Approved Hedge Counterparty and filing and recording fees and expenses, with statements with
respect to the foregoing to be submitted to Borrowers prior to the Effective Date (in the case of
amounts to be paid on the Effective Date) and from time to time thereafter on a quarterly basis or
such other periodic basis as Collateral Agent or such Approved Hedge Counterparty shall deem
appropriate, (b) to pay or reimburse each Secured Party and Collateral Agent for all of their
respective costs and expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the other Transaction Documents and any such other documents,
including the fees and disbursements of counsel (and other agents and professionals), to each
Secured Party and to Collateral Agent, (c) to pay, indemnify, and hold each Secured Party and
Collateral Agent harmless from and against, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes,
if any, that may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions contemplated by, or any
amendment, supplement or modification of, or any waiver or consent under or in respect of, this
Agreement, the other Transaction Documents and any such other documents, and (d) to pay, indemnify,
and hold each Secured Party and Collateral Agent and their respective officers, directors,
employees, Affiliates, agents and controlling persons (each, an “Indemnitee”) harmless from
and against any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement, the other

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Transaction Documents and any such other documents, including any of the foregoing relating to
the use of proceeds of the notes or the violation of, noncompliance with or liability under, any
environmental law applicable to the operations of any Obligor, any of its subsidiaries or any of
the Collateral and the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Obligor under any Transaction Document (all
the foregoing in this Clause (d), collectively the “Indemnified Liabilities”); provided,
that no Obligor shall have any obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnitee. Without limiting the foregoing, and to the extent permitted by
applicable law, each Obligor agrees not to assert and to cause its subsidiaries not to assert, and
hereby waives and agrees to cause its subsidiaries to so waive, all rights for contribution or any
other rights of recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or related to
environmental laws, that any of them might have by statute or otherwise against any Indemnitee.
Without limiting any provision of this Agreement or of any other Transaction Document, it is the
express intention of the parties hereto that each Indemnitee shall be indemnified from and held
harmless against any and all Indemnified Liabilities arising out of or resulting from the sole or
contributory negligence of such Indemnitee. All amounts due under this Section 9.09 shall be
payable promptly and in any event, not later than 10 days after written demand therefor.
Statements payable by Obligors pursuant to this Section 9.09 shall be submitted to Borrowers at the
address of Borrowers set forth in Section 9.12, or to such other Person or address as may be
hereafter designated by the Obligors in a written notice to Collateral Agent. The Agreements in
this Section 9.09 shall survive repayment of the First Lien Obligations, the Approved Hedge
Counterparty Swap Contracts and all amounts payable hereunder.

     Section 9.10. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of New
York, except as otherwise required by mandatory provisions of law and except to the extent that
remedies provided by the laws of any jurisdiction other than the State of New York are governed by
the laws of such jurisdiction.

     Section 9.11. Submission to Jurisdiction; Waivers.

     (a) Each party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the non-exclusive jurisdiction of any United States Federal Court sitting in the State
of New York or New York state court, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in any such United
States Federal Court or New York state court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any First Lien Secured Party may otherwise have to bring any
action or proceeding relating to this Agreement or any First Lien Document against the Borrowers or
any other Obligor or its properties in the courts with subject matter jurisdiction of any other
jurisdiction.

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     (b) The Borrowers, each other Obligor and the Second Lien Secured Parties hereby irrevocably
and unconditionally waive, to the fullest extent they may legally and effectively do so (x) any
objection they may now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement in any court referred to in paragraph (a) of this
Section and (y) the defense of an inconvenient forum to the maintenance of such action or
proceeding.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.12. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     (d) Each party hereto knowingly, voluntarily and intentionally waives any right any of them
may have to a trial by jury in any litigation based upon or arising out of this Agreement or any
related instrument or agreement or any of the transactions contemplated by this Agreement or any
course of conduct, dealing, statements (whether oral or written) or action of any of them. None of
the parties hereto shall seek, and to the maximum extent permitted by law waives any claim for, any
special, exemplary, punitive or consequential damages or damages other than, or in addition to,
actual damages. None of the parties hereto shall seek to consolidate, by counterclaim or
otherwise, any such action in which a jury trial has been waived with any other action in which a
jury trial cannot be or has not been waived. These provisions shall not be deemed to have been
modified in any respect or relinquished by any of the parties hereto except by a written instrument
executed by all of them.

     Section 9.12. Notices.
Unless otherwise specifically provided herein, each notice or other communication shall be
effective (a) if given by mail, upon receipt, (b) if given by telecopier during regular business
hours, once such telecopy is transmitted to the telecopy number provided in writing to Collateral
Agent by each Secured Party and by each Obligor, respectively, (c) if given by electronic mail to
the email address provided in writing to Collateral Agent by each Secured Party and by the Obligor,
respectively, upon delivery, or (d) if given by any other means, upon receipt; provided
that notices to Collateral Agent are not effective until received. For the purposes hereof, the
addresses of the parties hereto (until notice of a change thereof is delivered as provided in this
Section) shall be as set forth below each party’s name on the signature pages hereof, or, as to
each party, at such other address as may be designated by such party in a written notice to all of
the other parties); provided, however, that any notices or other communications
required to be given to First Lien Secured Parties shall be deemed to be given to First Lien
Secured Parties if given to the Approved Hedge Counterparty and the First Lien Agent in accordance
with the terms of this Section 9.12; provided further, that any notices or other
communications required to be given to Second Lien Secured Parties shall be deemed to be given to
Second Lien Secured Parties if given to the Second Lien Agent in accordance with the terms of this
Section 9.12.

     Section 9.13. Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and
each of the First Lien Secured Parties and Second Lien Secured Parties and their respective
successors and assigns, and nothing herein is intended, or shall be construed to give, any other
Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral.
Except as set forth in Sections 3.09(b), 6.09, 9.02(b), and 9.07, the terms and provisions of this
Agreement shall not inure to the benefit of, nor be relied upon by, the Obligors or their
successors or assigns. No Approved Hedge Counterparty shall assign, transfer or sell any part of
its portion of the Obligations, unless in connection with such assignment, transfer or sale, such
assignee, transferee or purchaser shall first become a party to this Agreement in compliance with
the requirements of Section 9.05. All references to any Obligor shall include any Obligor as
debtor-in-possession and any receiver or trustee for such Obligor in any Insolvency Proceeding.

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     Section 9.14. Further Assurances.
The Collateral Agent, each Approved Hedge Counterparty, the First Lien Agent, on behalf of
itself and the First Lien Secured Parties under its First Lien Documents, and the Second Lien
Agent, on behalf of itself and the Second Lien Secured Parties under its Second Lien Documents, and
the Borrowers, on behalf of the Obligors, agree that it shall take such further action and shall
execute and deliver such additional documents and instruments (in recordable form, if requested) as
the Collateral Agent, an Approved Hedge Counterparty, the First Lien Agent or the Second Lien Agent
may reasonably request to effectuate the terms of and the Lien priorities contemplated by this
Agreement.

     Section 9.15. Subrogation.
The Second Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby waives
any rights of subrogation it may acquire as a result of any payment hereunder until the First Lien
Obligations Payment Date has occurred.

     Section 9.16. Application of Payments.
All payments received by the First Lien Agent or the First Lien Secured Parties may be applied,
reversed and reapplied, in whole or in part, to such part of the First Lien Obligations provided
for in the First Lien Documents. The Second Lien Agent, on behalf of itself and the Second Lien
Secured Parties, assents to any extension or postponement of the time of payment of the First Lien
Obligations or any part thereof and to any other indulgence with respect thereto, to any
substitution, exchange or release of any security which may at any time secure any part of the
First Lien Obligations and to the addition or release of any other Person primarily or secondarily
liable therefor, in each case to the extent undertaken in accordance with this Agreement.

     Section 9.17. Specific Performance.
Each of the Collateral Agent, an Approved Hedge Counterparty, the First Lien Agent and the
Second Lien Agent may demand specific performance of this Agreement. Each Approved Hedge
Counterparty, the Collateral Agent, on behalf of the Secured Parties, the First Lien Agent, on
behalf of itself and the First Lien Secured Parties under its First Lien Documents, and the Second
Lien Agent, on behalf of itself and the Second Lien Secured Parties, hereby irrevocably waives any
defense based on the adequacy of a remedy at law and any other defense which might be asserted to
bar the remedy of specific performance in any action which may be brought by the Collateral Agent,
First Lien Agent or the Second Lien Agent, as the case may be.

     Section 9.18. Headings.
Section headings used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into consideration in interpreting
this Agreement.

     Section 9.19. Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall
not invalidate such provision in any other jurisdiction.

     Section 9.20. Counterparts; Integration; Effectiveness.
This Agreement may be executed in counterpart (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy, facsimile, photocopy or by sending a scanned copy by electronic mail
shall be effective as delivery of a manually executed counterpart of this Agreement. This
Agreement shall become effective when it shall have been executed by each party hereto. Any
signature page of a counterpart may be detached therefrom without impairing the legal effect of the
signatures thereon and attached to another counterpart identical in form thereto but having
attached to it one or more additional signature pages signed by other parties.

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     Section 9.21. Entire Agreement.
This Agreement, the Principal Agreements and the Security Documents embody the entire agreement
and understanding between Collateral Agent, Secured Parties and the Obligors and supersede all
prior agreements and understandings between such parties relating to the subject matter hereof and
thereof. There are no unwritten oral agreements between the parties.

     Section 9.22. Limitation by Law.
All rights, remedies and powers provided herein may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law; and all the provisions hereof
are intended (a) to be subject to all applicable mandatory provisions of law which may be
controlling and (b) to be limited to the extent necessary so that they will not render this
Agreement, any Principal Agreement or any Security Document invalid under the provisions of any
applicable law.

     Section 9.23. No Impairment.
The terms of this Agreement and the rights of each First Lien Secured Party in the Collateral
and the obligations of the other Secured Parties arising hereunder shall not be affected, modified
or impaired in any manner or to any extent by (i) any amendment or modification of or supplement to
any of the Principal Agreements, Security Documents, or any agreement, instrument or document
executed or delivered pursuant thereto, (ii) any lack of validity or enforceability of any of the
Principal Agreements, Security Documents, or other agreements, instruments or documents referred to
in clause (i) above, (iii) the exercise of or failure to exercise any right, power or remedy under
or in respect of the Obligations or any of the Principal Agreements, Security Documents, or other
agreements, instruments or documents referred to in clause (i) above arising at law, or (iv) any
waiver, consent, release, indulgence, extension, renewal, modification, delay or other action,
inaction or omission (other than in accordance with the provisions of this Agreement) in respect of
the Obligations or any of the Principal Agreements, Security Documents, or other agreements,
instruments or documents referred to in clause (i) above or in respect of any of the properties or
assets now or hereafter constituting Collateral, whether or not the other Secured Parties shall
have had notice or knowledge of any of the foregoing and whether or not they shall have consented
thereto.

     Section 9.24. Status of Obligations.
Each Obligor, Collateral Agent, each Approved Hedge Counterparty, the First Lien Agent and the
Second Lien Agent represents and warrants to each of the other parties hereto that this Agreement
has been duly authorized, executed and delivered by such representing and warranting party and is
the legal, valid, binding and enforceable obligation of such party, subject to bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting the rights
and remedies of creditors and subject to general equitable principles, including without limitation
the principle that equitable remedies, such as the remedy of specific performance, are subject to
the discretion of the court.

     Section 9.25. Counterclaims and Defenses by Obligors. Each Obligor agrees that it will not assert against Collateral Agent, First Lien Agent or Second
Lien Agent (in their respective capacities as such) or Secured Parties as a group any claim,
defense, counterclaim, recoupment or right of set-off which it may have solely against one or more
(but not all) Secured Parties (other than against Collateral Agent, First Lien Agent or Second Lien
Agent in their respective capacities as such), nor will such Obligor assert against any one of the
Secured Parties any claim, defense, counterclaim, recoupment or right of set-off which it may have
solely against another Secured Party. Nothing in this Section 9.25 shall limit any other waiver of
claims, defenses, counterclaims, recoupments or rights of set-off any Obligor may have made in any
Transaction Document.

     Section 9.26. Amendment and Restatement.
This Agreement amends and restates in its entirety the Restated Intercreditor Agreement which as
of the Effective Date will cease to have any independent force or effect.

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ARTICLE 10 COLLATERAL AGENT.

     Section 10.01. Appointment of Collateral Agent.
First Lien Agent, on behalf of First Lien Secured Parties, Second Lien Agent, on behalf of
Second Lien Secured Parties, and each Approved Hedge Counterparty hereby designate and appoint
Royal Bank of Canada to act as Collateral Agent under the Security Documents, with full power of
substitution, as their true and lawful attorney-in-fact with full irrevocable power of attorney in
their place and stead and in their name or in the Collateral Agent’s own name, from time to time,
and hereby empower the Collateral Agent to take actions with respect to the enforcement of any
Liens granted thereunder and the collection of proceeds following the disposition of any
Collateral. First Lien Agent, on behalf of First Lien Secured Parties, Second Lien Agent, on
behalf of Second Lien Secured Parties, and each Approved Hedge Counterparty hereby authorize
Collateral Agent to take such action on its behalf under the provisions of this Agreement and the
Security Documents and to exercise such powers and to perform such duties hereunder and thereunder
as are specifically delegated to it hereunder or thereunder or required of Collateral Agent by the
terms hereof or thereof and such other powers as are reasonably incidental thereto. Collateral
Agent may perform any of its duties hereunder by or through its agents or employees. Subject to
the terms and conditions contained in this Article 10, Collateral Agent agrees to act as Collateral
Agent pursuant to the terms set forth in this Agreement.

     Section 10.02. Nature of Duties of Collateral Agent.
Collateral Agent shall have no duties or responsibilities, except those expressly set forth in
this Agreement or any Security Document. Collateral Agent shall have and may exercise such powers
hereunder and under the Security Documents as are specifically delegated to Collateral Agent by the
terms hereof, together with such powers as are reasonably incidental thereto. Neither Collateral
Agent nor any of its directors, officers, employees or agents shall be liable to any Secured Party
for any action taken or omitted by it as such hereunder or under any Security Document, unless
caused solely by its or their gross negligence or willful misconduct. The duties of Collateral
Agent shall be mechanical and administrative in nature; and Collateral Agent, in its capacity as
such, shall not have by reason of this Agreement a fiduciary relationship in respect of any Secured
Party. Nothing in this Agreement, expressed or implied, is intended to or shall be so construed as
to impose upon Collateral Agent any obligations in respect of this Agreement and the Security
Documents except as expressly set forth herein.

     Section 10.03. Lack of Reliance on Collateral Agent.

     (a) Independently and without reliance upon Collateral Agent or any other Secured Party, First
Lien Agent, on behalf of First Lien Secured Parties, Second Lien Agent, on behalf of Second Lien
Secured Parties, and each Approved Hedge Counterparty, each represents to Collateral Agent and each
other that each Secured Party has made (i) its own independent investigation of the financial
condition and affairs of the Obligors based on such documents and information as it has deemed
appropriate in connection with the taking or not taking of any action in connection herewith, and
(ii) its own appraisal of the credit worthiness of the Obligors. Each also acknowledges that it
will, independently and without reliance upon Collateral Agent or any other Person and based on
such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement, the First Lien Obligations or
Second Lien Obligations, as the case may be, or the Security Documents. Except as expressly
provided in this Agreement and the Security Documents, Collateral Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Secured Party with any
credit or other information concerning the affairs, financial condition or business of the Obligors
which may come into the possession of Collateral Agent or any of its Affiliates whether now in its
possession or in its possession at any time or times hereafter; and Collateral Agent shall not be
required to keep itself informed as to the performance or observance by any Obligor of this

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Agreement, any Security Document or any other document referred to or provided for herein or
to inspect the properties or books of any Obligor.

     (b) Collateral Agent shall not (i) be responsible to any Secured Party for any recitals,
statements, information, representations or warranties herein, in any Security Document, or in any
document, certificate or other writing delivered in connection herewith or therewith or for the
execution, effectiveness, genuineness, validity, enforceability, collectability, priority or
sufficiency of this Agreement, the First Lien Obligations, the Second Lien Obligations or any
Security Document or the financial condition of the Obligors; or (ii) be required to make any
inquiry concerning the performance or observance by others of any of the terms, provisions or
conditions of this Agreement, including the content of notices, opinions, certificates and
directions given under this Agreement (however, Collateral Agent shall examine such certificates,
notices, opinions and directions to determine whether or not they conform to this Agreement and the
Security Documents), the First Lien Obligations, the Second Lien Obligations or the Security
Documents, the financial condition of the Obligors, or the existence or possible existence of any
“Default,” “Event of Default” or “Termination Event” under the First Lien Documents or the Second
Lien Documents.

     Section 10.04. Certain Rights of Collateral Agent.
If Collateral Agent shall request instructions from Secured Parties with respect to any act or
action (including the failure to act) in connection with this Agreement, the First Lien
Obligations, the Second Lien Obligations or any Security Document, Collateral Agent shall be
entitled to refrain from such act or taking such action unless and until Collateral Agent shall
have received written instructions from any Secured Party or group of Secured Parties pursuant to
the terms hereof; and Collateral Agent shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, no Secured Party shall have any right of action
whatsoever against Collateral Agent as a result of Collateral Agent acting or refraining from
acting under this Agreement or any Security Document in accordance with any written instructions
given in accordance with this Agreement, and any such action taken in compliance with, or any such
failure to act based upon, any such instructions shall be binding on all Secured Parties. Except
for action expressly required of Collateral Agent pursuant to the terms hereof, Collateral Agent
shall be fully justified in failing or refusing to take any action hereunder or under the Security
Documents unless it shall first be indemnified to its satisfaction by the Obligors and/or Secured
Parties against any and all liability and expense which may be incurred by Collateral Agent by
reason of taking or continuing to take any such action. Notwithstanding any other provision of
this Article 10 or any indemnity or instructions provided by any or all Secured Parties, Collateral
Agent shall not be required to take any action which exposes Collateral Agent to personal liability
or which is contrary to this Agreement, the Security Documents or applicable law.

     Section 10.05. Reliance by Collateral Agent.
Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, statement, certificate or telecopier message, cablegram, radiogram,
order or other documentary, teletransmission, electronic mail or telephone message believed by it
to be genuine and correct and to have been signed, sent or made by the proper Person. Collateral
Agent may consult with independent legal counsel (which shall not be counsel for the Obligors),
independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts.

     Section 10.06. Collateral Agent’s Reimbursements and Indemnification.
To the extent Collateral Agent is not reimbursed by Borrowers or any other Obligor, each party
hereto will reimburse and indemnify Collateral Agent, on a pro rata basis, for and against any and
all actions, suits, proceedings (including any investigations, litigation or inquiries), claims,
demands, causes of action, costs, losses, liabilities, damages or expenses of any kind or nature
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imposed on, incurred by or asserted against Collateral Agent in performing its duties hereunder or
under the Security Documents or otherwise in connection herewith or therewith, including losses
occurring from the ordinary and/or comparative negligence of Collateral Agent, in any way relating
to or arising out of this Agreement; provided that no Secured Party shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements to the extent resulting from Collateral Agent’s gross negligence
or willful misconduct. As used in this Section 10.06, “pro rata share” means for each First Lien
Lender (or First Lien Lender Affiliate, in the case of Lender Hedging Agreements or an Approved
Hedge Counterparty, in the case of an Approved Hedge Counterparty Swap Contract) and each Second
Lien Lender, on any date of determination, that proportion which the First Lien Obligations owed to
such First Lien Lender (or First Lien Lender Affiliate, in the case of Lender Hedging Agreements or
an Approved Hedge Counterparty, in the case of an Approved Hedge Counterparty Swap Contract) or
Second Lien Obligations owed to such Second Lien Lender bears to the total outstanding amount of
First Lien Obligations plus Second Lien Obligations.

     Section 10.07. Collateral Agent in its Individual Capacity.
Collateral Agent shall have the same rights and powers hereunder as any other Secured Party and
may exercise the same as though it were not performing the duties specified herein; and the term
“Secured Party” or any similar term shall, unless the context clearly otherwise indicates, include
Collateral Agent, in its individual capacity as and to the extent it owns First Lien Obligations
and/or Second Lien Obligations and not in its capacity as Collateral Agent. Collateral Agent may
accept deposits from, lend money to, and generally engage in any kind of banking, trust, financial
advisory or other business with the Obligors as if it were not performing the duties specified
herein, and may accept fees and other consideration from the Obligors for services in connection
with this Agreement and otherwise without having to account for the same to any Secured Party
except as specified herein.

     Section 10.08. Secured Parties as Owners.
Collateral Agent may deem and treat each Secured Party as the owner of such Secured Party’s
First Lien Obligations or Second Lien Obligations for all purposes hereof unless and until
Collateral Agent is notified of a change in Secured Parties.

     Section 10.09. Successor Collateral Agent.

