Indenture Dated June 30, 2004



 Exhibit 4.1 
  
 EXECUTION COPY 
  

  
 PLAINS EXPLORATION & PRODUCTION
COMPANY 
  
 THE SUBSIDIARY GUARANTORS PARTIES HERETO, 

 
 AND 
  
 WELLS FARGO BANK, N.A., 
 AS TRUSTEE 
  
 7 1/8% Senior Notes due 2014 
  

  
 INDENTURE 
  
 Dated as of June 30, 2004 
  

  








 Table of Contents 
  

					
	 	 	 	 	Page


	ARTICLE I	 	 
		
	 Definitions and Incorporation by Reference
	 	1
			
	 SECTION 1.1.
	 	Definitions	 	1
	 SECTION 1.2.
	 	Other Definitions	 	35
	 SECTION 1.3.
	 	Incorporation by Reference of Trust Indenture Act	 	37
	 SECTION 1.4.
	 	Rules of Construction	 	38
		
	ARTICLE II	 	 
		
	 The Securities
	 	38
			
	 SECTION 2.1.
	 	Form, Dating and Terms	 	38
	 SECTION 2.2.
	 	Execution and Authentication	 	45
	 SECTION 2.3.
	 	Registrar and Paying Agent	 	46
	 SECTION 2.4.
	 	Paying Agent to Hold Money in Trust	 	47
	 SECTION 2.5.
	 	Securityholder Lists	 	47
	 SECTION 2.6.
	 	Transfer and Exchange	 	47
	 SECTION 2.7.
	 	Form of Certificate to be Delivered in Connection with Transfers to Institutional Accredited Investors	 	50
	 SECTION 2.8.
	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S	 	52
	 SECTION 2.9.
	 	Mutilated, Destroyed, Lost or Wrongfully Taken Securities	 	53
	 SECTION 2.10.
	 	Outstanding Securities	 	54
	 SECTION 2.11.
	 	Cancellation	 	55
	 SECTION 2.12.
	 	Payment of Interest; Defaulted Interest	 	55
	 SECTION 2.13.
	 	Computation of Interest	 	56
	 SECTION 2.14.
	 	CUSIP Numbers	 	56
		
	ARTICLE III	 	 
		
	 Covenants
	 	56
			
	 SECTION 3.1.
	 	Payment of Securities	 	56
	 SECTION 3.2.
	 	Reports	 	57
	 SECTION 3.3.
	 	Limitation on Indebtedness	 	57
	 SECTION 3.4.
	 	Limitation on Restricted Payments	 	60
	 SECTION 3.5.
	 	Limitation on Liens	 	65
	 SECTION 3.6.
	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries	 	65
	 SECTION 3.7.
	 	Limitation on Sales of Assets and Subsidiary Stock	 	68
	 SECTION 3.8.
	 	Limitation on Affiliate Transactions	 	70
	 SECTION 3.9.
	 	Change of Control	 	72
	 SECTION 3.10.
	 	Future Subsidiary Guarantors	 	74
	 SECTION 3.11.
	 	Limitation on Lines of Business	 	74

  

 ii 









					
	 SECTION 3.12.
	 	Effectiveness of Covenants	 	74
	 SECTION 3.13.
	 	Maintenance of Office or Agency	 	74
	 SECTION 3.14.
	 	Corporate Existence	 	75
	 SECTION 3.15.
	 	Payment of Taxes and Other Claims	 	75
	 SECTION 3.16.
	 	Compliance Certificate	 	75
	 SECTION 3.17.
	 	Further Instruments and Acts	 	76
	 SECTION 3.18.
	 	Statement by Officers as to Default	 	76
		
	ARTICLE IV	 	 
		
	 Successor Issuer
	 	76
			
	 SECTION 4.1.
	 	Merger and Consolidation	 	76
		
	ARTICLE V	 	 
		
	 Redemption of Securities
	 	77
			
	 SECTION 5.1.
	 	Optional Redemption	 	77
	 SECTION 5.2.
	 	Applicability of Article	 	77
	 SECTION 5.3.
	 	Election to Redeem; Notice to Trustee	 	77
	 SECTION 5.4.
	 	Selection by Trustee of Securities to Be Redeemed	 	78
	 SECTION 5.5.
	 	Notice of Redemption	 	78
	 SECTION 5.6.
	 	Deposit of Redemption Price	 	79
	 SECTION 5.7.
	 	Securities Payable on Redemption Date	 	79
	 SECTION 5.8.
	 	Securities Redeemed in Part	 	80
		
	ARTICLE VI	 	 
		
	 Defaults and Remedies
	 	80
			
	 SECTION 6.1.
	 	Events of Default	 	80
	 SECTION 6.2.
	 	Acceleration	 	82
	 SECTION 6.3.
	 	Other Remedies	 	83
	 SECTION 6.4.
	 	Waiver of Past Defaults	 	83
	 SECTION 6.5.
	 	Control by Majority	 	83
	 SECTION 6.6.
	 	Limitation on Suits	 	84
	 SECTION 6.7.
	 	Rights of Holders to Receive Payment	 	84
	 SECTION 6.8.
	 	Collection Suit by Trustee	 	84
	 SECTION 6.9.
	 	Trustee May File Proofs of Claim	 	84
	 SECTION 6.10.
	 	Priorities	 	85
	 SECTION 6.11.
	 	Undertaking for Costs	 	85
	 SECTION 6.12.
	 	Additional Payments	 	85
	 SECTION 6.13.
	 	Waiver of Stay	 	86
		
	ARTICLE VII	 	 
			
	 Trustee
	 	 	 	86
			
	 SECTION 7.1.
	 	Duties of Trustee	 	86
	 SECTION 7.2.
	 	Rights of Trustee	 	87

  

 iii 









					
	 SECTION 7.3.
	 	Individual Rights of Trustee	 	89
	 SECTION 7.4.
	 	Trustee’s Disclaimer	 	89
	 SECTION 7.5.
	 	Notice of Defaults	 	89
	 SECTION 7.6.
	 	Reports by Trustee to Holders	 	89
	 SECTION 7.7.
	 	Compensation and Indemnity	 	89
	 SECTION 7.8.
	 	Replacement of Trustee	 	90
	 SECTION 7.9.
	 	Successor Trustee by Merger	 	91
	 SECTION 7.10.
	 	Eligibility; Disqualification	 	91
	 SECTION 7.11.
	 	Preferential Collection of Claims Against Issuer	 	91
		
	ARTICLE VIII	 	 
		
	 Discharge of Indenture; Defeasance
	 	92
			
	 SECTION 8.1.
	 	Discharge of Liability on Securities; Defeasance	 	92
	 SECTION 8.2.
	 	Conditions to Defeasance	 	93
	 SECTION 8.3.
	 	Application of Trust Money	 	94
	 SECTION 8.4.
	 	Repayment to Issuer	 	94
	 SECTION 8.5.
	 	Indemnity for U.S. Government Obligations	 	95
	 SECTION 8.6.
	 	Reinstatement	 	95
		
	ARTICLE IX	 	 
		
	 Amendments
	 	95
			
	 SECTION 9.1.
	 	Without Consent of Holders	 	95
	 SECTION 9.2.
	 	With Consent of Holders	 	96
	 SECTION 9.3.
	 	Compliance with Trust Indenture Act	 	97
	 SECTION 9.4.
	 	Revocation and Effect of Consents and Waivers	 	97
	 SECTION 9.5.
	 	Notation on or Exchange of Securities	 	97
	 SECTION 9.6.
	 	Trustee To Sign Amendments	 	98
		
	ARTICLE X	 	 
		
	 Subsidiary Guarantee
	 	98
			
	 SECTION 10.1.
	 	Subsidiary Guarantee	 	98
	 SECTION 10.2.
	 	Limitation on Liability; Termination, Release and Discharge	 	99
	 SECTION 10.3.
	 	Limitation of Subsidiary Guarantors’ Liability	 	100
	 SECTION 10.4.
	 	Contribution	 	101
		
	ARTICLE XI	 	 
		
	 Miscellaneous
	 	101
			
	 SECTION 11.1.
	 	Trust Indenture Act Controls	 	101
	 SECTION 11.2.
	 	Notices	 	101
	 SECTION 11.3.
	 	Communication by Holders with other Holders	 	102
	 SECTION 11.4.
	 	Certificate and Opinion as to Conditions Precedent	 	102
	 SECTION 11.5.
	 	Statements Required in Certificate or Opinion	 	103
	 SECTION 11.6.
	 	When Securities Disregarded	 	103

  

 iv 









					
	 SECTION 11.7.
	 	Rules by Trustee, Paying Agent and Registrar	 	103
	 SECTION 11.8.
	 	Legal Holidays	 	103
	 SECTION 11.9.
	 	GOVERNING LAW	 	104
	 SECTION 11.10.
	 	No Recourse Against Others	 	104
	 SECTION 11.11.
	 	Successors	 	104
	 SECTION 11.12.
	 	Multiple Originals	 	104
	 SECTION 11.13.
	 	Qualification of Indenture	 	104
	 SECTION 11.14.
	 	Severability	 	104
	 SECTION 11.15.
	 	No Adverse Interpretation of Other Agreements	 	104
	 SECTION 11.16.
	 	Table of Contents; Headings	 	104

  

			
	 EXHIBIT A
	  	Form of the Note
	 EXHIBIT B
	  	Form of the Exchange Note
	 EXHIBIT C
	  	Form of Subsidiary Guarantee

  

 v 








 CROSS-REFERENCE TABLE 
  

			
	 TIA Section

	  	Indenture
Section


	 310(a)(1)
	  	7.10
	  (a)(2)
	  	7.10
	  (a)(3)
	  	N.A.
	  (a)(4)
	  	N.A.
	  (b)
	  	7.8; 7.10
	  (c)
	  	N.A.
	 311(a)
	  	7.11
	  (b)
	  	7.11
	  (c)
	  	N.A.
	 312(a)
	  	2.5
	  (b)
	  	11.3
	  (c)
	  	11.3
	 313(a)
	  	7.6
	  (b)(1)
	  	7.6
	  (b)(2)
	  	7.6
	  (c)
	  	7.6
	  (d)
	  	7.6
	 314(a)
	  	3.2; 11.2
	  (b)
	  	N.A.
	  (c)(1)
	  	11.4
	  (c)(2)
	  	11.4
	  (c)(3)
	  	N.A.
	  (d)
	  	N.A.
	  (e)
	  	11.5
	 315(a)
	  	7.1
	  (b)
	  	7.5; 11.2
	  (c)
	  	7.1
	  (d)
	  	7.1
	  (e)
	  	6.11
	 316(a)(last sentence)
	  	11.6
	  (a)(1)(A)
	  	6.5
	  (a)(1)(B)
	  	6.4
	  (a)(2)
	  	N.A.
	  (b)
	  	6.7
	 317(a)(1)
	  	6.8
	  (a)(2)
	  	6.9
	  (b)
	  	2.4
	 318(a)
	  	11.1

  
 N.A. means Not
Applicable. 
  
 Note: This Cross-Reference Table shall not, for any purpose, be
deemed to be part of this Indenture. 
  









 INDENTURE dated as of June 30, 2004, among PLAINS EXPLORATION & PRODUCTION COMPANY, a Delaware
corporation (the “Issuer”), the SUBSIDIARY GUARANTORS (as defined herein) and WELLS FARGO BANK, N.A., a national banking association, as trustee (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other parties and for the
equal and ratable benefit of the Holders of (i) the Issuer’s 7 1/8% Senior Notes due 2014, issued on the
date hereof (the “Initial Securities”), (ii) if and when issued, an unlimited principal amount of additional 7 1/8% Senior Notes due 2014 in a non-registered offering or in a registered offering of the Issuer that may be offered from time to time subsequent to the Issue Date (the “Additional Securities”) and (iii) if
and when issued, the Issuer’s 7 1/8% Senior Notes due 2014 that may be issued from time to time in exchange
for Initial Securities or any Additional Securities in an offer registered under the Securities Act as provided in the Registration Rights Agreement (as hereinafter defined the “Exchange Securities,” and together with the Initial
Securities and Additional Securities, the “Securities”). 
  
 ARTICLE I 
  
 Definitions and
Incorporation by Reference 
  
 SECTION 1.1.
Definitions. 
  
 “Additional Assets” means
(1) any property or assets (other than Indebtedness and Capital Stock) to be used by the Issuer or a Restricted Subsidiary in a Related Business; (2) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition
of such Capital Stock by the Issuer or a Restricted Subsidiary of the Issuer; or (3) Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary of the Issuer; provided, however, that, in the case
of clauses (2) and (3), such Restricted Subsidiary is primarily engaged in a Related Business. 
  
 “Additional Interest” has the meaning set forth in the Registration Rights Agreement. 
  
 “Additional Securities” has the meaning ascribed to it in the second introductory paragraph of this Indenture. 
  
 “Adjusted Consolidated Net Tangible Assets” means (without
duplication), as of the date of determination, the remainder of: 
  

	 	(1)	the sum of: 

  

	 	(a)	 discounted future net revenues from proved oil and gas reserves of the Issuer and its Restricted Subsidiaries calculated in accordance with Commission guidelines
before any provincial, territorial, state, Federal or foreign income taxes, as estimated by the Issuer in a reserve report prepared as of the end of the Issuer’s most recently completed fiscal year for which audited financial statements are




  










	 	 
available and giving effect to applicable Commodity Agreements, as increased by, as of the date of determination, the estimated discounted future net
revenues from 


  

	 	(i)	estimated proved oil and gas reserves acquired since such year end, which reserves were not reflected in such year end reserve report, and 

  

	 	(ii)	estimated oil and gas reserves attributable to upward revisions of estimates of proved oil and gas reserves since such year end due to exploration, development or exploitation
activities, in each case calculated in accordance with Commission guidelines, 

  
 and decreased by, as of the date of determination, the estimated discounted future net revenues from 
  

	 	(iii)	estimated proved oil and gas reserves produced or disposed of since such year end, and 

  

	 	(iv)	estimated oil and gas reserves attributable to downward revisions of estimates of proved oil and gas reserves since such year end due to changes in geological conditions or other
factors which would, in accordance with standard industry practice, cause such revisions, in each case calculated on a pre-tax basis and substantially in accordance with Commission guidelines, in each case as estimated by the Issuer’s petroleum
engineers or any independent petroleum engineers engaged by the Issuer for that purpose; 

  

	 	(b)	the capitalized costs that are attributable to oil and gas properties of the Issuer and its Restricted Subsidiaries to which no proved oil and gas reserves are attributable, based
on the Issuer’s books and records as of a date no earlier than the date of the Issuer’s latest available annual or quarterly financial statements; 

  

	 	(c)	the Net Working Capital on a date no earlier than the date of the Issuer’s latest annual or quarterly financial statements; and 

  

	 	(d)	the greater of 

  

	 	(i)	the net book value of other tangible assets of the Issuer and its Restricted Subsidiaries, as of a date no earlier than the date of the Issuer’s latest annual or quarterly
financial statement, and 

  

 2 









	 	(ii)	the appraised value, as estimated by independent appraisers, of other tangible assets of the Issuer and its Restricted Subsidiaries, as of a date no earlier than the date of the
Issuer’s latest audited financial statements (provided that the Issuer shall not be required to obtain such appraisal solely for the purpose of determining this value); minus 

  

	 	(2)	the sum of: 

  

	 	(a)	Minority Interests; 

  

	 	(b)	any net gas balancing liabilities of the Issuer and its Restricted Subsidiaries reflected in the Issuer’s latest audited financial statements; 

  

	 	(c)	to the extent included in (a)(i) above, the discounted future net revenues, calculated in accordance with Commission guidelines (utilizing the prices utilized in the Issuer’s
year end reserve report), attributable to reserves which are required to be delivered to third parties to fully satisfy the obligations of the Issuer and its Restricted Subsidiaries with respect to Volumetric Production Payments (determined, if
applicable, using the schedules specified with respect thereto); and 

  

	 	(d)	the discounted future net revenues, calculated in accordance with Commission guidelines, attributable to reserves subject to Dollar-Denominated Production Payments which, based on
the estimates of production and price assumptions included in determining the discounted future net revenues specified in (a)(i) above, would be necessary to fully satisfy the payment obligations of the Issuer and its Subsidiaries with respect to
Dollar-Denominated Production Payments (determined, if applicable, using the schedules specified with respect thereto). 

  
 If the Issuer changes its method of accounting from the full cost or a similar method to the successful efforts method of accounting, “Adjusted
Consolidated Net Tangible Assets” will continue to be calculated as if the Issuer were still using the full cost or a similar method of accounting. 
  
