EXECUTION COPY
WAIVER AND AMENDMENT NO. 1
Dated as of December 22, 2006
to
THIRD LIEN TERM LOAN AGREEMENT
Dated as of June 9, 2006
THIS WAIVER AND AMENDMENT NO. 1 ("Amendment") is made as of December
22, 2006 by and among Quest Cherokee, LLC ("Quest Cherokee") and Quest Resource
Corporation ("QRC"), as borrowers (the "Borrowers"), the financial institutions
from time to time parties thereto (the "Lenders") and Guggenheim Corporate
Funding, LLC, as administrative agent (the "Administrative Agent") under that
certain Third Lien Term Loan Agreement dated as of June 9, 2006 by and among the
Borrowers, the Lenders and the Administrative Agent (as amended, restated or
otherwise modified from time to time, the "Credit Agreement"). Defined terms
used herein and not otherwise defined herein shall have the respective meanings
given to them in the Credit Agreement.
WHEREAS, the Borrowers have entered into that certain Contribution,
Conveyance and Assumption Agreement, dated as of December 22, 2006 (as in effect
on the date hereof, the "Contribution Agreement"), among the Borrowers, Bluestem
Pipeline, LLC ("Bluestem"), Quest Midstream Partners, L.P. ("MLP"), Quest
Midstream GP, LLC ("GP"), STP Cherokee, LLC, Quest Oil & Gas, LLC, Quest Energy
Service, LLC, Ponderosa Gas Pipeline Company, LLC, Producers Service, LLC, and
X-X Gas Gathering, L.L.C., pursuant to which one hundred percent (100%) of the
outstanding Equity Interests of Bluestem will be contributed to MLP, a copy of
which is attached hereto as Annex A;
WHEREAS, in connection with the transactions contemplated by the
Contribution Agreement, MLP will issue 4,864,866 common units of the MLP
representing an approximate 48.64% interest in the MLP and GP will issue 150
units of the GP representing a 15% interest in the GP to certain institutional
investors for approximately $90 million pursuant to the terms of a Purchase
Agreement (a copy of which is attached hereto as Annex C) among MLP, GP, QRC and
the institutional investors named therein (the "Purchase Agreement"; the
transactions contemplated by the Contribution Agreement and the Purchase
Agreement are referred to herein as the "Midstream Transaction");
WHEREAS, the Borrowers have requested that each Lender consent to
the consummation of the Midstream Transaction and waive compliance with any
violation of the Credit Agreement or the other Loan Documents that arises from
consummation of the Midstream transaction pursuant to the Contribution
Agreement, the Purchase Agreement and the other Transaction Documents (as
defined in the Purchase Agreement);
WHEREAS, the Lenders consent to the consummation of the Midstream
Transaction and waive compliance with any violation of the Credit Agreement or
the other Loan Documents that arises from consummation of the Midstream
Transaction pursuant to the Contribution Agreement, the Purchase Agreement and
the other Transaction Documents on the terms and conditions set forth herein;
WHEREAS, Bluestem and certain other Subsidiaries of the Borrowers
are parties to that certain Guaranty dated as of June 9, 2006 (as amended,
restated, supplemented or otherwise modified prior to the date hereof, the
"Guaranty") in favor of the Administrative Agent;
WHEREAS, the parties hereto have agreed to amend and restate the
Guaranty in its entirety pursuant to that certain Amended and Restated Guaranty
dated as of December 22, 2006 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "Amended Guaranty");
WHEREAS, the Borrowers and the Guarantors, as pledgors, and the
Administrative Agent are parties to that certain Security Agreement dated as of
June 9, 2006 (as amended, restated, supplemented or otherwise modified prior to
the date hereof, the "Security Agreement");
WHEREAS, the parties hereto have agreed to amend and restate the
Security Agreement in its entirety pursuant to that certain Amended and Restated
Security Agreement dated as of December 22, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the "Amended Security
Agreement");
WHEREAS, Section 12.02(b) of the Credit Agreement, Section 12 of the
Guaranty and Section 11.5 of the Security Agreement require the written consent
of each Lender in connection with the release of any Guarantor under the Loan
Documents;
WHEREAS, the Borrowers have requested that each Lender consent to
authorize the Administrative Agent to (A) release Bluestem from its obligations
under the Guaranty, the Security Agreement and the other Loan Documents to which
it is a party, (B) release all liens and security interests granted to or held
by the Administrative Agent in the assets of Bluestem, (C) release the lien and
security interests granted to or held by the Administrative Agent in 100% of the
Equity Interests of Bluestem, and the Lenders have agreed to provide such
consent on the terms and conditions set forth herein, and (D) enter into (i) the
Amended Guaranty and (ii) the Amended Security Agreement; and
WHEREAS, the Borrowers, the Lenders party hereto and the
Administrative Agent have agreed to amend the Credit Agreement on the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the premises set forth above,
the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrowers, the Lenders party hereto and the Administrative Agent hereby agree as
follows.