     (a) Collateral Agent (i) may resign at any time by giving thirty (30) days prior written
notice thereof to Secured Parties and Borrowers, (ii) shall promptly resign if any conflict of
interest arises involving any group of Secured Parties and another group of secured parties for
whom it is a trustee or fiduciary and (iii) may be removed at any time by the First Lien Agent,
which resignation or removal, in each case, shall be effective upon the appointment of a successor
to Collateral Agent. Upon any such resignation or removal, the First Lien Agent shall have the
right to appoint a successor Collateral Agent, subject to the consent of Second Lien Agent, not to
be unreasonably withheld or delayed. If within thirty (30) days after the retiring Collateral
Agent’s giving of notice of resignation or the First Lien Agent’s removal of the retiring
Collateral Agent, no successor Collateral Agent shall have been so appointed by the First Lien
Agent and accepted such appointment, then the retiring Collateral Agent may, on behalf of Secured
Parties, appoint a successor Collateral Agent, which shall be a bank which maintains an office in
the United States of America, or a commercial bank organized under the laws of the United States of
America or of any State thereof, or any Affiliate of such bank, having a combined capital and
surplus of at least $50,000,000 as of the date of its most recent financial statements.

     (b) Upon the acceptance of any appointment as Collateral Agent hereunder by a successor
Collateral Agent, such successor Collateral Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Collateral Agent, and the retiring
Collateral Agent shall be discharged from its duties under this Agreement; provided, the
retiring Collateral Agent and the

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38

 

Obligors agree to execute and deliver such instruments, documents, deeds, conveyances or other
writing as shall be reasonably requested by any Secured Party or the successor Collateral Agent to
(i) establish or continue the validity and perfection of any Liens under any Security Documents in
place at such time and (ii) transfer to the incoming Collateral Agent any and all rights, powers,
estates, duties and authorities extant under this Agreement. After any retiring Collateral Agent’s
resignation or removal hereunder as Collateral Agent, the provisions of this Agreement shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent
under this Agreement.

     Section 10.10. Employment of Agents and Counsel.
Collateral Agent may execute any of its duties as Collateral Agent hereunder or under the
Security Documents by or through employees, agents, and attorneys-in-fact and shall not be
answerable to Secured Parties for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care; provided that Collateral Agent shall always be
obligated to account for moneys or securities received by it or its authorized agents. Collateral
Agent shall be entitled to advice of independent counsel concerning all matters pertaining to the
agency hereby created and its duties hereunder or under the Security Documents.

     Section 10.11. Limitation on Liability of Secured Parties and Collateral Agent.
Secured Parties and Collateral Agent shall not be deemed, as a result of the execution and
delivery of the Security Documents or the consummation of the transactions contemplated by this
Agreement and the Security Documents, to have assumed any obligation of any Obligor with respect to
the Collateral or any liability under or with respect to any of the contracts, agreements, leases,
instruments or documents which are, or which may hereafter be, assigned to Collateral Agent for the
benefit of Secured Parties.

[Remainder of Page Intentionally Left Blank.]

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

	 	 	 	 	 	 	 

	FIRST LIEN AGENT:	 	ROYAL BANK OF CANADA, as First Lien Agent for
 and on behalf of the First Lien
Secured Parties
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Susan Khokher	 	 
	 

	 	Name:
	 	
Susan
Khokher
	 	 
	 

	 	Title:	 	
Manager,
Agency
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Royal Bank of Canada, Agency Services Group	 	 
	 	 	Royal Bank Plaza	 	 
	 	 	200 Bay Street	 	 
	 	 	12th Floor, South Tower	 	 
	 	 	Toronto, Ontario M5J 2W7	 	 
	 	 	Attn: Manager Agency	 	 
	 	 	Facsimile: (416) 842-4023	 	 

Signature Page 1

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	SECOND LIEN AGENT:	 	ROYAL BANK OF CANADA, as Second Lien Agent
 for and on behalf of the Second Lien
Secured Parties
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Susan Khokher	 	 
	 

	 	Name:
	 	 
Susan
Khokher
	 	 
	 

	 	Title:	 	 
Manager,
Agency
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Royal Bank of Canada, Agency Services Group	 	 
	 	 	Royal Bank Plaza	 	 
	 	 	200 Bay Street	 	 
	 	 	12th Floor, South Tower	 	 
	 	 	Toronto, Ontario M5J 2W7	 	 
	 	 	Attn: Manager Agency	 	 
	 	 	Facsimile: (416) 842-4023	 	 

Signature Page 2

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	COLLATERAL AGENT:	 	ROYAL BANK OF CANADA, as Collateral Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Susan Khokher
	 	 
	 

	 	Name:
	 	Susan Khokher

	 	 
	 

	 	Title:
	 	Manager,
Agency

	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Royal Bank of Canada, Agency Services Group	 	 
	 	 	Royal Bank Plaza	 	 
	 	 	200 Bay Street	 	 
	 	 	12th Floor, South Tower	 	 
	 	 	Toronto, Ontario M5J 2W7	 	 
	 	 	Attn: Manager Agency	 	 
	 	 	Facsimile: (416) 842-4023	 	 

Signature Page 3

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	APPROVED HEDGE COUNTERPARTY:	 	BP CORPORATION NORTH AMERICA INC., 

as an Approved Hedge Counterparty
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steve J. Provenzano 	 
	 

	 	 	 	Name: 
	Steve J. Provenzano 	 
	 

	 	 	 	Title: 	CCO, Financial Products	 
	 
	 	 	 	 	 	 
	 	 	Address:	 
	 	 	201 Helios Way	 
	 	 	Houston, Texas 77079	 
	 	 	Telecopier No.: 713-323-0203	 
	 	 	Telephone No.: 713-323-2000	 
	 	 	Attn: Contract Services	 

Signature Page 4

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The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	
 ROYAL BANK OF CANADA

 	 
	 	By:  	/s/ Leslie P. Vowell	 
	 	Name:  	Leslie P. Vowell 	 
	 	Title:  	Attorney-in-Fact 	 
	 

Signature Page 5

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The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 SUNTRUST BANK

 	 
	 	By:  	/s/
Janet R. Naifeh
	 
	 	Name:  	Janet R. Naifeh 	 
	 	Title:  	Senior Vice President 	 
	 

Signature Page 6

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The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	     /s/  Robert
F. Pollis, Jr.	 
	 	Name:  Robert
F. Pollis, Jr.	 
	 	Title:    Senior Vice
President	 
	 

Signature Page 7

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	    /s/  Saqib
Khawaja
	 
	 	Name:  Saqib
Khawaja	 	 
	 	Title:    Vice President	 	 
	 

Signature Page 8

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The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 SOCIÉTÉ GÉNÉRALE

 	 
	 	By:  	/s/
Cameron Null
	 
	 	Name:  	Cameron Null	 
	 	Title:  	Vice President	 
	 

Signature Page 9

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/
Ronald F. Bentien, Jr.
	 
	 	Name:  	Ronald F. Bentien, Jr.	 
	 	Title:  	Director	 
	 

Signature Page 10

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 COMERICA BANK

 	 
	

	 	By:  	/s/
James A. Morgan
	 
	 	Name:  	James A. Morgan	 
	 	Title:  	Vice President	 
	

	 

Signature Page 11

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 RZB FINANCE, LLC

 	 
	 	By:  	/s/
John A. Valiska
	 
	 	Name:  	John A. Valiska	 
	 	Title:  	First Vice President	 
	 
	 	By:  	/s/
Christoph Hoedl	 
	 	Name:  	Christoph Hoedl	 
	 	Title:  	First Vice President	 
	 

Signature Page 12

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The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 COMPASS BANK

 	 
	 	By:  	/s/
John W. Wood
	 
	 	Name:  	John W. Wood	 
	 	Title:  	Vice President	 
	 

Signature Page 13

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 BNP PARIBAS

 	 
	 	By:  	/s/
Larry Robinson	 
	 	Name:  	Larry Robinson	 
	 	Title:  	Director	 
	 
	 	By:  	/s/
Betsy Jocher	 
	 	Name:  	Betsy Jocher	 
	 	Title:  	Director	 
	 

Signature Page 14

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 BANK OF OKLAHOMA , N.A.

 	 
	 	By:  	/s/
Timothy F. Sheehan	 
	 	Name:  	Timothy F. Sheehan	 
	 	Title:  	Senior Vice President	 
	 

Signature Page 15

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Agency Agreement

 

 

The undersigned First Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	FIRST LIEN LENDER:	 AMEGY BANK NATIONAL ASSOCIATION
 	 
	 	By:  	/s/
Terry Owen McCarter	 
	 	Name:  	Terry Owen McCarter	 
	 	Title:  	Senior Vice President	 
	 

Signature Page 16

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Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 ROYAL BANK OF CANADA

 	 
	 	By:  	.	/s/
Leslie P. Vowell	.
	 	Name:  	Leslie P. Vowell	 
	 	Title:  	Attorney-in-Fact 	 
	 

Signature Page 17

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Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 SUNTRUST BANK

 	 
	 	By: 	  /s/ Janet R. Naifeh
	 
	 	Name: 	Janet R. Naifeh	 
	 	Title:  	Senior Vice President	 
	 

Signature Page 18

Amended and Restated

Intercreditor and Collateral

Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Robert F. Pollis, Jr.	 
	 	Name:  	Robert F. Pollis, Jr.	 
	 	Title:  	Senior Vice President	 
	 

Signature Page 19

Amended and Restated

Intercreditor and Collateral

Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/
Terry Owen McCarter
 	 
	 	Name: 	Terry Owen McCarter 	 
	 	Title: 	Senior Vice President 	 
	 

Signature Page 20

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Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 WELLS FARGO BANK, N.A.,

Successor-by-merger to Wachovia Bank, National Association
 	 
	 	By:  	/s/ Ronald F. Bentien, Jr.
	 
	 	Name: 	Ronald F. Bentien, Jr. 	 
	 	Title: 	Director 	 
	 

Signature Page 21

Amended and Restated

Intercreditor and Collateral

Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 COMERICA BANK

 	 
	 	By:  	/s/ James
A. Morgan
	 
	 	Name:  	James
A. Morgan 	 
	 	Title:  	Vice President 	 
	 

Signature
Page 22

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Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 COMPASS BANK

 	 
	 	By:  	/s/ John
W. Wood
	 
	 	Name:  	John
W. Wood 	 
	 	Title:  	Vice President 	 
	 

Signature
Page 23

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Agency Agreement

 

 

The undersigned Second Lien Lenders hereby acknowledging receiving this Amended and Restated
Intercreditor and Collateral Agency Agreement and hereby agree and consent to the terms and
provisions thereof.

	 	 	 	 	 
	SECOND LIEN LENDER:	 BNP PARIBAS

 	 
	 	By:  	/s/ Larry Robinson
	 
	 	Name:  	Larry Robinson
 	 
	 	Title:  	Director 	 
	 
	 	By:  	
/s/ Betty Jocher	 
	 	Name:  	Betty Jocher 	 
	 	Title:  	Director 	 
	 

Signature
Page 24

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Each Obligor hereby executes this Agreement to evidence its agreement that:

     1. It shall be bound by all of the terms and provisions of this Agreement.

     2. It acknowledges and agrees that the terms of this Agreement shall control over the terms of
the Security Documents to the extent of any conflict between the provisions thereof.

     3. The indemnity and reimbursement provisions contained in Section 9.09 shall apply to all
matters under this Agreement and each Obligor jointly and severally agrees to indemnify and
reimburse the Indemnitees in accordance with the terms thereof.

     4. Except as stated in Section 9.13 hereof, the terms and provisions of this Agreement shall
inure solely to the benefit of the Secured Party and its respective successors and assigns and the
terms and provisions of this Agreement shall not inure to the benefit of nor be enforceable by any
Obligor. This Agreement may be amended as provided herein without the necessity of any Obligor
joining in any such amendment, except as provided herein; provided, that no Obligor shall
be bound by any amendment which would have the effect of increasing its obligations and indemnities
hereunder or under any documents executed in connection with the Principal Agreements, or
materially affecting its rights or duties under the Security Documents unless it shall have
consented to such amendment.

     5. Borrowers hereby covenant and agree to cause each new Obligor to execute a supplemental
Amended and Restated Intercreditor and Collateral Agency Agreement in the form of Annex 2 hereto.

     6. It at its expense will execute, acknowledge and deliver all such agreements and instruments
and take all such action as Collateral Agent or any Secured Party from time to time may reasonably
request in order to further effectuate the purposes of this Agreement and to carry out the terms
hereof.

	 	 	 	 	 
	 	POSTROCK ENERGY SERVICES CORPORATION,

as a Borrower

 	 
	 	By:  	/s/
David C. Lawler 	 
	 	 	     David C. Lawler, President and Chief Executive Officer 	 
	 
	 	POSTROCK MIDCONTINENT PRODUCTION, LLC,

as a Borrower,

 	 
	 	By:  	POSTROCK ENERGY SERVICES CORPORATION,
 	 
	 	 	Its sole member 	 

	 	 	 	 	 
	 	By:  	
/s/
David C. Lawler 	 
	 	 	David C. Lawler, President

and Chief Executive Officer 	 
	 

Signature Page 25

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	 	POSTROCK ENERGY CORPORATION,

as a Guarantor

 	 
	 	By:  	/s/
David C. Lawler	 
	 	 	  David C. Lawler, President and Chief Executive Officer 	 
	 
	 	STP NEWCO, INC.,

as a Guarantor

 	 
	 	By:  	/s/
David C. Lawler	 
	 	 	  David C. Lawler, President
 
and Chief Executive Officer 	 
	 
	 	QUEST TRANSMISSION COMPANY, LLC,

as a Guarantor

 	 
	 	By:  	/s/
David C. Lawler	 
	 	 	  David C. Lawler, President

  and Chief Executive Officer

  Address for Notices:

  c/o PostRock Energy Corporation

  210 Park Avenue, Suite 2750

  Oklahoma City, OK  73102

  Attn:  Chief Executive Officer 	 
	 

Signature Page 26

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ANNEX 1

Security Documents

SECURITY DOCUMENTS DATED EFFECTIVE SEPTEMBER 21, 2010:

Kansas Oil and Gas Mortgages

	1.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Chautauqua
County, KS
	 
	2.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Chautauqua County, KS
	 
	3.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Chautauqua County, KS
	 
	4.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Elk County,
KS
	 
	5.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Elk County, KS
	 
	6.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Elk County, KS
	 
	7.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Labette
County, KS
	 
	8.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Labette County, KS
	 
	9.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor,

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	 	 	to Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties,
as Mortgagee, recorded in Labette County, KS
	 
	10.	 	Third Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated September 1, 2008 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Labette County, KS
	 
	11.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Montgomery
County, KS
	 
	12.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Montgomery County, KS
	 
	13.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Montgomery County, KS
	 
	14.	 	Third Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated September 1, 2008 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Montgomery County, KS
	 
	15.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Neosho
County, KS
	 
	16.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Neosho County, KS
	 
	17.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Neosho County, KS
	 
	18.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Wilson
County, KS
	 
	19.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to

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	 	 	Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Wilson County, KS
	 
	20.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Wilson County, KS
	 
	21.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Woodson
County, KS
	 
	22.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Woodson County, KS
	 
	23.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Woodson County, KS
	 
	24.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to Royal Bank of Canada, as
Administrative Agent and Collateral Agent, as Mortgagee, recorded in Allen County, KS.
	 
	25.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, Royal Bank of Canada, as
Administrative Agent and Collateral Agent, as Mortgagee, recorded in Greenwood County, KS.

Kansas Pipeline Mortgages

	26.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Allen County, Kansas.
	 
	27.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Allen County, Kansas.
	 
	28.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Butler County, Kansas.
	 
	29.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and

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	 	 	collateral agent, filed in Butler County, Kansas.
	 
	30.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Chautauqua County, Kansas.
	 
	31.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
	 
	32.	 	collateral agent, filed in Chautauqua County, Kansas.
	 
	33.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Cowley County, Kansas.
	 
	34.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Cowley County, Kansas.
	 
	35.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Elk County, Kansas.
	 
	36.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Elk County, Kansas.
	 
	37.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Greenwood County, Kansas.
	 
	38.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Greenwood County, Kansas.
	 
	39.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Labette County, Kansas.
	 
	40.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Labette County, Kansas.
	 
	41.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Montgomery County, Kansas.

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	42.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Montgomery County, Kansas.
	 
	43.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Neosho County, Kansas.
	 
	44.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Neosho County, Kansas.
	 
	45.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Wilson County, Kansas.
	 
	46.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Wilson County, Kansas.
	 
	47.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Woodson County, Kansas.
	 
	48.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Woodson County, Kansas.

Oklahoma Oil and Gas Mortgages

	49.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Nowata
County, OK
	 
	50.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Nowata County, OK
	 
	51.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Nowata County, OK

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	52.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated November 14, 2005 from Quest Cherokee, LLC, as Mortgagor, to Guggenheim Corporate
Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee, recorded in Craig County,
OK
	 
	53.	 	First Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated July 31, 2006 from Quest Cherokee, LLC, as Mortgagor, to
Guggenheim Corporate Funding, LLC, as Collateral Agent for Secured Parties, as Mortgagee,
recorded in Craig County, OK
	 
	54.	 	Second Amendment to Mortgage, Deed of Trust, Security Agreement, Financing Statement and
Assignment of Production dated November 15, 2007 from Quest Cherokee, LLC, as Mortgagor, to
Royal Bank of Canada, as Administrative Agent and Collateral Agent for Secured Parties, as
Mortgagee, recorded in Craig County, OK
	 
	55.	 	Mortgage, Deed of Trust, Security Agreement, Financing Statement and Assignment of Production
dated April 30, 2008 from Quest Cherokee, LLC, as Mortgagor, to Royal Bank of Canada, as
Administrative Agent and Collateral Agent for Secured Parties, as Mortgagee, recorded in
Seminole County, OK

Oklahoma Pipeline Mortgages

	56.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Craig County, Oklahoma.
	 
	57.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Craig County, Oklahoma.
	 
	58.	 	Mortgage, Assignment, Security Agreement, Fixture Filing and Financing Statement dated
January 31, 2007 from Bluestem Pipeline, LLC to Royal Bank of Canada, administrative agent and
collateral agent, filed in Nowata County, Oklahoma.
	 
	59.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement dated November 1, 2007 from Bluestem Pipeline, LLC and Quest Pipelines
(KPC), f/k/a Enbridge Pipelines (KPC), to Royal Bank of Canada, administrative agent and
collateral agent, filed in Nowata County, Oklahoma.

West Virginia Oil and Gas Mortgages

	60.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Braxton County, West Virginia
	 
	61.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal

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	 	 	Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee,
recorded in Cabell County, West Virginia
	 
	62.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Calhoun County, West Virginia
	 
	63.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Doddridge County, West Virginia
	 
	64.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Gilmer County, West Virginia
	 
	65.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Kanawha County, West Virginia
	 
	66.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Lewis County, West Virginia
	 
	67.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Lincoln County, West Virginia
	 
	68.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Pleasants County, West Virginia
	 
	69.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Ritchie County, West Virginia

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	70.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Wayne County, West Virginia
	 
	71.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Wetzel County, West Virginia
	 
	72.	 	Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of As-Extracted Collateral,
Security Agreement, Fixture Filing and Financing Statement dated effective as of July 11, 2008
from Quest Cherokee, LLC, as Mortgagor, to Carl D. Andrews, Trustee, for the benefit of Royal
Bank of Canada, as mortgagee and collateral agent for Secured Parties, as Mortgagee, recorded
in Wood County, West Virginia

Assignment of Quest Cherokee Second Lien Debt and Liens

	73.	 	Assignment of Debt and Liens dated effective September 21, 2010, by and between Royal Bank of
Canada, as administrative agent and collateral agent for the secured parties, as assignor, to
Royal Bank of Canada, as administrative agent and collateral agent, as assignee, filed in the
following counties:

	 	a.	 	Allen KS
	 
	 	b.	 	Butler KS
	 
	 	c.	 	Chautauqua KS
	 
	 	d.	 	Cowley KS
	 
	 	e.	 	Elk KS
	 
	 	f.	 	Greenwood KS
	 
	 	g.	 	Labette KS
	 
	 	h.	 	Montgomery KS
	 
	 	i.	 	Neosho KS
	 
	 	j.	 	Wilson KS
	 
	 	k.	 	Woodson KS
	 
	 	l.	 	Craig OK
	 
	 	m.	 	Nowata OK
	 
	 	n.	 	Seminole OK
	 
	 	o.	 	Pushmataha OK
	 
	 	p.	 	Pottawattamie OK
	 
	 	q.	 	Latimer OK
	 
	 	r.	 	Rogers OK
	 
	 	s.	 	Grant OK
	 
	 	t.	 	Braxton WV
	 
	 	u.	 	Cabell WV
	 
	 	v.	 	Calhoun WV
	 
	 	w.	 	Doddridge WV
	 
	 	x.	 	Gilmer WV
	 
	 	y.	 	Kanawha WV
	 
	 	z.	 	Lewis WV

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	 	aa.	 	Lincoln WV
	 
	 	bb.	 	Pleasants WV
	 
	 	cc.	 	Ritchie WV
	 
	 	dd.	 	Wayne WV
	 
	 	ee.	 	Wetzel WV
	 
	 	ff.	 	Woods WV

Assignment of Midstream Debt (save $15 million retained) and Liens

	74.	 	Assignment of Debt and Liens dated effective September 21, 2010, by and between Royal Bank of
Canada, as administrative agent and collateral agent for the secured parties, as assignor, to
Royal Bank of Canada, as administrative agent and collateral agent, as assignee, filed in the
following counties:

	 	a.	 	Anderson County, KS
	 
	 	b.	 	Allen County, KS
	 
	 	c.	 	Barber County, KS
	 
	 	d.	 	Butler County, KS
	 
	 	e.	 	Chase County, KS
	 
	 	f.	 	Chautauqua County, KS
	 
	 	g.	 	Coffey County, KS
	 
	 	h.	 	Comanche County, KS
	 
	 	i.	 	Cowley County, KS
	 
	 	j.	 	Elk County, KS
	 
	 	k.	 	Franklin County, KS
	 
	 	l.	 	Greenwood County, KS
	 
	 	m.	 	Harper County, KS
	 
	 	n.	 	Johnson County, KS
	 
	 	o.	 	Kingman County, KS
	 
	 	p.	 	Labette County, KS
	 
	 	q.	 	Lyon County, KS
	 
	 	r.	 	Marion County, KS
	 
	 	s.	 	McPherson County, KS
	 
	 	t.	 	Miami County, KS
	 
	 	u.	 	Montgomery County, KS
	 
	 	v.	 	Neosho County, KS
	 
	 	w.	 	Rice County, KS
	 
	 	x.	 	Sedgwick County, KS
	 
	 	y.	 	Wilson County, KS
	 
	 	z.	 	Woodson County, KS
	 
	 	aa.	 	Wyandotte County, KS
	 
	 	bb.	 	Craig County, OK
	 
	 	cc.	 	Harper County, OK
	 
	 	dd.	 	Nowata County, OK
	 
	 	ee.	 	Osage County, OK
	 
	 	ff.	 	Pawnee County, OK
	 
	 	gg.	 	Woods County, OK
	 
	 	hh.	 	Cass County, MO
	 
	 	ii.	 	Jackson County, MO
	 
	 	jj.	 	Platte County, MO

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Guaranties

	75.	 	Guaranty dated effective September 21, 2010, by PostRock Energy Corporation
	 
	76.	 	Guaranty dated effective September 21 2010, by Quest Transmission Company, LLC and STP Newco,
Inc.

Security Agreements

	77.	 	Amended and Restated Pledge and Security Agreement dated effective September 21, 2010, by
PostRock Energy Services Corporation, PostRock MidContinent Production, LLC, STP Newco, Inc.
and Quest Transmission Company, LLC
	 