 “Adjusted Net Assets” of a Subsidiary Guarantor at any date means the amount by which the fair value of the Properties and assets of such
Subsidiary Guarantor exceeds the total amount of liabilities, including, without limitation, contingent liabilities (after giving effect to all other fixed and contingent liabilities incurred or assumed on such date), but excluding liabilities under
its Subsidiary Guarantee, of such Subsidiary Guarantor at such date. 
  
 “Affiliate” of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition,
“control” when used with respect to any Person 

  

 3 








 
means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Asset Disposition” means any direct or indirect sale, lease (other than an operating lease entered into in the ordinary course of
business), transfer, issuance or other disposition, or a series of related sales, leases, transfers, issuances or dispositions that are part of a common plan, of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each referred to for the purposes of this definition as a “disposition”) by the Issuer or any of its Restricted Subsidiaries, including any disposition by means of a merger, consolidation or similar transaction.

  
 Notwithstanding the preceding, the following items shall not
be deemed to be Asset Dispositions: 
  

	 	(1)	a disposition by a Restricted Subsidiary to the Issuer or a Subsidiary Guarantor or by the Issuer to a Subsidiary Guarantor; 

  

	 	(2)	the transfer of cash and Cash Equivalents in the ordinary course of business; 

  


	 	(3)	a disposition of Hydrocarbons or mineral products inventory in the ordinary course of business; 

  

	 	(4)	a disposition of obsolete or worn out equipment or equipment that is no longer useful in the conduct of the business of the Issuer and its Restricted Subsidiaries and that is
disposed of in each case in the ordinary course of business; 

  

	 	(5)	transactions permitted under Section 4.1; 

  

	 	(6)	an issuance of Capital Stock by a Restricted Subsidiary of the Issuer to the Issuer or to a Restricted Subsidiary; 

  

	 	(7)	for purposes of Section 3.7 only, the making of a Permitted Investment or a disposition that constitutes a Restricted Payment permitted under Section 3.4;


  

	 	(8)	dispositions of assets in a single or series of related transactions with an aggregate fair market value of less than $5.0 million per transaction; 

  

	 	(9)	dispositions in connection with Permitted Liens; 

  

	 	(10)	any Change of Control; 

  

	 	(11)	dispositions of defaulted accounts receivable to any collection agency; 

  

 4 









	 	(12)	the licensing or sublicensing of intellectual property or other general intangibles and licenses, leases or subleases of other property in the ordinary course of business and which
do not materially interfere with the business of the Issuer and its Restricted Subsidiaries; 

  

	 	(13)	foreclosure on assets; 

  

	 	(14)	the sale or transfer (whether or not in the ordinary course of business) of crude oil and natural gas properties or direct or indirect interests in real property; provided
that at the time of such sale or transfer such properties do not have associated with them any proved reserves; 

  

	 	(15)	the farm-out, lease or sublease of developed or undeveloped crude oil and natural gas Property owned or held by the Issuer or such Restricted Subsidiary for crude oil and natural
gas Property owned or held by another Person; 

  

	 	(16)	the surrender or waiver of contractual rights or the settlement, release or surrender of contract, tort or other claims of any kind; 

  

	 	(17)	the exchange of assets held by the Issuer or a Restricted Subsidiary for assets held by any Person or entity; provided that (i) the assets received by the Issuer or such
Restricted Subsidiary in any such exchange will immediately constitute, be part of, or be used by the Issuer or such Restricted Subsidiary; and (ii) any such assets received are of comparable fair market value to the assets exchanged as determined
in good faith by the Issuer; 

  

	 	(18)	any sale of Equity Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary not otherwise prohibited by this Indenture; and 

  

	 	(19)	the disposition of any of the Congo Subsidiaries. 

  
 “Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value
(discounted at the interest rate borne by the Securities, compounded semi-annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/Leaseback Transaction (including any period
for which such lease has been extended). 
  
 “Average
Life” means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the sum of the products of the numbers of years from the date of determination to the dates of each
successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied by the amount of such payment by (2) the sum of all such payments. 
  
 “Bank Indebtedness” means any and all amounts, whether
outstanding on the Issue Date or thereafter Incurred, payable by the Issuer or any Subsidiary Guarantor under or in respect of the Senior Credit Agreement and any related notes, collateral documents, letters of 

  

 5 








 
credit and guarantees and any Interest Rate Agreement entered into with any lender or affiliate of a lender, including principal, premium, if any, interest
(including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Issuer or any Subsidiary Guarantor at the rate specified therein whether or not a claim for post filing interest is allowed in
such proceedings), fees, charges, expenses, reimbursement obligations, guarantees and all other amounts payable thereunder or in respect thereof. 
  
 “Bankruptcy Law” means Title 11, United States Code or any similar Federal or state law for the relief of debtors. 
  
 “Board of Directors” means, as to any Person, the board of
directors of such Person or any duly authorized committee thereof. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banking institutions are authorized or required to be closed in Minneapolis, Minnesota, New York, New York or Fort Worth, Texas.

  
 “Capital Stock” of any Person means any and
all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into, or
exchangeable for, such equity. 
  
 “Capitalized Lease
Obligations” means an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation will be the
capitalized amount of such obligation at the time any determination thereof is to be made as determined in accordance with GAAP, and the Stated Maturity thereof will be the date of the last payment of rent or any other amount due under such lease
prior to the first date such lease may be terminated without penalty. 
  
 “Cash Equivalents” means: 
  

	 	(1)	securities issued or directly and fully guaranteed or insured by the United States Government or any agency or instrumentality of the United States (provided that the full
faith and credit of the United States is pledged in support thereof), having maturities of not more than one year from the date of acquisition; 

  

	 	(2)	marketable general obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and, at the time of acquisition thereof, having a credit rating of “A” or better from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.;


  

	 	(3)	 certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers’ acceptances having maturities of not more than one year
from the date of acquisition thereof issued by any commercial 



  

 6 









	 	 
bank the long-term debt of which is rated at the time of acquisition thereof at least “A” or the equivalent thereof by Standard & Poor’s
Ratings Group, or “A” or the equivalent thereof by Moody’s Investors Service, Inc., and having combined capital and surplus in excess of $500.0 million; 


  

	 	(4)	repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (1), (2) and (3) entered into with any bank meeting the
qualifications specified in clause (3) above; 

  

	 	(5)	commercial paper rated at the time of acquisition thereof at least “A-2” or the equivalent thereof by Standard & Poor’s Ratings Group and “P-2” or the
equivalent thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in either case maturing
within one year after the date of acquisition thereof; and 

  

	 	(6)	interests in any investment company or money market fund which invests solely in instruments of the type specified in clauses (1) through (5) above. 

  
 “Change of Control” means: 
  

	 	(1)	any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is or becomes
the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have “beneficial ownership” of all shares that any such person or group has the right to acquire, whether
such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Issuer (or its successor by merger, consolidation or purchase of all or
substantially all of its assets) (for the purposes of this clause, such person or group shall be deemed to beneficially own any Voting Stock of the Issuer held by an entity, if such person or group “beneficially owns” (as defined above),
directly or indirectly, more than 50% of the voting power of the Voting Stock of such entity); 

  

	 	(2)	the first day on which a majority of the members of the Board of Directors of the Issuer are not Continuing Directors; 

  

	 	(3)	the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of
the assets of the Issuer and its Restricted Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or 

  

 7 









	 	(4)	the adoption of a plan or proposal for the liquidation or dissolution of the Issuer. 

  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Commission” means the Securities and Exchange Commission.

  
 “Commodity Agreements” means, in respect of
any Person, any forward contract, commodity swap agreement, commodity option agreement or other similar agreement or arrangement designed to protect such Person against fluctuation in commodity prices. 
  
 “Congo Domestic Subsidiaries” means The Congo Holding
Company, a Texas corporation, and The Nuevo Congo Company, a Delaware corporation. 
  
 “Congo Subsidiaries” means Nuevo Congo Ltd., a Cayman company, The Congo Holding Company, a Texas corporation, and The Nuevo Congo Company, a Delaware corporation. 
  
 “Consolidated Coverage Ratio” means as of any date of
determination, with respect to any Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the period of the most recent four consecutive fiscal quarters ending prior to the date of such determination for which
financial statements are in existence to (y) Consolidated Interest Expense for such four fiscal quarters, provided, however, that: 
  

	 	(1)	if the Issuer or any Restricted Subsidiary: 

  

	 	(a)	has Incurred any Indebtedness since the beginning of such period that remains outstanding on such date of determination or if the transaction giving rise to the need to calculate
the Consolidated Coverage Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated Interest Expense (taking into account any Interest Rate Agreements applicable to such Indebtedness) for such period will be calculated after
giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the first day of such period (except that in making such computation, the amount of Indebtedness under any revolving credit facility outstanding on
the date of such calculation will be computed based on (i) the average daily balance of such Indebtedness during such four fiscal quarters or such shorter period for which such facility was outstanding or (ii) if such facility was created after the
end of such four fiscal quarters, the average daily balance of such Indebtedness during the period from the date of creation of such facility to the date of such calculation) and the discharge of any other Indebtedness repaid, repurchased, defeased
or otherwise discharged with the proceeds of such new Indebtedness as if such discharge had occurred on the first day of such period; or 

  

 8 









	 	(b)	has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the beginning of the period that is no longer outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case other than Indebtedness incurred under any revolving credit facility unless such Indebtedness has been permanently
repaid and the related commitment terminated), Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving effect on a pro forma basis to such discharge of such Indebtedness, including with the proceeds of
such new Indebtedness, as if such discharge had occurred on the first day of such period; 

  

	 	(2)	if since the beginning of such period the Issuer or any Restricted Subsidiary will have made any Asset Disposition or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is an Asset Disposition: 

  

	 	(a)	the Consolidated EBITDA for such period will be reduced by an amount equal to the Consolidated EBITDA (if positive) directly attributable to the assets which are the subject of such
Asset Disposition for such period or increased by an amount equal to the Consolidated EBITDA (if negative) directly attributable thereto for such period; and 

  

	 	(b)	Consolidated Interest Expense for such period will be reduced by an amount equal to the Consolidated Interest Expense directly attributable to any Indebtedness of the Issuer or any
Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with respect to the Issuer and its continuing Restricted Subsidiaries in connection with such Asset Disposition for such period (or, if the Capital Stock of any Restricted
Subsidiary is sold, the Consolidated Interest Expense for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent the Issuer and its continuing Restricted Subsidiaries are no longer liable for such
Indebtedness after such sale); 

  

	 	(3)	 if since the beginning of such period the Issuer or any Restricted Subsidiary (by merger or otherwise) will have made an Investment in any Restricted Subsidiary (or
any Person which becomes a Restricted Subsidiary or is merged with or into the Issuer) or an acquisition of assets, including any acquisition of assets occurring in connection with a transaction causing a calculation to be made hereunder, including
a single asset or all or substantially all of an operating unit, division or line of business, Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving pro forma effect thereto 



  

 9 









	 	 
(including the Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first day of such period; and



  

	 	(4)	if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was merged with or into the Issuer or any Restricted Subsidiary since the
beginning of such period) will have made any Asset Disposition or any Investment or acquisition of assets that would have required an adjustment pursuant to clause (2) or (3) above if made by the Issuer or a Restricted Subsidiary during such period,
Consolidated EBITDA and Consolidated Interest Expense for such period will be calculated after giving pro forma effect thereto as if such Incurrence or discharge, Asset Disposition or Investment or acquisition of assets occurred on the first day of
such period. 

  
 For purposes of this definition,
whenever pro forma effect is to be given to any calculation under this definition, the pro forma calculations will be determined in the reasonable judgment of a responsible financial or accounting officer of the Issuer (including pro forma expense
and cost reductions and any pro forma expense and cost reductions that have occurred or are reasonably expected to occur, in the reasonable judgment of the chief financial officer of the Issuer (regardless of whether those cost savings or operating
improvements could then be reflected in pro forma financial statements in accordance with Regulation S-X promulgated under the Securities Act or any regulation or policy of the Commission related thereto)). If any Indebtedness bears a floating rate
of interest and is being given pro forma effect, the interest expense on such Indebtedness will be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term in excess of 12 months). 
  
 “Consolidated EBITDA” for any period means, without duplication, the Consolidated Net Income for such period, plus the following to the
extent deducted in calculating such Consolidated Net Income: 
  

	 	(1)	Consolidated Interest Expense less the consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized and not deducted during such period;


  

	 	(2)	Consolidated Income Taxes; 

  

	 	(3)	consolidated depreciation and depletion expense; 

  

	 	(4)	consolidated amortization of intangibles; 

  

	 	(5)	exploration and abandonment expense (if applicable); and 

  

	 	(6)	 other non-cash charges reducing Consolidated Net Income (excluding any such non-cash charge to the extent it represents an accrual of or reserve for cash charges in
any future period or amortization of a prepaid cash expense that was paid in a prior period not included in the calculation); 



  

 10 









	 	 
and less, to the extent included in calculating such Consolidated Net Income and in excess of any costs or expenses attributable thereto and deducted in
calculating such Consolidated Net Income, the sum of (x) the amount of deferred revenues that are amortized during such period and are attributable to reserves that are subject to Volumetric Production Payments, and (y) amounts recorded in
accordance with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production Payments. Notwithstanding the preceding sentence, clauses (2) through (5) relating to amounts of a Restricted Subsidiary of a Person will be added
to Consolidated Net Income to compute Consolidated EBITDA of such Person only to the extent (and in the same proportion) that the net income (loss) of such Restricted Subsidiary was included in calculating the Consolidated Net Income of such Person
and, to the extent the amounts set forth in clauses (2) through (5) are in excess of those necessary to offset a net loss of such Restricted Subsidiary or if such Restricted Subsidiary has net income for such period included in Consolidated Net
Income, only if a corresponding amount would be permitted at the date of determination to be dividended to the Issuer by such Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its charter and all
agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to that Restricted Subsidiary or its stockholders. 


  
 “Consolidated Income Taxes” means, with respect to any Person for any period, taxes imposed upon such
Person or other payments required to be made by such Person by any governmental authority which taxes or other payments are calculated by reference to the income or profits of such Person or such Person and its Restricted Subsidiaries (to the extent
such income or profits were included in computing Consolidated Net Income for such period), regardless of whether such taxes or payments are required to be remitted to any governmental authority. 
  
 “Consolidated Interest Expense” means, for any period, the
total interest expense of the Issuer and its consolidated Restricted Subsidiaries, whether paid or accrued (except to the extent accrued in a prior period), plus, to the extent not included in such interest expense: 
  

	 	(1)	interest expense attributable to Capitalized Lease Obligations and the interest portion of rent expense associated with Attributable Indebtedness in respect of the relevant lease
giving rise thereto, determined as if such lease were a capitalized lease in accordance with GAAP and the interest component of any deferred payment obligations; 

  

	 	(2)	amortization of debt discount and debt issuance cost; 

  

	 	(3)	non-cash interest expense; 

  

	 	(4)	commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing; 

  

	 	(5)	the interest expense on Indebtedness of another Person that is Guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one
of its Restricted Subsidiaries; 

  

 11 









	 	(6)	net payments pursuant to Hedging Obligations (including amortization of fees); 

  

	 	(7)	the consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized during such period; 

  

	 	(8)	the product of (a) all dividends paid or payable in cash, Cash Equivalents or Indebtedness or accrued during such period on any series of Disqualified Stock of such Person or on
Preferred Stock of its Restricted Subsidiaries payable to a party other than the Issuer or a Restricted Subsidiary, times (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal,
state, provincial and local statutory tax rate of such Person, expressed as a decimal, in each case, on a consolidated basis and in accordance with GAAP; and 

  

	 	(9)	the cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to any Person
(other than the Issuer) in connection with Indebtedness Incurred by such plan or trust; provided, however, that there will be excluded therefrom any such interest expense of any Unrestricted Subsidiary to the extent the related Indebtedness
is not Guaranteed or paid by the Issuer or any Restricted Subsidiary. 

  
 For purposes of the foregoing, total interest expense will be determined after giving effect to any net payments made or received by the Issuer and its Subsidiaries with respect to Interest Rate Agreements;
provided, however, that “Consolidated Interest Expense” shall not include (a) any Consolidated Interest Expense with respect to any Production Payments and Reserve Sales, (b) to the extent included in total interest expense,
write-off of deferred financing costs of such Person or (c) accretion of interest charges on future plugging and abandonment obligations, future retirement benefits and other obligations that do not constitute Indebtedness. 
  