2
1. Waiver. Subject to the satisfaction of the conditions precedent set
forth in Section 5 below, each Lender hereby agrees to waive any violation of
the Credit Agreement or the other Loan Documents that results from consummation
of the transaction described in the Contribution Agreement, the Purchase
Agreement and the other Transaction Documents and consents to (i) the
consummation of the Midstream Transaction pursuant to (and in accordance with
the Contribution Agreement and the Purchase Agreement ) and (ii) the other
transactions contemplated by the other Transaction Documents pursuant to (and in
accordance with) such other Transaction Documents.
2. Guaranty and Loan Documents. Upon the effectiveness of this
Amendment and upon (i) the consummation of the Midstream Transaction, and (ii)
the other transactions contemplated by the other Transaction Documents, in each
case pursuant to (and in accordance with) the Contribution Agreement, the
Purchase Agreement and the other Transaction Documents, each Lender hereby
authorizes the Administrative Agent to (A) release Bluestem from its obligations
under the Guaranty, the Security Agreement and the other Loan Documents to which
it is a party, (B) release all liens and security interests granted to or held
by the Administrative Agent in the assets of Bluestem, (C) release the liens and
security interests granted to or held by the Administrative Agent in 100% of the
Equity Interests of Bluestem, and (D) enter into (i) the Amended Guaranty and
(ii) the Amended Security Agreement.
3. Amendments to Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 5 below, the Credit Agreement is
hereby amended as follows:
(a) Section 1.01 of the Credit Agreement is hereby amended by deleting
the definition of "Guarantors" now contained therein and to substitute the
following therefor:
"Guarantors" means, each of the following: STP Cherokee,
LLC, Quest Oil & Gas, LLC, Quest Energy Service, LLC, Ponderosa Gas
Pipeline Company, LLC, Producers Service, LLC, X-X Gas Gathering,
L.L.C. and Quest Cherokee Oilfield Service, LLC.
(b) Section 1.01 of the Credit Agreement is hereby amended to delete the
definition of "Pipeline" now contained therein and to substitute the following
therefor:
"Pipeline" means any pipeline owned and operated by the
Borrowers or their Subsidiaries.
(c) Section 1.01 of the Credit Agreement is hereby amended to delete
the last sentence of the definition of "Subsidiary" now contained therein and to
substitute the following therefore:
"Unless otherwise indicated herein, each reference to
the term `Subsidiary' shall mean a Subsidiary of one of the
Borrowers; provided however, that for the purposes of this
Agreement, `Subsidiary' shall not include Quest Midstream Partners,
Quest Midstream GP, or their respective subsidiaries."
3
(d) Section 1.01 of the Credit Agreement is hereby amended to add the
following sentence at the end of the definition of "Consolidated Net Income" now
contained therein:
"Notwithstanding the foregoing, the net income or loss
of Quest Midstream Partners, Quest Midstream GP and their
subsidiaries shall not be included in the Consolidated Net Income of
Borrowers even though such net income or loss is consolidated with
the net income or loss of Borrowers for purposes of GAAP, except to
the extent of the amount of dividends or distributions actually paid
in cash during such period by Quest Midstream Partners, Quest
Midstream GP or their subsidiaries to Borrowers or their
Consolidated Subsidiaries, as the case may be."
(e) Section 1.01 of the Credit Agreement is hereby amended to include
the following definitions in the appropriate alphabetical order:
"Contribution Agreement" means that certain Contribution,
Conveyance and Assumption Agreement, dated as of December 22, 2006,
among the Borrowers, Bluestem Pipeline, LLC, Quest Midstream Partners,
Quest Midstream GP, STP Cherokee, LLC, Quest Oil & Gas, LLC, Quest
Energy Service, LLC, Ponderosa Gas Pipeline Company, LLC, Producers
Service, LLC, and X-X Gas Gathering, L.L.C., attached hereto as
Exhibit H.
"Pledged Interests" shall have the meaning set forth in the
Security Agreement.
"Purchase Agreement" means that certain Purchase Agreement,
dated as of December 22, 2006, among Quest Midstream Partners, Quest
Midstream GP, QRC and the institutional investors named therein,
attached hereto as Exhibit I.
"Quest Midstream Partners" means Quest Midstream Partners,
L.P., a Delaware limited partnership. "Quest Midstream GP" means Quest
Midstream GP, LLC, a Delaware limited liability company.
"Restrictions on Pledged Interests" means, with respect to
Pledged Interests in Quest Midstream Partners and Quest Midstream GP,
rights and claims of third parties to such Pledged Interests created
under the organizational documents of Quest Midstream Partners or
Quest Midstream GP or under the Investors' Rights Agreement (as
defined in the Purchase Agreement).
"Transaction Documents" shall have the meaning set forth in
the Purchase Agreement.