	78.	 	Deposit Account Control Agreement — PostRock Energy Services Corporation, Bank of Oklahoma,
N.A., Agent
	 
	79.	 	Deposit Account Control Agreement — PostRock MidContinent Production, LLC, Comerica Bank,
Agent
	 
	80.	 	Deposit Account Control Agreement — PostRock Energy Services Corporation, Comerica Bank,
Agent

Amended and Restated Mortgages or Mortgage Amendments

	81.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Kansas oil and gas properties)

	 	a.	 	Allen KS
	 
	 	b.	 	Chautauqua KS
	 
	 	c.	 	Elk KS
	 
	 	d.	 	Greenwood KS
	 
	 	e.	 	Labette KS
	 
	 	f.	 	Montgomery KS
	 
	 	g.	 	Neosho KS
	 
	 	h.	 	Wilson KS
	 
	 	i.	 	Woodson KS

	82.	 	First Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Oklahoma oil and gas properties)

	 	a.	 	Craig OK
	 
	 	b.	 	Nowata OK
	 
	 	c.	 	Seminole OK
	 
	 	d.	 	Pushmataha County, OK
	 
	 	e.	 	Pottawattamie County, OK
	 
	 	f.	 	Latimer County, OK
	 
	 	g.	 	Rogers County, OK
	 
	 	h.	 	Grant County, OK

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	83.	 	First Amended and Restated Mortgage, Deed of Trust, Credit Line Deed of Trust, Assignment of
As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement (West
Virginia oil and gas properties)

	 	a.	 	Braxton WV
	 
	 	b.	 	Cabell WV
	 
	 	c.	 	Calhoun WV
	 
	 	d.	 	Doddridge WV
	 
	 	e.	 	Gilmer WV
	 
	 	f.	 	Kanawha WV
	 
	 	g.	 	Lewis WV
	 
	 	h.	 	Lincoln WV
	 
	 	i.	 	Pleasants WV
	 
	 	j.	 	Ritchie WV
	 
	 	k.	 	Wayne WV
	 
	 	l.	 	Wetzel WV
	 
	 	m.	 	Woods WV

	84.	 	Second Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Kansas pipeline)

	 	a.	 	Allen County, KS
	 
	 	b.	 	Butler County, KS
	 
	 	c.	 	Chautauqua County, KS
	 
	 	d.	 	Cowley County, KS
	 
	 	e.	 	Elk County, KS
	 
	 	f.	 	Greenwood County, KS
	 
	 	g.	 	Labette County, KS
	 
	 	h.	 	Montgomery County, KS
	 
	 	i.	 	Neosho County, KS
	 
	 	j.	 	Wilson County, KS
	 
	 	k.	 	Woodson County, KS

	85.	 	Second Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Oklahoma pipeline)

	 	a.	 	Craig County, OK
	 
	 	b.	 	Nowata County, OK

UCC-1 Financing Statement Filings

86. POSTROCK ENERGY SERVICES CORPORATION

	 	a.	 	UCC-1 filed with the Delaware Secretary of State (new filing)

	87.	 	POSTROCK MIDCONTINENT PRODUCTION, LLC

	 	a.	 	UCC-1 filed with the Delaware Secretary of State under Bluestem Pipeline, LLC
name 1/31/07
	 
	 	b.	 	UCC-3 filed with the Delaware Secretary of State to change name to PostRock
MidContinent Production, LLC

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	88.	 	STP NEWCO, INC.

	 	a.	 	UCC-1 Central filing filed with the Oklahoma County Clerk 7/17/09

	89.	 	QUEST TRANSMISSION COMPANY.

	 	a.	 	UCC-1 filed with the Delaware Secretary of State (new filing)

PART 2. SECOND LIEN SECURITY DOCUMENTS EFFECTIVE SEPTEMBER 21, 2010

KPC Pipeline Mortgages

	90.	 	Second Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Kansas pipeline) from PostRock KPC Pipeline, LLC

	 	a.	 	Anderson County, KS
	 
	 	b.	 	Barber County, KS
	 
	 	c.	 	Chase County, KS
	 
	 	d.	 	Coffey County, KS
	 
	 	e.	 	Comanche County, KS
	 
	 	f.	 	Franklin County, KS
	 
	 	g.	 	Harper County, KS
	 
	 	h.	 	Johnson County, KS
	 
	 	i.	 	Kingman County, KS
	 
	 	j.	 	Lyon County, KS
	 
	 	k.	 	Marion County, KS
	 
	 	l.	 	McPherson County, KS
	 
	 	m.	 	Miami County, KS
	 
	 	n.	 	Rice County, KS
	 
	 	o.	 	Sedgwick County, KS
	 
	 	p.	 	Wyandotte County, KS

	91.	 	Second Amended and Restated Mortgage, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Oklahoma pipeline) from PostRock KPC Pipeline, LLC

	 	a.	 	Harper County, OK
	 
	 	b.	 	Osage County, OK
	 
	 	c.	 	Pawnee County, OK
	 
	 	d.	 	Woods County, OK

	92.	 	First Amended and Restated Deed of Trust, Assignment, Security Agreement, Fixture Filing and
Financing Statement (Missouri pipeline) from PostRock KPC Pipeline, LLC

	 	a.	 	Cass County, MO
	 
	 	b.	 	Jackson County, MO
	 
	 	c.	 	Platte County, MO

Security Agreements

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	93.	 	Amended and Restated Pledge and Security Agreement — PostRock KPC Pipeline, LLC

UCC-1 Filings

	94.	 	POSTROCK KPC PIPELINE, LLC

	 	a.	 	UCC-1 filed with the Delaware Secretary of State (new filing)

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ANNEX 2

Form of

SUPPLEMENTAL AMENDED AND RESTATED INTERCREDITOR

AND COLLATERAL AGENCY AGREEMENT

     SUPPLEMENTAL AMENDED AND RESTATED INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT (this
“Supplemental Agreement”) dated as of ____________ among ___________________, as an
Obligor, Royal Bank of Canada, as Collateral Agent, and PostRock Energy Services Corporation and
PostRock MidContinent Production, LLC, as First Lien Borrowers.

     All capitalized terms used herein but not defined herein shall have the meanings set forth in
the Agreement (as defined below).

W I T N E S S E T H:

     WHEREAS Borrowers have heretofore executed and delivered to Collateral Agent that certain
Amended and Restated Intercreditor and Collateral Agency Agreement (the “Agreement”) dated
as of September 21, 2010, providing for, among other matters, the relative rights and obligations
and apportionment of payments among Secured Parties (as defined therein), and the exercise of
certain remedies under the Security Documents (as defined therein);

     WHEREAS the Agreement provides that Borrowers are required to cause the new Obligor to execute
and deliver to Collateral Agent a Supplemental Amended and Restated Intercreditor and Collateral
Agency Agreement pursuant to which the new Obligor shall become bound by all of the terms of the
Agreement on the terms and conditions set forth herein;

     WHEREAS Collateral Agent, Borrowers, and the new Obligor are authorized to execute and deliver
this Supplemental Agreement;

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the new Obligor
covenants and agrees for the equal and ratable benefit of Secured Parties (as defined in the
Agreement) as follows:

     1. Agreement to be Bound. The new Obligor shall be bound by all of the terms and
provisions of the Agreement.

     2. Agreement Controls. The new Obligor acknowledges and agrees that the terms of the
Agreement shall control over the terms of the Security Documents to the extent of any conflict
between the provisions thereof.

     3. Indemnity. The indemnity and reimbursement provisions contained in Section
9.09 shall apply to all matters under the Agreement and the new Obligor agrees to indemnify and
reimburse the Indemnitees in accordance with the terms thereof.

     4. Benefit of Agreement. Except as stated in Section 9.13 of the Agreement, the terms
and provisions of the Agreement shall inure solely to the benefit of each Secured Party and its
respective

Annex 2 – Page 1

Amended and Restated

Intercreditor and Collateral

Agency Agreement

 

 

successors and assigns and the terms and provisions of the Agreement shall not inure to the
benefit of nor be enforceable by new Obligor or its successors or assigns. The Agreement may be
amended or supplemented as provided therein without the necessity of the new Obligor joining in any
such amendment, except as provided in the Agreement; provided, that the new Obligor shall
not be bound by any amendment which would have the effect of increasing its Obligations and
indemnities hereunder or materially affecting its rights or duties under the Security Documents
unless it shall have consented to such amendment.

     5. Further Assurances. The new Obligor at its expense will execute, acknowledge and
deliver all such agreements and instruments and take all such action as Collateral Agent or any
Secured Party from time to time may reasonably request in order to further effectuate the purposes
of this Supplemental Agreement and the Agreement and to carry out the terms hereof and thereof.

     6. Ratification of Agreement; Supplemental Agreement Part of Agreement. Except as
expressly amended hereby, the Agreement is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Agreement shall form a part of the Agreement for all purposes.

     7. Governing Law. THIS SUPPLEMENTAL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     8. Collateral Agent Makes No Representation. Collateral Agent makes no
representation as to the validity or sufficiency of this Supplemental Agreement, or the Agreement
as amended hereby.

     9. Counterparts. The parties may sign any number of copies of this Supplemental
Agreement. Each signed copy shall be an original, but all of them together shall represent the
same agreement. Delivery of an executed counterpart of a signature page of this Supplemental
Agreement by telecopy, facsimile, photocopy or by sending a scanned copy by electronic mail shall
be effective as delivery of a manually executed counterpart of this Supplemental Agreement.

     10. Effect of Headings. The Section headings herein are for convenience only and
shall not effect the construction thereof.

     11. Address for Notices. All notices and other communications given to the new
Obligor under the Agreement may be given at its address or telecopier number as follows:

[New Obligor]

[Address]

Attention:

Telecopier No.:

Annex 2 – Page 2

Amended and Restated

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Agency Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Agreement to be duly
executed as of the date first above written.

	 	 	 	 	 
	 	[NEW OBLIGOR]

 	 
	 	By:  	
 	 
	 	 	Name: 	 
	 	 	Title:  	 
	 

Annex 2 – Page 3

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ANNEX 3

Form of

JOINDER TO AMENDED AND RESTATED INTERCREDITOR

AND COLLATERAL AGENCY AGREEMENT

     JOINDER TO AMENDED AND RESTATED INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT (this
“Joinder Agreement”) dated as of ____________ among ___________________, as an Approved
Hedge Counterparty, Royal Bank of Canada, as Collateral Agent, and PostRock Energy Services
Corporation and PostRock MidContinent Production, LLC, as Borrowers.

     All capitalized terms used herein but not defined herein shall have the meanings set forth in
the Agreement (as defined below).

W I T N E S S E T H:

     WHEREAS Borrowers have heretofore executed and delivered to Collateral Agent that certain
Amended and Restated Intercreditor and Collateral Agency Agreement (the “Agreement”) dated
as of September 21, 2010, providing for, among other matters, the relative rights and obligations
and apportionment of payments among Secured Parties (as defined therein), and the exercise of
certain remedies under the Security Documents (as defined therein);

     WHEREAS the Agreement provides that a Person entering into a Swap Contract with the First Lien
Borrowers can become an Approved Hedge Counterparty and thereby a First Lien Secured Party if it
executes and delivers to Collateral Agent a Joinder to the Amended and Restated Intercreditor and
Collateral Agency Agreement pursuant to which such new Approved Hedge Counterparty shall become
bound by the terms of, and entitled to all of the benefits of, the Agreement on the terms and
conditions set forth herein;

     WHEREAS Collateral Agent, Borrowers, and the new Approved Hedge Counterparty are authorized to
execute and deliver this Joinder Agreement;

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the new Approved Hedge
Counterparty, covenants and agrees for the equal and ratable benefit of Secured Parties (as defined
in the Agreement) as follows:

     1. Agreement to be Bound. The new Approved Hedge Counterparty shall be bound by all
of the terms and provisions of the Agreement.

     2. Agreement Controls. The new Approved Hedge Counterparty acknowledges and agrees
that the terms of the Agreement shall control over the terms of the Security Documents to the
extent of any conflict between the provisions thereof.

     3. Indemnity. The indemnity and reimbursement provisions contained in Section
10.06 shall apply to all matters under the Agreement and the new Approved Hedge Counterparty agrees
to indemnify and reimburse the Collateral Agent in accordance with the terms thereof.

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     4. Benefit of Agreement. The terms and provisions of the Agreement shall inure to the
benefit of the new Approved Hedge Counterparty and its respective successors and assigns subject to
compliance with Section 9.13 of the Agreement. The Agreement may be amended or supplemented as
provided therein without the necessity of the new Approved Hedge Counterparty joining in any such
amendment, except as provided in the Agreement.

     5. Further Assurances. The new Approved Hedge Counterparty will execute, acknowledge
and deliver all such agreements and instruments and take all such action as Collateral Agent from
time to time may reasonably request in order to further effectuate the purposes of this Joinder
Agreement and the Agreement and to carry out the terms hereof and thereof.

     6. Ratification of Agreement; Supplemental Agreement Part of Agreement. Except as
expressly amended hereby, the Agreement is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Joinder
Agreement shall form a part of the Agreement for all purposes.

     7. Governing Law. THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     8. Collateral Agent Makes No Representation. Collateral Agent makes no
representation as to the validity or sufficiency of this Joinder Agreement, or the Agreement as
amended hereby.

     9. Counterparts. The parties may sign any number of copies of this Joinder Agreement.
Each signed copy shall be an original, but all of them together shall represent the same
agreement. Delivery of an executed counterpart of a signature page of this Joinder Agreement by
telecopy, facsimile, photocopy or by sending a scanned copy by electronic mail shall be effective
as delivery of a manually executed counterpart of this Joinder Agreement.

     10. Effect of Headings. The Section headings herein are for convenience only and
shall not effect the construction thereof.

     11. Address for Notices. All notices and other communications given to the new
Approved Hedge Counterparty under the Agreement may be given at its address or telecopier number as
follows:

[New Approved Hedge Counterparty]

[Address]

Attention:

Telecopier No.:

Annex 3 – Page 2

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Agency Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Joinder Agreement to be duly executed
as of the date first above written.

	 	 	 	 	 
	 	[NEW APPROVED HEDGE COUNTERPARTY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	FIRST LIEN BORROWERS:	 POSTROCK ENERGY SERVICES CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	FIRST LIEN BORROWERS:	 POSTROCK ENERGY SERVICES CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	COLLATERAL AGENT:	 ROYAL BANK OF CANADA,

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Annex 3 – Page 3

Amended and Restated

Intercreditor and Collateral

Agency Agreementexv10w5

Exhibit 10.5

EXECUTION

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT 

     THIS AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (herein referred
to as this “Security Agreement”) is executed as of September 21, 2010, by POSTROCK ENERGY SERVICES
CORPORATION, a Delaware corporation (“PESC”), formerly known as Quest Resource Corporation,
successor by merger to Quest Resource Acquisition Corp., PostRock Midstream, LLC (the successor by
merger to Quest Midstream Partners, L.P. and Quest Midstream GP, LLC), Quest Cherokee Oilfield
Services, LLC, Quest Mergersub, Inc., Quest Midstream Holdings Corp., Quest Energy Service, LLC and
Energy & Midstream Partners JV, LLC, POSTROCK MIDCONTINENT PRODUCTION, LLC, a Delaware limited
liability company (“MidContinent”), formerly known as Bluestem Pipeline, LLC, successor by merger
to Quest Cherokee, LLC and to a related entity known as PostRock MidContinent Production, LLC
formerly known as Quest Energy Partners, L.P. (“MidContinent I”), STP NEWCO, INC., an Oklahoma
corporation(“STP”), and QUEST TRANSMISSION COMPANY, LLC, a Delaware limited liability company
(“QTC”; QTC, STP, MidContinent and PESC, together with any other entity that may become a party
hereto as provided herein, individually a “Debtor” and collectively the “Debtors”), each of whose
address is 210 Park Avenue, Suite 2750, Oklahoma City, Oklahoma 73102, in favor of ROYAL BANK OF
CANADA as Collateral Agent (hereafter defined) for the benefit of the Beneficiaries (hereafter
defined) (the Collateral Agent, in such capacity, the “Secured Party”) whose address is Royal Bank
Plaza, P.O. Box 50, 200 Bay Street, 12th Floor, South Tower, Toronto, Ontario M5J 2W7.

RECITALS

     A. Quest Resource Corporation (now known as PESC) as initial co-borrower, Quest Cherokee, LLC
(“Quest Cherokee”) (now merged with MidContinent I and into Bluestem Pipeline, LLC) as borrower,
Quest Energy Partners, L.P., a Delaware master limited partnership (which converted into a limited
liability company and changed its name to become MidContinent I) (“QELP”) as guarantor, Royal Bank
of Canada, as administrative agent and collateral agent, and the lenders party thereto entered into
that certain Amended and Restated Credit Agreement, dated November 15, 2007 (as amended from time
to time, the “Prior First Lien Credit Agreement”).

     B. Quest Cherokee, as borrower, QELP, as guarantor, Royal Bank of Canada, as administrative
agent and collateral agent, KeyBank National Association, as syndication agent, Société Générale,
as documentation agent, and the lenders party thereto entered into a Second Lien Senior Term Loan
Agreement providing for a $45,000,000 term loan facility, dated as of July 11, 2008 (as amended
from time to time, the “Prior Second Lien Credit Agreement”; the Prior Second Lien Agreement
together with the Prior First Lien Credit Agreement collectively called the “Prior Credit
Agreements”).

     C. In order to secure repayment of the loans and the payment and performance of all other
obligations set forth in the Prior Credit Agreements or of payment and performance of loans and
other obligations under another credit agreement which has been partially assigned to the Borrowing
Base Facility Lenders (as hereinafter defined) and the balance of which has been amended and
restated by the Pipeline Credit Agreement (as hereafter defined) contemporaneously herewith,
Debtors (or their predecessors-in-interest) executed and delivered one or more pledge and security
agreements, dated various dates (collectively as amended heretofore, the “Existing Security
Agreements”).

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     D. Pursuant to that certain Second Amended and Restated Credit Agreement dated of even date
herewith (the “Borrowing Base Facility Credit Agreement”), among PESC and MidContinent
(collectively, the “Borrowing Base Facility Borrowers”), each lender from time to time party
thereto (collectively, the “Borrowing Base Facility Lenders”), and Royal Bank of Canada, as
administrative agent and collateral agent, the Borrowing Base Facility Lenders have agreed to make
loans and issue letters of credit to or for the Borrowing Base Facility Borrowers in the initial
amount of $225,000,000.

     E. Pursuant to that certain Second Amended and Restated Credit Agreement of even date herewith
(the “Pipeline Credit Agreement”; the Pipeline Credit Agreement, together with the Borrowing Base
Facility Credit Agreement collectively, the “Credit Agreements” and individually a “Credit
Agreement”), among PESC and PostRock KPC Pipeline, LLC, a Delaware limited liability company and
successor by conversion to Quest Pipelines (KPC), a Kansas general partnership, and successor by
merger to Quest Kansas Pipeline, L.L.C. and Quest Kansas General Partner L.L.C. (“KPC Pipeline
LLC”; PESC and KPC Pipeline LLC collectively, the “Pipeline Facility Borrowers”), each lender from
time to time party thereto (collectively, the “Pipeline Facility Lenders”), and Royal Bank of
Canada, as administrative agent and collateral agent, the Pipeline Facility Lenders have agreed to
make a $15,000,000 term loan to the Pipeline Facility Borrowers.