 “Consolidated Net Income” means, for any period, the net
income (loss) of the Issuer and its consolidated Restricted Subsidiaries determined in accordance with GAAP; provided, however, that there will not be included in such Consolidated Net Income: 
  

	 	(1)	any net income (loss) of any Person if such Person is not a Restricted Subsidiary, except that: 

  

	 	(a)	subject to the limitations contained in clauses (4), (5) and (6) below, the Issuer’s equity in the net income of any such Person for such period will be included in such
Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the Issuer or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution
to a Restricted Subsidiary, to the limitations contained in clause (3) below); and 

  

 12 









	 	(b)	the Issuer’s equity in a net loss of any such Person (other than an Unrestricted Subsidiary) for such period will be included in determining such Consolidated Net Income to the
extent such loss has been funded with cash from the Issuer or a Restricted Subsidiary; 

  

	 	(2)	any net income (loss) of any Person acquired by the Issuer or a Subsidiary in a pooling of interests transaction for any period prior to the date of such acquisition;


  

	 	(3)	any net income (but not loss) of any Restricted Subsidiary if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of
distributions by such Restricted Subsidiary, directly or indirectly, to the Issuer, except that: 

  

	 	(a)	subject to the limitations contained in clauses (4), (5) and (6) below, the Issuer’s equity in the net income of any such Restricted Subsidiary for such period will be included
in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to the Issuer or another Restricted Subsidiary as a dividend (subject, in the case of a dividend to
another Restricted Subsidiary, to the limitation contained in this clause); and 

  

	 	(b)	the Issuer’s equity in a net loss of any such Restricted Subsidiary for such period will be included in determining such Consolidated Net Income; 

  

	 	(4)	any gain (loss) realized upon the sale or other disposition of any property, plant or equipment of the Issuer or its consolidated Restricted Subsidiaries (including pursuant to any
Sale/Leaseback Transaction) which is not sold or otherwise disposed of in the ordinary course of business and any gain (loss) realized upon the sale or other disposition of any Capital Stock of any Person; 

  

	 	(5)	any extraordinary gain or loss; 

  

	 	(6)	the cumulative effect of a change in accounting principles; 

  

	 	(7)	any asset impairment writedowns on Oil and Gas Properties under GAAP or Commission guidelines; 

  

	 	(8)	any unrealized non-cash gains or losses on charges in respect of Hedging Obligations (including those resulting from the application of Statement of Financial Accounting Standards
133); and 

  

	 	(9)	 any non-recurring charges relating to any premium or penalty paid, write off of deferred financing costs or other financial recapitalization charges in 



  

 13 









	 	 
connection with redeeming or retiring any Indebtedness prior to its stated maturity. 


  
 “Consolidated Net Worth” of any Person means the
stockholders’ equity of such Person and its Subsidiaries, as determined on a consolidated basis in accordance with GAAP, less (to the extent included in stockholders’ equity) amounts attributable to Disqualified Stock of such Person or its
Subsidiaries. 
  
 “Continuing Directors” means,
as of any date of determination, any member of the Board of Directors of the Issuer who: 
  

	 	(1)	was a member of such Board of Directors on the date of conversion of the Issuer to a corporation; or 

  

	 	(2)	was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board at the time of such
nomination or election. 

  
 “Comparable
Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity most nearly equal to the period from the redemption date to June 15, 2009, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities; provided if such period is less than one year, then the U.S. Treasury security having a maturity of one year shall be used. 
  
 “Comparable Treasury Price” means, with respect to any
redemption date, (1) the average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 
  
 “Credit Facilities” means, (i) the Senior Credit Agreement and (ii) one or more other debt facilities or commercial paper facilities, in the case of clause (ii) with banks or other institutional
lenders or institutional investors providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such
receivables) or letters of credit, as provided for in one or more agreements or instruments in each case, as amended, restated, modified, supplemented, increased, renewed, refunded, replaced (including replacement after the termination of such
credit facility), supplemented, restructured or refinanced in whole or in part from time to time in one or more agreements or instruments. 
  
 “Currency Agreement” means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement as to
which such Person is a party or a beneficiary. 
  
 “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
  

 14 








 “Default” means any event which is, or after notice or passage of time or both would be,
an Event of Default. 
  
 “Definitive Security”
means a certificated Security registered in the name of the Holder thereof and issued in accordance with Section 2.1 hereof, in the form of Exhibit A hereto except that such Security shall not bear the Global Security legend specified
in Section 2.1 (d)(C). 
  
 “Disqualified
Stock” means, with respect to any Person, any Capital Stock of such Person which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event: 
  

	 	(1)	matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise; 

  

	 	(2)	is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock which is convertible or exchangeable solely at the option of the Issuer or a
Restricted Subsidiary); or 

  

	 	(3)	is redeemable at the option of the holder of the Capital Stock thereof, in whole or in part, 

  
 in each case on or prior to the date that is 91 days after the date (a) on which the Securities mature or (b) on which there are no
Securities outstanding issued under the Indenture; provided that only the portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior
to such date will be deemed to be Disqualified Stock; provided, further, that any Capital Stock that would constitute Disqualified Stock solely because the holders thereof have the right to require the Issuer to repurchase such Capital Stock
upon the occurrence of a change of control or asset disposition (each defined in a substantially identical manner to the corresponding definitions in this Indenture) shall not constitute Disqualified Stock if the terms of such Capital Stock (and all
such securities into which it is convertible or for which it is ratable or exchangeable) provide that the Issuer may not repurchase or redeem any such Capital Stock (and all such securities into which it is convertible or for which it is ratable or
exchangeable) pursuant to such provision unless such repurchase or redemption complies with Section 3.4. 
  
 “Dollar-Denominated Production Payments” means production payment obligations recorded as liabilities in accordance with GAAP, together
with all undertakings and obligations in connection therewith. 
  
 “DTC” means The Depository Trust Company, its nominees and their respective successors and assigns, or such other depository institution hereinafter appointed by the Issuer. 
  
 “Employee Matters Agreement” means the Employee Matters
Agreement between the Issuer and Plains Resources, dated as of July 3, 2002. 
  
 “Equity Offering” means (i) an offering for cash by the Issuer of its Capital Stock (other than Disqualified Stock), or options, warrants or rights with respect to its Capital Stock or 

  

 15 








 
(ii) a contribution of Cash to the Issuer in exchange for its Capital Stock (other than Disqualified Stock). 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 “Exchange Securities” has the
meaning ascribed to it in the second introductory paragraph of this Indenture. 
  
 “Existing Senior Subordinated Notes” means the 83⁄4% Senior Subordinated Notes due 2012 issued by the Issuer and Plains E&P Company, a Delaware corporation. 
  
 “Foreign Subsidiary” means any Restricted Subsidiary that is
not organized under the laws of the United States of America or any state thereof or the District of Columbia. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect as of the Issue Date, including those
set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by
such other entity as approved by a significant segment of the accounting profession. All ratios and computations based on GAAP contained in this Indenture will be computed in conformity with GAAP. 
  
 “Guarantee” means any obligation, contingent or otherwise,
of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person: 
  

	 	(1)	to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise); or 

  

	 	(2)	entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); 

  
 provided, however, that the term
“Guarantee” will not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. 
  
 “Hedging Obligations” of any Person means the obligations of
such Person pursuant to any Interest Rate Agreement or Currency Agreement. 
  
 “Holder” or “Securityholder” means the Person in whose name a Security is registered in the Note Register. 
  

 16 








 “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and products refined or processed therefrom. 
  
 “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for; provided, however,
that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise) will be deemed to be incurred by such Restricted Subsidiary at the
time it becomes a Restricted Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing. 
  
 “Indebtedness” means, with respect to any Person on any date of determination (without duplication): 
  

	 	(1)	the principal of and premium (if any) in respect of indebtedness of such Person for borrowed money; 

  

	 	(2)	the principal of and premium (if any) in respect of obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 

  

	 	(3)	the principal component of all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates to a trade payable and such obligation is satisfied within 30 days of Incurrence); 

  

	 	(4)	the principal component of all obligations of such Person to pay the deferred and unpaid purchase price of property (except trade payables), which purchase price is due more than
nine months after the date of placing such property in service or taking delivery and title thereto; 

  

	 	(5)	Capitalized Lease Obligations and all Attributable Indebtedness of such Person; 

  

	 	(6)	the principal component or liquidation preference of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified Stock or, with
respect to any Subsidiary, any Preferred Stock (but excluding, in each case, any accrued dividends); 

  

	 	(7)	the principal component of all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; provided,
however, that the amount of such Indebtedness will be the lesser of (a) the fair market value of such asset at such date of determination and (b) the amount of such Indebtedness of such other Persons; 

  

	 	(8)	the principal component of Indebtedness of other Persons to the extent Guaranteed by such Person; and 

  

 17 









	 	(9)	to the extent not otherwise included in this definition, net obligations of such Person under Currency Agreements and Interest Rate Agreements (the amount of any such obligations to
be equal at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such Person at such time). 

  
 The amount of Indebtedness of any Person at any date will be the outstanding balance at such date of all unconditional
obligations as described above and the maximum liability, upon the occurrence of the contingency giving rise to the obligation, of any contingent obligations at such date. 
  
 In addition, “Indebtedness” of any Person shall include Indebtedness described in the preceding paragraph that
would not appear as a liability on the balance sheet of such Person if: 
  

	 	(1)	such Indebtedness is the obligation of a partnership or joint venture that is not a Restricted Subsidiary (a “Joint Venture”); 

  

	 	(2)	such Person or a Restricted Subsidiary of such Person is a general partner of the Joint Venture (a “General Partner”); and 

  

	 	(3)	there is recourse, by contract or operation of law, with respect to the payment of such Indebtedness to property or assets of such Person or a Restricted Subsidiary of such Person;
and then such Indebtedness shall be included in an amount not to exceed: 

  

	 	(a)	the lesser of (i) the net assets of the General Partner and (ii) the amount of such obligations to the extent that there is recourse, by contract or operation of law, to the
property or assets of such Person or a Restricted Subsidiary of such Person; or 

  

	 	(b)	if less than the amount determined pursuant to clause (a) immediately above, the actual amount of such Indebtedness that is recourse to such Person or a Restricted Subsidiary of
such Person, if the Indebtedness is evidenced by a writing and is for a determinable amount and the related interest expense shall be included in Consolidated Interest Expense to the extent actually paid by the Issuer or its Restricted Subsidiaries.


  
 Notwithstanding the preceding, Indebtedness
shall not include (a) accounts payable arising in the ordinary course of business; (b) any obligations in respect of prepayments for gas or oil production or gas or oil imbalances, and (c) Production Payments and Reserve Sales. 
  
 “Indenture” means this Indenture as amended or supplemented
from time to time. 
  
 “Independent Investment
Banker” means Lehman Brothers Inc. or J.P. Morgan Securities Inc. and their respective successors, at the Issuer’s option, or, if such firms or the 

  

 18 








 
successors, if any, to such firms, as the case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking
institution of national standing appointed by the Issuer. 
  
 “Initial Securities” has the meaning ascribed to it in the second introductory paragraph of this Indenture. 
  
 “Interest Rate Agreement” means with respect to any Person any interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement or arrangement as to which such Person is party or a beneficiary.

  
 “Investment” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates) in the form of any direct or indirect advance, loan (other than advances to customers in the ordinary course of business) or other extension of credit (including by way
of Guarantee or similar arrangement, but excluding any debt or extension of credit represented by a bank deposit other than a time deposit) or capital contribution to (by means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person and all other items that are or would be classified as investments on a balance
sheet prepared in accordance with GAAP; provided that: 
  

	 	(1)	Hedging Obligations entered into in the ordinary course of business and in compliance with this Indenture; 

  

	 	(2)	endorsements of negotiable instruments and documents in the ordinary course of business; and 

  

	 	(3)	an acquisition of assets, Capital Stock or other securities by the Issuer or a Subsidiary for consideration consisting exclusively of common equity securities of the Issuer,


  
 shall in each case not be deemed to be an Investment.

  
 For purposes of Section 3.4: 
  

	 	(1)	 “Investment” will include the portion (proportionate to the Issuer’s equity interest in a Restricted Subsidiary to be designated as an Unrestricted
Subsidiary) of the fair market value of the net assets of such Restricted Subsidiary of the Issuer at the time that such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer will be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to (a) the Issuer’s “Investment” in such Subsidiary
at the time of such redesignation less (b) the portion (proportionate to the Issuer’s equity interest in such Subsidiary) of the fair market value of the net assets (as conclusively 



  

 19 









	 	 
determined by the Board of Directors of the Issuer in good faith) of such Subsidiary at the time that such Subsidiary is so re-designated a Restricted
Subsidiary; and 


  

	 	(2)	any property transferred to or from an Unrestricted Subsidiary will be valued at its fair market value at the time of such transfer, in each case as determined in good faith by the
Board of Directors of the Issuer. 

  
 If the Issuer
or any Restricted Subsidiary of the Issuer sells or otherwise disposes of any Voting Stock of any Restricted Subsidiary of the Issuer such that, after giving effect to any such sale or disposition, such entity is no longer a Subsidiary of the
Issuer, the Issuer shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value (as conclusively determined by the Board of Directors of the Issuer in good faith) of the Capital Stock of such
Subsidiary not sold or disposed of. 
  
 “Investment Grade
Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s Investors Service, Inc. or BBB- (or the equivalent) by Standard & Poor’s Ratings Group. 
  
 “Issue Date” means June 30, 2004. 
  
 “Issuer” has the meaning ascribed to it in the first
introductory paragraph of this Indenture. 
  
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof). 
  
 “Make-Whole Price” means an amount equal to the greater of:

  

	 	(1)	100% of the principal amount of the Securities to be redeemed; and 

  

	 	(2)	the sum of the present values of (A) the redemption price of the Securities at June 15, 2009 (as set forth in the first paragraph of Section 5 of the reverse of the Securities in
the form attached to this Indenture as Exhibit A and Exhibit B) and (B) the remaining scheduled payments of interest from the Redemption Date to June 15, 2009 (not including any portion of such payments of interest accrued as of the Redemption Date)
discounted back to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, 

  
 plus, in the case of both (1) and (2), accrued and unpaid interest and Additional Interest, if any, to the Redemption Date.

  
 “Minority Interest” means the percentage
interest represented by any shares of any class of Capital Stock of a Restricted Subsidiary of the Issuer that are not owned by the Issuer or a Restricted Subsidiary of Issuer. 
  

 20 








 “Net Available Cash” from an Asset Disposition means cash payments received (including
any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the acquiring
Person of Indebtedness or other obligations relating to the properties or assets that are the subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case net of: 
  

	 	(1)	all legal, accounting, investment banking, title and recording tax expenses, commissions and other fees and expenses incurred, and all Federal, state, provincial, foreign and local
taxes required to be paid or accrued as a liability under GAAP (after taking into account any available tax credits or deductions and any tax sharing agreements), as a consequence of such Asset Disposition; 

  

	 	(2)	all payments made on any Indebtedness which is secured by any assets subject to such Asset Disposition, in accordance with the terms of any Lien upon such assets, or which must by
its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable law be repaid out of the proceeds from such Asset Disposition; 

  

	 	(3)	all distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and


  

	 	(4)	the deduction of appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the assets disposed of in such Asset
Disposition and retained by the Issuer or any Restricted Subsidiary after such Asset Disposition. 

  
 “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale net of
attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other fees and charges actually incurred in connection with such issuance or sale
and net of taxes paid or payable as a result of such issuance or sale (after taking into account any available tax credit or deductions and any tax sharing arrangements). 
  
 “Net Working Capital” means (a) all current assets of the Issuer and its Restricted Subsidiaries except
current assets from commodity price risk management activities arising in the ordinary course of business, less (b) all current liabilities of the Issuer and its Restricted Subsidiaries, except current liabilities included in Indebtedness and any
current liabilities from commodity price risk management activities arising in the ordinary course of business, in each case as set forth in the consolidated financial statements of the Issuer prepared in accordance with GAAP. 
  
 “Non-Mineral Real Estate Interest” means any direct or
indirect interest of the Issuer and its Restricted Subsidiaries in real property existing on the Issue Date so long as such 

  

 21 








 
interests at the time of such sale or transfer (i) do not include any proved hydrocarbons and (ii) include a surface interest. 
  
 “Non-Recourse Debt” means Indebtedness: 
  

	 	(1)	as to which neither the Issuer nor any Restricted Subsidiary (a) provides any Guarantee or credit support of any kind (including any undertaking, guarantee, indemnity agreement or
instrument that would constitute Indebtedness) or (b) is directly or indirectly liable (as a guarantor or otherwise); and 

  

	 	(2)	no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit (upon notice,
lapse of time or both) any holder of any other Indebtedness of the Issuer or any Restricted Subsidiary to declare a default under such other Indebtedness or cause the payment thereof to be accelerated or payable prior to its stated maturity.