4
(f) Section 9.03 of the Credit Agreement is hereby amended to add the
following clause (j) immediately after the existing clause (i):
"(j) Restrictions on Pledged Interests."
(g) Section 3.04(a)(ii) is hereby amended by deleting the current text
of and substituting the following therefore:
(ii) at any time after the first anniversary of the Effective
Date, optional prepayments shall be made at the prices (expressed as
percentages of the outstanding principal amount) set forth below, if
prepaid during each successive 12-month period beginning on June 10
of each year indicated below:
Year Prepayment Price
----------- ------------------
2007 102.5%
2008 101.25%
2009 100.5%
2010 and thereafter 100%
provided that, in any event, each prepayment is in an amount that is
an integral multiple of $1,000,000 and not less than $1,000,000, or
if such amount is less than $1,000,000, the outstanding principal
amount of the Loans. Accrued and unpaid interest on the principal
amount prepaid, all outstanding and unpaid fees and expenses, and
the prepayment price set forth in this Section 3.04(a), shall be
paid on the prepayment date.
(h) Section 9.05 of the Credit Agreement is hereby amended to add the
following clause (n) immediately after the existing clause (m):
"(n) Those transactions contemplated by the Contribution
Agreement, the Purchase Agreement and the other Transaction
Documents."
(i) Section 9.12 of the Credit Agreement is hereby amended to (i)
delete the word "and" before clause (e) appearing therein and (ii) insert the
following clause (f) at the end thereof:
"; and (f) sales contemplated under the Purchase
Agreement and the other Transaction Documents."
(j) Section 9.14 clause (a) of the Credit Agreement is hereby amended
and restated in its entirety as follows:
"(a) Investments under Section 9.05(i) and (n)"
5
(k) Section 9.14 of the Credit Agreement is hereby further amended to
delete the word "and" before clause (c) appearing therein and insert the
following clause (d) to the end thereof:
", and (d) the transactions contemplated by the
Contribution Agreement, the Purchase Agreement and the other
Transaction Documents."
(l) Section 9.16 of the Credit Agreement is hereby amended to delete
the period appearing at the end of such section and insert the following:
", other than the Restrictions on Pledged Interests."
(m) The Credit Agreement is hereby amended to add a true and correct
copy of the Contribution Agreement as Exhibit H to the Credit Agreement.
(n) The Credit Agreement is hereby amended to add a true and correct
copy of the Purchase Agreement as Exhibit I to the Credit Agreement.
(o) The Schedules to the Credit Agreement are hereby amended by
deleting the existing Schedules and substituting the attached Annex B therefore.
4. Amendment Fee. In consideration for the Lenders' consent to this
Amendment, the Borrowers hereby agree to pay to the Administrative Agent, for
the benefit of the Lenders under the Credit Agreement, a fee equal to 1.00% of
the aggregate amount of each Lender's Commitment. The Borrowers further agree to
convey to the Administrative Agent, for the benefit of the Lenders under the
Credit Agreement, 82,500 shares of restricted stock of QRC (the "Restricted
Shares") in further consideration of its consent to this Amendment. QRC shall
file a registration statement with respect to the Restricted Shares with the
Securities and Exchange Commission as soon as reasonably practicable, but in no
event later than January 19, 2007.
5. Conditions of Effectiveness. The effectiveness of this Amendment is
subject to the satisfaction of the conditions precedent that the Administrative
Agent shall have received (i) counterparts of this Amendment duly executed by
the Borrowers, the Lenders and the Administrative Agent, (ii) the payment of all
fees in accordance with this Amendment and (iii) each of the documents listed on
Annex D attached hereto.
6. Representations and Warranties of the Borrowers. The Borrowers
hereby represent and warrant as follows:
(a) This Amendment and the Credit Agreement as amended hereby,
constitute legal, valid and binding obligations of the Borrowers and are
enforceable against the Borrowers 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.
6
(b) As of the date hereof and giving effect to the terms of this
Amendment, (i) there exists no Default or Event of Default and (ii) the
representations and warranties of the Borrowers set forth in the Credit
Agreement and each other Loan Document shall be true and correct in all material
respects as of the date hereof (except those representations and warranties
which are limited to a specific date, which are true and correct in all material
respects as of such date and those representations and warranties already
qualified with respect to materiality, which shall be true and correct in all
respects).
7. Reference to and Effect on the Credit Agreement.
(a) Upon the effectiveness of this Amendment, each reference to the
Credit Agreement in the Credit Agreement or any other Loan Document shall mean
and be a reference to the Credit Agreement as amended hereby.
(b) Except as specifically amended above, the Credit Agreement and all
other documents, instruments and agreements executed and/or delivered in
connection therewith shall remain in full force and effect and are hereby
ratified and confirmed.
(c) The execution, delivery and effectiveness of this Amendment shall
not operate as a waiver of any right, power or remedy of the Administrative
Agent or the Lenders, nor (except as expressly provided herein) constitute a
waiver of any provision of the Credit Agreement or any other documents,
instruments and agreements executed and/or delivered in connection therewith.
8. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
9. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.
10. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.
[Signature Pages Follow]
7
IN WITNESS WHEREOF, this Amendment has been duly executed as of the
day and year first above written.
BORROWERS: QUEST CHEROKEE, LLC
By: /s/ Xxxxx X. Xxxx
-------------------------------------
Xxxxx X. Xxxx
Chief Executive Officer and President
QUEST RESOURCE CORPORATION
By: /s/ Xxxxx X. Xxxx
-------------------------------------
Xxxxx X. Xxxx
Chief Executive Officer and President
ADMINISTRATIVE AGENT: GUGGENHEIM CORPORATE FUNDING,
LLC, as Administrative Agent, Syndication
Agent, Sole Lead Arranger and Sole
Bookrunner
By: /s/ Xxxx Xxxxxx
-------------------------------------
Name: Xxxx Xxxxxx
Title: Managing Partner
LENDERS: MA DEEP EVENT, LTD
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Assistant Portfolio Manager
LENDERS: COPPER RIVER CLO LTD.
By: Guggenheim Investment Management, LLC
as Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: ORPHEUS HOLDINGS LLC
By: Guggenheim Investment Management, LLC
as its Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: KENNECOTT FUNDING LTD.
By: Guggenheim Investment Management, LLC
as Collateral Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: SANDS POINT FUNDING LTD.
By: Guggenheim Investment Management, LLC
as Collateral Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: ORPHEUS FUNDING LLC
By: Guggenheim Investment Management, LLC
as Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: DEL MAR MASTER FUND LTD.
By: /s/ Xxxx X. Xxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxx
Title: Director
LENDERS: GRAND CENTRAL ASSET TRUST, DHV SERIES
By: /s/ Xxxxx Xxxxx
-------------------------------------
Name: Xxxxx Xxxxx
Title: As Attorney In Fact
LENDERS: NZC OPPORTUNITIES LLC
By: Guggenheim Investment Management, LLC
as Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: GRAND CENTRAL ASSET TRUST, ARL SERIES
By: /s/ Xxxxx Xxxxx
-------------------------------------
Name: Xxxxx Xxxxx
Title: As Attorney In Fact
LENDERS: GREEN LANE CLO LTD.
By: Guggenheim Investment Management, LLC
as Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
LENDERS: STELLAR FUNDING, LTD.
By: Guggenheim Investment Management, LLC
as Manager
By: /s/ Xxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxx
Title: Managing Director
Annex A
to
Waiver and Amendment No. 1 to the Amended and
Restated Third Lien Term Loan Agreement
Contribution Agreement
[Attached as Exhibit 10.5 to Form 8-K
filed by Quest Resource Corporation on December 29, 2006]
Annex B
to
Waiver and Amendment No. 1 to the Amended and Restated
Third Lien Term Loan Agreement
Schedules to Credit Agreement
Schedule 7.03
-------------
Consents and Approvals
None.
Schedule 7.05
-------------
Litigation
None, other than those disclosed in QRC's filings with the Securities and
Exchange Commission.
Schedule 7.14
-------------
Liens
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $22,139.00 2002 Ford F-150 Must keep vehicle "free from
the claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Used 2003 Ford F-250 Must keep vehicle "free from
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $21,930.22 Truck the claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
$19,393.65
(36 month Equipment Lease. - lessee
Quest Cherokee Oilfield term ($2,000 2005 Ford F-150 does not have any "right,
Service, LLC (Lessee) Total Leasing (Lessor) residual Truck (leased title or interest in the
value at end vehicle) vehicle"
of 36 months)
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2004 Toyota Tacoma
along with any
accessories and
equipment installed
Quest Energy Service, Inc. Quality Toyota, Inc. $26,358.88 in the vehicle and May not sell or transfer the
any replacement vehicle without Seller's
parts installed in prior written consent.