     F. Pursuant to an Amended and Restated Intercreditor and Collateral Agency Agreement dated of
even date herewith (the “Intercreditor Agreement”) among Royal Bank of Canada, as First Lien Agent
(hereafter defined) for the First Lien Secured Parties (hereafter defined), the First Lien Secured
Parties, Royal Bank of Canada, as Second Lien Agent (hereafter defined) for the Second Lien Secured
Parties (hereafter defined), the Second Lien Secured Parties, BP Corporation North America, Inc.,
as an approved hedge counterparty, Royal Bank of Canada, as collateral agent for the First Lien
Secured Parties and Second Lien Secured Parties, each Debtor and KPC Pipeline LLC, the Collateral
Agent agreed to act as collateral agent for the First Lien Secured Parties and Second Lien Secured
Parties for purposes of dealing with the Collateral, including for purposes of this Security
Agreement, apportioning payments among First Lien Secured Parties and the Second Lien Secured
Parties with respect to proceeds thereof.

     G. The Debtors have agreed to amend and restate the Existing Security Agreements, and (i) in
connection with the Borrowing Base Facility Credit Agreement, each Debtor desires to secure all
indebtedness owing under the Borrowing Base Facility Credit Agreement with a first priority lien on
the Collateral, and (ii) in connection with the Pipeline Credit Agreement, each Debtor desires to
secure all indebtedness owing under the Pipeline Credit Agreement with a lien on the Collateral
which is junior, subject and subordinated to the lien on the Collateral securing indebtedness owing
under the Borrowing Base Facility Credit Agreement.

     H. Each Debtor has duly authorized the execution, delivery and performance of this Security
Agreement.

     I. This Security Agreement is integral to the transactions contemplated by the Intercreditor
Agreement and Credit Agreements, and the execution and delivery of this Security Agreement is
required under the terms of the Credit Agreements.

     ACCORDINGLY, for valuable consideration, the receipt and adequacy of which are hereby
acknowledged, each Debtor and Secured Party agree to and do hereby amend and restate the Existing
Security Agreements as follows:

Multiparty Borrowing Base
Credit Facility Pledge & Security Agreement

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     1. REFERENCE TO BORROWING BASE FACILITY CREDIT AGREEMENT. The terms, conditions, and
provisions of the Borrowing Base Facility Credit Agreement are incorporated herein by reference,
the same as if set forth herein verbatim, which terms, conditions, and provisions shall continue to
be in full force and effect hereunder so long as the Borrowing Base Facility Lenders are obligated
to lend under the Borrowing Base Facility Credit Agreement and thereafter until the Obligations
(hereafter defined) are paid and performed in full (except as provided in Sections 10.01(d) and
10.01(e) of the Borrowing Base Facility Credit Agreement).

     2. CERTAIN DEFINITIONS. Unless otherwise defined herein, or the context hereof otherwise
requires, each term defined in the Borrowing Base Facility Credit Agreement or in the UCC is used
in this Security Agreement with the same meaning; provided that, if the definition given to such
term in the Borrowing Base Facility Credit Agreement conflicts with the definition given to such
term in the UCC, the definition in the Borrowing Base Facility Credit Agreement shall control to
the extent legally allowable; and if any definition given to such term in Chapter 9 of the UCC
conflicts with the definition given to such term in any other chapter of the UCC, the Chapter 9
definition shall prevail. As used herein, the following terms have the meanings indicated:

     Beneficiaries means collectively all of the Intercreditor Secured Parties and all of
the Borrowing Base Credit Facility Secured Parties and Beneficiary means any one of the
Beneficiaries.

     Borrowing Base Facility Borrowers has the meaning set forth in Recital D hereto.

     Borrowing Base Facility Credit Agreement has the meaning set forth in Recital D hereto.

     Borrowing Base Facility Lenders has the meaning set forth in Recital D hereto.

     Borrowing Base Facility Secured Parties means each “Secured Party” as defined in the
Borrowing Base Facility Credit Agreement.

     Collateral has the meaning set forth in Paragraph 4 hereof.

     Collateral Agent means Royal Bank of Canada in its capacity as “Collateral Agent” for
the Intercreditor Secured Parties pursuant to the Intercreditor Agreement and in its
capacity as “Administrative Agent” and “Collateral Agent” for the Borrowing Base Facility
Secured Parties pursuant to the Borrowing Base Facility Credit Agreement.

     Collateral Note Security has the meaning set forth in Paragraph 4 hereof.

     Collateral Notes has the meaning set forth in Paragraph 4 hereof.

     Control Agreement means, with respect to any Collateral consisting of investment
property, Deposit Accounts, electronic chattel paper, and letter-of-credit rights, an
agreement evidencing that Secured Party has “control” (as defined in the UCC) of such
Collateral.

     Copyrights has the meaning set forth in Paragraph 4 hereof.

Multiparty Borrowing Base
Credit Facility Pledge & Security Agreement

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     Credit Agreements and Credit Agreement have the meanings set forth in Recital E
hereto.

     Debtor and Debtors have the meanings set forth in the introductory paragraph hereto.

     Deposit Accounts has the meaning set forth in Paragraph 4 hereof.

     Eastern means Quest Eastern Resource LLC, a Delaware limited liability company.

     Existing Security Agreements has the meaning set forth in Recital C hereto.

     First Lien Agent has the meaning set forth in the Intercreditor Agreement.

     First Lien Document has the meaning set forth in the Intercreditor Agreement.

     First Lien Notes has the meaning set forth in the definition of “Obligations”.

     First Lien Obligations has the meaning set forth in the Intercreditor Agreement.

     First Lien Secured Parties has the meaning set forth in the Intercreditor Agreement.

     Intellectual Property has the meaning set forth in Paragraph 4 hereof.

     Intercreditor Agreement has the meaning set forth in Recital F hereto.

     Intercreditor Secured Parties means the “Secured Parties” as defined in the
Intercreditor Agreement.

     KPC Pipeline LLC has the meaning set forth in Recital E hereto.

     MidContinent has the meaning set forth in the introductory paragraph hereto.

     MidContinent I has the meaning set forth in the introductory paragraph hereto.

     Notes has the meaning set forth in the definition of “Obligations”.

     Obligations means, collectively

     (a) all indebtedness, liabilities, and obligations of Debtors arising under this
Security Agreement; it being the intention and contemplation of Debtors and Secured Party
that future advances will be made by Secured Party or one or more Beneficiaries to the
Debtors for a variety of purposes,

     (b) all First Lien Obligations including without limitation, (i) all indebtedness,
obligations and liabilities, whether now in existence or hereafter arising, whether by
acceleration or otherwise, of Midcontinent and PESC arising out of or under the Borrowing
Base Facility Credit Agreement and each other First Lien Document, and all indebtedness,
obligations and liabilities, whether now in existence or hereafter arising, whether by
acceleration or otherwise,

Multiparty Borrowing Base
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and evidenced by those certain promissory notes executed jointly and severally by
Midcontinent and PESC and payable to the order of the Borrowing Base Facility Lenders on or
before June 30, 2013 and all other notes given in substitution for the foregoing promissory
notes, or in modification, renewal, rearrangement or extension thereof, in whole or in part
(such promissory notes, as from time to time supplemented, amended or modified and all other
notes given in substitution therefor or in modification, renewal, rearrangement or extension
thereof, in whole or in part, being hereafter collectively called the “First Lien Notes”),
and with interest, collection and attorneys’ fees, all as provided therein and (ii) all
indebtedness, obligations and liabilities, whether now in existence or hereafter arising,
whether by acceleration or otherwise, in respect to Letters of Credit issued pursuant to the
Borrowing Base Facility Credit Agreement and all reimbursement obligations in respect
thereof,

     (c) all Second Lien Obligations including without limitation, all indebtedness,
obligations and liabilities, whether now in existence or hereafter arising, whether by
acceleration or otherwise, of PESC and/or KPC Pipeline LLC arising out of or under the
Pipeline Credit Agreement and each other Second Lien Document to which KPC Pipeline LLC is a
party, and all indebtedness, obligations and liabilities, whether now in existence or
hereafter arising, whether by acceleration or otherwise, and evidenced by those certain
promissory notes in the aggregate principal amount of Fifteen Million and 00/100 United
States Dollars (US $15,000,000.00) executed jointly and severally by PESC and KPC Pipeline
LLC and payable to the order of the Pipeline Facility Lenders on or before February 28, 2012
and all other notes given in substitution for the foregoing promissory notes, or in
modification, renewal, rearrangement or extension thereof, in whole or in part (such
promissory notes, as from time to time supplemented, amended or modified and all other notes
given in substitution therefor or in modification, renewal, rearrangement or extension
thereof, in whole or in part, being hereafter collectively called the “Second Lien
Notes;” the First Lien Notes and the Second Lien Notes collectively called the
“Notes”), and with interest, collection and attorneys’ fees, all as provided therein. It
being understood and agreed that the liens and security interests granted in this Security
Agreement to secure the indebtedness described in (c) above are junior, subject and
subordinated to the liens and security interests granted in this Security Agreement to
secure the indebtedness described in (a) and (b) above and this Security Agreement is a
Security Document (as defined in the Intercreditor Agreement) and is subject to the
agreements set forth in the Intercreditor Agreement,

     (d) all additional loans or advances made by the Beneficiaries to or for the benefit of
the Debtors pursuant to the Borrowing Base Facility Credit Agreement or any other First Lien
Document (it being contemplated that the Beneficiaries may lend additional sums to the
Debtors pursuant to the Borrowing Base Facility Credit Agreement or any other First Lien
Document from time to time, but shall not be obligated to do so, and each Debtor agrees that
any such additional loans shall be secured by this Security Agreement),

     (e) payment of and performance of any and all present or future obligations of any
Debtor according to the terms of any Lender Hedging Agreement and any other present or
future swap agreements, cap, floor, collar, forward agreement or other exchange or
protection agreement relating to interest rates, crude oil, natural gas or other
hydrocarbons or any option with respect to any such transaction now existing or hereafter
entered into between any Debtor and any Beneficiary, the counterparties to such transactions
and agreements being entitled to the benefits of the Collateral,

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     (f) any sums which may be advanced or paid by Secured Party or any Beneficiary under
the terms hereof or of the Borrowing Base Facility Credit Agreement or any other First Lien
Document on account of the failure of any Debtor to comply with the covenants of such Debtor
contained herein, or the failure of any Debtor to comply with the covenants of such Debtor
or any other Debtor contained in the Borrowing Base Facility Credit Agreement or any other
First Lien Document; and all other indebtedness of the Debtors arising pursuant to the
provisions of this Security Agreement, including penalties, indemnities, legal and other
fees, charges and expenses, and amounts advanced by and expenses incurred in order to
preserve any collateral or security interest, whether due after acceleration or otherwise;
and

     (g) all interest (including, without limitation, interest accruing at any post-default
rate and interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, whether or not a claim
for post-filing or post-petition interest is allowed in such proceeding) in respect of all
of the indebtedness described herein and all costs of collection and attorneys’ fees, all as
provided herein and in the Borrowing Base Facility Credit Agreement and Pipeline Credit
Agreement.

     Obligor means any Person obligated with respect to any of the Collateral, whether as an
account debtor, obligor on an instrument, issuer of securities, or otherwise.

     Partnerships/Limited Liability Companies shall mean: (a) those partnerships and limited
liability companies listed on Annex B-1 attached hereto and incorporated herein by
reference, as such partnerships or limited liability companies exist or may hereinafter be
restructured; (b) any partnership, joint venture, or limited liability company in which any
Debtor shall, at any time, become a limited or general partner, venturer, or member; or (c)
any partnership, joint venture, or corporation formed as a result of the restructure,
reorganization, or amendment of the Partnerships/Limited Liability Companies.

     Partnership/Limited Liability Company Agreements shall mean: (a) those agreements
listed on Annex B-1 attached hereto and incorporated herein by reference (together with any
modifications, amendments, or restatements thereof); and (b) partnership agreements, joint
venture agreements, or organizational agreements for any of the partnerships, joint
ventures, or limited liability companies described in clause (b) of the definition of
“Partnerships/Limited Liability Companies” above (together with any modifications,
amendments or restatements thereof), and “Partnership/Limited Liability Company Agreement”
means any one of the Partnership/Limited Liability Company Agreements.

     Partnership/Limited Liability Company Interests shall mean all of each Debtor’s Rights,
title and interest now or hereafter accruing under the Partnership/Limited Liability Company
Agreements with respect to all distributions, allocations, proceeds, fees, preferences,
payments, or other benefits, which each Debtor now is or may hereafter become entitled to
receive with respect to such interests in the Partnerships/Limited Liability Companies and
with respect to the repayment of all loans now or hereafter made by each Debtor to the
Partnerships/Limited Liability Companies.

     Patents has the meaning set forth in Paragraph 4 hereof.

     PESC has the meaning set forth in the introductory paragraph hereto.

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     Pipeline Credit Agreement has the meaning set forth in Recital E hereto.

     Pipeline Facility Borrowers and Pipeline Facility Borrower have the meanings set forth
in Recital E hereto.

     Pipeline Facility Lenders and Pipeline Facility Lender have the meanings set forth in
Recital E hereto.

     Pledged Securities means, collectively, the Pledged Shares and any other Collateral
constituting securities.

     Pledged Shares has the meaning set forth in Paragraph 4 hereof.

     Prior Second Lien Credit Agreement has the meaning set forth in Recital B hereto.

     Prior First Lien Credit Agreement has the meaning set forth in Recital A hereto.

     QELP has the meaning set forth in Recital A hereto.

     Quest Cherokee has the meaning set forth in Recital A hereto.

     Rights means rights, remedies, powers, privileges and benefits.

     Second Lien Agent has the meaning set forth in the Intercreditor Agreement.

     Second Lien Document has the meaning set forth in the Intercreditor Agreement.

     Second Lien Notes has the meaning set forth in the definition of “Obligations”.

     Second Lien Obligations has the meaning set forth in the Intercreditor Agreement.

     Second Lien Secured Parties has the meaning set forth in the Intercreditor
Agreement.

     Secured Party has the meaning set forth in the introductory paragraph hereto.

     Security Agreement has the meaning set forth in the introductory paragraph hereto.

     Security Interest means the security interest granted and the pledge and assignment
made under Paragraph 3 hereof.

     STP has the meaning set forth in the introductory paragraph hereto.

     Trademarks has the meaning set forth in Paragraph 4 hereof.

     UCC means the Uniform Commercial Code, including each such provision as it may
subsequently be renumbered, as enacted in the State of New York or other applicable
jurisdiction, as amended at the time in question.

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     3. SECURITY INTEREST. In order to secure the full and complete payment and performance of the
Obligations when due, each Debtor hereby grants to Secured Party a Security Interest in all of such
Debtor’s Rights, titles, and interests in and to the Collateral of such Debtor and pledges,
collaterally transfers, and assigns the Collateral to Secured Party, all upon and subject to the
terms and conditions of this Security Agreement. Obligations referred to herein includes all
renewals, extensions and modifications thereof, and all substitutions thereof, in whole or in part.
Such Security Interest is granted and pledge and assignment are made as security only and shall
not subject Secured Party to, or transfer or in any way affect or modify, any obligation of such
Debtor with respect to any of the Collateral or any transaction involving or giving rise thereto.

     4. COLLATERAL. As used herein, the term “Collateral” means the following items and types of
property, wherever located, now owned or in the future existing or acquired by a Debtor, and all
proceeds and products thereof, and any substitutes or replacements therefor:

     (a) all personal property and fixture property of every kind and nature including,
without limitation, all accounts, chattel paper (whether tangible or electronic), goods
(including inventory, equipment, and any accessions thereto), software, instruments,
investment property, documents, deposit accounts, money, commercial tort claims, letters of
credit and letter-of-credit rights, supporting obligations, tax refunds, and general
intangibles (including payment intangibles);

     (b) all Rights, titles, and interests of such Debtor in and to all outstanding stock,
equity, or other investment securities owned by such Debtor, including, without limitation,
all capital stock of each Subsidiary of such Debtor set forth on Annex B-1 (“Pledged
Shares”); provided, however, PESC’s limited liability company membership interest in KPC
Pipeline LLC is not pledged pursuant to this Security Agreement but will be pledged pursuant
to a separate pledge agreement whereby the Pipeline Facility Lenders will have a first
priority Lien on such limited liability company membership interests and the Borrowing Base
Facility Lenders will have a second priority Lien;

     (c) all Rights, titles, and interests of such Debtor in and to all promissory notes and
other instruments payable to such Debtor, including, without limitation, all inter-company
notes from Subsidiaries, to the extent not merely evidenced by book entries, and those set
forth on Annex B-1 (“Collateral Notes”) and all Rights, titles, interests, and Liens such
Debtor may have, be, or become entitled to under all present and future loan agreements,
security agreements, pledge agreements, deeds of trust, mortgages, guarantees, or other
documents assuring or securing payment of or otherwise evidencing the Collateral Notes,
including, without limitation, those set forth on Annex B-1 (“Collateral Note Security”);

     (d) the Partnership/Limited Liability Company Interests and all Rights of such Debtor
with respect thereto, including, without limitation, all Partnership/Limited Liability
Company Interests set forth on Annex B-1 and all of such Debtor’s distribution rights,
income rights, liquidation interest, accounts, contract rights, general intangibles, notes,
instruments, drafts, and documents relating to the Partnership/Limited Liability Company
Interests;

     (e) (i) all copyrights (whether statutory or common law, registered or unregistered),
works protectable by copyright, copyright registrations, copyright licenses, and copyright
applications of such Debtor, including, without limitation, all of such Debtor’s Right,
title, and

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interest in and to all copyrights registered in the United States Copyright Office or
anywhere else in the world and also including, without limitation, the copyrights set forth
on Annex B-2; (ii) all renewals, extensions, and modifications thereof, (iii) all income,
licenses, royalties, damages, profits, and payments relating to or payable under any of the
foregoing; (iv) the Right to sue for past, present, or future infringements of any of the
foregoing; and (v) all other rights and benefits relating to any of the foregoing throughout
the world; in each case, whether now owned or hereafter acquired by such Debtor
(“Copyrights”);

     (f) (i) all patents, patent applications, patent licenses, and patentable inventions of
such Debtor, including, without limitation, registrations, recordings, and applications
thereof in the United States Patent and Trademark Office or in any similar office or agency
of the United States of America, any state thereof or any other country or any political
subdivision thereof including, without limitation, those set forth on Annex B-2, and all of
the inventions and improvements described and claimed therein; (ii) all continuations,
divisions, renewals, extensions, modifications, substitutions, reexaminations,
continuations-in-part, or reissues of any of the foregoing; (iii) all income, royalties,
profits, damages, awards, and payments relating to or payable under any of the foregoing;
(iv) the right to sue for past, present, and future infringements of any of the foregoing;
and (v) all other rights and benefits relating to any of the foregoing throughout the world;
in each case, whether now owned or hereafter acquired by such Debtor (“Patents”);

     (g) (i) all trademarks, trademark licenses, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks, certification
marks, collective marks, logos, other business identifiers, all registrations, recordings,
and applications thereof including, without limitation, registrations, recordings, and
applications in the United States Patent and Trademark Office or in any similar office or
agency of the United States, any state thereof or any other country or any political
subdivision thereof including, without limitation, those set forth on Annex B-2; (ii) all
reissues, extensions, and renewals thereof; (iii) all income, royalties, damages, and
payments now or hereafter relating to or payable under any of the foregoing including,
without limitation, damages or payments for past or future infringements of any of the
foregoing; (iv) the right to sue for past, present, and future infringements of any of the
foregoing; (v) all rights corresponding to any of the foregoing throughout the world; and
(vi) all goodwill associated with and symbolized by any of the foregoing, in each case,
whether now owned or hereafter acquired by such Debtor (“Trademarks”, and collectively with
the Copyrights and the Patents, the “Intellectual Property”);

     (h) intentionally deleted;

     (i) all present and future automobiles, trucks, truck tractors, trailers,
semi-trailers, or other motor vehicles or rolling stock, now owned or hereafter acquired by
such Debtor (collectively, the “Vehicles”);

     (j) any and all material deposit accounts, bank accounts, investment accounts, or
securities accounts, now owned or hereafter acquired or opened by such Debtor including,
without limitation, any such accounts set forth on Annex B-1, and any account which is a
replacement or substitute for any of such accounts, together with all monies, instruments,
certificates, checks, drafts, wire transfer receipts, and other property deposited therein
and all balances therein (the “Deposit Accounts”);

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     (k) all permits, licenses and other authorizations (“Authorizations”) issued by any
governmental authority, to the extent and only to the extent that the grant of a security
interest in any such Authorization does not result in the forfeiture of, or default under,
any such Authorization;

     (l) all present and future distributions, income, increases, profits, combinations,
reclassifications, improvements, and products of, accessions, attachments, and other
additions to, tools, parts, and equipment used in connection with, and substitutes and
replacements for, all or part of the Collateral described above;

     (m) all present and future accounts, contract rights, general intangibles, chattel
paper, documents, instruments, cash and noncash proceeds, and other Rights arising from or
by virtue of, or from the voluntary or involuntary sale or other disposition of, or
collections with respect to, or insurance proceeds payable with respect to, or proceeds
payable by virtue of warranty or other claims against the manufacturer of, or claims against
any other Person with respect to, all or any part of the Collateral heretofore described in
this clause or otherwise; and

     (n) all present and future security for the payment to such Debtor or any Subsidiary of
any of the Collateral described above and non-inventory goods which will give rise to any
such Collateral or are evidenced, identified, or represented therein or thereby.