  
 “Non-U.S. Person” means a
person who is not a U.S. person, as defined in Regulation S. 
  
 “Note Register” means the register of Securities, maintained by the Registrar, pursuant to Section 2.3. 
  
 “Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer or the Secretary of the Issuer. 

 
 “Officers’ Certificate” means a certificate signed
by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Issuer. 
  
 “Oil and Gas Properties” means all Properties, including equity or other ownership interests therein, owned by such Person which contain
“proved oil and gas reserves” as defined in Rule 4-10 of Regulation S-X of the Securities Act. 
  
 “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee of or
counsel to the Issuer or the Trustee. 
  
 “Plains
Resources” means Plains Resources Inc., a Delaware corporation. 
  
 “PAA” means Plains All American Pipeline, L.P., a Delaware limited partnership. 
  
 “Permitted Acquisition Indebtedness” means Indebtedness of the Issuer or any Restricted Subsidiary to the extent such Indebtedness is
incurred to finance the acquisition of Oil and Gas Properties (and development costs related thereto) and does not exceed the principal amount of $75.0 million with respect to any such acquisition transaction or series of related acquisition
transactions if on the date of the Incurrence (i) (A) the Adjusted Consolidated Net Tangible Assets acquired are equal to or greater than 200% of the Indebtedness incurred, and (B) 

  

 22 








 
the Adjusted Consolidated Net Tangible Assets of Issuer (after giving effect to such acquisition) are equal to or greater than 125% of the consolidated
Indebtedness of the Issuer and its Restricted Subsidiaries or (ii) (A) the Property Net Revenue Coverage Ratio would have been equal to or greater than 2.5 to 1.0, (B) the Adjusted Consolidated Net Tangible Assets acquired are equal to or greater
than 150% of the Indebtedness incurred, and (C) the Adjusted Consolidated Net Tangible Assets of the Issuer (after giving effect to such acquisition) are equal to or greater than 125% of the consolidated Indebtedness of the Issuer and its Restricted
Subsidiaries. 
  
 “Permitted Business Investment”
means any investment made in the ordinary course of, and of a nature that is or shall have become customary in, the Related Business including investments or expenditures for actively exploiting, exploring for, acquiring, developing, producing,
processing, gathering, marketing or transporting oil and gas through agreements, transactions, interests or arrangements which permit one to share risks or costs, comply with regulatory requirements regarding local ownership or satisfy other
objectives customarily achieved through the conduct of the Related Business jointly with third parties, including (i) ownership interests in oil and gas properties, processing facilities, gathering systems, pipelines or ancillary real property
interests and (ii) Investments in the form of or pursuant to operating agreements, processing agreements, farm-in agreements, farm-out agreements, development agreements, area of mutual interest agreements, unitization agreements, pooling
agreements, joint bidding agreements, service contracts, joint venture agreements, partnership agreements (whether general or limited), subscription agreements, stock purchase agreements and other similar agreements (including for limited liability
companies) with third parties, excluding, however, Investments in corporations other than Restricted Subsidiaries. 
  
 “Permitted Holders” means (i) James C. Flores and his spouse and lineal descendants, their respective estates or legal representatives,
(ii) trusts created for the benefit of such Persons and (iii) entities 80% or more of the Voting Stock of which is directly or indirectly owned by any of the preceding Persons. 
  
 “Permitted Investment” means an Investment by the Issuer or any Restricted Subsidiary in: 
  

	 	(1)	a Restricted Subsidiary or a Person which will, upon the making of such Investment, become a Restricted Subsidiary (other than the Congo Subsidiaries until and unless the Congo
Domestic Subsidiaries become Subsidiary Guarantors of the Securities, and except as required by the Stock Purchase Agreement, dated as of April 8, 2004, by and between Perenco S.A., Nuevo and Nuevo International, Inc., and the Stock Purchase
Agreement, dated as of April 8, 2004, by and between Perenco S.A., Lankan Inc., Nuevo and Nuevo International, Inc., relating to the sale of the Congo Subsidiaries or as otherwise required to consummate the sale of the Congo Subsidiaries);


  

 23 









	 	(2)	another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all its assets to, the Issuer
or a Restricted Subsidiary; 

  

	 	(3)	cash and Cash Equivalents; 

  

	 	(4)	receivables owing to the Issuer or any Restricted Subsidiary created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade
terms; provided, however, that such trade terms may include such concessionary trade terms as the Issuer or any such Restricted Subsidiary deems reasonable under the circumstances; 

  

	 	(5)	payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made
in the ordinary course of business; 

  

	 	(6)	loans or advances to employees made in the ordinary course of business consistent with past practices of the Issuer or such Restricted Subsidiary; 

  

	 	(7)	stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to the Issuer or any Restricted Subsidiary or in satisfaction
of judgments or pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of a debtor; 

  

	 	(8)	any acquisition of assets solely in exchange for the issuance of Capital Stock (other than Disqualified Stock) of the Issuer; 

  

	 	(9)	Investments made as a result of the receipt of non-cash consideration from an Asset Disposition that was made pursuant to and in compliance with Section 3.7;


  

	 	(10)	Investments in existence on the Issue Date and any renewal or replacement thereof on terms and conditions not materially less favorable than that being renewed or replaced;


  

	 	(11)	Currency Agreements, Interest Rate Agreements and related Hedging Obligations, which transactions or obligations are Incurred in compliance with Section 3.3;


  

	 	(12)	any Investment by the Issuer or any of its Restricted Subsidiaries, together with all other outstanding Investments pursuant to this clause (12), having an aggregate fair market
value on the date such Investment was made and without giving effect to any subsequent change in value, in an amount not to exceed as of the date of such Incurrence, the greater of (i) $100.0 million and (ii) 5.0% of Adjusted Consolidated Net
Tangible Assets; 

  

	 	(13)	Guarantees issued in accordance with Section 3.3; 

  

 24 









	 	(14)	prepaid expenses, lease, utilities, workers’ compensation, performance and similar deposits made in the ordinary course of business; 

  

	 	(15)	Investments owned by a Person if and when it is acquired by the Issuer and becomes a Restricted Subsidiary; provided, however, that such Investments are not made in
contemplation of such acquisition; 

  

	 	(16)	Permitted Business Investments; and 

  

	 	(17)	Investments in any units of any oil and gas royalty trust. 

  
 “Permitted Liens” means, with respect to any Person: 
  

	 	(1)	Liens securing Indebtedness and other obligations of the Issuer under Credit Facilities, Interest Rate Agreements and Currency Agreements and liens on assets of Restricted
Subsidiaries securing Guarantees of Indebtedness and other obligations of the Issuer under Credit Facilities; 

  

	 	(2)	pledges or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits or cash or United States government bonds to secure surety or
appeal bonds to which such Person is a party, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case Incurred in the ordinary course of business; 

  

	 	(3)	Liens imposed by law, including carriers’, warehousemen’s, and mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be required by GAAP shall have been made in respect thereof; 

  

	 	(4)	Liens for taxes, assessments or other governmental charges not yet subject to penalties for non-payment or which are being contested in good faith by appropriate proceedings;
provided, that appropriate reserves required pursuant to GAAP have been made in respect thereof; 

  

	 	(5)	Liens in favor of the issuers of surety or performance bonds or letters of credit or bankers’ acceptances issued pursuant to the request of and for the account of such Person
in the ordinary course of its business; provided, however, that such letters of credit do not constitute Indebtedness; 

  

	 	(6)	 encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real properties or Liens incidental to the conduct of the business of such 



  

 25 









	 	 
Person or to the ownership of its properties which do not in the aggregate materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person; 


  

	 	(7)	Liens securing Hedging Obligations so long as the related Indebtedness is, and is permitted to be under this Indenture, secured by a Lien on the same property securing such Hedging
Obligation; 

  

	 	(8)	leases and subleases of real property which do not materially interfere with the ordinary conduct of the business of the Issuer or any of its Restricted Subsidiaries;


  

	 	(9)	judgment Liens not giving rise to an Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated for the
review of such judgment have not been finally terminated or the period within which such proceedings may be initiated has not expired; 

  

	 	(10)	Liens for the purpose of securing the payment of all or a part of the purchase price of, or Capitalized Lease Obligations with respect to, or the repair, improvement or construction
cost of, assets or Property acquired or repaired, improved or constructed in the ordinary course of business, provided that: 

  

	 	(a)	the aggregate principal amount of Indebtedness secured by such Liens is otherwise permitted to be Incurred under this Indenture and does not exceed the cost of the assets or
Property so acquired or repaired, improved or constructed plus fees and expenses in connection therewith; and 

  

	 	(b)	such Liens are created within 180 days of repair, improvement or construction or acquisition of such assets or property and do not encumber any other assets or property of the
Issuer or any Restricted Subsidiary other than such assets or Property and assets affixed or appurtenant thereto (including improvements); 

  

	 	(11)	Liens arising by virtue of any statutory or common law provisions relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other
funds maintained or deposited with a depositary institution; provided that: 

  

	 	(a)	such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Issuer in excess of those set forth by regulations
promulgated by the Federal Reserve Board; and 

  

	 	(b)	such deposit account is not intended by the Issuer or any Restricted Subsidiary to provide collateral to the depository institution; 

  

 26 









	 	(12)	Liens arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by the Issuer and its Restricted Subsidiaries in the ordinary course
of business; 

  

	 	(13)	Liens existing on the Issue Date; 

  

	 	(14)	Liens on Property at the time the Issuer acquired the Property, including any acquisition by means of a merger or consolidation with or into the Issuer; provided, however,
that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such acquisition; provided further, however, that such Liens may not extend to any other Property owned by the Issuer or any Restricted
Subsidiary; 

  

	 	(15)	Liens on Property or shares of stock of a Person at the time such Person becomes a Restricted Subsidiary; provided, however, that such Liens are not created, Incurred
or assumed in connection with, or in contemplation of, such other Person becoming a Restricted Subsidiary; provided further, however, that such Liens may not extend to any other Property owned by the Issuer or any Restricted
Subsidiary; 

  

	 	(16)	Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing to the Issuer or a Subsidiary Guarantor; 

  

	 	(17)	Liens securing the Securities, the Subsidiary Guarantees and other obligations arising under this Indenture; 

  

	 	(18)	Liens securing Refinancing Indebtedness of the Issuer or a Restricted Subsidiary Incurred to refinance Indebtedness of the Issuer that was previously so secured; provided
that any such Lien is limited to all or part of the same Property or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien
arose, could secure) the Indebtedness being refinanced or is in respect of Property or assets that is the security for a Permitted Lien hereunder; 

  

	 	(19)	Liens in respect of Production Payments and Reserve Sales; 

  

	 	(20)	Liens on pipelines and pipeline facilities that arise by operation of law; 

  

	 	(21)	farmout, carried working interest, joint operating, unitization, royalty, sales and similar agreements relating to the exploration or development of, or production from, oil and gas
properties entered into in the ordinary course of business; and 

  

	 	(22)	Liens incurred in the ordinary course of business of the Issuer or any Restricted Subsidiary of the Issuer with respect to obligations that do not exceed $10.0 million at any one
time outstanding. 

  

 27 








 “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company, government or any agency or political subdivision hereof or any other entity. 
  
 “Point Arguello Partnerships” means the following partnerships of which Arguello Inc. is a managing general
partner: (a) Gaviota Gas Plant Company, (b) Point Arguello Natural Gas Line Company, (c) Point Arguello Pipeline Company, and (d) Point Arguello Terminal Company. 
  
 “Preferred Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of any class or
classes (however designated) which is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of
such corporation. 
  
 “Principal Property” means
any property owned or leased by the Issuer or any Subsidiary of the Issuer, the gross book value of which exceeds one percent of Consolidated Net Worth. 
  
 “Production Payments and Reserve Sales” means the grant or transfer by the Issuer or a Subsidiary of the Issuer to any Person of a
royalty, overriding royalty, net profits interest, production payment (whether volumetric or dollar denominated), partnership or other interest in oil and gas properties, reserves or the right to receive all or a portion of the production or the
proceeds from the sale of production attributable to such properties, including any such grants or transfers pursuant to incentive compensation programs on terms that are reasonably customary in the oil and gas business for geologists, geophysicists
and other providers of technical services to the Issuer or a Subsidiary of the Issuer. 
  
 “Property” means, with respect to any Person, any interest of such Person in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including Capital Stock and
other securities issued by any other Person (but excluding Capital Stock or other securities issued by such first mentioned Person). 
  
 “Property Net Revenue Coverage Ratio” means, with respect to Property to be acquired by the Issuer or any Restricted Subsidiary, the
ratio of (i) the amount equal to (A) the revenues attributable to the sale of Hydrocarbons from such Property for the most recent four full fiscal quarters for which financial information is available immediately prior to the acquisition date (the
“Pro Forma Period”), minus (B) the production and general and administrative expenses attributable to such Property during the Pro Forma Period (the “Property Net Revenue”) to (ii) the aggregate Consolidated
Interest Expense which the Issuer or any Restricted Subsidiary will accrue during the fiscal quarter in which the acquisition date occurs and the three fiscal quarters immediately subsequent to such fiscal quarter as a result of Indebtedness
incurred for the purpose of making such acquisition (as though all such Indebtedness was incurred or repaid on the first day of the quarter in which the acquisition date occurs). For purposes of this definition, Property Net Revenue shall be
calculated, after giving effect on a pro forma basis for the Pro Forma Period, to (a) any adjustments in revenues from the sale of Hydrocarbons as a result of fixed price or other contract arrangements entered into as of the acquisition date and (b)


  

 28 








 
any adjustments in production and general and administrative expenses which are fixed or determinable as of the acquisition date. 
  
 “Redemption Date” when used with respect to any Security to
be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this Indenture. 
  
 “Reference Treasury Dealer” means Lehman Brothers Inc. or J.P. Morgan Securities Inc. at the Issuer’s option, and three additional
primary U.S. government securities dealers in New York City (each a “Primary Treasury Dealer”) selected by the Issuer, and its successors (provided, however, that if any such firm or any such successor, as the case may be,
shall cease to be a primary U.S. government securities dealer in New York City, the Issuer shall substitute therefor another Primary Treasury Dealer). 
  
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding such Redemption Date. 
  
 “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace, renew, repay or extend (including pursuant to any defeasance or discharge mechanism) (collectively, “refinance,”
“refinances,” and “refinanced” shall have a correlative meaning) any Indebtedness existing on the date of this Indenture or Incurred in compliance with this Indenture (including Indebtedness of the Issuer that refinances
Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that refinances Indebtedness of another Restricted Subsidiary) including Indebtedness that refinances Refinancing Indebtedness; provided, however, that:

  

	 	(1)	(a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity no earlier
than the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated Maturity of the Indebtedness being refinanced is later than the Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity at least 91 days
later than the Stated Maturity of the Securities; 

  

	 	(2)	the Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is Incurred that is equal to or greater than the lesser of (i) the period from the date of
Incurrence of such Refinancing Indebtedness to the date 91 days after the Stated Maturity of the Securities and (ii) the Average Life of the Indebtedness being refinanced; 

  

	 	(3)	 such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal to or
less than the sum of the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding (plus, without duplication, accrued interest, fees and expenses, 



  

 29 









	 	 
including any premium and defeasance costs) of the Indebtedness being refinanced; and 


  

	 	(4)	if the Indebtedness being refinanced is subordinated in right of payment to the Securities, such Refinancing Indebtedness is subordinated in right of payment to the Securities on
terms at least as favorable to the Holders of Securities as those contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded. 

  
 “Registration Rights Agreement” means that certain
registration rights agreement dated as of the date of this Indenture by and between the Issuer, the Subsidiary Guarantors and the initial purchasers set forth therein and future registration rights agreements with respect to Additional Securities.

  
 “Related Business” means any business which
is the same as or related, ancillary or complementary to any of the businesses of the Issuer and its Restricted Subsidiaries on the Issue Date, which includes (a) the acquisition, exploration, exploitation, development, production, operation and
disposition of interests in oil, gas and other hydrocarbon properties, and the utilization of the Issuer’s and its Restricted Subsidiaries’ properties, (b) the gathering, marketing, treating, processing, storage, refining, selling and
transporting of any production from such interests or properties and products produced in association therewith, (c) any power generation and electrical transmission business and (d) any business or activity relating to, arising from, or necessary,
appropriate or incidental to the activities described in the foregoing clauses (a) through (c) of this definition. 
  