the vehicle
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2000 Ford Truck
Super Duty 8800 and
all goods put on the
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $39,493.08 vehicle as well as
all money or goods Must keep vehicle "free from
received from the the claims of others"
vehicle
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $33,329.69 2001 Ford Truck Must keep vehicle "free from
F-150 Crew and all the claims of others"
parts or
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
other goods put on the
vehicle and all money
or goods received for
the vehicle
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Equipment Lease. - lessee
Quest Cherokee Oilfield $19,393.65 does not have any "right,
Service, LLC. (Lessee) (original title or interest in the
Total Leasing (Lessor) value) 2005 Ford F-150 Truck vehicle"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2003 Toyota Tacoma
Truck and all
Quest Energy Service, Inc. accessories May not sell or transfer the
Bartlesville Ford Co., Inc. $20,599.92 installed in the vehicle without Seller's
vehicle and proceeds prior written consent.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2004 Ford Truck Must keep vehicle "free from
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $37,784.90 Super Duty the claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2004 Chevrolet Borrower may not "transfer
Quest Cherokee Oilfield Silverado C1500, any interest" in the vehicle
Service, LLC Romans Motor Co., Inc. $22,907.31 extended cab and without prior written
proceeds consent.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Accounts receivable,
equipment, inventory
and real estate (see
Schedule attached to
agreement). Per Security Agreement,
Xxxxx Center Branch Bank Mortgage given on debtor may not encumber any
Quest Energy Service, Inc. (branch of Xxxxxx National $440,000 all debtor's real of the collateral without
Bank, Inc.) estate located in secured party's prior
Xxxxxx County, written consent
Kansas. Assignment
of Xxxx Xxxx life
insurance policy.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Borrower shall not create
any lien or security
interest or other
encumbrance on the
Quest Energy Service, Inc. Used, D5H collateral and doing so by
Caterpillar Financial Caterpillar Borrower constitutes an
Services Corporation $67,078.87 Track-Type Tractor event of default under the
agreement.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Borrower agrees to keep the
Quest Energy Service, Inc. 2002 Dodge Truck and vehicle "free from the
Xxxxxxx Motor Co., Inc. $42,029.11 all proceeds claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Borrower must keep
Quest Cherokee, LLC Xxxxx Xxxxx Xxxx, Inc. $17,951.47 Used 2001 Ford F-150 collateral free from all
(Commercial Bank is Assignee) and all proceeds liens.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Used Caterpillar
Telescopic Handler,
Approximately used Caterpillar Document is technically a
Quest Cherokee Oilfield Caterpillar Financial $196,839.72 Track-Type Tractor "lease" so title to the
Service, LLC (lessee) Services Corporation (lessor) (for "monthly and Caterpillar collateral remains in
rent" on Backhoe Loader and Lender's name until the
three items) all proceeds lease is fully paid off.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Used 2000 Toyota Borrower promises to keep
Quest Cherokee, LLC Xxxxx Xxxxx Xxxx, Inc. Tacoma and all collateral free from liens
(Assignee Commercial Bank) $16,878.47 proceeds and other security interests
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Approximately
$103,381.20
Quest Energy Service, Inc. ($1,723.02
(lessee) Caterpillar Financial monthly Caterpillar Title to collateral remains
Services Corporation (lessor) payments for Tract-Type Tractor with Lender because document
60 months) is a "finance lease"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Form of contract suggests
Quest Energy Service, Inc. Chrysler Financial Corporation $28,454.06 2001 Dodge 3500 Quad vehicle must be kept "free
Cab from the claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee, LLC Xxxxx Xxxxx Xxxx, Inc. $16,717.52 2001 Ford Truck and contract suggests vehicle
(Assignee is Commercial Bank) all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Borrower needs Lender's
Quest Cherokee, LLC Xxxxx Xxxxx Xxxx, Inc. $17,790.52 2001 Ford Sport Trac consent to "dispose of any
(Assignee is Commercial Bank) XLT and all proceeds rights in the collateral"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Xxxx Xxxx is debtor of Borrower agrees not to
record, but vehicle is used 1991 Freightliner "encumber the property
in business and is being paid Community National Bank $29,495.40 with 2001 Dump Bed without prior consent of
by Quest. and 1979 Adol Trainer lender.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
DaimlerChrysler Services Used Didge model Borrower may not create a
Quest Energy Service, Inc. North America, LLC $19,900 1500 and all proceeds lien on equipment.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
2003 Ford Truck
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $37,699.47 Super Duty and all Must keep vehicle "free from
proceeds the claims of others."
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
2004 Ford Truck attached, but form of
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $40,046.73 Super Duty and all contract suggests vehicle
proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Fiat Allis FD80H Borrower reps and warrants
Quest Cherokee, LLC FCC Equipment Financing, Inc. $36,473 Crawler Dozer and that collateral will be kept
proceeds free from all liens.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Default under agreement for
Quest Energy Service, Inc. CAT Financial $20,025.50 Misc. Equipment collateral to become subject
to any lien.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Equipment No information
Quest Energy Service, Inc. Caterpillar Financial Lease; No listed, but lessor
(lessee) Services Corporation (lessor) information suggests it is farm Equipment Lease.
included. equipment.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Equipment No information
Quest Energy Service, Inc. Caterpillar Financial Lease; No listed, but lessor
(lessee) Services Corporation (lessor) information suggests it is farm Equipment Lease.
included. equipment.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Equipment No information
Quest Energy Service, Inc. Caterpillar Financial Lease; No listed, but lessor
(lessee) Services Corporation (lessor) information suggests it is farm Equipment Lease.
included. equipment.