     Provided, however, Collateral does not include the Excluded Assets, the limited liability
company membership interest in Eastern or the Three Little Pipes.

The description of the Collateral contained in this Paragraph 4 shall not be deemed to permit any
action prohibited by this Security Agreement or by the terms incorporated in this Security
Agreement.

     5. REPRESENTATIONS AND WARRANTIES. Each Debtor represents and warrants to Secured Party that:

     (a) Borrowing Base Facility Credit Agreement. Certain representations and
warranties in the Borrowing Base Facility Credit Agreement are applicable to each Debtor or
its assets or operations, and each such representation is true and correct, in all material
respects.

     (b) Binding Obligation/Perfection. This Security Agreement creates a legal,
valid, and binding Lien in and to the Collateral in favor of Secured Party and enforceable
against each Debtor, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other Laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at Law.
For Collateral in which the Security Interest may be perfected by the filing of Financing
Statements pursuant to Article 9 of the UCC, once those Financing Statements have been
properly filed in the jurisdictions described on Annex A hereto, the Security Interest in
that Collateral will be fully perfected and the Security Interest will constitute a
first-priority Lien on such Collateral, subject only to Permitted Liens and the lien
priority provisions hereof and of the Intercreditor Agreement. With respect to Collateral
consisting of investment property (other than Pledged Securities covered by Paragraph 5(j)),
Deposit Accounts, electronic chattel paper, letter-of-credit rights, and instruments, upon
the delivery of such Collateral to Secured Party or delivery of an executed Control
Agreement with respect to such Collateral, the Security Interest in that Collateral will be
fully perfected and the

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Security Interest will constitute a first-priority Lien on such Collateral, subject
only to Permitted Liens and the lien priority provisions hereof and of the Intercreditor
Agreement. None of the Collateral has been delivered nor control with respect thereto given
to any Person other than the Secured Party. Other than the Financing Statements and Control
Agreements with respect to this Security Agreement, there are no other financing statements
or control agreements covering any Collateral, other than those evidencing Permitted Liens.
The creation of the Security Interest does not require the consent of any Person that has
not been obtained.

     (c) Debtor Information. Each Debtor’s exact legal name, mailing address,
jurisdiction of organization, type of entity, and state issued organizational identification
number are as set forth on Annex A hereto.

     (d) Location/Fixtures. (i) Each Debtor’s place of business and chief executive
office is where such Debtor is entitled to receive notices hereunder; the present location
of such Debtor’s books and records concerning any of the Collateral that is accounts is as
set forth on Annex A hereto, and the location of all other Collateral, including, without
limitation, such Debtor’s inventory and equipment (but excluding fixtures) is as set forth
on Annex A hereto; and, except as noted on Annex A hereto, all such books, records, and
Collateral are in such Debtor’s possession, and (ii) substantially all the Collateral that
is or may be fixtures is located on or affixed to the real property described in deeds of
trust or mortgages executed by such Debtor in favor of Secured Party pursuant to the
Borrowing Base Facility Credit Agreement or on Annex A hereto.

     (e) Governmental Authority. Other than the filing of Financing Statements
contemplated hereby, appropriate filings to perfect the Security Interest in the
Intellectual Property, the notation of a Lien in favor of the Secured Party on any motor
vehicle certificate of title and the filing of a fixture filing in the counties where any
fixtures or other real estate interests are located, no Authorization, approval, or other
action by, and no notice to or filing with, any Governmental Authority is required either
(i) for the pledge by such Debtor of the Collateral pursuant to this Security Agreement or
for the execution, delivery, or performance of this Security Agreement by such Debtor, or
(ii) for the exercise by Secured Party of the voting or other Rights provided for in this
Security Agreement or the remedies in respect of the Collateral pursuant to this Security
Agreement (except as may be required in connection with the disposition of the Pledged
Securities by Laws affecting the offering and sale of securities generally).

     (f) Maintenance of Collateral. All tangible Collateral which is useful in and
necessary to each Debtor’s business is in good repair and condition, ordinary wear and tear
excepted.

     (g) Liens. Each Debtor owns, leases or has valid rights to use all presently
existing Collateral, and will acquire or lease all hereafter-acquired Collateral, free and
clear of all Liens, except Permitted Liens and the Liens created hereunder and under the
Intercreditor Agreement.

     (h) Collateral. Annex B-1 accurately lists all Collateral Notes, Collateral
Note Security, Pledged Shares, Partnership/Limited Liability Company Interests, commercial
tort claims, and Deposit Accounts.

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     (i) Instruments, Chattel Paper, Collateral Notes, and Collateral Note Security.
All material instruments and chattel paper including, without limitation, the Collateral
Notes, have been delivered to Secured Party, together with corresponding endorsements duly
executed by such Debtor in favor of Secured Party, and such endorsements have been duly and
validly executed and are binding and enforceable against such Debtor in accordance with
their terms. Each material Collateral Note and the documents evidencing the Collateral Note
Security are in full force and effect; there have been no renewals or extensions of, or
amendments, modifications, or supplements which would materially adversely affect such
Collateral Notes or Collateral Note Security; and no “default” or “event of default” has
occurred and is continuing under any such Collateral Note or documents evidencing the
Collateral Note Security. Each Debtor has good title to the Collateral Notes and Collateral
Note Security, and such Collateral Notes and Collateral Note Security are free from any
claim for credit, deduction, or allowance of an Obligor and free from any defense,
condition, dispute, setoff, or counterclaim which could materially adversely affect the
value thereof, and there is no extension or indulgence with respect thereto.

     (j) Pledged Securities, Pledged Shares. All Collateral that is Pledged Shares
is duly authorized, validly issued, fully paid, and non-assessable (except to the extent
required by applicable Law), and the transfer thereof is not subject to any restrictions,
other than restrictions imposed hereunder and by applicable securities and corporate Laws or
Permitted Liens. The Pledged Securities securing the Obligations include 100% of the issued
and outstanding common stock or other equity interests of each Subsidiary of each Debtor
owned by such Debtor Each Debtor has good title to the Pledged Securities owned by such
Debtor, free and clear of all Liens and encumbrances thereon (except for the Security
Interest created hereby or under the Intercreditor Agreement or Permitted Liens), and has
delivered to Secured Party (i) all stock certificates, or other instruments or documents
representing or evidencing the Pledged Securities, together with corresponding assignment or
transfer powers duly executed in blank by such Debtor, and such powers have been duly and
validly executed and are binding and enforceable against such Debtor in accordance with
their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other Laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at Law or (ii) to the
extent such Pledged Securities are uncertificated, an executed Acknowledgment of Pledge in
the form of Annex D with respect to such Pledged Securities. The pledge of the Pledged
Securities in accordance with the terms hereof creates a valid and perfected first priority
security interest in the Pledged Securities securing payment of the Obligations, subject to
Permitted Liens and the lien priority provisions hereof and of the Intercreditor Agreement.

     (k) Partnership/Limited Liability Company Interests. Each Partnership/Limited
Liability Company issuing a Partnership/Limited Liability Company Interest, is duly
organized, currently existing, and in good standing in the jurisdiction of its formation;
except in connection with the Restructure Transactions, there have been no material
amendments, modifications, or supplements to any agreement or certificate creating any
Partnership/Limited Liability Company or any material contract relating to the
Partnerships/Limited Liability Companies, of which Secured Party has not been advised in
writing; no event of default, default, breach, or potential default has occurred and is
continuing under any Partnership/Limited Liability Company Agreement, except for such
defaults or breaches that would result from the Restructure Transactions or would not
reasonably be expected to result in a Material Adverse Effect; and no approval or consent of
the partners of any Partnership/Limited Liability Company is required as a

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condition to the validity and enforceability of the Security Interest created hereby or
the consummation of the transactions contemplated hereby which has not been duly obtained by
the relevant Debtor. Each Debtor has good title to its Partnership/Limited Liability Company
Interests free and clear of all Liens and encumbrances (except for the Security Interest
granted hereby or under the Intercreditor Agreement or Permitted Liens). The
Partnership/Limited Liability Company Interests are validly issued, fully paid, and
nonassessable (except to the extent required by applicable Law) and are not subject to
statutory, contractual, or other restrictions governing their transfer, ownership, or
control, except as set forth in the applicable Partnership/Limited Liability Company
Agreements or applicable securities Laws or Permitted Liens. All capital contributions
required to be made by the terms of the Partnership/Limited Liability Company Agreements for
each Partnership/Limited Liability Company as of the date hereof have been made. No
Partnership/Limited Liability Company interests owned by a Debtor are evidenced by
certificates.

     (1) Accounts. All Collateral that is accounts, contract rights, chattel paper,
instruments, payment intangibles, or general intangibles is free from any claim for credit,
deduction, or allowance of an Obligor, from any defense, condition, dispute, setoff, or
counterclaim (collectively “Deductions”), and there is no extension or indulgence with
respect thereto, except to the extent such Deductions, extensions and indulgences could not
reasonably be expected to have a Material Adverse Effect.

     (m) Deposit Accounts. With respect to the Deposit Accounts, (i) each Debtor
maintains its Deposit Account with the banks listed on Annex B-1 hereto, (ii) upon request
by the Secured Party, each Debtor shall use its reasonable efforts to, within thirty (30)
days of such request, cause each such bank to acknowledge to Secured Party that each such
Deposit Account is subject to the Security Interest and Liens herein created, that the
pledge of such Deposit Account has been recorded in the books and records of such bank, and
that Secured Party shall have “control” (as defined in the UCC) over such Deposit Account,
and (iii) each Debtor has the legal Right to pledge and assign to Secured Party the funds
deposited and to be deposited in each such Deposit Account.

     (n) Intellectual Property.

     (i) All of the Intellectual Property is subsisting, valid, and enforceable
(except where any failure to be subsisting, valid and enforceable would not
reasonably be expected to have a Material Adverse Effect). The information
contained on Annex B-2 hereto is true, correct and complete. All issued Patents,
Patent applications, registered Trademarks, Trademark applications, registered
Copyrights, and Copyright applications of each Debtor are identified on Annex B-2
hereto.

     (ii) Except for off-the-shelf software and other Intellectual Property of which
a Debtor is licensee (as to which this representation is inapplicable), each Debtor
is the sole and exclusive owner of, the entire and unencumbered Right, title, and
interest in and to its owned Intellectual Property free and clear of any Liens
including, without limitation, any pledges, assignments, licenses, user agreements,
and covenants by such Debtor not to sue third Persons, other than Permitted Liens or
licenses permitted by Paragraph 8(c).

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     (iii) As of the date hereof, to each Debtor’s knowledge, no third party is
infringing any of such Debtor’s Rights under its Intellectual Property.

     (iv) Each Debtor has performed and will continue to perform all acts and has
paid and will continue to pay all required fees and Taxes to maintain each material
item of the Intellectual Property in full force and effect throughout the world, as
applicable.

     (v) Each of the Patents and Trademarks identified on Annex B-2 hereto, to the
extent required in the relevant Debtor’s reasonable business judgment, has been
properly registered with the United States Patent and Trademark Office and in
corresponding offices throughout the world (where appropriate) and each of the
Copyrights identified on Annex B-2 hereto to the extent required in the relevant
Debtor’s reasonable business judgment, has been properly registered with the United
States Copyright Office and in corresponding offices throughout the world (where
appropriate).

     (vi) As of the date hereof, to each Debtor’s knowledge, no claims with respect
to its Intellectual Property have been asserted and are pending (i) to the effect
that the sale, licensing, pledge, or use of any of the products of such Debtor’s
business infringes any other party’s valid copyright, trademark, service mark, trade
secret, or other intellectual property Right, (ii) against the use by such Debtor of
any Intellectual Property used in such Debtor’s business as currently conducted, or
(iii) challenging the ownership or use by such Debtor of any of the Intellectual
Property that such Debtor purports to own or use.

The foregoing representations and warranties will be true and correct in all material respects with
respect to any additional Collateral or additional specific descriptions of certain Collateral
delivered to Secured Party in the future by a Debtor. The failure of any of these representations
or warranties or any description of Collateral therein to be accurate or complete shall not impair
the Security Interest in any such Collateral.

     6. COVENANTS. So long as any Borrowing Base Facility Lenders are committed to make Credit
Extensions under the Borrowing Base Facility Credit Agreement, and until the Obligations are paid
and performed in full (except as provided in Sections 10.01(d) and 10.01(e) of the Borrowing Base
Facility Credit Agreement), each Debtor covenants and agrees with Secured Party that such Debtor
will:

     (a) Borrowing Base Facility Credit Agreement. (i) Comply with, perform, and be
bound by all applicable covenants and agreements in the Borrowing Base Facility Credit
Agreement, each of which is hereby ratified and confirmed.

     (b) Books and Records Concerning Collateral; Inspection Rights. Each Debtor
shall comply with the provisions of Section 6.09 and 6.10 of the Borrowing Base Facility
Credit Agreement regarding records concerning and inspection rights relating to the
Collateral. In addition, from time to time at the request of Secured Party deliver to
Secured Party such information regarding such Debtor that is in the possession of Debtor as
Secured Party may reasonably request.

     (c) Annexes. Together with the delivery of compliance certificates pursuant to
Section 6.02(a) of the Borrowing Base Facility Credit Agreement, update all annexes hereto
if

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any information therein shall become inaccurate or incomplete and such updated Annexes
shall replace the existing Annexes for all purposes of this Agreement. Notwithstanding any
other provision herein, a Debtor’s failure to describe any Collateral required to be listed
on any annex hereto shall not impair Secured Party’s Security Interest in the Collateral.

     (d) Perform Obligations. Perform all of such Debtor’s duties under and in
connection with each transaction to which the Collateral, or any material part thereof,
relates, in the ordinary course of business except when in such Debtor’s business judgment
non-performance is justified. Notwithstanding anything to the contrary contained herein,
(i) such Debtor shall remain liable under the contracts, agreements, documents, and
instruments included in the Collateral to the extent set forth therein to perform all of its
duties and obligations thereunder to the same extent as if this Security Agreement had not
been executed, (ii) the exercise by Secured Party of any of its Rights or remedies hereunder
shall not release such Debtor from any of its duties or obligations under the contracts,
agreements, documents, and instruments included in the Collateral, and (iii) Secured Party
shall not have any indebtedness, liability, or obligation under any of the contracts,
agreements, documents, and instruments included in the Collateral by reason of this Security
Agreement, and Secured Party shall not be obligated to perform any of the obligations or
duties of such Debtor thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder.

     (e) Intentionally Deleted.

     (f) Collateral in Trust. Hold in trust (and not commingle with other assets of
such Debtor) for Secured Party all Collateral that is chattel paper, instruments, Collateral
Notes, Pledged Securities, or Documents (as defined in Article 9 of the UCC) at any time
received by such Debtor, and promptly deliver same to Secured Party, unless Secured Party at
its option (which may be evidenced only by a writing signed by Secured Party stating that
Secured Party elects to permit such Debtor to so retain) permits such Debtor to retain the
same, but any chattel paper, instruments, Collateral Notes, Pledged Securities, or Documents
(as defined in Article 9 of the UCC) and (to the extent required under paragraph (t) hereof)
so retained shall be marked to state that they are assigned to Secured Party; each such
instrument shall be endorsed to the order of Secured Party (but the failure of same to be so
marked or endorsed shall not impair the Security Interest thereon).

     (g) Control. Execute all documents and take any action required by Secured
Party in order for Secured Party to obtain “control” (as defined in the UCC) with respect to
Collateral consisting of Deposit Accounts, investment property, uncertificated Pledged
Securities, and letter-of-credit rights. If a Debtor at any time holds or acquires an
interest in any electronic chattel paper or any “transferable record,” as that term is
defined in the federal Electronic Signatures in Global and National Commerce Act, or in the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, promptly
notify Secured Party thereof and, at the request of Secured Party, take such action as
Secured Party may reasonably request to vest in Secured Party control under the UCC of such
electronic chattel paper or control under the federal Electronic Signatures in Global and
National Commerce Act or, as the case may be, the Uniform Electronic Transactions Act, as so
in effect in such jurisdiction, of such transferable record.

     (h) Further Assurances. At such Debtor’s expense and Secured Party’s request,
before or after a Default or Event of Default: (i) file or cause to be filed such
applications and take such

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other actions as Secured Party may reasonably request to obtain the consent or approval
of any Governmental Authority to Secured Party’s Rights hereunder including, without
limitation, the Right to sell all the Collateral upon an Event of Default without additional
consent or approval from such Governmental Authority (and, because such Debtor agrees that
Secured Party’s remedies at Law for failure of such Debtor to comply with this provision
would be inadequate and that such failure would not be adequately compensable in damages,
such Debtor agrees that its covenants in this provision may be specifically enforced); (ii)
from time to time promptly execute and deliver to Secured Party all such other assignments,
certificates, supplemental documents, and financing statements, and do all other acts or
things as Secured Party may reasonably request in order to more fully create, evidence,
perfect, continue, and preserve the priority of the Security Interest and to carry out the
provisions of this Security Agreement; and (iii) pay all filing fees in connection with any
financing, continuation, or termination statement or other instrument with respect to the
Security Interests.

     (i) Encumbrances. Not create, permit, or suffer to exist, and shall defend the
Collateral against, any Lien or other encumbrance on the Collateral, other than Permitted
Liens, and shall defend such Debtor’s Rights in the Collateral and Secured Party’s Security
Interest in the Collateral against the claims and demands of all Persons except those
holding or claiming Permitted Liens. No Debtor shall do anything to impair the Rights of
Secured Party in the Collateral.

     (j) Estoppel and Other Agreements and Matters. Upon the reasonable request of
Secured Party, either (i) use commercially reasonable efforts to cause the landlord or
lessor for each location where any material inventory or equipment is maintained to execute
and deliver to Secured Party an estoppel and subordination agreement in such form as may be
reasonably acceptable to Secured Party and its counsel, or (ii) deliver to Secured Party a
legal opinion or other evidence (in each case that is reasonably satisfactory to Secured
Party and it counsel) that neither the applicable lease nor the Laws of the jurisdiction in
which that location is situated provide for a contractual, common Law, or statutory
landlord’s Lien that is senior to or pari passu with the Security Interest.

     (k) Fixtures. For any Collateral that is a fixture or an accession which has
been attached to real estate or other goods prior to the perfection of the Security
Interest, use commercially reasonable efforts to furnish to Secured Party, upon reasonable
demand, a disclaimer of interest in each such fixture or accession and a consent in writing
to the Security Interest of Secured Party therein, signed by all Persons having any interest
in such fixture or accession by virtue of any interest in the real estate or other goods to
which such fixture or accession has been attached.

     (l) Certificates of Title. Upon the request of Secured Party, if a certificate
of title is issued or outstanding with respect to any Vehicle with a fair market value of at
least $50,000, cause the Security Interest to be properly noted thereon.

     (m) Warehouse Receipts Non-Negotiable. If any warehouse receipt or receipt in
the nature of a warehouse receipt is issued in respect of any of the Collateral, agree that
such warehouse receipt or receipt in the nature thereof shall not be “negotiable” (as such
term is used in Section 7-104 of the UCC) unless such warehouse receipt or receipt in the
nature thereof is delivered to Secured Party.

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     (n) Impairment of Collateral. Not use any material portion of the Collateral,
or permit the same to be used, for any unlawful purpose, in any manner that is reasonably
likely to materially adversely impair the value or usefulness of the Collateral, or in any
manner inconsistent with the provisions or requirements of any policy of insurance thereon
nor affix or install any accessories, equipment, or device on the Collateral or on any
component thereof if such addition will materially impair the original intended function or
use of the Collateral or such component.

     (o) Collateral Notes and Collateral Note Security. Without the prior written
consent of Secured Party not (i) materially modify or substitute, or permit material
modification or substitution of, any Collateral Note or any document evidencing the
Collateral Note Security, if the effect thereof would be to materially adversely affect the
value of the Collateral Notes and Collateral Note Security taken as a whole, or (ii) release
any material portion of any Collateral Note Security unless paid in full or otherwise
specifically required by the terms thereof, except in the exercise of such Debtor’s
reasonable business judgment.

     (p) Securities. Except as permitted by the Borrowing Base Facility Credit
Agreement, not sell, exchange, or otherwise dispose of, any of the Pledged Securities; and
take any action requested by Secured Party to allow Secured Party to fully enforce its
Security Interest in the Pledged Securities including, without limitation, the filing of any
claims with any court, liquidator, trustee, custodian, receiver, or other like person or
party.

     (q) Depository Bank. With respect to any Deposit Accounts, (i) maintain the
Deposit Accounts at the banks (a “Depository Bank”) described on Annex B-1 or such
additional depository banks as described in the notices given pursuant to clause (iv) of
this Section 6(q) as have complied with item (iv) hereof, (ii) upon request of the Secured
Party, deliver to each depository bank a letter in the form of Annex C hereto with respect
to Secured Party’s Rights in such Deposit Account (or such other reasonable form as may be
provided by the Depository Bank) and use commercially reasonable efforts to obtain the
execution of such letter by each Depository Bank that the pledge of such Deposit Account has
been recorded in the books and records of such bank and that Secured Party shall have
dominion and control over such Deposit Account; (iii) upon request of the Secured Party,
deliver to Secured Party all certificates or instruments, if any, now or hereafter
representing or evidencing the Deposit Accounts, accompanied by duly executed instruments of
transfer or assignment in blank, all in form and substance reasonably satisfactory to
Secured Party; and (iv) notify Secured Party upon establishing any additional Deposit
Accounts and, at the request of Secured Party, use commercially reasonable efforts to obtain
from such depository bank an executed letter substantially in the form of Annex C (or such
other reasonable form as may be provided by the Depository Bank) and deliver the same to
Secured Party. Secured Party agrees not to exercise control over such Deposit Account
unless an Event of Default shall have occurred and be continuing.