 “Restricted Investment” means any Investment other than a Permitted Investment. 
  
 “Restricted Period” means the 40-day restricted period as
defined in Regulation S. 
  
 “Restricted Securities
Legend” means the Private Placement Legend or the Regulation S Legend, as applicable. 
  
 “Restricted Subsidiary” means any Subsidiary of the Issuer other than an Unrestricted Subsidiary. 
  
 “Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter acquired whereby the Issuer or a Restricted
Subsidiary transfers such property to a Person and the Issuer or a Restricted Subsidiary leases it from such Person. 
  
 “Secured Indebtedness” means Indebtedness that is secured by a lien on the property or assets of the relevant obligor. 
  
 “Securities” has the meaning ascribed to it in the second
introductory paragraph of this Indenture. 
  
 “Securities
Act” means the Securities Act of 1933, as amended. 
  

 30 








 “Securities Custodian” means the custodian with respect to the Global Security (as
appointed by DTC), or any successor Person thereto and shall initially be the Trustee. 
  
 “Senior Credit Agreement” means, with respect to the Issuer, one or more debt facilities (including, without limitation, the Credit Agreement, dated as of July 3, 2002, as amended by the First
Amendment dated as of August 8, 2003, Second Amendment dated as of May 14, 2004 and Third Amendment dated as of May 28, 2004 among the Issuer, JPMorgan Chase Bank, as administrative agent, and the lenders and agents parties thereto from time to
time) as provided for in one or more agreements or instruments in each case, as amended, restated, modified, supplemented, increased, renewed, refunded, replaced (including replacement after the termination of such credit facility), supplemented,
restructured or refinanced in whole or in part from time to time in one or more agreements or instruments. 
  
 “Senior Indebtedness” means, whether outstanding on the Issue Date or thereafter issued, created, Incurred or assumed, the Bank
Indebtedness and all other Indebtedness of the Issuer or any Subsidiary Guarantor, including accrued and unpaid interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Issuer
at the rate specified in the documentation with respect thereto whether or not a claim for post filing interest is allowed in such proceeding) and fees relating thereto; provided, however, that Senior Indebtedness will not include:

  

	 	(1)	any Indebtedness which, in the instrument creating or evidencing the same or pursuant to which the same is outstanding, it is provided that the obligations in respect of such
Indebtedness are, with respect to Indebtedness of the Issuer, subordinate to payment of the Securities or, with respect to Indebtedness of a Subsidiary Guarantor, subordinate to payment of the Subsidiary Guarantee of such Subsidiary Guarantor;


  

	 	(2)	any obligation of the Issuer to any Subsidiary or a Subsidiary Guarantor to another Subsidiary or to the Issuer; 

  

	 	(3)	with respect to the Issuer, any liability for Federal, state, foreign, local or other taxes owed or owing by the Issuer and, with respect to a Subsidiary Guarantor, owed or owing by
such Subsidiary Guarantor; 

  

	 	(4)	any accounts payable or other liability to trade creditors arising in the ordinary course of business (including Guarantees thereof or instruments evidencing such liabilities);


  

	 	(5)	any Indebtedness, Guarantee or obligation of the Issuer that is expressly subordinate or junior in right of payment to any other Indebtedness, Guarantee or obligation of the Issuer,
including, without limitation, any senior subordinated Indebtedness and any Subordinated Obligations; 

  

	 	(6)	 any Indebtedness, Guarantee or obligation of a Subsidiary Guarantor that is expressly subordinate or junior in right of payment to any other Indebtedness, Guarantee
or obligation of such Subsidiary Guarantor, 



  

 31 









	 	 
including any senior subordinated Indebtedness and any Subordinated Obligations of such Subsidiary Guarantor; or 


  

	 	(7)	any Capital Stock. 

  
 “Senior Notes” means any bond, debenture, note or other similar instrument evidencing an obligation of a Person to pay principal of and
premium (if any) on such bond, debenture, note or other similar instrument which is pari passu or equal in right of payment with the Securities. 
  
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the Issuer within the
meaning of Rule 1-02 under Regulation S-X promulgated by the SEC. 
  
 “Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory
redemption provision, but shall not include any contingent obligations to repay, redeem or repurchase any such principal prior to the date originally scheduled for the payment thereof. 
  
 “Subordinated Obligation” means any Indebtedness of the Issuer (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinate or junior in right of payment to the Securities pursuant to a written agreement or any Indebtedness of a Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter Incurred) which is
subordinate or junior in right of payment to the Subsidiary Guarantee pursuant to a written agreement, as the case may be. 
  
 “Subsidiary” of any Person means any corporation, association, partnership, joint venture, limited liability company or other business
entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership and joint venture interests) entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3) one or more Subsidiaries of such Person. Unless otherwise
specified herein, each reference to a Subsidiary will refer to a Subsidiary of the Issuer. The Point Arguello Partnerships and Sepulveda Oil and Gas Company are not Subsidiaries of the Issuer. 
  
 “Subsidiary Guarantee” means, any guarantee of the
Securities by any Subsidiary Guarantor in accordance with the provisions set forth in Article X. 
  
 “Subsidiary Guarantor” means each Restricted Subsidiary of the Issuer that has issued a Subsidiary Guarantee. 
  
 “Transition Agreements” mean the Management Services
Agreement by and between the Issuer and Nuevo Energy Company, dated May 14, 2004, the Master Separation Agreement between Plains Resources and the Issuer, dated as of July 3, 2002; the Employee Matters Agreement; the Technical Services Agreement
among Plains Resources, Calumet Florida, LLC and the Issuer, dated as of July 3, 2002; the Intellectual Property Agreement 

  

 32 








 
between Plains Resources and the Issuer, dated as of July 3, 2002 and the Tax Allocation Agreement between Plains Resources and the Issuer, dated as of July
3, 2002, each as amended or supplemented from time to time in compliance with the terms of this Indenture. 
  
 “Treasury Rate” means, with respect to any Redemption Date, (1) the yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently published statistical release designated “H.15(159)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that
establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after the stated maturity, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined, and the Treasury Rate shall be interpolated or extrapolated from such yields on a
straight-line basis, rounding to the nearest month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The
Treasury Rate shall be calculated on the third business day preceding the Redemption Date. 
  
 “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as in effect on the Issue Date. 
  
 “Trustee” means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor. 
  
 “Trust Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because
of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
  
 “Unrestricted Subsidiary” means: 
  

	 	(1)	any Subsidiary of the Issuer that at the time of determination shall be designated an Unrestricted Subsidiary by the Board of Directors of the Issuer in the manner provided below;
and 

  

	 	(2)	any Subsidiary of an Unrestricted Subsidiary. 

  
 The Board of Directors of the Issuer may designate any Subsidiary of the Issuer (including any newly acquired or newly formed Subsidiary or a Person
becoming a Subsidiary through merger or consolidation or Investment therein) to be an Unrestricted Subsidiary only if: 
  

 33 









	 	(1)	such Subsidiary or any of its Subsidiaries does not own any Capital Stock or Indebtedness of or have any Investment in, or own or hold any Lien on any Property of, any other
Subsidiary of the Issuer which is not a Subsidiary of the Subsidiary to be so designated or otherwise an Unrestricted Subsidiary; 

  

	 	(2)	all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of designation, and will at all times thereafter, consist of Non-Recourse Debt;


  

	 	(3)	such designation and the Investment of the Issuer in such Subsidiary complies with Section 3.4; 

  

	 	(4)	such Subsidiary, either alone or in the aggregate with all other Unrestricted Subsidiaries, does not operate, directly or indirectly, all or substantially all of the business of the
Issuer and its Subsidiaries taken as a whole; 

  

	 	(5)	such Subsidiary is a Person with respect to which neither the Issuer nor any of its Restricted Subsidiaries has any direct or indirect obligation: (a) to subscribe for additional
Capital Stock of such Person; or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results; and 

  

	 	(6)	on the date such Subsidiary is designated an Unrestricted Subsidiary, such Subsidiary is not a party to any agreement, contract, arrangement or understanding with the Issuer or any
Restricted Subsidiary with terms substantially less favorable to the Issuer than those that might have been obtained from Persons who are not Affiliates of the Issuer. 

  
 Any such designation by the Board of Directors of the Issuer shall be evidenced to the Trustee by filing with the Trustee a
resolution of the Board of Directors of the Issuer giving effect to such designation and an Officers’ Certificate certifying that such designation complies with the foregoing conditions. If, at any time, any Unrestricted Subsidiary would fail
to meet the foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary shall be deemed to be Incurred as of such date.

  
 The Board of Directors of the Issuer may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof and the
Issuer could incur at least $1.00 of additional Indebtedness under the first paragraph of Section 3.3 on a pro forma basis taking into account such designation. 
  
 “U.S. Government Obligations” means securities that are (i) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged; (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally
guaranteed as a full 

  

 34 








 
faith an credit obligation by the United States of America, which in either case under clauses (i) or (ii) above, are not callable or redeemable at the
option of the issuers thereof; or (iii) depository receipts issued by a bank (as defined in Section 3(a)(2) of the Securities Act as custodian with respect to any such U.S. Government Obligations or a specific payment of interest on or principal of
any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder
of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt. 
  
 “Volumetric Production Payments” means production payment obligations recorded as defined revenue in accordance with GAAP, together with
all undertakings and obligations in connection therewith. 
  
 “Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding and normally entitled to vote in the election of directors. 
  
 “Wholly-Owned Subsidiary” means a corporation, association, partnership, joint venture, limited liability
company or other business entity of which 100% of the total voting power of shares of Capital Stock or other interests (including partnership and joint venture interests) entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by the Issuer or another Wholly Owned Subsidiary. 
  
 SECTION 1.2. Other Definitions. 
  

			
	 Term

	  	Defined in
Section


		
	 “Additional Restricted Securities”
	  	2.1(b)
		
	 “Affiliate Transaction”
	  	3.8
		
	 “Agent Member”
	  	2.1(e)
		
	 “Asset Disposition Offer”
	  	3.7(b)
		
	 “Asset Disposition Offer Amount”
	  	3.7(c)(1)
		
	 “Asset Disposition Offer Period”
	  	3.7(c)(1)
		
	 “Asset Disposition Purchase Date”
	  	3.7(c)(1)
		
	 “Authenticating Agent”
	  	2.2
		
	 “Certificate of Destruction”
	  	2.11

  

 35 









			
	 “Change of Control Offer”
	  	  3.9      
		
	 “Change of Control Payment”
	  	  3.9      
		
	 “Change of Control Payment Date”
	  	  3.9      
		
	 “Corporate Trust Office”
	  	  3.13  
		
	 “covenant defeasance option”
	  	  8.1(b)
		
	 “cross acceleration provision”
	  	  6.1(6)(b)
		
	 “Defaulted Interest”
	  	  2.12
		
	 “Event of Default”
	  	  6.1
		
	 “Excess Proceeds”
	  	  3.7(b)
		
	 “Exchange Global Note”
	  	  2.1(b)
		
	 “Funding Guarantor”
	  	10.4
		
	 “Global Securities”
	  	  2.1(b)
		
	 “Issuer Order”
	  	  2.2
		
	 “IAI”
	  	  2.1(b)
		
	 “Institutional Accredited Investor Note”
	  	  2.1(b)
		
	 “Institutional Accredited Investor Global Note”
	  	  2.1(b)
		
	 “Joint Venture”
	  	  1.1 (definition of
“Indebtedness”)
		
	 “judgment default provision”
	  	  6.1(9)
		
	 “legal defeasance option”
	  	  8.1(b)
		
	 “Obligations”
	  	10.1
		
	 “Pari Passu Notes”
	  	  3.7(b)
		
	 “Payment Default”
	  	  6.1(6)(a)
		
	 “Paying Agent”
	  	  2.3
		
	 “Private Placement Legend”
	  	  2.1(d)

  

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	 “protected purchaser”
	  	2.9
		
	 “QIB”
	  	2.1(b)
		
	 “Registrar”
	  	2.3
		
	 “Regulation S”
	  	2.1(b)
		
	 “Regulation S Global Note”
	  	2.1(b)
		
	 “Regulation S Legend”
	  	2.1(d)
		
	 “Regulation S Note”
	  	2.1(b)
		
	 “Resale Restriction Termination Date”
	  	2.6(a)
		
	 “Restricted Payment”
	  	3.4
		
	 “Rule 144A”
	  	2.1(b)
		
	 “Rule 144A Global Note”
	  	2.1(b)
		
	 “Rule 144A Note”
	  	2.1(b)
		
	 “Special Interest Payment Date”
	  	2.12(a)
		
	 “Special Record Date”
	  	2.12(a)
		
	 “Successor Issuer”
	  	4.1
		
	 “Suspended Covenants”
	  	3.12

  
 SECTION 1.3.
Incorporation by Reference of Trust Indenture Act. This Indenture is subject to the mandatory provisions of the TIA which are incorporated by reference in and made a part of this Indenture. The following TIA terms have the following meanings:

  
 “Commission” means the SEC. 
  
 “indenture securities” means the Securities. 
  
 “indenture security holder” means a Securityholder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the
Trustee. 
  
 “obligor” on this Indenture securities
means the Issuer and any other obligor on this Indenture securities. 
  

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 All other TIA terms used in this Indenture that are defined by the TIA, defined in the TIA by reference
to another statute or defined by Commission’s rule have the meanings assigned to them by such definitions. 
  
 SECTION 1.4. Rules of Construction. Unless the context otherwise requires: 
  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

  
 (3) “or” is not exclusive;

  
 (4) “including” means including
without limitation; 
  
 (5) words in the singular
include the plural and words in the plural include the singular; 
  
 (6) unsecured Indebtedness shall not be deemed to be subordinate or junior to Secured Indebtedness merely by virtue of its nature as unsecured Indebtedness; 
  
 (7) the principal amount of any noninterest bearing or other
discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP; and 
  
 (8) the principal amount of any Preferred Stock shall be (i) the maximum liquidation value of such Preferred
Stock or (ii) the maximum mandatory redemption or mandatory repurchase price with respect to such Preferred Stock, whichever is greater. 
  
 ARTICLE II 
  
 The Securities 
  
 SECTION 2.1. Form, Dating and Terms. 
  
 (a) The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Initial Securities issued on the date hereof will be in an aggregate principal amount of
$250,000,000. In addition, the Issuer may issue, from time to time in accordance with the provisions of this Indenture, including, without limitation, Section 3.3 hereof, Additional Securities and Exchange Securities. Furthermore, Securities
may be authenticated and delivered upon registration or transfer, or in lieu of, other Securities pursuant to Section 2.6, 2.9, 2.10, 5.8 or 9.5 or in connection with an Asset Disposition Offer pursuant to
Section 3.7 or a Change of Control Offer pursuant to Section 3.9. 
  
 With respect to any Additional Securities, the Issuer shall set forth in a resolution of the Board of Directors and an Officer’s Certificate, the following information: 
  

 38 








 (1) the aggregate principal amount of such Additional Securities to be authenticated and
delivered pursuant to this Indenture; 
  
 (2) the
issue price and the issue date of such Additional Securities, including the date from which interest shall accrue; and 
  
 (3) whether such Additional Securities shall be Restricted Securities issued in the form of Exhibit A hereto and/or shall be issued in the
form of Exhibit B hereto. 
  
 The Initial Securities, the
Additional Securities and the Exchange Securities shall be considered collectively as a single class for all purposes of this Indenture. Holders of the Initial Securities, the Additional Securities and the Exchange Securities will vote and consent
together on all matters to which such Holders are entitled to vote or consent as one class, and none of the Holders of the Initial Securities, the Additional Securities or the Exchange Securities shall have the right to vote or consent as a separate
class on any matter to which such Holders are entitled to vote or consent. 
  
 (b) The Initial Securities are being offered and sold by the Issuer pursuant to a Purchase Agreement, dated June 18, 2004, among the Issuer, the Subsidiary Guarantors, Lehman Brothers Inc. and J.P. Morgan Securities
Inc. and the other initial purchasers named therein. The Initial Securities and any Additional Securities (if issued as Restricted Securities) (the “Additional Restricted Securities”) will be resold initially only to (A) qualified
institutional buyers (as defined in Rule 144A under the Securities Act (“Rule 144A”)) in reliance on Rule 144A (“QIBs”) and (B) Persons other than U.S. Persons (as defined in Regulation S under the Securities Act
(“Regulation S”)) in reliance on Regulation S. Such Initial Securities and Additional Restricted Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance on Regulation S and institutional
“accredited investors” (as defined in Rules 501(a)(1), (2), (3) and (7) under the Securities Act) who are not QIBs (“IAIs”) in accordance with Rule 501 of the Securities Act in accordance with the procedure described
herein. 
  