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxx Xxxxxx Downtown Ford $25,485 2005 Ford F150 and contract suggests vehicle
Service, LLC proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
STP Cherokee, Inc. Xxxxx Xxxxx Xxxx, Inc. $36,402.50 2003 Ford Truck and contract suggests vehicle
all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
2004 Ford Truck attached, but form of
Quest Energy Service, Inc. Xxxxx Xxxxx Xxxx, Inc. $40,173.52 Super Duty and all contract suggests vehicle
proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee, LLC Xxxxx Xxxxx Xxxx, Inc. $36,949.83 2004 Ford F150 and contract suggests vehicle
all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $23,266.19 2003 Ford F150 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $38,683.46 2005 Ford F250 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $16,038.50 2001 Toyota Tundra contract suggests vehicle
Service, LLC and all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $25,126.21 2004 Ford F150 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $37,699.59 2005 Ford F250 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
ORIGINAL
BORROWER PRINCIPAL
LENDER AMOUNT COLLATERAL NEGATIVE PLEDGE
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $27,488.52 2003 Ford F350 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
2005 Gooseneck attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $8,218.04 Trailer and all contract suggests vehicle
Service, LLC proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $22,611.30 2005 Ford F150 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
No terms and conditions
attached, but form of
Quest Cherokee Oilfield Xxxxx Xxxxx Xxxx, Inc. $23,865.63 2005 Ford F150 and contract suggests vehicle
Service, LLC all proceeds must be kept "free from the
claims of others"
------------------------------- ------------------------------- --------------- ---------------------- -----------------------------
Schedule 7.15
Direct and Indirect Subsidiaries
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Principal Place of
Company Legal Name Type of Organization Business/Chief Executive State of
Entity Manner of Ownership ID Office Formation
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Limited 100% of membership Quest Cherokee, LLC
STP Cherokee, LLC Liability owned by Quest 0000 Xxxxx Xxx Xxx., Xxx 000
Company Resource Corporation n/a Xxxxxxxx Xxxx, XX 00000 Oklahoma
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Limited 100% of membership Quest Cherokee, LLC
Quest Oil & Gas, Liability owned by Quest 4009973 0000 Xxxxx Xxx Xxx., Xxx 000 Kansas
LLC Company Resource Corporation Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Limited 100% of membership Quest Cherokee, LLC
Quest Energy Liability owned by Quest 4009940 0000 Xxxxx Xxx Xxx., Xxx 000 Kansas
Service, LLC Company Resource Corporation Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Ponderosa Gas Limited 100% of membership Quest Cherokee, LLC
Pipeline Company, Liability owned by Quest 4009957 0000 Xxxxx Xxx Xxx., Xxx 000 Kansas
LLC Company Resource Corporation Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Limited 100% of membership Quest Cherokee, LLC
Producers Liability owned by Ponderosa Gas 4010005 0000 Xxxxx Xxx Xxx., Xxx 000 Xxxxxx
Service, LLC Company Pipeline Company, LLC Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Limited 100% of the membership Quest Cherokee, LLC
X-X Gas Liability interests owned by 2539211 0000 Xxxxx Xxx Xxx., Xxx 000 Xxxxxx
Gathering, L.L.C. Company Producers Service, LLC Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
All units owned by
Quest Cherokee, Limited entities as set forth Quest Cherokee, LLC
LLC Liability on attached 3739332 0000 Xxxxx Xxx Xxx., Xxx 000 Xxxxxxxx
Company organizational chart Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
Quest Cherokee Limited 100% of the membership Quest Cherokee, LLC
Oilfield Service, Liability interests owned by 3842508 0000 Xxxxx Xxx Xxx., Xxx 000 Xxxxxxxx
LLC Company Quest Cherokee, LLC Xxxxxxxx Xxxx, XX 00000
------------------- -------------- ------------------------ -------------- ------------------------------ ------------
ORGANIZATIONAL CHART
[GRAPHIC OMITTED]
Schedule 7.19
-------------
Gas Imbalances
None.
Schedule 7.20
-------------
Marketing Contracts
None.
Schedule 9.05
-------------
Investments
None.
Schedule 7.21
-------------
QUEST CHEROKEE LLC
QUEST RESOURCE CORPORATION
Swap Agreements in Effect(1)
Involving Quest Cherokee LLC
Commodity Transactions
Notional Amount or Net Xxxx to
------------------ -----------
Type Original Effective Termination Volume; Calculation Market Value Credit Support Original
---- -------- --------- ----------- ------------------- ------------ -------------- --------
Term Date Date Period; and Index (N/A) Agreements Counterparty I.D. No.