     (t) Marking of Chattel Paper. At the request of Secured Party, not create any
chattel paper without placing a legend on the chattel paper acceptable to Secured Party
indicating that Secured Party has a security interest in the chattel paper.

     (u) Modification of Accounts. In accordance with prudent business practices,
endeavor to collect or cause to be collected from each account debtor under its accounts, as
and

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when due, any and all amounts owing under such accounts. Except in the ordinary course
of business consistent with prudent business practices and industry standards, without the
prior written consent of Secured Party, no Debtor shall (i) grant any extension of time for
any payment with respect to any of the accounts, (ii) compromise, compound, or settle any of
the accounts for less than the full amount thereof, (iii) release, in whole or in part, any
Person liable for payment of any of the accounts, (iv) allow any credit or discount for
payment with respect to any account other than trade discounts granted in the ordinary
course of business, (v) release any Lien or guaranty securing any account, or (vi) modify or
substitute, or permit the modification or substitution of, any contract to which any of the
Collateral which is accounts relates.

     (v) Intellectual Property.

     (i) Prosecute diligently all applications in respect of Intellectual Property,
now or hereafter pending;

     (ii) Except to the extent not required in such Debtor’s reasonable business
judgment, make federal applications on all of its unpatented but patentable
inventions and all of its registrable but unregistered Copyrights and Trademarks;

     (iii) Preserve and maintain all of its material Rights in the Intellectual
Property and protect the Intellectual Property from infringement, unfair
competition, cancellation, or dilution by all appropriate action necessary in such
Debtor’s reasonable business judgment including, without limitation, the
commencement and prosecution of legal proceedings to recover damages for
infringement and to defend and preserve its rights in the Intellectual Property;

     (iv) Not abandon any of the Intellectual Property necessary to the conduct of
its business in the exercise of such Debtor’s reasonable business judgment;

     (v) Maintain the quality of any and all products and services with respect to
which the Intellectual Property is used except to the extent not required in
Debtor’s reasonable business judgment;

     (vi) Not enter into any agreement including, but not limited to any licensing
agreement, that is inconsistent with such Debtor’s obligations under this Security
Agreement or any of the other First Lien Documents;

     (vii) Give Secured Party prompt written notice if such Debtor shall obtain
Rights to or become entitled to the benefit of any Intellectual Property not
identified on Annex B-2 hereto; and

     (viii) If an Event of Default exists, use its reasonable efforts to obtain any
consents, waivers, or agreements necessary to enable Secured Party to exercise its
rights and remedies with respect to the Intellectual Property.

     7. DEFAULT; REMEDIES. If an Event of Default exists, Secured Party may, at its election (but
subject to the terms and conditions of the Intercreditor Agreement and Borrowing Base Facility
Credit Agreement), exercise any and all Rights available to a secured party under the UCC and

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other applicable Law, in addition to any and all other Rights afforded by the First Lien
Documents, at law, in equity, or otherwise including, without limitation, (a) requiring a Debtor to
assemble all or part of the Collateral and make it available to Secured Party at a place to be
designated by Secured Party which is reasonably convenient to such Debtor and Secured Party, (b) to
the extent permitted by each Debtor’s insurance carrier, surrendering any policies of insurance on
all or part of the Collateral and receiving and applying the unearned premiums as a credit on the
Obligations, (c) applying by appropriate judicial proceedings for appointment of a receiver for all
or part of the Collateral (and such Debtor hereby consents to any such appointment), and (d)
applying to the Obligations any cash held by Secured Party under this Security Agreement,
including, without limitation, any cash in the Cash Collateral Account (defined in Section 8(h)).

     (a) Notice. Reasonable notification of the time and place of any public sale of
the Collateral of any Debtor, or reasonable notification of the time after which any private
sale or other intended disposition of the Collateral is to be made, shall be sent to such
Debtor and to any other Person entitled to notice under the UCC; provided that, if any of
the Collateral threatens to decline speedily in value or is of the type customarily sold on
a recognized market, Secured Party may sell or otherwise dispose of the Collateral without
notification, advertisement, or other notice of any kind. It is agreed that notice sent or
given not less than ten (10) Business Days prior to the taking of the action to which the
notice relates is reasonable notification and notice for the purposes of this subparagraph.

     (b) Condition of Collateral; Warranties. Secured Party has no obligation to
clean-up or otherwise prepare the Collateral for sale. Secured Party may sell the Collateral
without giving any warranties as to the Collateral. Secured Party may specifically disclaim
any warranties of title or the like. This procedure will not be considered to affect
adversely the commercial reasonableness of any sale of the Collateral.

     (c) Compliance with Other Laws. Secured Party may comply with any applicable
state or federal law requirements in connection with a disposition of the Collateral and
compliance will not be considered to adversely affect the commercial reasonableness of any
sale of the Collateral.

     (d) Sales of Pledged Securities.

     (i) Each Debtor agrees that, because of the Securities Act of 1933, as amended,
or the rules and regulations promulgated thereunder (collectively, the “Securities
Act”), or any other Laws or regulations, and for other reasons, there may be legal
or practical restrictions or limitations affecting Secured Party in any attempts to
dispose of certain portions of the Pledged Securities and for the enforcement of its
Rights. For these reasons, Secured Party is hereby authorized by each Debtor, but
not obligated, upon the occurrence and during the continuation of an Event of
Default, to sell all or any part of the Pledged Securities at private sale, subject
to an investment letter or in any other manner which will not require the Pledged
Securities, or any part thereof, to be registered in accordance with the Securities
Act or any other Laws or regulations, at a reasonable price at such private sale or
other distribution in the manner mentioned above. Each Debtor understands that
Secured Party may in its discretion approach a limited number of potential
purchasers and that a sale under such circumstances may yield a lower price for the
Pledged Securities, or any part thereof, than would otherwise be

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obtainable if such Collateral were either offered to a larger number of
potential purchasers, registered under the Securities Act, or sold in the open
market. Each Debtor agrees that any such private sale made under this Paragraph 7(d)
shall be deemed to have been made in a commercially reasonable manner, and that
Secured Party has no obligation to delay the sale of any Pledged Securities to
permit the issuer thereof to register it for public sale under any applicable
federal or state securities Laws.

     (ii) Secured Party is authorized, in connection with any such sale, (A) to
restrict the prospective bidders on or purchasers of any of the Pledged Securities
to a limited number of sophisticated investors who will represent and agree that
they are purchasing for their own account for investment and not with a view to the
distribution or sale of any of such Pledged Securities, and (B) to impose such other
limitations or conditions in connection with any such sale as Secured Party
reasonably deems necessary in order to comply with applicable Law. Each Debtor
covenants and agrees that it will execute and deliver such documents and take such
other action as Secured Party reasonably deems necessary in order that any such sale
may be made in compliance with applicable Law. Upon any such sale, Secured Party
shall have the Right to deliver, assign, and transfer to the purchaser thereof the
Pledged Securities so sold in accordance with any applicable federal and state
securities laws. Each purchaser at any such sale shall hold the Pledged Securities
so sold absolutely free from any claim or Right of any Debtor of whatsoever kind,
including any equity or Right of redemption of such Debtor. Each Debtor, to the
extent permitted by applicable Law, hereby specifically waives all Rights of
redemption, stay, or appraisal which it has or may have under any Law now existing
or hereafter enacted.

     (iii) Each Debtor agrees that ten (10) Business Days’ written notice from
Secured Party to such Debtor of Secured Party’s intention to make any such public or
private sale or sale at a broker’s board or on a securities exchange shall
constitute reasonable notice under the UCC. Such notice shall (A) in case of a
public sale, state the time and place fixed for such sale, (B) in case of sale at a
broker’s board or on a securities exchange, state the board or exchange at which
such a sale is to be made and the day on which the Pledged Securities, or the
portion thereof so being sold, will first be offered to sale at such board or
exchange, and (C) in the case of a private sale, state the day after which such sale
may be consummated. Any such public sale shall be held at such time or times within
ordinary business hours and at such place or places as Secured Party may fix in the
notice of such sale. At any such sale, the Pledged Securities may be sold in one lot
as an entirety or in separate parcels, as Secured Party may reasonably determine.
Secured Party shall not be obligated to make any such sale pursuant to any such
notice. Secured Party may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at
the time and place fixed for the sale, and such sale may be made at any time or
place to which the same may be so adjourned.

     (iv) In case of any sale of all or any part of the Pledged Securities on credit
or for future delivery, the Pledged Securities so sold may be retained by Secured
Party until the selling price is paid by the purchaser thereof, but Secured Party
shall not incur any liability in case of the failure of such purchaser to take up
and pay for the Pledged Securities so sold and in case of any such failure, such
Pledged Securities may again be

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sold upon like notice. Secured Party, instead of exercising the power of sale
herein conferred upon it, may proceed by a suit or suits at law or in equity to
foreclose the Security Interests and sell the Pledged Securities, or any portion
thereof, under a judgment or decree of a court or courts of competent jurisdiction.

     (v) Without limiting the foregoing, or imposing upon Secured Party any
obligations or duties not required by applicable Law, each Debtor acknowledges and
agrees that, in foreclosing upon any of the Pledged Securities, or exercising any
other Rights or remedies provided Secured Party hereunder or under applicable Law,
Secured Party may, but shall not be required to, (A) qualify or restrict prospective
purchasers of the Pledged Securities by requiring evidence of sophistication or
creditworthiness, and requiring the execution and delivery of confidentiality
agreements or other documents and agreements as a condition to such prospective
purchasers’ receipt of information regarding the Pledged Securities or participation
in any public or private foreclosure sale process, (B) provide to prospective
purchasers business and financial information regarding such Debtor and its
Subsidiaries available in the files of Secured Party at the time of commencing the
foreclosure process, without the requirement that Secured Party obtain, or seek to
obtain, any updated business or financial information or verify, or certify to
prospective purchasers, the accuracy of any such business or financial information,
or (C) offer for sale and sell the Pledged Securities with or without first
employing an appraiser, investment banker, or broker with respect to the evaluation
of the Pledged Securities, the solicitation of purchasers for Pledged Securities, or
the manner of sale of Pledged Securities.

     (e) Application of Proceeds. Secured Party shall apply the proceeds of any sale
or other disposition of the Collateral under this Paragraph 7 in the order set forth in
Section 4.03 of the Intercreditor Agreement, or if the Intercreditor Agreement has been
terminated pursuant to its terms, then as follows: first, to the payment of all expenses
incurred in retaking, holding, and preparing any of the Collateral for sale(s) or other
disposition, in arranging for such sale(s) or other disposition, and in actually selling or
disposing of the same (all of which are part of the Obligations); second, toward repayment
of amounts expended by Secured Party under Paragraph 8; and third, toward payment of the
balance of the Obligations in the order and manner specified in the Borrowing Base Facility
Credit Agreement. Any surplus remaining shall be delivered to the relevant Debtor or as a
court of competent jurisdiction may direct. If the proceeds are insufficient to pay the
Obligations in full, Debtors shall remain liable for any deficiency.

     (f) Sales on Credit. If Secured Party sells any of the Collateral of any Debtor
upon credit, such Debtor will be credited only with payments actually made by the purchaser,
received by the Secured Party, and applied to the indebtedness of the purchaser. In the
event the purchaser fails to pay for the Collateral, Secured Party may resell the Collateral
and such Debtor shall be credited with the proceeds of the sale.

     8. OTHER RIGHTS OF SECURED PARTY.

     (a) Performance. If any Debtor fails to keep its Collateral in good repair,
working order, and condition, as required by the First Lien Documents, or fails to pay when
due all Taxes on any of its Collateral in the manner required by the First Lien Documents,
or fails to preserve the priority of the Security Interest in any of its Collateral, or
fails to keep the Collateral insured

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as required by the First Lien Documents, or otherwise fails to perform any of its
obligations under the First Lien Documents with respect to the Collateral, then Secured
Party may, at its option, but without being required to do so, make such repairs, pay such
Taxes, prosecute or defend any suits in relation to the Collateral, or insure and keep
insured the Collateral in any amount deemed appropriate by Secured Party, or take all other
action which a Debtor is required, but has failed or refused, to take under the First Lien
Documents. Any sum which may be expended or paid by Secured Party under this subparagraph
(including, without limitation, court costs and reasonable attorneys’ fees) shall bear
interest from the dates of expenditure or payment at the Default Rate until paid and,
together with such interest, shall be payable by such Debtor to Secured Party upon demand
and shall be part of the Obligations.

     (b) Collection. If an Event of Default exists and upon notice from Secured
Party, each Obligor with respect to any payments on any of the Collateral (including,
without limitation, dividends and other distributions with respect to the Pledged Securities
and Partnership/Limited Liability Company Interests, payments on Collateral Notes, insurance
proceeds payable by reason of loss or damage to any of the Collateral, or payments or
distributions with respect to Deposit Accounts) is hereby authorized and directed by each
Debtor to make payment directly to Secured Party, regardless of whether such Debtor was
previously making collections thereon. Subject to Paragraph 8(f) hereof, until such notice
is given, such Debtor is authorized to retain and expend all payments made on Collateral. If
an Event of Default exists, Secured Party shall have the Right in its own name or in the
name of such Debtor to compromise or extend time of payment with respect to all or any
portion of the Collateral for such amounts and upon such terms as Secured Party may
determine; to demand, collect, receive, receipt for, sue for, compound, and give
acquittances for any and all amounts due or to become due with respect to Collateral; to
take control of cash and other proceeds of any Collateral; to endorse the name of such
Debtor on any notes, acceptances, checks, drafts, money orders, or other evidences of
payment on Collateral that may come into the possession of Secured Party; to sign the name
of such Debtor on any invoice or bill of lading relating to any Collateral, on any drafts
against Obligors or other Persons making payment with respect to Collateral, on assignments
and verifications of accounts or other Collateral and on notices to Obligors making payment
with respect to Collateral; to send requests for verification of obligations to any Obligor;
and to do all other acts and things necessary to carry out the intent of this Security
Agreement. If an Event of Default exists and any Obligor fails or refuses to make payment on
any Collateral when due, Secured Party is authorized, in its sole discretion, either in its
own name or in the name of such Debtor, to take such action as Secured Party shall deem
appropriate for the collection of any amounts owed with respect to Collateral or upon which
a delinquency exists. Regardless of any other provision hereof, however, Secured Party shall
never be liable for its failure to collect, or for its failure to exercise diligence in the
collection of, any amounts owed with respect to Collateral, nor shall it be under any duty
whatsoever to anyone except such Debtor to account for funds that it shall actually receive
hereunder. Without limiting the generality of the foregoing, Secured Party shall have no
responsibility for ascertaining any maturities, calls, conversions, exchanges, offers,
tenders, or similar matters relating to any Collateral, or for informing such Debtor with
respect to any of such matters (irrespective of whether Secured Party actually has, or may
be deemed to have, knowledge thereof). The receipt of Secured Party to any Obligor shall be
a full and complete release, discharge, and acquittance to such Obligor, to the extent of
any amount so paid to Secured Party.

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     (c) Intellectual Property. For purposes of enabling Secured Party to exercise
its Rights and remedies under this Security Agreement and enabling Secured Party and its
successors and assigns to enjoy the full benefits of the Collateral, each Debtor hereby
grants to Secured Party an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to such Debtor upon an Event of Default) to use, license, or
sublicense any of the Intellectual Property. Each Debtor shall provide Secured Party with
reasonable access to all media in which any of the Intellectual Property may be recorded or
stored and all computer programs used for the completion or printout thereof. This license
shall also inure to the benefit of all successors, assigns, and transferees of Secured
Party. If an Event of Default exists, Secured Party may require that each Debtor assign all
of its Right, title, and interest in and to the Intellectual Property or any part thereof to
Secured Party or such other Person as Secured Party may designate pursuant to documents
satisfactory to Secured Party. If no Default or Event of Default exists, each Debtor shall
have the exclusive, non-transferable Right and license to use the Intellectual Property in
the ordinary course of business and the exclusive Right to grant to other Persons licenses
and sublicenses with respect to the Intellectual Property for full and fair consideration.

     (d) Record Ownership of Securities. If an Event of Default exists, Secured
Party at any time may have any Collateral that is Pledged Securities and that is in the
possession of Secured Party, or its nominee or nominees, registered in its name, or in the
name of its nominee or nominees, as Secured Party; and, as to any Collateral that is Pledged
Securities so registered, Secured Party shall execute and deliver (or cause to be executed
and delivered) to each Debtor all such proxies, powers of attorney, dividend coupons or
orders, and other documents as such Debtor may reasonably request for the purpose of
enabling such Debtor to exercise the voting Rights and powers which it is entitled to
exercise under this Security Agreement or to receive the dividends and other distributions
and payments in respect of such Collateral that is Pledged Securities or proceeds thereof
which it is authorized to receive and retain under this Security Agreement.

     (e) Voting of Securities. As long as no Event of Default exists, each Debtor is
entitled to exercise all voting Rights pertaining to any Pledged Securities and
Partnership/Limited Liability Company Interests; provided however, that no vote shall be
cast or consent, waiver, or ratification given or action taken without the prior written
consent of Secured Party which would be inconsistent with or violate any provision of this
Security Agreement or the Borrowing Base Facility Credit Agreement; and provided further
that such Debtor shall give Secured Party at least five Business Days’ prior written notice
in the form of an officers’ certificate of the manner in which it intends to exercise, or
the reasons for refraining from exercising, any voting or other consensual Rights pertaining
to the Collateral or any part thereof which might have a Material Adverse Effect on the
value of the Collateral or any part thereof. If an Event of Default exists and if Secured
Party elects to exercise such Right, the Right to vote any Pledged Securities shall be
vested exclusively in Secured Party. To this end, each Debtor hereby irrevocably constitutes
and appoints Secured Party the proxy and attorney-in-fact of such Debtor, with full power of
substitution, to vote, and to act with respect to, any and all Collateral that is Pledged
Securities standing in the name of such Debtor or with respect to which such Debtor is
entitled to vote and act, subject to the understanding that such proxy may not be exercised
unless an Event of Default exists. The proxy herein granted is coupled with an interest, is
irrevocable, and shall continue until the Obligations have been paid and performed in full.

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     (f) Certain Proceeds. Notwithstanding any contrary provision herein, any and
all

     (i) dividends, interest, or other distributions paid or payable other than in
cash in respect of, and instruments and other property received, receivable, or
otherwise distributed in respect of, or in exchange for, any Collateral;

     (ii) dividends, interest, or other distributions hereafter paid or payable in
cash in respect of any Collateral in connection with a partial or total liquidation
or dissolution, or in connection with a reduction of capital, capital surplus, or
paid-in-surplus;

     (iii) cash paid, payable, or otherwise distributed in redemption of, or in
exchange for, any Collateral; and

     (iv) dividends, interest, or other distributions paid or payable in violation
of the First Lien Documents,

shall be part of the Collateral hereunder, and shall, if received by any Debtor, be held in
trust for the benefit of Secured Party, and shall forthwith be delivered to Secured Party
(accompanied by proper instruments of assignment and/or stock and/or bond powers executed by
such Debtor in accordance with Secured Party’s instructions) to be held subject to the terms
of this Security Agreement. Any cash proceeds of Collateral which come into the possession
of Secured Party during the continuance of an Event of Default (including, without
limitation, insurance proceeds) may, at Secured Party’s option, be applied in whole or in
part to the Obligations (to the extent then due), be released in whole or in part to or on
the written instructions of any Debtor for any general or specific purpose, or be retained
in whole or in part by Secured Party as additional Collateral. Any cash Collateral in the
possession of Secured Party may be invested by Secured Party in certificates of deposit
issued by Secured Party (if Secured Party issues such certificates) or by any state or
national bank having combined capital and surplus greater than $100,000,000 with a short
term rating from Moody’s and S&P of P-1 and A-1+, respectively, or in securities issued or
guaranteed by the United States or any agency thereof. Secured Party shall never be
obligated to make any such investment and shall never have any liability to any Debtor for
any loss which may result therefrom. All interest and other amounts earned from any
investment of Collateral may be dealt with by Secured Party in the same manner as other cash
Collateral. Except as specifically provided herein, the provisions of this subparagraph are
applicable whether or not a Default or Event of Default exists.

     (g) Use and Operation of Collateral. Should any Collateral come into the
possession of Secured Party, Secured Party may use or operate such Collateral for the
purpose of preserving it or its value pursuant to the order of a court of appropriate
jurisdiction or in accordance with any other Rights held by Secured Party in respect of such
Collateral. Each Debtor covenants to promptly reimburse and pay to Secured Party, at Secured
Party’s request, the amount of all reasonable expenses (including, without limitation, the
cost of any insurance and payment of Taxes or other charges) incurred by Secured Party in
connection with its custody and preservation of Collateral, and all such expenses, costs,
Taxes, and other charges shall bear interest at the Default Rate until repaid and, together
with such interest, shall be payable by such Debtor to Secured Party upon demand and shall
become part of the Obligations. However, the risk of accidental loss or damage to, or
diminution in value of, Collateral is on such Debtor, and Secured

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Party shall have no liability whatever for failure to obtain or maintain insurance, nor
to determine whether any insurance ever in force is adequate as to amount or as to the risks
insured. With respect to Collateral that is in the possession of Secured Party, Secured
Party shall use reasonable care in the custody and preservation of such Collateral but shall
have no duty to fix or preserve Rights against prior parties to such Collateral and shall
never be liable for any failure to use diligence to collect any amount payable in respect of
such Collateral, but shall be liable only to account to such Debtor for what it may actually
collect or receive thereon. The provisions of this subparagraph are applicable whether or
not an Event of Default exists.