 Initial Securities and Additional Restricted
Securities offered and sold to qualified institutional buyers in the United States of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the form of a permanent global Security, without interest coupons,
substantially in the form of Exhibit A, which is hereby incorporated by reference and made a part of this Indenture, including appropriate legends as set forth in Section 2.1(d) (the “Rule 144A Global Note”), deposited
with the Trustee, as custodian for DTC (the “Securities Custodian”), duly executed by the Issuer and authenticated by the Trustee as hereinafter provided. The Rule 144A Global Note may be represented by more than one certificate, if
so required by DTC’s rules regarding the maximum principal amount to be represented by a single certificate. The aggregate principal amount of the Rule 144A Global Note may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for DTC or its nominee, as hereinafter provided. 
  
 Initial Securities and Additional Securities offered and sold outside the United States of America (the “Regulation S Notes”) in reliance on Regulation S shall be issued in the form of a permanent
global Security, without interest coupons, substantially in the form of Exhibit A (the “Regulation S Global Note”) deposited with the Trustee as Securities Custodian, 

  

 39 








 
duly executed by the Issuer and authenticated by the Trustee as hereinafter provided. The Regulation S Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented by a single certificate. The aggregate principal amount of the Regulation S Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC or its nominee, as hereinafter provided. 
  
 Initial Securities and Additional Securities resold to IAIs (the “Institutional Accredited Investor Notes”) in the United States
of America shall be issued in the form of a permanent global Security, without interest coupons, substantially in the form of Exhibit A (the “Institutional Accredited Investor Global Note”) deposited with the Trustee as
Securities Custodian, duly executed by the Issuer and authenticated by the Trustee as hereinafter provided. The Institutional Accredited Investor Global Note may be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single certificate. The aggregate principal amount of the Institutional Accredited Investor Global Note may from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for DTC or its nominee, as hereinafter provided. 
  
 Exchange Securities exchanged for interests in the Rule 144A Notes, the Regulation S Notes and the Institutional Accredited Investor Notes will be issued in the form of a permanent global Security, without interest
coupons, substantially in the form of Exhibit B, which is hereby incorporated by reference and made a part of this Indenture, deposited with the Trustee as hereinafter provided, including the appropriate legend set forth in Section
2.1(d) (the “Exchange Global Note”). The Exchange Global Note may be represented by more than one certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented by a single certificate.

  
 The Rule 144A Global Note, the Regulation S Global Note, the
Institutional Accredited Investor Global Note and the Exchange Global Note are sometimes collectively herein referred to as the “Global Securities.” 
  
 The principal of (and premium, if any), interest and Additional Interest, if any, on the Securities shall be payable at the
office or agency of the Issuer maintained for such purpose in The City of New York, or at such other office or agency of the Issuer as may be maintained for such purpose pursuant to Section 2.3; provided, however, that, at the option
of the Issuer, each installment of interest and Additional Interest, if any, may be paid by check mailed to addresses of the Persons entitled thereto as such addresses shall appear on the Note Register. Payments in respect of Securities represented
by a Global Security (including principal, premium and interest and Additional Interest, if any) will be made by wire transfer of immediately available funds to the accounts specified by DTC. 
  
 The Securities may have notations, legends or endorsements required by law,
stock exchange rule or usage, in addition to those set forth on Exhibit A and Exhibit B and in Section 2.1(d). The Issuer and the Trustee shall approve the forms of the Securities and any notation, endorsement or legend on them.
Each Security shall be dated the date of its authentication. The terms of the Securities set forth in Exhibit A and Exhibit B are part of the 

  

 40 








 
terms of this Indenture and, to the extent applicable, the Issuer, Subsidiary Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to be bound by such terms. 
  
 (c)
Denominations. The Securities shall be issuable only in fully registered form, without coupons, and only in denominations of $1,000 and any integral multiple thereof. 
  
 (d) Restrictive Legends. Unless and until (i) an Initial Security is sold under an effective registration statement
or (ii) an Initial Security is exchanged for an Exchange Security in connection with an effective registration statement, in each case pursuant to the Registration Rights Agreement or a similar agreement, 
  
 (A) the Rule 144A Global Note and the Institutional Accredited Investor
Global Note shall bear the following legend (the “Private Placement Legend”) on the face thereof: 
  
 “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. 
  
 THE HOLDER
OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE
ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES
IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH 

  

 41 








 
CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D), (E) AND (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. 
  
 BY ITS ACQUISITION OF THIS
SECURITY THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I
OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS, INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”) OR PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO
INCLUDE “PLAN ASSETS” OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR (II) THE PURCHASE AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR
VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.” 
  
 (B) the
Regulation S Global Note shall bear the following legend (the “Regulation S Legend”) on the face thereof: 
  
 “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING
FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”), (2) BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS


  

 42 








 
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S, (E) TO AN INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT
TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM AND IN THE CASE OF THE FOREGOING CLAUSE (E), A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE
OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE ISSUER AND THE TRUSTEE. THIS LEGEND WILL BE REMOVED AFTER 40 CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DAY ON WHICH THE SECURITIES ARE OFFERED TO
PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S) AND (B) THE DATE OF THE CLOSING OF THE ORIGINAL OFFERING. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE
MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.” 
  
 (C) The Global Securities, whether or not an Initial Security, shall bear the following legend on the face thereof: 
  
 “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW
YORK, NEW YORK, TO THE ISSUER OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED 

  

 43 








 
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THIS INDENTURE REFERRED TO ON THE REVERSE HEREOF.” 
  
 (e) Book-Entry Provisions 
  
 (i) This Section 2.1(e) shall apply only to Global Securities deposited with the Trustee, as custodian for DTC. 
  
 (ii) Each Global Security initially shall (x) be registered in the name of
DTC for such Global Security or the nominee of DTC, (y) be delivered to the Trustee as custodian for DTC and (z) bear legends as set forth in Section 2.1(d). 
  
 (iii) Members of, or participants in, DTC (“Agent Members”) shall have no rights under this Indenture with
respect to any Global Security held on their behalf by DTC or by the Trustee as the custodian of DTC or under such Global Security, and DTC may be treated by the Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner of
such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by DTC or impair, as between DTC and its Agent Members, the operation of customary practices of DTC governing the exercise of the rights of a Holder of a beneficial interest in any Global Security. 
  
 (iv) In connection with any transfer of a portion of the beneficial interest
in a Global Security pursuant to subsection (f) of this Section 2.1 to beneficial owners who are required to hold Definitive Securities, the Securities Custodian shall reflect on its books and records the date and a decrease in the principal
amount of such Global Security in an amount equal to the principal amount of the beneficial interest in the Global Security to be transferred, and the Issuer shall execute, and the Trustee shall authenticate and deliver, one or more Definitive
Securities of like tenor and amount. 
  
 (v) In connection with
the transfer of an entire Global Security to beneficial owners pursuant to subsection (f) of this Section 2.1, such Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Issuer shall execute, and the
Trustee shall authenticate and deliver, to each beneficial owner identified by DTC in exchange for its beneficial interest in such Global Security, an equal aggregate principal amount of Definitive Securities of authorized denominations. 

 
 (vi) The registered Holder of a Global Security may grant proxies and
otherwise authorize any person, including Agent Members and persons that may hold interests through 

  

 44 








 
Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Securities. 
  
 (f) Definitive Securities. (i) Except as provided below, owners of
beneficial interests in Global Securities will not be entitled to receive Definitive Securities. If required to do so pursuant to any applicable law or regulation, beneficial owners may obtain Definitive Securities in exchange for their beneficial
interests in a Global Security upon written request in accordance with DTC’s and the Registrar’s procedures. In addition, Definitive Securities shall be transferred to all beneficial owners in exchange for their beneficial interests in a
Global Security if (a) DTC notifies the Issuer that it is unwilling or unable to continue as depositary for such Global Security or DTC ceases to be a clearing agency registered under the Exchange Act, at a time when DTC is required to be so
registered in order to act as depositary, and in each case a successor depositary is not appointed by the Issuer within 90 days of such notice or, (b) the Issuer executes and delivers to the Trustee and Registrar an Officers’ Certificate
stating that such Global Security shall be so exchangeable or (c) an Event of Default has occurred and is continuing and the Registrar has received a request from DTC. 
  
 (ii) Any Definitive Security delivered in exchange for an interest in a Global Security pursuant to Section
2.1(e)(iv) or (v) shall, except as otherwise provided by Section 2.6(c), bear the applicable legend regarding transfer restrictions applicable to the Definitive Security set forth in Section 2.1(d). 
  
 (iii) In connection with the exchange of a portion of a Definitive Security
for a beneficial interest in a Global Security, the Trustee shall cancel such Definitive Security, and the Issuer shall execute, and the Trustee shall authenticate and deliver, to the transferring Holder a new Definitive Security representing the
principal amount not so transferred. 
  
 SECTION 2.2. Execution
and Authentication. One Officer of the Issuer shall sign the Securities for the Issuer by manual or facsimile signature. If an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the
Security, the Security shall be valid nevertheless, after giving effect to any exchange of Initial Securities for Exchange Securities. 
  
 A Security shall not be valid until an authorized signatory of the Trustee manually authenticates the Security. The signature of the Trustee on a Security
shall be conclusive evidence that such Security has been duly and validly authenticated and issued under this Indenture. A Security shall be dated the date of its authentication. 
  
 At any time and from time to time after the execution and delivery of this Indenture, the Trustee shall authenticate and
make available for delivery: (1) Initial Securities for original issue on the Issue Date in an aggregate principal amount of $250,000,000, (2) Additional Securities for original issue and (3) Exchange Securities for issue only in an exchange offer
pursuant to the Registration Rights Agreement, and only in exchange for Initial Securities or Additional Securities of an equal principal amount, in each case upon a written order of the Issuer signed by two Officers of the Issuer or by an Officer
and either an Assistant Treasurer or an Assistant Secretary of the Issuer (the “Issuer Order”). Such Issuer Order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities


  

 45 








 
is to be authenticated and whether the Securities are to be Initial Securities, Additional Securities or Exchange Securities. 
  
 The Trustee may appoint an agent (the “Authenticating
Agent”) reasonably acceptable to the Issuer to authenticate the Securities. Unless limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by the Authenticating Agent. 
  
 In case the Issuer or any Subsidiary Guarantor, pursuant to Article IV or Section 10.2, shall be consolidated or merged with or into any
other Person or shall convey, transfer, lease or otherwise dispose of all or substantially all of its Properties and assets to any Person, and the successor Person resulting from such consolidation, or surviving such merger, or into which any Issuer
or any Subsidiary Guarantor shall have been merged, or the Person which shall have received a conveyance, transfer, lease or other disposition as aforesaid, shall have executed an indenture supplemental hereto with the Trustee pursuant to Article
IV, any of the Securities authenticated or delivered prior to such consolidation, merger, conveyance, transfer, lease or other disposition may, from time to time, at the request of the successor Person, be exchanged for other Securities executed
in the name of the successor Person with such changes in phraseology and form as may be appropriate, but otherwise in substance of like tenor as the Securities surrendered for such exchange and of like principal amount; and the Trustee, upon Issuer
Order of the successor Person, shall authenticate and deliver Securities as specified in such order for the purpose of such exchange. If Securities shall at any time be authenticated and delivered in any new name of a successor Person pursuant to
this Section 2.2 in exchange or substitution for or upon registration of transfer of any Securities, such successor Person, at the option of the Holders but without expense to them, shall provide for the exchange of all Securities at the time
outstanding for Securities authenticated and delivered in such new name. 
  
 SECTION 2.3. Registrar and Paying Agent. The Issuer shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (the “Registrar”) and an
office or agency where Securities may be presented for payment (the “Paying Agent”). The Issuer shall cause each of the Registrar and the Paying Agent to maintain an office or agency in the Borough of Manhattan, The City of New
York. The Registrar shall keep a register of the Securities and of their transfer and exchange (the “Note Register”). The Issuer may have one or more co-registrars and one or more additional paying agents. The term “Paying
Agent” includes any additional paying agent. 
  
 The Issuer
shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement shall implement the provisions of this Indenture that relate
to such agent. The Issuer shall notify the Trustee of the name and address of each such agent. If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor
pursuant to Section 7.7. The Issuer or any of its Restricted Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer agent. 
  
 The Issuer initially appoints the Trustee as Registrar and Paying Agent for the Securities. 
  

 46 








 SECTION 2.4. Paying Agent to Hold Money in Trust. By no later than 11:00 a.m. (New York City time)
on the date on which any principal of or interest and Additional interest, if any, on any Security is due and payable, the Issuer shall deposit with the Paying Agent a sum sufficient in immediately available funds to pay such principal or interest
and Additional Interest, if any, when due. The Issuer shall require each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all money held by such Paying
Agent for the payment of principal of or interest and Additional Interest, if any, on the Securities and shall notify the Trustee in writing of any default by the Issuer or any Subsidiary Guarantor in making any such payment. If the Issuer or a
Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Issuer at any time may require a Paying Agent (other than the Trustee) to pay all money held by it to the Trustee and
to account for any funds disbursed by such Paying Agent. Upon complying with this Section 2.4, the Paying Agent (if other than the Issuer or a Subsidiary) shall have no further liability for the money delivered to the Trustee. Upon any
bankruptcy, reorganization or similar proceeding with respect to the Issuer, the Trustee shall serve as Paying Agent for the Securities. 
  
 SECTION 2.5. Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to
it of the names and addresses of Securityholders. If the Trustee is not the Registrar, or to the extent otherwise required under the TIA, the Issuer shall furnish to the Trustee, in writing at least five Business Days before each interest payment
date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 
  
 SECTION 2.6. Transfer and Exchange. 
  
 (a) The following provisions shall apply with respect to any proposed
transfer of a Rule 144A Note or an Institutional Accredited Investor Note prior to the date which is two years after the later of the date of its original issue and the last date on which the Issuer or any Affiliate of the Issuer was the owner of
such Securities (or any predecessor thereto) (the “Resale Restriction Termination Date”): 
  
 (i) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a beneficial interest therein to a QIB shall be made
upon the representation of the transferee in the form as set forth on the reverse of the Security that it is purchasing for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned
has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A;

  
 (ii) a transfer of a Rule 144A Note or an
Institutional Accredited Investor Note or a beneficial interest therein to an IAI shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form set forth in Section 2.7 from the proposed 

  

 47 








 
transferee and, if requested by the Issuer or the Trustee, the delivery of an opinion of counsel, certification and/or other information satisfactory to each
of them; and 
  
 (iii) a transfer of a Rule 144A
Note or an Institutional Accredited Investor Note or a beneficial interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form set forth in Section 2.8 from the
proposed transferee and, if requested by the Issuer or the Trustee, the delivery of an opinion of counsel, certification and/or other information satisfactory to each of them. 
  
 (b) The following provisions shall apply with respect to any proposed transfer of a Regulation S Note prior to the
expiration of the Restricted Period: 
  
 (i) a
transfer of a Regulation S Note or a beneficial interest therein to a QIB shall be made upon the representation of the transferee, in the form of assignment on the reverse of the certificate, that it is purchasing the Security for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon
its foregoing representations in order to claim the exemption from registration provided by Rule 144A; 
  
 (ii) a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall be made upon receipt by the Trustee or its agent
of a certificate substantially in the form set forth in Section 2.7 from the proposed transferee and, if requested by the Issuer or the Trustee, the delivery of an opinion of counsel, certification and/or other information satisfactory to
each of them; and 
  
 (iii) a transfer of a
Regulation S Note or a beneficial interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form set forth in Section 2.8 hereof from the proposed transferee and, if
requested by the Issuer or the Trustee, receipt by the Trustee or its agent of an opinion of counsel, certification and/or other information satisfactory to each of them. 
  
 After the expiration of the Restricted Period, interests in the Regulation S Note may be transferred without requiring the
certification set forth in Section 2.7, Section 2.8 or any additional certification. 
  
 (c) Restricted Securities Legend. Upon the transfer, exchange or replacement of Securities not bearing a Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear a Restricted Securities Legend unless such transferee is an affiliate (as defined in Rule 144A) of the Issuer. Upon the transfer, exchange or replacement of Securities bearing a Restricted
Securities Legend, the Registrar shall deliver only Securities that bear a Restricted Securities Legend unless there is delivered to the Registrar an Opinion of Counsel to the effect that neither such legend nor the related restrictions on transfer
are required in order to maintain compliance with the provisions of the Securities Act. 
  

 48 








 (d) The Registrar shall retain copies of all letters, notices and other written communications received
pursuant to Section 2.1 or this Section 2.6. The Issuer shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable prior written
notice to the Registrar. 
  