---- ---- ---- ----------------- ----- ---------- ------------ --------
Security Instruments and BP Corporation
Commodity cap any other collateral North America,
(natural gas) 6,140 MMBTU daily under the Senior Credit Inc., as
12 months 1/01/07 12/31/07 (Southern Star) $- Agreement and the letter successor to 1374721
@ $8.63 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity floor 6,140 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/07 12/31/07 (Southern Star) $- Agreement and the letter successor to 1374722
@ $8.00 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity cap 6,963 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/07 12/31/07 (Southern Star) $- Agreement and the letter successor to 1371875
@ $9.02 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity floor 6,963 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/07 12/31/07 (Southern Star) $- Agreement and the letter successor to 1371876
@ $8.00 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity cap 5,854 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/08 12/31/08 (Southern Star) $- Agreement and the letter successor to 1374725
@ $8.93 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity floor 5,854 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/08 12/31/08 (Southern Star) $- Agreement and the letter successor to 1374730
@ $8.00 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity cap 5,378 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/08 12/31/08 (Southern Star) $- Agreement and the letter successor to 1371879
@ $9.02 of credit UBS Energy LLC
Security Instruments and BP Corporation
Commodity floor 5,378 MMBTU daily any other collateral North America,
(natural gas) 12 months 1/01/08 12/31/08 (Southern Star) $- Agreement and the letter successor to 1371880
@ $8.00 of credit UBS Energy LLC
-------------------------------------
1 This Schedule reflects activity entered into post November 2005.
Basis Differential Lock Transactions
Security Instruments and BP Corporation
20,382 MMBTU daily any other collateral North America,
Basis Lock 6 months 7/01/06 12/31/06 (Southern Star) $- Agreement and the letter successor to 1392555
@ $1.20 of credit UBS Energy LLC
Security Instruments and BP Corporation
5,000 MMBTU daily any other collateral North America,
Basis Lock 12 months 1/01/07 12/31/07 (Southern Star) $- Agreement and the letter successor to 1402236
@ $1.15 of credit UBS Energy LLC
Security Instruments and BP Corporation
4,000 MMBTU daily any other collateral North America,
Basis Lock 12 months 1/01/08 12/31/08 (Southern Star) $- Agreement and the letter successor to 1402247
@ $1.03 of credit UBS Energy LLC
Interest Rate Transactions
None.
Involving Quest Resource Corporation
None.
Involving subsidiaries of Quest Cherokee LLC and Quest Resource Corporation
None.
Annex C
to
Waiver and Amendment No. 1 to the Amended and Restated
Third Lien Term Loan Agreement
Purchase Agreement
[Attached as Exhibit 10.1 to Form 8-K
filed by Quest Resource Corporation on December 29, 2006]
Annex D
to
Waiver and Amendment No. 1 to the Amended and Restated
Third Lien Term Loan Agreement
Closing List
CLOSING CHECKLIST
AMENDMENTS TO CREDIT FACILITIES
FOR
QUEST RESOURCE CORPORATION and
QUEST CHEROKEE, LLC
December 22, 2006
(19932-12580)
QRC Quest Resource Corporation Subsidiaries (7) STP Cherokee, LLC
Quest Cherokee Quest Cherokee, LLC Quest Oil & Gas, LLC
Guggenheim Guggenheim Corporate Funding, LLC Quest Energy Service, LLC
XX Xxxxxx Austin LLP Ponderosa Gas Pipeline Company, LLC
Xxxxxxx Xxxxxxx Xxxxxxxx Xxxxxx LLP Producers Service, LLC
X-X Gas Gathering, L.L.C.
Quest Cherokee Oilfield Service, LLC
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
I. Transaction Documents
---------------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
1. Waiver and Amendment No. 2 to Amended and SA [X] QRC [X] Xxxxxxxxxxxxx XX 0000000
Restated Senior Credit Agreement Mutual Life Ins. Co.
[X] Quest Cherokee [X] Orpheus Holdings
LLC
[X] Guggenheim
[X] Orpheus Funding LLC
[X] Xxxxx Fargo
Foothill [X] Kennecott Funding
Ltd.
[X] Midland National
Life Insurance Co. [X] Sands Point Funding
Ltd.
[X] North American
Company For Life [X] Copper River CLO
Ltd.
[X] Green Lane CLO
Ltd.
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
2. Waiver and Amendment No. 1 to Amended and SA [X] QRC [ ] Xxxxx Xxxxx XX, Xxx. XX 0000000
Restated Second Lien Term Loan Agreement
[X] Quest Cherokee [ ] Field Point IV, Ltd.
[X] Guggenheim [ ] Field Point III, Ltd.
[X] MA Mutual Life [ ] Xxxxx Fargo Energy
Ins. Co. Capital, Inc.
[X] Del Mar Master [X] Xxxxxxxxxxx Capital
Fund Ltd. Master Fund
[X] Seal Rock [X] Orpheus Holdings LLC
Offshore Funding,
L.L.C. [X] Orpheus Funding LLC
[ ] SPF CDO I, LLC
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
3. Waiver and Amendment No. 1 to Third SA [X] QRC [X] Xxxxx Xxxxx Xxxxxxx XX 0000000
Lien Term Loan Agreement Ltd.