     (h) Cash Collateral Account. If an Event of Default exists and is continuing,
Secured Party shall have, and each Debtor hereby grants to Secured Party, the Right and
authority to transfer all funds on deposit in the Deposit Accounts to a Cash Collateral
Account (herein so called) maintained with a depository institution acceptable to Secured
Party and subject to the exclusive direction, domain, and control of Secured Party, and no
disbursements or withdrawals shall be permitted to be made by such Debtor from such Cash
Collateral Account; provided, however, Secured Party shall permit disbursements and
withdrawals from the Cash Collateral Account to the extent necessary to comply with
applicable Law, such as for the payment of payroll taxes and other obligations for which a
Debtor (or a member of its governing body) would be liable under applicable Law. Such Cash
Collateral Account shall be subject to the Security Interest and Liens in favor of Secured
Party herein created, and each Debtor hereby grants a security interest to Secured Party on
behalf of the Beneficiaries in and to, such Cash Collateral Account and all checks, drafts,
and other items ever received by such Debtor for deposit therein. Furthermore, if an Event
of Default exists, Secured Party shall have the Right, at any time in its discretion without
prior notice to Debtors, (i) to transfer to or to register in the name of Secured Party or
any Beneficiary or nominee any certificates of deposit or deposit instruments constituting
Deposit Accounts and shall have the Right to exchange such certificates or instruments
representing Deposit Accounts for certificates or instruments of smaller or larger
denominations and (ii) to take and apply against the Obligations any and all funds then or
thereafter on deposit in the Cash Collateral Account or otherwise constituting Deposit
Accounts. If not notified before taking any of the foregoing actions, Secured Party shall
promptly, and in any event within two (2) Business Days, notify Debtors after taking any of
the foregoing actions.

     (i) Power of Attorney. Each Debtor hereby irrevocably constitutes and appoints
Secured Party and any officer or agent thereof, with full power of substitution, as its true
and lawful attorney-in-fact with full irrevocable power and authority in the name of such
Debtor or in its own name, to take after the occurrence and during the continuance of an
Event of Default any and all action and to execute any and all documents and instruments
which Secured Party at any time and from time to time deems necessary or desirable to
accomplish the purposes of this Security Agreement and, without limiting the generality of
the foregoing, each Debtor hereby gives Secured Party the power and Right on behalf of such
Debtor and in its own name to do any of the following from time to time after the occurrence
and during the continuance of an Event of Default without notice to or the consent of such
Debtor:

     (i) to transfer any and all funds on deposit in the Deposit Accounts to the
Cash Collateral Account as set forth in herein;

     (ii) to receive, endorse, and collect any drafts or other instruments or
documents in connection with clause (b) above and this 

clause (i);

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     (iii) to use the Intellectual Property or to grant or issue any exclusive (if
such Debtor has exclusive rights to such Intellectual Property) or non-exclusive
license under the Intellectual Property to anyone else, and to perform any act
necessary for the Secured Party to assign, pledge, convey, or otherwise transfer
title in or dispose of the Intellectual Property to any other Person;

     (iv) to demand, sue for, collect, or receive, in the name of such Debtor or in
its own name, any money or property at any time payable or receivable on account of
or in exchange for any of the Collateral and, in connection therewith, endorse
checks, notes, drafts, acceptances, money orders, documents of title or any other
instruments for the payment of money under the Collateral or any policy of
insurance;

     (v) to pay or discharge taxes, Liens, or other encumbrances levied or placed on
or threatened against the Collateral;

     (vi) to notify post office authorities to change the address for delivery of
mail to such Debtor to an address designated by Secured Party and to receive, open,
and (with respect to mail relating to payments on Collateral) take action with
respect to mail addressed to such Debtor; provided however, Secured Party shall
promptly deliver to Debtors any mail not relating to Collateral or the preservation
or enforcement of Secured Party’s rights with respect to the Collateral; and

     (vii) (A) to direct account debtors and any other parties liable for any
payment under any of the Collateral to make payment of any and all monies due and to
become due thereunder directly to Secured Party or as Secured Party shall direct;
(B) to receive payment of and receipt for any and all monies, claims, and other
amounts due and to become due at any time in respect of or arising out of any
Collateral; (C) to sign and endorse any invoices, freight or express bills, bills of
lading, storage or warehouse receipts, drafts against debtors, assignments, proxies,
stock powers, verifications, and notices in connection with accounts and other
documents relating to the Collateral; (D) to commence and prosecute any suit,
action, or proceeding at Law or in equity in any court of competent jurisdiction to
collect the Collateral or any part thereof and to enforce any other Right in respect
of any Collateral; (E) to defend any suit, action, or proceeding brought against
such Debtor with respect to any Collateral; (F) to settle, compromise, or adjust any
suit, action, or proceeding described above and, in connection therewith, to give
such discharges or releases as Secured Party may deem appropriate; (G) to exchange
any of the Collateral for other property upon any merger, consolidation,
reorganization, recapitalization, or other readjustment of the issuer thereof and,
in connection therewith, deposit any of the Collateral with any committee,
depositary, transfer agent, registrar, or other designated agency upon such terms as
Secured Party may determine; (H) to add or release any guarantor, endorser, surety,
or other party to any of the Collateral; (I) to renew, extend, or otherwise change
the terms and conditions of any of the Collateral; (J) to endorse such Debtor’s name
on all applications, documents, papers, and instruments necessary or desirable in
order for Secured Party to use or maintain any of the Intellectual Property; (K) to
make, settle, compromise or adjust any claims under or pertaining to any of the
Collateral (including claims under any policy of insurance); (L) to execute on
behalf of such Debtor any financing statements or continuation statements with
respect to the Security Interests created hereby, and to do any and all acts and
things to protect and

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preserve the Collateral including, without limitation, the protection and
prosecution of all Rights included in the Collateral; and (M) to sell, transfer,
pledge, convey, make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though Secured Party were the absolute owner
thereof for all purposes, and to do, at Secured Party’s option and such Debtor’s
expense, at any time, or from time to time, all acts and things which Secured Party
deems necessary to protect, preserve, maintain, or realize upon the Collateral and
Secured Party’s security interest therein.

This power of attorney is a power coupled with an interest and shall be irrevocable. Secured
Party shall be under no duty to exercise or withhold the exercise of any of the Rights,
powers, privileges, and options expressly or implicitly granted to Secured Party in this
Security Agreement, and shall not be liable for any failure to do so or any delay in doing
so. Neither Secured Party nor any Person designated by Secured Party shall be liable for any
act or omission or for any error of judgment or any mistake of fact or Law except for the
failure to account to Debtors for funds received by Secured Party and except for failure to
use reasonable care in the custody and preservation of Collateral in its possession. This
power of attorney is conferred on Secured Party solely to protect, preserve, maintain, and
realize upon its Security Interest in the Collateral. Secured Party shall not be responsible
for any decline in the value of the Collateral and shall not be required to take any steps
to preserve rights against prior parties or to protect, preserve, or maintain any Lien given
to secure the Collateral.

     (j) Purchase Money Collateral. To the extent that Secured Party or any
Beneficiary has advanced or will advance funds to or for the account of any Debtor to enable
such Debtor to purchase or otherwise acquire Rights in Collateral, Secured Party or such
Beneficiary, at its option, may pay such funds (i) directly to the Person from whom such
Debtor will make such purchase or acquire such Rights, or (ii) to such Debtor, in which case
such Debtor covenants to promptly pay the same to such Person, and forthwith furnish to
Secured Party evidence satisfactory to Secured Party that such payment has been made from
the funds so provided.

     (k) Subrogation. If any of the Obligations are given in renewal or extension or
applied toward the payment of indebtedness secured by any Lien, Secured Party shall be, and
is hereby, subrogated to all of the Rights, titles, interests, and Liens securing the
indebtedness so renewed, extended, or paid.

     (1) Indemnification. Each Debtor hereby assumes all liability for the
Collateral owned by it, for the Security Interest granted by it, and for any use,
possession, maintenance, and management of, all or any of the Collateral owned by it
including, without limitation, any Taxes arising as a result of, or in connection with, the
transactions contemplated herein, and agrees to assume liability for, and to indemnify and
hold Secured Party and each Beneficiary harmless from and against, any and all claims,
causes of action, or liability, for injuries to or deaths of Persons and damage to property,
howsoever arising from or incident to such use, possession, maintenance, and management,
whether such Persons be agents or employees of such Debtor or of third parties, or such
damage be to property of such Debtor or of others. Each Debtor agrees to indemnify, save,
and hold Secured Party and each Beneficiary harmless from and against, and covenants to
defend Secured Party and each Beneficiary against, any and all losses, damages, claims,
costs, penalties, liabilities, and expenses (collectively, “Claims”), including, without
limitation, court costs and attorneys’ fees, and any of the foregoing arising from the
negligence of Secured Party or any Beneficiary, or any of their respective officers,
employees, agents,

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advisors, employees, or representatives, howsoever arising or incurred because of,
incident to, or with respect to the Collateral owned by such Debtor or any use, possession,
maintenance, or management thereof; provided however, that the indemnity set forth in this
Paragraph 8(l) will not apply to Claims caused by the gross negligence or willful misconduct
of Secured Party or any Beneficiary.

     9. MISCELLANEOUS.

     (a) Continuing Security Interest. This Security Agreement creates a continuing
security interest in the Collateral and shall (i) remain in full force and effect until the
payment in full of the Obligations (other than any L/C Obligations that are Cash
Collateralized or any contingent indemnity obligations), termination of the Revolving
Commitments or their reduction to zero, and compliance with Section 10.01(e) of the
Borrowing Base Facility Credit Agreement with respect to outstanding Swap Contracts secured
by any Loan Document or in accordance with Section 10.21 of the Pipeline Credit Agreement;
and (ii) inure to the benefit of and be enforceable by Secured Party, Beneficiaries, and
their respective successors, transferees, and permitted assigns. Without limiting the
generality of the foregoing clause (ii), Secured Party and Beneficiaries may assign or
otherwise transfer any of their respective Rights under this Security Agreement to any other
Person in accordance with the terms and provisions of Section 10.07 of the Borrowing Base
Facility Credit Agreement, and to the extent of such assignment or transfer such Person
shall thereupon become vested with all the Rights and benefits in respect thereof granted
herein or otherwise to Secured Party or Beneficiaries, as the case may be. Upon payment in
full of the Obligations (other than any L/C Obligations that are Cash Collateralized or any
contingent indemnity obligations), termination of the Revolving Commitments or their
reduction to zero, and compliance with Section 10.01(e) of the Credit Agreement with respect
to outstanding Swap Contracts secured by any Loan Document, each Debtor shall be entitled to
the return, upon its request and at its expense, of such of the Collateral owned by it as
shall not have been sold or otherwise applied pursuant to the terms hereof.

     (b) Reference to Miscellaneous Provisions. This Security Agreement is one of
the “Loan Documents” referred to in the Borrowing Base Facility Credit Agreement, and all
provisions relating to Loan Documents set forth in Article X of the Borrowing Base Facility
Credit Agreement are incorporated herein by reference, the same as if set forth herein
verbatim.

     (c) Term; Release of Liens. The Secured Party shall release the Liens created
by this Security Agreement in accordance with Section 10.01 of the Borrowing Base Facility
Credit Agreement and Section 10.21 of the Pipeline Credit Agreement; provided that no
Obligor, if any, on any of the Collateral shall ever be obligated to make inquiry as to the
termination of this Security Agreement, but shall be fully protected in making payment
directly to Secured Party until actual notice of such total payment of the Obligations is
received by such Obligor. At such time as the Liens created by this Security Agreement are
to be released pursuant to this paragraph, Secured Party shall, at the request and expense
of Debtors following such termination, promptly deliver to a Debtor any Collateral held by
the Secured Party hereunder, and promptly execute and deliver to such Debtor such documents
and instruments as such Debtor shall reasonably request to evidence such termination and
release as provided in the Credit Agreement. In addition, if any of the Collateral shall be
sold, transferred, assigned or otherwise disposed of by such Debtor in a transaction
permitted by the Borrowing Base Facility Credit Agreement, then the

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Secured Party, at the request and expense of such Debtor, shall promptly execute and
deliver releases as provided in the Borrowing Base Facility Credit Agreement.

     (d) Actions Not Releases. The Security Interest and each Debtor’s obligations
and Secured Party’s Rights hereunder shall not be released, diminished, impaired, or
adversely affected by the occurrence of any one or more of the following events: (i) the
taking or accepting of any other security or assurance for any or all of the Obligations;
(ii) any release, surrender, exchange, subordination, or loss of any security or assurance
at any time existing in connection with any or all of the Obligations; (iii) the
modification of, amendment to, or waiver of compliance with any terms of any of the other
First Lien Documents without the notification or consent of any Debtor, except as required
therein (the Right to such notification or consent being herein specifically waived by each
Debtor); (iv) the insolvency, bankruptcy, or lack of corporate or trust power of any party
at any time liable for the payment of any or all of the Obligations, whether now existing or
hereafter occurring; (v) any renewal, extension, or rearrangement of the payment of any or
all of the Obligations, either with or without notice to or consent of each Debtor, or any
adjustment, indulgence, forbearance, or compromise that may be granted or given by Secured
Party or any Beneficiary to any Debtor; (vi) any neglect, delay, omission, failure, or
refusal of Secured Party or any Beneficiary to take or prosecute any action in connection
with any other agreement, document, guaranty, or instrument evidencing, securing, or
assuring the payment of all or any of the Obligations; (vii) any failure of Secured Party or
any Beneficiary to notify any Debtor of any renewal, extension, or assignment of the
Obligations or any part thereof, or the release of any Collateral or other security, or of
any other action taken or refrained from being taken by Secured Party or any Beneficiary
against any Debtor or any new agreement between or among Secured Party or one or more
Beneficiaries and any Debtor, it being understood that except as expressly provided herein,
neither Secured Party nor any Beneficiary shall be required to give any Debtor any notice of
any kind under any circumstances whatsoever with respect to or in connection with the
Obligations including, without limitation, notice of acceptance of this Security Agreement
or any Collateral ever delivered to or for the account of Secured Party hereunder except to
the extent expressly provided for herein or under the Borrowing Base Facility Credit
Agreement; (viii) the illegality, invalidity, or unenforceability of all or any part of the
Obligations against any party obligated with respect thereto by reason of the fact that the
Obligations, or the interest paid or payable with respect thereto, exceeds the amount
permitted by Law, the act of creating the Obligations, or any part thereof, is ultra vires,
or the officers, partners, or trustees creating same acted in excess of their authority, or
for any other reason; or (ix) if any payment by any party obligated with respect thereto is
held to constitute a preference under applicable Laws or for any other reason Secured Party
or any Beneficiary is required to refund such payment or pay the amount thereof to someone
else.

     (e) Waivers. Except to the extent expressly otherwise provided herein or in
other First Lien Documents and to the fullest extent permitted by applicable Law, each
Debtor waives (i) any Right to require Secured Party or any Beneficiary to proceed against
any other Person, to exhaust its Rights in Collateral, or to pursue any other Right which
Secured Party or any Beneficiary may have; (ii) with respect to the Obligations, presentment
and demand for payment, protest, notice of protest and nonpayment, and notice of the
intention to accelerate; and (iii) all Rights of marshaling in respect of any and all of the
Collateral.

     (f) Financing Statement; Authorization. Secured Party shall be entitled at any
time to file this Security Agreement or a carbon, photographic, or other reproduction of
this Security

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Agreement, as a financing statement, but the failure of Secured Party to do so shall
not impair the validity or enforceability of this Security Agreement. Each Debtor hereby
irrevocably authorizes Secured Party at any time and from time to time to file in any UCC
jurisdiction any initial or other financing statements and amendments thereto that (i)
indicate the Collateral (A) as “all assets of Debtor” or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the scope of
Article 9 of the UCC of the state or such jurisdiction or whether such assets are included
in the Collateral hereunder, or (B) as being of an equal or lesser scope or with greater
detail, and (ii) contain any other information required by Article 9 of the UCC of the state
or such jurisdiction for the sufficiency or filing office acceptance of any financing
statement or amendment, including (A) whether such Debtor is an organization, the type of
organization, and any organization identification number issued to such Debtor and, (B) in
the case of a financing statement filed as a fixture filing or indicating Collateral that is
as-extracted collateral or timber to be cut, a sufficient description of real property to
which the Collateral relates. Each Debtor agrees to furnish any such information to Secured
Party promptly upon request.

     (g) Amendments. This Security Agreement may be amended only by an instrument in
writing executed jointly by such Debtor and Secured Party, and supplemented only by
documents delivered or to be delivered in accordance with the express terms hereof.

     (h) Multiple Counterparts. This Security Agreement has been executed in a
number of identical counterparts, each of which shall be deemed an original for all purposes
and all of which constitute, collectively, one agreement; but, in making proof of this
Security Agreement, it shall not be necessary to produce or account for more than one such
counterpart.

     (i) Additional Debtors. Any Person may become a party hereto by signing and
delivering to the Secured Party an Assumption Agreement in the form of Annex E hereto,
whereupon such Person shall become a “Debtor” as defined herein. The execution and delivery
of any instrument adding an additional Debtor as a party to this Agreement shall not require
the consent of any Debtor hereunder. The rights and obligations of each Debtor hereunder
shall remain in full force and effect notwithstanding the addition of any new Debtor
hereunder.

     (j) Parties Bound; Assignment. This Security Agreement shall be binding on each
Debtor and each of Debtor’s legal representatives, successors, and assigns and shall inure
to the benefit of Secured Party and Secured Party’s successors and permitted assigns.

     (i) Secured Party is the agent for each Beneficiary under the Intercreditor
Agreement, each Borrowing Base Facility Secured Party under the Borrowing Base
Facility Credit Agreement and each Affiliate of a Borrowing Base Facility Lender and
Approved Hedge Counterparty party to any Lender Hedging Agreement. The Security
Interest and all Rights granted to Secured Party hereunder or in connection herewith
are for the ratable benefit of each Beneficiary, each Borrowing Base Facility
Secured Party and each such Affiliate, and Secured Party may, without the joinder of
any Beneficiary, Borrowing Base Facility Secured Party or any such Affiliate,
exercise any and all Rights in favor of Secured Party or any Beneficiary, any
Borrowing Base Facility Secured Party or any such Affiliates hereunder, including,
without limitation, conducting any foreclosure sales hereunder, and executing full
or partial releases hereof, amendments or modifications hereto, or consents or
waivers hereunder. The Rights of each Beneficiary,

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Borrowing Base Facility Secured Party or any such Affiliate vis-à-vis Secured
Party and each other Beneficiary, Borrowing Base Facility Secured Party or any such
Affiliate may be subject to one or more separate agreements between or among such
parties, but no Debtor need inquire about any such agreement or be subject to any
terms thereof unless such Debtor specifically joins therein; and consequently, no
Debtor nor such Debtor’s legal representatives, successors, and assigns shall be
entitled to any benefits or provisions of any such separate agreements or be
entitled to rely upon or raise as a defense, in any manner whatsoever, the failure
or refusal of any party thereto to comply with the provisions thereof.

     (ii) Except for this Security Agreement and assignments made in furtherance
hereof, no Debtor may, without the prior written consent of Secured Party, assign
any Rights, duties, or obligations hereunder.

     (k) Governing Law. The substantive laws of the State of New York, except to
the extent the laws of another jurisdiction govern the creation, perfection, validity, or
enforcement of liens under this Security Agreement, and the applicable federal laws of the
United States, shall govern the validity, construction, enforcement and interpretation of
this security agreement and all of the other loan documents.

     (l) The provisions of Section 10.10 of the Borrowing Base Facility Credit Agreement are
incorporated herein as if set forth herein.

     (m) All notices given pursuant hereto shall be given in the manner set forth in the
Borrowing Base Facility Credit Agreement, if to Secured Party, to the address of Secured
Party therein set forth and if to a Debtor, to the following address:

210 Park Avenue

Suite 2750

Oklahoma City, Oklahoma 73102

Attn: General Counsel

Facsimile: (405) 840-9897

Telephone: (405) 488-1304

     THIS AGREEMENT AND THE OTHER 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.

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     IN WITNESS WHEREOF, each Debtor has caused this Security Agreement to be duly executed and
delivered by an officer duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 	 

	DEBTORS:	 	POSTROCK ENERGY SERVICES CORPORATION,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/
David C. Lawler	 
	 	 	 	 	 	 	 
	 	 	 	 	David C. Lawler,	 	 
	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	POSTROCK MIDCONTINENT PRODUCTION, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	POSTROCK ENERGY
SERVICES CORPORATION, its sole
member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/
David C. Lawler
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	David C. Lawler,	 	 
	 

	 	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	STP NEWCO, INC., 

an Oklahoma corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/
David C. Lawler	 
	 	 	 	 	 	 	 
	 	 	 	 	David C. Lawler,	 	 
	 	 	 	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	QUEST TRANSMISSION COMPANY, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	POSTROCK ENERGY
SERVICES CORPORATION, its sole
member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/
David C. Lawler
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	David C. Lawler,	 	 
	 

	 	 	 	 	 	President and Chief Executive Officer	 	 

Signature Page

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Credit Facility Pledge & Security Agreement

 

 

ANNEX A TO SECURITY AGREEMENT

DEBTOR INFORMATION AND LOCATION OF COLLATERAL

	1.	 	POSTROCK ENERGY SERVICES CORPORATION

	 	 	 	 	 

	A.