 (e) Obligations with Respect to
Transfers and Exchanges of Securities. 
  
 (i) To permit
registrations of transfers and exchanges, the Issuer shall, subject to the other terms and conditions of this Article II, execute and the Trustee shall authenticate Definitive Securities and Global Securities at the Registrar’s or
co-registrar’s request. 
  
 (ii) No service charge shall be
made to a Holder for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any transfer tax, assessments, or similar governmental charge payable in connection therewith (other than any such
transfer taxes, assessments or similar governmental charges payable upon exchange or transfer pursuant to Sections 3.7, 3.9 or 9.5). 
  

(iii) The Registrar or co-registrar shall not be required to register the transfer of or exchange of (i) any Securities selected for redemption (except
in the case of Securities to be redeemed in part, the portion of the Security not to be redeemed) or (ii) any Securities for a period beginning 15 days before an interest payment date and ending on such interest payment date. 
  
 (iv) Prior to the due presentation for registration of transfer of any
Security, the Issuer, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat the person in whose name a Security is registered as the absolute owner of such Security for the purpose of receiving payment of principal of
and interest and Additional Interest, if any, on such Security and for all other purposes whatsoever, whether or not such Security is overdue, and none of the Issuer, the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected
by notice to the contrary. 
  
 (v) Any Definitive Security
delivered in exchange for an interest in a Global Security pursuant to Section 2.1(e) shall, except as otherwise provided by Section 2.6(c), bear the applicable legend regarding transfer restrictions applicable to the Definitive
Security set forth in Section 2.1(d). 
  
 (vi) All
Securities issued upon any transfer or exchange pursuant to the terms of this Indenture shall evidence the same debt and shall be entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange.

  
 (f) No Obligation of the Trustee 
  
 (i) The Trustee shall have no responsibility or obligation to any beneficial
owner of a Global Security, a member of, or a participant in, DTC or other Person with respect to the accuracy of the records of DTC or its nominee or of any participant or member thereof, with respect to any ownership interest in the Securities or
with respect to the delivery to any participant, member, beneficial owner or other Person (other than DTC) of any notice (including any notice of redemption) or the payment of any amount or delivery of any Securities (or other 

  

 49 








 
security or property) under or with respect to such Securities. All notices and communications to be given to the Holders and all payments to be made to
Holders in respect of the Securities shall be given or made only to or upon the order of the registered Holders (which shall be DTC or its nominee in the case of a Global Security). The rights of beneficial owners in any Global Security shall be
exercised only through DTC subject to the applicable rules and procedures of DTC. The Trustee may rely and shall be fully protected in relying upon information furnished by DTC with respect to its members, participants and any beneficial owners.

  
 (ii) The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among DTC participants,
members or beneficial owners in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture,
and to examine the same to determine substantial compliance as to form with the express requirements hereof. 
  
 SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to Institutional Accredited Investors. 
  
 [Date] 
  
 Plains Exploration & Production Company 
 c/o Wells Fargo Bank. N.A, as Trustee 
 505 Main Street 
 Fort Worth, Texas 76102 
 Attention: Melissa Scott 
  
 Dear Sirs: 
  
 This certificate is delivered to request a transfer of
$                     principal amount of the 7 1/8% Senior Notes due 2014 (the “Securities”) of Plains Exploration & Production Company (the “Issuer”). 
  
 Upon transfer, the Securities would be registered in the name of the new
beneficial owner as follows: 
  
 Name:
                                        
                                        

  
 Address:
                                        
                                     
  
 Taxpayer ID Number:
                                        
               
  
 The undersigned represents and warrants to you that: 
  
 1. We have received a copy of the Offering Memorandum (the “Offering Memorandum”) dated June 18, 2004 relating to the Securities and such other information as we deem necessary in order to make our
investment decision. We acknowledge that we have read 

  

 50 








 
and agreed to the matters stated in the section entitled “Notice to Investors” of such Offering Memorandum. 
  
 2. We are an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing for our own account or for one or more accounts (each of which is an institutional “accredited
investor”) at least $250,000 principal amount of the Securities, and we are acquiring the Securities not with a view to, or for offer or sale in connection with, any distribution in violation of the Securities Act. We have such knowledge and
experience in financial and business matters as to be capable of evaluating the merits and risk of our investment in the Securities and we invest in or purchase securities similar to the Securities in the normal course of our business. We and any
accounts for which we are acting are each able to bear the economic risk of our or its investment, as the case may be. 
  
 3. We understand that any subsequent transfer of the Securities is subject to certain restrictions and conditions set forth in the Indenture relating to
the Securities (the “Indenture”) as described in the Offering Memorandum and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Securities except in compliance with such restrictions and conditions
and the Securities Act and all applicable state securities laws. 
  
 4. We understand that the Securities have not been registered under the Securities Act and, unless so registered, may not be sold except as permitted in the following sentence. We agree on our own behalf and on behalf of any investor
account for which we are purchasing Securities to offer, sell or otherwise transfer such Securities prior to the date that is two years after the later of the date of original issue and the last date on which the Issuer or any Affiliate of the
Issuer was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to the Issuer, (b) pursuant to a registration statement which has been declared effective under the Securities
Act, (c) in a transaction complying with the requirements of Rule 144A under the Securities Act, to a person we reasonably believe is a qualified institutional buyer under Rule 144A (a “QIB”) that purchases for its own account or
for the account of a QIB and to whom notice is given that the transfer is being made in reliance on Rule 144A, (d) pursuant to offers and sales that occur outside the United States within the meaning of Regulation S under the Securities Act, (e) to
an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is purchasing for its own account or for the account of such an institutional “accredited investor,” in
each case in a minimum principal amount of Securities of $250,000 or (f) pursuant to any other available exemption from the registration requirements of the Securities Act, subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or accounts be at all times within our or their control and in compliance with any applicable state securities laws. The foregoing restrictions on resale will not apply subsequent
to the Resale Restriction Termination Date. If any resale or other transfer of the Securities is proposed to be made pursuant to clause (e) above prior to the Resale Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to the Issuer and the Trustee, which shall provide, among other things, that the transferee is an institutional “accredited investor” (within the meaning of Rule 501(a)(1), (2), (3) or
(7) under the Securities Act) and that it is acquiring such Securities for investment purposes and not for distribution in violation of the Securities Act. Each purchaser acknowledges that the 

  

 51 








 
Issuer and the Trustee reserve the right prior to any offer, sale or other transfer prior to the Resale Termination Date of the Securities pursuant to
clauses (d), (e) or (f) above to require the delivery of an opinion of counsel, certifications and/or other information satisfactory to the Issuer and the Trustee. 
  
 5. We are not acquiring the Securities for or on behalf of, and will not transfer the Securities to, any pension or welfare
plan (as defined in Section 3 of the Employee Retirement Income Security Act of 1974, as amended) or plan (as defined in Section 4975 of the Internal Revenue Code of 1986, as amended), except as permitted in the section entitled “Notice to
Investors” of the Offering Memorandum. 
  
 6. We understand
that, on any proposed resale of any Securities, we will be required to furnish to the Trustee and the Issuer such certification, legal opinions and other information as the Trustee and the Issuer may reasonably require to confirm that the proposed
sale complies with the foregoing restrictions. We further understand that the Securities purchased by us will bear a legend to the foregoing effect. 
  
 You, the Issuer, the Trustee and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to
any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	 [NAME OF TRANSFEREE]

		
	 BY:
	 	 
	 	 	 Name:
 Title:



  
 SECTION 2.8.
Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S. 
  
 [Date] 
  
 Plains Exploration
& Production Company 
 c/o Wells Fargo Bank. N.A, as Trustee 
 505 Main Street 
 Fort Worth, Texas 76102 
 Attention:
Melissa Scott 
  

			
	 Re:
	  	 Plains Exploration & Production Company
 7 1/8% Senior Notes due 2014 (the “Securities”)


  
 Ladies and Gentlemen: 
  
 In connection with our proposed sale of
$                     aggregate principal amount of the Securities, we confirm that such sale has been effected pursuant to and in accordance
with 

  

 52 








 
Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that:

  
 (a) the offer of the Securities was not made
to a person in the United States; 
  
 (b) either
(i) at the time the buy order was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither we nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 
  
 (c) no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; 
  
 (d) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and 
  
 (e) we have advised the transferee of the transfer
restrictions applicable to the Securities. 
  
 You and the Issuer
are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms
used in this certificate have the meanings set forth in Regulation S. 
  

			
	 Very truly yours,

	
	 [Name of Transferor]

		
	By:	 	 
	
	 
	Authorized Signature

  
 SECTION 2.9.
Mutilated, Destroyed, Lost or Wrongfully Taken Securities. If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Issuer shall issue
and the Trustee shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Securityholder (a) satisfies the Issuer or the Trustee within a reasonable time after such
Securityholder has notice of such loss, destruction or wrongful taking and the Registrar does not register a transfer prior to receiving such notification, (b) makes such request to the Issuer or Trustee prior to the Security being acquired by a
protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the Issuer, such Holder shall
furnish an indemnity bond sufficient in the judgment of 

  

 53 








 
the Issuer and the Trustee to protect the Issuer, the Trustee, the Paying Agent, the Registrar and any co-registrar from any loss which any of them may
suffer if a Security is replaced, and, in the absence of notice to the Issuer, any Subsidiary Guarantor or the Trustee that such Security has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer Order, the Trustee
shall authenticate and make available for delivery, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or wrongfully taken Security, a new Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding. 
  
 In case any such mutilated,
destroyed, lost or wrongfully taken Security has become or is about to become due and payable, the Issuer in their discretion may, instead of issuing a new Security, pay such Security. 
  
 Upon the issuance of any new Security under this Section 2.9, the Issuer may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) in connection therewith. 
  
 Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or wrongfully taken Security
shall constitute an original additional contractual obligation of the Issuer, any Subsidiary Guarantor (if applicable) and any other obligor upon the Securities, whether or not the mutilated, destroyed, lost or wrongfully taken Security shall be at
any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
  
 The provisions of this Section 2.9 are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Securities. 
  
 SECTION 2.10. Outstanding Securities. Securities outstanding at any time are all Securities authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation and those described in this Section 2.10 as not outstanding. A Security ceases to be outstanding in the event the Issuer or a Subsidiary of the Issuer holds the Security, provided, however,
that (i) for purposes of determining which are outstanding for consent or voting purposes hereunder, the provisions of Section 11.6 shall apply and (ii) in determining whether the Trustee shall be protected in making a determination whether
the Holders of the requisite principal amount of outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or have consented to or voted in favor of any request, demand, authorization, direction, notice, consent,
waiver, amendment or modification hereunder, or relying upon any such quorum, consent or vote, only Securities which a Trust Officer of the Trustee actually knows to be held by the Issuer or an Affiliate of the Issuer shall not be considered
outstanding. 
  
 If a Security is replaced pursuant to Section
2.9, it ceases to be outstanding unless the Trustee and the Issuer receive proof satisfactory to them that the replaced Security is held by a protected purchaser. 
  
 If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a redemption date or maturity date
money sufficient to pay all principal and 

  

 54 








 
interest and Additional Interest, if any, payable on that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, and the Paying Agent is not prohibited from paying such money to the Securityholders on that date pursuant to the terms of this Indenture, then on and after that date such Securities (or portions thereof) cease to be outstanding and interest
on them ceases to accrue. 
  
 SECTION 2.11. Cancellation.
The Issuer at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and no
one else shall cancel all Securities surrendered for registration of transfer, exchange, payment or cancellation and destroy such Securities in accordance with its internal policies including delivery of a certificate (a “Certificate of
Destruction”) describing such Securities disposed (subject to the record retention requirements of the Exchange Act). The Issuer may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation for
any reason other than in connection with a transfer or exchange. 
  
 SECTION 2.12. Payment of Interest; Defaulted Interest. Interest and Additional Interest, if any, on any Security which is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to the Person
in whose name such Security (or one or more predecessor Securities) is registered at the close of business on the regular record date for such interest at the office or agency of the Issuer maintained for such purpose pursuant to Section 2.3.

  
 Any interest and Additional Interest, if any, on any Security
which is payable, but is not paid when the same becomes due and payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable to the Holder on the regular record date, and such defaulted interest and (to the
extent lawful) interest on such defaulted interest at the rate borne by the Securities (such defaulted interest and interest thereon herein collectively called “Defaulted Interest”) shall be paid by the Issuer, at their election in
each case, as provided in clause (a) or (b) below: 
  
 (a) The Issuer may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities (or their respective predecessor Securities) are registered at the close of business on a Special Record Date (as defined below)
for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Issuer shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date (not less than 30 days
after such notice) of the proposed payment (the “Special Interest Payment Date”), and at the same time the Issuer shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as
in this clause provided. Thereupon the Trustee shall fix a record date (the “Special Record Date”) for the payment of such Defaulted Interest, which date shall be not more than 15 days and not less than 10 days prior to the Special
Interest Payment Date and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Issuer of such 

  

 55 









	 	 
Special Record Date, and in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date and Special Interest Payment Date therefor to be given in the manner provided for in Section 12.2, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date and Special Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid on the Special Interest Payment Date to the Persons in whose names the Securities (or their respective predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b). 


  
 (b) The Issuer may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee. 
  
 Subject to the foregoing
provisions of this Section 2.13, each Security delivered under this Indenture upon registration of, transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest and Additional Interest, if any, each as
accrued and unpaid, and to accrue, which were carried by such other Security. 
  
 SECTION 2.13. Computation of Interest. Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 SECTION 2.14. CUSIP Numbers. The Issuer in issuing the Securities may use “CUSIP” numbers (if then
generally in use) and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect
in or omission of such CUSIP numbers. The Issuer shall promptly notify the Trustee in writing of any change in the CUSIP numbers. 
  
 ARTICLE III 
  
 Covenants 
  
 SECTION 3.1. Payment of Securities. The Issuer shall promptly pay the principal of, interest and Additional Interest, if any, on the Securities on the dates and in the manner provided in the Securities and in this Indenture.
Principal, interest and Additional Interest, if any, shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture immediately available funds sufficient to pay all principal,
interest and Additional Interest, if any, then due and the Trustee or Paying Agent, as the case may be, is not prohibited from paying money to the Holders on that date pursuant to the terms of this Indenture. 
  

 56 








 The Issuer shall pay interest on overdue principal at the rate specified therefor in the Securities, and
they shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  
 Notwithstanding anything to the contrary contained in this Indenture, the Issuer may, to the extent it is required to do so by law, deduct or withhold
income or other similar taxes imposed by the United States of America from principal or interest payments hereunder. 
  
 SECTION 3.2. Reports. Notwithstanding that the Issuer may not be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act,
to the extent permitted by the Exchange Act, the Issuer will file with the Commission, and provide the Trustee and the Holders of the Securities with, the annual reports and the information, documents and other reports (or copies of such portions of
any of the foregoing as the Commission may by rules and regulations prescribe) that are specified in Sections 13 and 15(d) of the Exchange Act within the time periods specified therein. In the event that the Issuer is not permitted to file such
reports, documents and information with the Commission pursuant to the Exchange Act, the Issuer will nevertheless provide such Exchange Act information to the Trustee and the Holders of the Securities as if the Issuer were subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act within the time periods specified therein. 
  
 SECTION 3.3. Limitation on Indebtedness. The Issuer shall not, and shall not permit any of its Restricted Subsidiaries to, Incur any Indebtedness;
provided, however, that the Issuer and its Restricted Subsidiaries may Incur Indebtedness if on the date thereof: 
  

	 	(1)	the Consolidated Coverage Ratio for the Issuer and its Restricted Subsidiaries is at least 2.25 to 1.00; and 

  

	 	(2)	no Default or Event of Default will have occurred and be continuing or would occur as a consequence of Incurring the Indebtedness. 