[X] Quest Cherokee
[X] Orpheus Funding LLC
[X] Guggenheim
[X] Del Mar Master Fund
[X] MA Deep Event Ltd.
[X] Copper River CLO [X] Grand Central Asset
Trust, DHV Series
[X] Orpheus Holdings
LLC [X] NZC Opportunities
[X] Kennecott Funding [X] Grand Central Asset
Ltd. Trust, ARL
[X] Green Lane CLO [X] Stellar Funding
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
4. Joinder Agreement SA [X] QRC [X] Massachusetts Mutual NY 6001879
Life Ins. Co.
[X] Quest Cherokee
[X] Orpheus Holdings LLC
[X] Bluestem
[X] Orpheus Funding LLC
[X] Guggenheim
[X] Kennecott Funding
[X] Xxxxx Fargo Ltd.
Foothill
[X] Sands Point Funding
[X] Midland National Ltd.
Life Insurance Co.
[X] Copper River CLO
[X] North American Ltd.
Company For Life
[X] Green Lane CLO
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
5. Second Amended and Restated Security SA [X] QRC CH 3689379
Agreement (Senior)
[X] Quest Cherokee
[X] Quest Subs (7)
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
6. Second Amended and Restated Security SA [X] QRC CH 3689377
Agreement (2d Lien)
[X] Quest Cherokee
[X] Quest Subs (7)
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
7. Amended and Restated Security Agreement SA [X] QRC CH 3689426
(3rd Lien)
[X] Quest Cherokee
[X] Quest Subs (7)
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
8. Amended and Restated Guaranty (Senior) SA [X] Quest Subs (7) CH 3689360
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
9. Amended and Restated Guaranty (2nd Lien) SA [X] Quest Subs (7) CH 3689346
[X] Guggenheim
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
10. Amended and Restated Guaranty (3rd Lien) SA [ ] Quest Subs (7) CH 3689354
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
11. Bluestem Release (Senior) SA [X] QRC CH 3658003
[X] Quest Cherokee
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
12. Bluestem Release (2d Lien) SA [X] QRC CH 3690880
[X] Quest Cherokee
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
13. Bluestem Release (3rd Lien) SA [X] QRC CH 3690886
[X] Quest Cherokee
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
14. Fee Letter SA [X] XXX XX 0000000
[X] Quest Cherokee
[X] Guggenheim
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
III. Organizational Documents & Certificates
---------------------------------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
15. Secretary's Certificate of QRC including Xxxxxxx [X] QRC
incumbency attaching:
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Articles of Incorporation
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
By-Laws
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Resolutions
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Good Standings
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
16. Secretary's Certificate of the Quest Cherokee Xxxxxxx [X] Quest Cherokee
including incumbency attaching:
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Certificate of Organization
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
LLC Agreement
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Resolutions
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Good Standings
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
17. Secretary's Certificate for each Subsidiary Xxxxxxx [X] Quest Cherokee
of QRC including incumbency attaching: Oilfield Service
[X] Quest Energy
Service
[X] Quest Oil & Gas
[X] STP Cherokee
[X] X-X Gas Gathering
[X] Ponderosa Gas
Pipeline
[X] Producers Service
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Certificates of Incorporation
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
LLC Agreements
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Resolutions
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
Good Standings
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
IV. UCC Matters
-----------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
18. UCC Searches SA
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
19. UCC-1s with respect to KS LLCs SA
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
20. UCC-3 Termination with respect to Bluestem SA
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
21. Perfection Certificate Xxxxxxx [X] QRC
[X] Quest Cherokee
[X] Quest Cherokee
Oilfield Service
[X] Quest Energy Service
[X] Quest Oil & Gas
[X] STP Cherokee
[X] X-X Gas Gathering
[X] Ponderosa Gas Pipeline
[X] Producers Service
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
====== =============================================== ============= ===================== ======================== ===============
Document Responsible Signatories Signatories Sidley Document
Party Number
====== =============================================== ============= ===================== ======================== ===============
V. Miscellaneous
-------------
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
22. Compliance Certificate Xxxxxxx [X] QRC
[X] Senior [X] Quest Cherokee
[X] 2d Lien
[X] 3rd Lien
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
23. Responsible Officer Certificate Xxxxxxx [X] QRC
[X] Senior [X] Quest Cherokee
[X] 2d Lien
[ ] 3rd Lien
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
24. Delivery of Pledged Equity Certificates and Xxxxxxx
Powers in Blank (in new names)
------ ----------------------------------------------- ------------- --------------------- ------------------------ ---------------
25. Purchase Agreement including Disclosure Xxxxxxx
Schedule
Transaction Documents as defined in the
Purchase Agreement
[X] Contribution, Conveyance and Assumption
Agreement
[X] Registration Rights Agreement
[X] Investors' Rights Agreement
[X] Midstream Agreement
[X] Omnibus Agreement
[X] GP LLC Agreement
====== =============================================== ============= ===================== ======================== ===============