	 	Exact Legal Name of Debtor:
	 	POSTROCK ENERGY SERVICES CORPORATION
	 
	 	 	 	 
	B.

	 	Mailing Address of Debtor:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	C.

	 	Type of Entity:
	 	corporation
	 
	 	 	 	 
	D.

	 	Jurisdiction of Organization:
	 	Delaware
	 
	 	 	 	 
	E.

	 	State Issued Organizational

Identification Number:
	 	4871234 
	 
	 	 	 	 
	F.

	 	Tax ID Number:
	 	90-0196936 
	 
	 	 	 	 
	G.

	 	Location of Books and Records:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	H.

	 	Location of Collateral:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	I.

	 	Location of Real Property:
	 	None
	 
	 	 	 	 
	J.

	 	Jurisdiction(s) for Filing

Financing Statements:
	 	Delaware
	 
	 	 	 	 
	 

	 	Fixture filings in the relevant counties
in which the properties are located:
	 	None

	2.	 	POSTROCK MIDCONTINENT PRODUCTION, LLC

	 	 	 	 	 

	A.

	 	Exact Legal Name of Debtor:
	 	POSTROCK MIDCONTINENT PRODUCTION, LLC
	 
	 	 	 	 
	B.

	 	Mailing Address of Debtor:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102

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Annex A - Page 1

 

	 	 	 	 	 

	C.

	 	Type of Entity:
	 	limited liability company
	 
	 	 	 	 
	D.

	 	Jurisdiction of Organization:
	 	Delaware
	 
	 	 	 	 
	E.

	 	State Issued Organizational

Identification Number:
	 	3740038 
	 
	 	 	 	 
	F.

	 	Tax ID Number:
	 	20-0481979 
	 
	 	 	 	 
	G.

	 	Location of Books and Records:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	H.

	 	Location of Collateral:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	 

	 	 	 	and see I below
	 
	 	 	 	 
	I.

	 	Location of Real Property:	 	 

	 	1.	 	Allen County, KS
	 
	 	2.	 	Butler County, KS
	 
	 	3.	 	Chautauqua County, KS
	 
	 	4.	 	Cowley County, KS
	 
	 	5.	 	Elk County, KS
	 
	 	6.	 	Greenwood County, KS
	 
	 	7.	 	Labette County, KS
	 
	 	8.	 	Montgomery County, KS
	 
	 	9.	 	Neosho County, KS
	 
	 	10.	 	Wilson County, KS
	 
	 	11.	 	Woodson County, KS
	 
	 	12.	 	Craig County, OK
	 
	 	13.	 	Nowata County, OK
	 
	 	14.	 	Seminole County, OK
	 
	 	15.	 	Pushmataha OK
	 
	 	16.	 	Pottawattamie OK
	 
	 	17.	 	Latimer OK
	 
	 	18.	 	Rogers OK
	 
	 	19.	 	Grant OK
	 
	 	20.	 	Braxton WV
	 
	 	21.	 	Cabell WV
	 
	 	22.	 	Calhoun WV
	 
	 	23.	 	Doddridge WV
	 
	 	24.	 	Gilmer WV
	 
	 	25.	 	Kanawha WV

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Credit Facility Pledge & Security Agreement

Annex A - Page 2

 

	 	26.	 	Lewis WV
	 
	 	27.	 	Lincoln WV
	 
	 	28.	 	Pleasants WV
	 
	 	29.	 	Ritchie WV
	 
	 	30.	 	Wayne WV
	 
	 	31.	 	Wetzel WV
	 
	 	32.	 	Wood WV

	 	 	 	 	 

	J.

	 	Jurisdiction(s) for Filing

Financing Statements:
	 	Delaware
	 
	 	 	 	 
	 

	 	Fixture filings in the relevant counties
in which the properties are located:
	 	See I above.

	3.	 	STP NEWCO, INC.

	 	 	 	 	 

	A.

	 	Exact Legal Name of Debtor:
	 	STP NEWCO, INC.
	 
	 	 	 	 
	B.

	 	Mailing Address of Debtor:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	C.

	 	Type of Entity:
	 	corporation
	 
	 	 	 	 
	D.

	 	Jurisdiction of Organization:
	 	Oklahoma
	 
	 	 	 	 
	E.

	 	State Issued Organizational

Identification Number:
	 	1900700404 
	 
	 	 	 	 
	F.

	 	Tax ID Number:
	 	13-4220160 
	 
	 	 	 	 
	G.

	 	Location of Books and Records:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	H.

	 	Location of Collateral:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	I.

	 	Location of Real Property:
	 	None. [conveyed to Quest Cherokee, LLC.]
	 
	 	 	 	 
	J.

	 	Jurisdiction(s) for Filing

Financing Statements:
	 	Oklahoma

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Annex A - Page 3

 

	 	 	 	 	 
	 

	 	Fixture filings in the
relevant counties in which
the properties are located:
	 	None.

	4.	 	QUEST TRANSMISSION COMPANY, LLC

	 	 	 	 	 

	A.

	 	Exact Legal Name of Debtor:
	 	QUEST TRANSMISSION COMPANY, LLC
	 
	 	 	 	 
	B.

	 	Mailing Address of Debtor:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	C.

	 	Type of Entity:
	 	limited liability company
	 
	 	 	 	 
	D.

	 	Jurisdiction of Organization:
	 	Delaware
	 
	 	 	 	 
	E.

	 	State Issued Organizational

Identification Number:
	 	4494032 
	 
	 	 	 	 
	F.

	 	Tax ID Number:
	 	26-1982491 
	 
	 	 	 	 
	G.

	 	Location of Books and Records:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	H.

	 	Location of Collateral:
	 	210 Park Avenue, Suite 2750
	 

	 	 	 	Oklahoma City, Oklahoma 73102
	 
	 	 	 	 
	I.

	 	Location of Real Property:
	 	Kansas

	 	 	 	 	 

	J.

	 	Jurisdiction(s) for Filing

Financing Statements:
	 	Delaware
	 
	 	 	 	 
	 

	 	Fixture filings in the relevant counties
in which the properties are located:
	 	Not required.

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Annex A - Page 4

 

ANNEX B-1 TO SECURITY AGREEMENT

COLLATERAL DESCRIPTIONS

	1.	 	POSTROCK ENERGY SERVICES CORPORATION

	 	 	 	 	 

	A.	 	Collateral Notes and Collateral Note Security: None.
	 
	 	 	 	 
	B.

	 	Pledged Shares: None.	 	 
	 
	 	 	 	 
	C.

	 	Partnership/Limited Liability Company Interests:
	 	100% of the membership interests in PostRock 

MidContinent Production, LLC
	 
	 	 	 	 
	 

	 	 	 	100% of the membership interest in Quest
Transmission Company, LLC*

 

			
	*	 	There is specifically excluded from the pledge pursuant to this Security Agreement the
limited liability company membership interest owned by PESC in PostRock KPC Pipeline, LLC
and in Quest Eastern Resource LLC.

	 	D.	 	Partnership/Limited Liability Company Agreement:
	 
	 	 	 	For PostRock MidContinent Production, LLC Agreement: Limited Liability Company Agreement of
Bluestem Pipeline, LLC, dated December 15, 2003, as amended on September 14, 2010.
	 
	 	 	 	Limited Liability Company Agreement of Quest Transmission Company, LLC, dated January 23,
2008, as amended on February 18, 2008.
	 
	 	E.	 	Commercial Tort Claims: None.
	 
	 	F.	 	Deposit Accounts (including name of bank address and account number):
	 
	 	 	 	Quest Resource Corporation Operating, Comerica Bank, Dallas, TX, Acct #: 1881237372
	 
	 	 	 	Quest Resource Corporation Operating, Bank of Oklahoma, Oklahoma City, OK, Acct #: 814172369
	 
	 	 	 	Quest Resource Corporation Disbursement, Comerica Bank, Dallas, TX, Acct #: 1881338378
	 
	 	 	 	Quest Resource Corporation Payroll, Comerica Bank, Dallas, TX, Acct #: 1881338428
	 
	 	 	 	Quest Cherokee Oilfield Service, LLC Operating, Comerica Bank, Dallas, TX, Acct #: 1881237141

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Annex B - Page 1

 

	2.	 	POSTROCK MIDCONTINENT PRODUCTION, LLC

	 	A.	 	Collateral Notes and Collateral Note Security: None.
	 
	 	B.	 	Pledged Shares: 100% of the stock of STP Newco, Inc.
	 
	 	C.	 	Partnership/Limited Liability Company Interests: None.
	 
	 	D.	 	Partnership/Limited Liability Company Agreements: None.
	 
	 	E.	 	Commercial Tort Claims: None.
	 
	 	F.	 	Deposit Accounts (including name of bank address and account number):
	 
	 	 	 	Quest Oil and Gas, LLC Operating, Comerica Bank, Dallas, TX, Acct #: 1881237414
	 
	 	 	 	Quest Cherokee, LLC Operating, Comerica Bank, Dallas, TX, Acct #: 1881237273
	 
	 	 	 	Quest Cherokee, LLC Revenue, Comerica Bank, Dallas, TX, Acct #: 1881278103
	 
	 	 	 	Bluestem Pipeline, LLC Operating, Comerica Bank, Dallas, TX, Acct #: 1881237281
	 
	 	 	 	Bluestem Pipeline, LLC Revenue, Comerica Bank, Dallas, TX, Acct #: 1881273146

	3.	 	STP NEWCO, INC.

	 	A.	 	Collateral Notes and Collateral Note Security: None.
	 
	 	B.	 	Pledged Shares: None.
	 
	 	C.	 	Partnership/Limited Liability Company Interests: None.
	 
	 	D.	 	Partnership/Limited Liability Company Agreements: None.
	 
	 	E.	 	Commercial Tort Claims: None.
	 
	 	F.	 	Deposit Accounts (including name of bank address and account number): None.

	4.	 	QUEST TRANSMISSION COMPANY, LLC

	 	A.	 	Collateral Notes and Collateral Note Security: None.
	 
	 	B.	 	Pledged Shares: None.
	 
	 	C.	 	Partnership/Limited Liability Company Interests: None.

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	 	D.	 	Partnership/Limited Liability Company Agreements: None.
	 
	 	E.	 	Commercial Tort Claims: None.
	 
	 	F.	 	Deposit Accounts (including name of bank address and account number): None.

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ANNEX B-2 TO SECURITY AGREEMENT

INTELLECTUAL PROPERTY

	1.	 	Registered Copyrights and Copyright Applications: None.
	 
	2.	 	Issued Patents and Patent Applications: None.
	 
	3.	 	Registered Trademarks and Trademark Applications: None.

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ANNEX C TO SECURITY AGREEMENT

DEPOSIT ACCOUNT CONTROL AGREEMENT

_______________, 20__

_________________________

_________________________

_________________________

Ladies and Gentlemen:

This letter is to notify you (the “Depository Bank”) that, pursuant to that certain Amended and
Restated Pledge and Security Agreement dated as of September 21, 2010 (as amended, modified,
supplemented, or restated from time to time, the “Security Agreement”), ____________________, a
company organized under the laws of ___________ (the “Pledgor”), has granted to Royal Bank of
Canada as Administrative Agent and Collateral Agent (“Pledgee”) a first priority security interest
in and lien upon, (a) Account No. __________ (the “Account”) maintained by Pledgor with you, (b)
any extensions or renewals of the Account if the Account is one which may be extended or renewed,
and (c) all of Pledgor’s right, title, and interest (whether now existing or hereafter created or
arising) in and to the Account, all sums from time to time on deposit therein, credited thereto, or
payable thereon, all instruments, documents, certificates, and other writings evidencing the
Account, and any and all proceeds of any thereof (the items described in clauses (a), (b) and (c)
being herein collectively called the “Collateral”),

In connection therewith, the parties hereto agree (which agreement by Pledgor will be construed as
instructions to the Depository Bank):

	1.	 	The Depository Bank is instructed to register the pledge on its books and hold the Collateral
in a pledged status account.
	 
	2.	 	The Depository Bank is instructed to deliver to Pledgee copies of monthly statements on the
account(s) identified below:
	 
	3.	 	The Account will be styled:
	 
	4.	 	All dividends, interest, gains, and other profits on the Collateral will be reported in the
name and tax identification number of Pledgor.
	 
	5.	 	If so notified by Pledgee, the Depository Bank will not, without the prior written consent of
Pledgee, allow any of the Collateral or any interest therein to be sold, transferred, or
withdrawn by or for the benefit of Pledgor.
	 
	6.	 	This letter agreement gives Pledgee “control” of the Account and the Collateral. The
Depository Bank agrees to comply with any order or instruction from Pledgee as to the
withdrawal or disposition of any funds from time to time credited to the Account, or as to any
other matters relating to the Collateral, without the further consent of Pledgor. The
Depository Bank shall be

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	 	 	fully entitled to rely upon such instructions from Pledgee even if such instructions are
contrary to any instructions or demands that Pledgor may give to the Depository Bank.

	7.	 	Pledgee agrees to indemnify and hold the Depository Bank, its officers and employees,
harmless from and against any and all claims, causes of action, liabilities, lawsuits,
demands, and/or damages, including, without limitation any and all costs, including court
costs and reasonable attorneys’ fees, that may arise or result from the Depository Bank
complying with the instructions and orders of Pledgee given in connection with Pledgee’s
exercise of its control over and secured rights in the Account and the Collateral except to
the extent that such claims, causes of action, liabilities, lawsuits, demands, and/or damages
are 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 Depository Bank.
	 
	8.	 	Pledgor agrees to indemnify and hold the Depository Bank, its officers and employees,
harmless from and against any and all claims, causes of action, liabilities, lawsuits,
demands, and/or damages, including, without limitation, any and all costs, including court
costs and reasonable attorneys’ fees, that may arise or result from the Depository Bank
entering into and performing its obligations under this letter agreement except to the extent
that such claims, causes of action, liabilities, lawsuits, demands, and/or damages are 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 Depository Bank.
	 
	9.	 	The Depository Bank represents that it has not received notice regarding any lien,
encumbrance, or other claim to the Account or the Collateral from any person other than
pursuant to this letter agreement and has not entered into another agreement with any other
party to act on such party’s instructions with respect to the Account. The Depository Bank
further agrees not to enter into any such agreement with any other party.
	 
	10.	 	The Depository Bank subordinates to the security interest of Pledgee any right of recoupment
or set-off, or to assert any security interest or other lien, that it may at any time have
against or in any of the Collateral on account of any credit or other obligations owed to the
Depository Bank by Pledgor or any other person. The Depository Bank may, however, from time to
time debit the Account for any of its customary charges in maintaining the Account or for
reimbursement for the reversal of any provisional credits granted by the Depository Bank to
the Account, to the extent, in each case, that Pledgor has not separately paid or reimbursed
Depository Bank therefor.
	 
	11.	 	To the extent a conflict exists between the terms of this letter agreement and any account
agreement between Pledgor and the Depository Bank, the terms of this letter agreement will
control.
	 
	12.	 	The terms of this letter agreement will in no way be modified except by a writing signed by
all parties hereto.
	 
	13.	 	This letter agreement will terminate upon notice of termination hereof delivered by Pledgee
to Depository Bank.

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	14.	 	Each of the parties executing this letter agreement represents that he has the proper
authority to execute this letter agreement.

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IN WITNESS WHEREOF, Pledgor and Pledgee have agreed to the terms of this letter agreement as
of the date first indicated above.

	 	 	 	 	 	 	 

	Pledgor:	 	 
	 
	 	 	 	 	 	 
	[NAME OF ENTITY]	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Pledgee:	 	 
	 
	 	 	 	 	 	 
	ROYAL BANK OF CANADA, 

as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Acknowledged and Agreed on _______________, 200_:
	 
	 	 	 	 	 	 
	Depository Bank:	 	 
	 
	 	 	 	 	 	 
	[NAME OF ENTITY]	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

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ANNEX D TO SECURITY AGREEMENT

ACKNOWLEDGMENT OF PLEDGE

PARTNERSHIP/LIMITED LIABILITY COMPANY: _____________________

INTEREST OWNER: _____________________________

     BY THIS ACKNOWLEDGMENT OF PLEDGE, dated as of ___________________, 200_,
___________________________ (the “Partnership/Limited Liability Company”) hereby acknowledges the
pledge in favor of Royal Bank of Canada, in its capacity as Collateral Agent for certain
beneficiaries and as Administrative Agent and Collateral Agent for certain Borrowing Base Facility
Lenders and as Secured Party (“Pledgee”) under that certain Amended and Restated Pledge and
Security Agreement dated as of September 21, 2010 (as amended, modified, supplemented, or restated
from time to time, the “Security Agreement”), against, and a security interest in favor of Pledgee
in, all of _________________________’s (the “Interest Owner”) Rights in connection with any
partnership/limited liability company membership interest in the Partnership/Limited Liability
Company now and hereafter owned by the Interest Owner (“Partnership/Limited Liability Company
Interest”).

     A. Pledge Records. The Partnership/Limited Liability Company has identified Pledgee’s
interest in all of the Interest Owner’s Right, title, and interest in and to all of the Interest
Owner’s Partnership/Limited Liability Company Interest as subject to a pledge and security interest
in favor of Pledgee in the Partnership/Limited Liability Company records.

     B. Partnership/Limited Liability Company Distributions, Accounts, and Correspondence.
The Partnership/Limited Liability Company hereby acknowledges that (i) all proceeds, distributions,
and other amounts payable to the Interest Owner, including, without limitation, upon the
termination, liquidation, and dissolution of the Partnership/Limited Liability Company shall be
paid and remitted to the Pledgee upon demand, (ii) all funds in deposit accounts shall be held for
the benefit of Pledgee, and (iii) all future correspondence, accountings of distributions, and tax
returns of the Partnership/Limited Liability Company shall be provided to the Pledgee. The
Partnership/Limited Liability Company acknowledges and accepts such direction and hereby agrees
that it shall, upon the written demand by the Pledgee, pay directly to the Pledgee at its offices
at Royal Bank Plaza, P.O. Box 50, 200 Bay Street, 12th Floor, South Tower, Toronto,
Ontario M5J 2W7 any and all distributions, income, and cash flow arising from the
Partnership/Limited Liability Company Interests whether payable in cash, property or otherwise,
subject to and in accordance with the terms and conditions of the Partnership/Limited Liability
Company Agreement. The Pledgee may from time to time notify the Partnership/Limited Liability
Company of any change of address to which such amounts are to be paid.

Remainder of Page Intentionally Blank.

Signature Page to Follow.

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     EXECUTED as of the date first stated in this Acknowledgment of Pledge.

	 	 	 	 	 

	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 

	 	 	[PARTNERSHIP/LIMITED LIABILITY COMPANY]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	as [General Partner] [Manager]

	 	 	 	 
	 	 
	 	By:  	

 
	 	 	Name:  	 
	 	 	Title:  	 
	 

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ANNEX E TO AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

ASSUMPTION AGREEMENT

          ASSUMPTION AGREEMENT, dated as of ________________, 200_, made by ____________________ (the
“Additional Debtor”), in favor of Royal Bank of Canada, in its capacity as “Collateral Agent” for
the Intercreditor Secured Parties pursuant to the Intercreditor Agreement and in its capacity as
“Administrative Agent” and “Collateral Agent” for the Borrowing Base Facility Secured Parties and
as Secured Party (“Secured Party”) under that certain Amended and Restated Pledge and Security
Agreement dated as of September 21, 2010 (as amended, modified, supplemented, or restated from time
to time, the “Security Agreement”). All capitalized terms not defined herein shall have the
meaning ascribed to them in such Security Agreement.

W I T N E S S E T H:

          WHEREAS, in connection with the Borrowing Base Facility Credit Agreement and the Pipeline
Credit Agreement each of PostRock Energy Corporation, a Delaware corporation, PostRock Energy
Services Corporation, a Delaware corporation, PostRock MidContinent Production, LLC, a Delaware
limited liability company, and STP Newco, Inc., an Oklahoma corporation (collectively the
“Debtors”), have entered into the Security Agreement in favor of the Secured Party for the benefit
of the Beneficiaries ;

          WHEREAS, the Additional Debtor is required to become a party to the Security Agreement; and

          WHEREAS, the Additional Debtor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Security Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Agreement. By executing and delivering this Assumption Agreement, the Additional
Debtor, as provided in Paragraph 9(i) of the Security Agreement, hereby becomes a party to the
Security Agreement as a Debtor thereunder with the same force and effect as if originally named
therein as a Debtor and, without limiting the generality of the foregoing, hereby expressly assumes
all obligations and liabilities of a Debtor thereunder. The information set forth in Schedule 1-A
hereto is hereby added to the information set forth in the Annexes to the Security Agreement. The
Additional Debtor hereby represents and warrants that each of the representations and warranties
contained in Paragraph 5 of the Security Agreement is true and correct in all material respects as
it relates to such Additional Debtor on and as the date hereof (after giving effect to this
Assumption Agreement) as if made on and as of such date.

          2. Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Remainder of Page Intentionally Blank.

Signature Page to Follow.

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     IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL DEBTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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