  
 The first paragraph of this Section 3.3 will not prohibit the
Incurrence of the following Indebtedness: 
  

	 	(1)	Indebtedness Incurred under one or more Credit Facilities in an aggregate principal amount outstanding as of the date of such Incurrence under this clause (1) (with letters of
credit being deemed to have a principal amount equal to the maximum potential liability of the Issuer and its Restricted Subsidiaries thereunder) not to exceed the greater of (i) $600.0 million and (ii) 20% of Adjusted Consolidated Net Tangible
Assets determined as of the date of the Incurrence of such Indebtedness; 

  

	 	(2)	Indebtedness owed to and held by the Issuer or a Restricted Subsidiary; provided, however, that any subsequent issuance or transfer of any Capital Stock which results in any
such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to the Issuer or a Restricted Subsidiary) shall be deemed, in each case, to constitute the Incurrence of such Indebtedness
by the obligor thereon; 

  

 57 









	 	(3)	Indebtedness under the Securities (but not Additional Securities) and the Subsidiary Guarantees; 

  

	 	(4)	Indebtedness outstanding on the Issue Date (other than Indebtedness described in clause (1), (2) or (3) of this paragraph); 

  

	 	(5)	Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the date on which such Subsidiary was acquired by the Issuer (other than Indebtedness Incurred in
connection with, or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Subsidiary became a Restricted Subsidiary or was acquired by the
Issuer); 

  

	 	(6)	Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to the first paragraph of this Section 3.3 or pursuant to clauses (3), (4), (5) of this paragraph or
this clause (6); provided, however, that to the extent such Refinancing Indebtedness directly or indirectly Refinances Indebtedness of a Subsidiary Incurred pursuant to clause (5) of this paragraph, such Refinancing Indebtedness shall
be Incurred only by such Subsidiary or the Issuer; 

  

	 	(7)	Permitted Acquisition Indebtedness; 

  

	 	(8)	Indebtedness in respect of purchase money obligations, including Capitalized Lease Obligations, in an aggregate principal amount not to exceed $50.0 million at any one time
outstanding; 

  

	 	(9)	Hedging Obligations consisting of Interest Rate Agreements directly related to Indebtedness permitted to be Incurred pursuant to this Indenture; 

  

	 	(10)	Non-Recourse Debt; 

  

	 	(11)	Indebtedness in respect of bid, performance, reimbursement or surety obligations issued by or for the account of the Issuer or any Restricted Subsidiary in the ordinary course of
business, including Guarantees and letters of credit functioning as or supporting such bid, performance, reimbursement or surety obligations (in each case other than for an obligation for money borrowed); 

  

	 	(12)	Indebtedness consisting of obligations in respect of purchase price adjustments, indemnities or Guarantees of the same or similar matters in connection with the acquisition or
disposition of Property; 

  

	 	(13)	Indebtedness under Commodity Agreements and Currency Agreements entered into in the ordinary course of business for the purpose of limiting risks that arise in the ordinary course
of business of the Issuer and its Restricted Subsidiaries; 

  

 58 









	 	(14)	Any Guarantee by the Issuer or a Subsidiary of the Issuer of Indebtedness Incurred pursuant to the first paragraph of this Section 3.3 or pursuant to clause (1), (2), (3),
(4), (8), (9), (13) or (15) of this paragraph or pursuant to clause (6) of this paragraph to the extent the Refinancing Indebtedness Incurred thereunder directly or indirectly refinances Indebtedness Incurred pursuant to the first paragraph of this
Section 3.3 or pursuant to clauses (3) or (4) of this paragraph; and 

  

	 	(15)	Indebtedness in an aggregate principal amount which, when taken together with all other Indebtedness of the Issuer outstanding on the date of such Incurrence (other than
Indebtedness permitted by clauses (1) through (14) above or the first paragraph of this Section 3.3) does not exceed the greater of (x) 2.5% of Adjusted Consolidated Net Tangible Assets determined as of the date of Incurrence of such
Indebtedness and (y) $50.0 million. 

  
 For purposes
of determining compliance with, and the outstanding principal amount of any particular Indebtedness incurred pursuant to and in compliance with, this Section 3.3: 
  

	 	(1)	in the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in the first and second paragraphs of this Section 3.3, the Issuer,
in its sole discretion, may on the date of Incurrence divide or classify (or later classify, reclassify, divide or redivide all or a portion of) such item of Indebtedness on the date of Incurrence and only be required to include the amount and type
of such Indebtedness in one of such clauses; and 

  

	 	(2)	the amount of Indebtedness issued at a price that is less than the principal amount thereof will be equal to the amount of the liability in respect thereof determined in accordance
with GAAP. 

  
 Accrual of interest, accrual of
dividends, the accretion of accreted value, the payment of interest in the form of additional Indebtedness and the payment of dividends in the form of additional shares of Preferred Stock will not be deemed to be an Incurrence of Indebtedness for
purposes of this Section 3.3. The amount of any Indebtedness outstanding as of any date shall be (i) the accreted value of the Indebtedness in the case of any Indebtedness issued with original issue discount and (ii) the principal amount or
liquidation preference thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness. 
  
 In addition, the Issuer will not permit any of its Unrestricted Subsidiaries to Incur any Indebtedness or issue any shares of Disqualified Stock, other
than Non-Recourse Debt. If at any time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary of the Issuer as of such date (and, if such Indebtedness
is not permitted to be Incurred as of such date under this Section 3.3, the Issuer shall be in Default of this Section 3.3). 
  

 59 








 For purposes of determining compliance with any U.S. dollar-denominated restriction on the Incurrence of
Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of revolving credit Indebtedness; provided that if such Indebtedness is Incurred to refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable
U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such U.S. dollar denominated restriction shall be deemed not to have been exceeded so long as the
principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced. Notwithstanding any other provision of this Section 3.3, the maximum amount of Indebtedness that the Issuer may
Incur pursuant to this Section 3.3 shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of currencies. The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a
different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such Refinancing Indebtedness is denominated that is in effect on the date of such refinancing.

  
 SECTION 3.4. Limitation on Restricted Payments. The
Issuer will not, and will not permit any of its Restricted Subsidiaries, directly or indirectly, to: 
  

	 	(1)	declare or pay any dividend or make any distribution on or in respect of its Capital Stock (including any payment in connection with any merger or consolidation involving the Issuer
or any of its Restricted Subsidiaries) except: 

  

	 	(a)	dividends or distributions payable in Capital Stock of the Issuer (other than Disqualified Stock) or in options, warrants or other rights to purchase such Capital Stock of the
Issuer; and 

  

	 	(b)	dividends or distributions payable to the Issuer or a Restricted Subsidiary of the Issuer and, if such Restricted Subsidiary is not a Wholly-Owned Subsidiary, to its holders of
common Capital Stock on a pro rata basis; 

  

	 	(2)	purchase, redeem, retire or otherwise acquire for value any Capital Stock of the Issuer or any direct or indirect parent of the Issuer held by Persons other than the Issuer or a
Restricted Subsidiary of the Issuer (other than in exchange for Capital Stock of the Issuer (other than Disqualified Stock)); 

  

	 	(3)	purchase, repurchase, redeem, defease or otherwise acquire or retire for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any Subordinated
Obligations (other than the purchase, repurchase or other acquisition of Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the
date of purchase, repurchase, or acquisition); or 

  

 60 









	 	(4)	make any Restricted Investment in any Person; 

  
 (any such dividend, distribution, purchase, redemption, repurchase, defeasance, other acquisition, retirement or Restricted Investment referred to in clauses (1) through
(4) shall be referred to herein as a “Restricted Payment”), if at the time the Issuer or such Restricted Subsidiary makes such Restricted Payment: 
  

	 	(a)	a Default shall have occurred and be continuing (or would result therefrom); or 

  

	 	(b)	the Issuer is not able to Incur an additional $1.00 of Indebtedness pursuant to the first paragraph of Section 3.3 after giving effect to such Restricted Payment; or


  

	 	(c)	the aggregate amount of such Restricted Payment and all other Restricted Payments declared or made subsequent to the Issue Date would exceed the sum of: 

  

	 	(i)	50% of Consolidated Net Income for the period (treated as one accounting period) from the beginning of the first fiscal quarter commencing after July 3, 2002 to the end of the most
recent fiscal quarter ending prior to the date of such Restricted Payment for which financial statements are in existence (or, in case such Consolidated Net Income is a deficit, minus 100% of such deficit); 

  

	 	(ii)	the fair market value of any Related Business or assets used or useful in any Related Business to the extent acquired by the Issuer or a Restricted Subsidiary (including in a merger
or consolidation involving the Issuer or any Restricted Subsidiary) in consideration for Capital Stock (other than Disqualified Stock) of the Issuer or the aggregate Net Cash Proceeds received by the Issuer from the issue or sale of the
Issuer’s Capital Stock (other than Disqualified Stock) or other capital contributions subsequent to the Issue Date (other than Net Cash Proceeds received from an issuance or sale of such Capital Stock to a Subsidiary of the Issuer or an
employee stock ownership plan, option plan or similar trust to the extent such sale to an employee stock ownership plan, option plan or similar trust is financed by loans from or Guaranteed by the Issuer or any Restricted Subsidiary unless such
loans have been repaid with cash on or prior to the date of determination); 

  

	 	(iii)	 the amount by which Indebtedness of the Issuer is reduced on the Issuer’s balance sheet upon the conversion or exchange (other than by a Subsidiary of the
Issuer) subsequent to July 3, 2002 of any Indebtedness of the Issuer convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the Issuer (less the amount 



  

 61 









	 	 
of any cash, or other property, distributed by the Issuer upon such conversion or exchange); and 


  

	 	(iv)	the amount equal to the net reduction in Restricted Investments made by the Issuer or any of its Restricted Subsidiaries in any Person resulting from: 

  

	 	(A)	repurchases or redemptions of such Restricted Investments by such Person, proceeds realized upon the sale of such Restricted Investment to a purchaser other than the Issuer or a
Subsidiary, repayments of loans or advances or other transfers of assets (including by way of dividend or distribution) by such Person to the Issuer or any Restricted Subsidiary of the Issuer; or 

  

	 	(B)	the redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as provided in the definition of “Investment”) not to exceed, in the case of
any Unrestricted Subsidiary, the amount of Investments previously made by the Issuer or any Restricted Subsidiary in such Unrestricted Subsidiary, 

  
 which amount in each case under this clause (iv) was included in the calculation of the amount of Restricted Payments;
provided, however, that no amount will be included under this clause (iv) to the extent it is already included in Consolidated Net Income. 
  
 The provisions of the preceding paragraph will not prohibit: 
  

	 	(1)	any repurchase or redemption of Subordinated Obligations of the Issuer or any Subsidiary Guarantor, as the case may be, or Capital Stock, made by exchange for, or out of the
proceeds of the substantially concurrent sale of, Capital Stock of the Issuer (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary or an employee stock ownership plan or similar trust to the extent such sale to
an employee stock ownership plan or similar trust is financed by loans from or guaranteed by the Issuer or any Restricted Subsidiary unless such loans have been repaid with cash on or prior to the date of determination); provided,
however, that (a) such purchase or redemption will be excluded in subsequent calculations of the amount of Restricted Payments and (b) the Net Cash Proceeds from such sale will be excluded from clause (c)(ii) of the preceding paragraph;


  

	 	(2)	 any purchase or redemption of Subordinated Obligations of the Issuer or any Subsidiary Guarantor, as the case may be, made by exchange for, or out of the proceeds
of the substantially concurrent sale (other than to a Restricted Subsidiary of the Issuer) of, Subordinated Obligations of the 



  

 62 









	 	 
Issuer or any Subsidiary Guarantor, as the case may be, that qualify as Refinancing Indebtedness, provided that the obligors on such new Subordinated
Obligations shall not include obligors that were not obligors on the Subordinated Obligations being repurchased or redeemed; provided, however, that such purchase or redemption will be excluded in subsequent calculations of the amount
of Restricted Payments; 


  

	 	(3)	so long as no Default or Event of Default has occurred and is continuing at the time of such purchase or redemption and the Issuer is able to Incur an additional $1.00 of
Indebtedness pursuant to the first paragraph under Section 3.3 after giving effect to such purchase or redemption, the Issuer may purchase or redeem Existing Senior Subordinated Notes outstanding on the Issue Date with either (i) the
substantially concurrent sale of Senior Notes that are unsecured with a Stated Maturity no earlier than the Stated Maturity of the Securities or (ii) cash provided from operations in the ordinary course of business, provided that the Issuer may not
use borrowings under any Credit Facilities other than borrowings under the revolving portion of the Senior Credit Agreement so long as within 30 days prior to such purchase or redemption, a corresponding amount of borrowings under the revolving
portion of the Senior Credit Agreement was repaid from cash provided from operations in the ordinary course of business; provided, however, that such purchase or redemption will be excluded in subsequent calculations of the amount of
Restricted Payments; 

  

	 	(4)	so long as no Default or Event of Default has occurred and is continuing, any purchase or redemption of Subordinated Obligations or Preferred Stock from Net Available Cash to the
extent permitted under Section 3.7; provided, however, that such purchase or redemption will be excluded in subsequent calculations of the amount of Restricted Payments; 

  

	 	(5)	the payment of any dividend or the consummation of an irrevocable redemption of Subordinated Obligations within 60 days after the date of declaration of any dividend or the
irrevocable notice of redemption, as the case may be, if at the date of declaration or the date such notice is delivered, such dividend or redemption payment, as the case may be, would have complied with this provision; 

  

	 	(6)	so long as no Default or Event of Default has occurred and is continuing, the declaration and payment of dividends to holders of any class or series of Disqualified Stock of the
Issuer issued in accordance with the terms of this Indenture to the extent such dividends are included in the definition of “Consolidated Interest Expense;” provided, that the payment of such dividends will be excluded from
subsequent calculations of Restricted Payments; 

  

	 	(7)	 repurchases of Capital Stock deemed to occur upon the exercise of stock options if such Capital Stock represents a portion of the exercise price 



  

 63 









	 	 
thereof and payments to fund the purchase by the Issuer of fractional shares arising out of stock dividends, splits or combinations or business combinations;
provided, however, that such repurchases will be excluded from subsequent calculations of the amount of Restricted Payments; 


  

	 	(8)	payments contemplated by the Transition Agreements (except the Employment Matters Agreement) as in effect on the Issue Date, as the Transition Agreements may be amended, modified or
supplemented from time to time; provided, however, that any future amendment, modification, or supplement entered into after the Issue Date will be permitted to the extent that its terms do not adversely affect the rights of any
Holders of the Securities as compared to the terms of the agreements in effect on the Issue Date; 

  

	 	(9)	repurchases of Capital Stock of any officer, director, employee or consultant of the Issuer in an aggregate amount not to exceed $3.0 million in any twelve-month period;
provided, that such payments will be excluded from subsequent calculation of the amounts of Restricted Payments; provided, further, that such amount in any twelve month period may be increased in an amount not to exceed (a) the
cash proceeds from the issue or sale of Capital Stock (other than Disqualified Stock) to any such officers, directors, employees or consultants that occurs after the Issue Date to the extent proceeds from the issue or sale of such Capital Stock have
not otherwise been applied to make Restricted Payments plus (b) the cash proceeds of key man life insurance received by the Issuer or its Restricted Subsidiaries after the Issue Date; 

  

	 	(10)	any transfer of a Non-Mineral Real Estate Interest to an Unrestricted Subsidiary; provided, however, that such transfer will be excluded from subsequent calculations
of the amount of Restricted Payments; and 

  

	 	(11)	Restricted Payments in an amount not to exceed $30.0 million. 

  
 The amount of all Restricted Payments (other than cash) shall be the fair market value on the date of such Restricted Payment of the asset(s) or
securities proposed to be paid, transferred or issued by the Issuer or such Restricted Subsidiary, as the case may be, pursuant to such Restricted Payment. The fair market value of any cash Restricted Payment shall be its face amount and any
non-cash Restricted Payment exceeding $5.0 million shall be determined conclusively by the Board of Directors acting in good faith whose resolution with respect thereto shall be delivered to the Trustee, such determination to be based upon an
opinion or appraisal issued by an accounting, appraisal, or investment banking firm of national standing if such fair market value is estimated to exceed $40.0 million. Not later than the date of making any Restricted Payment other than a Restricted
Payment allowed pursuant to (1) through (9) of the previous paragraph, the Issuer shall deliver to the Trustee an Officers’ Certificate stating that such Restricted Payment is permitted and setting forth the basis upon which the calculations
required by this Section 3.4 were computed, together with a copy of any fairness opinion or appraisal required by this Indenture. 
  

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 SECTION 3.5. Limitation on Liens. The Issuer will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur or permit to exist any Lien (other than Permitted Liens) upon any Principal Property or any shares of stock or Indebtedness of any Restricted Subsidiary that owns or leases any Principal
Property (whether such Principal Property, shares of stock or Indebtedness are now owned or hereafter acquired), securing any Subordinated Obligations or Senior Indebtedness, unless: 
  
 (1) in the case of Liens securing Subordinated Obligations of the Issuer or a Subsidiary Guarantor, the
Securities or Subsidiary Guarantee, as applicable, are secured by a Lien on such Principal Property or such shares of stock or Indebtedness on a senior basis to the Subordinated Obligations so secured with the same priority as the Securities or such
Subsidiary Guarantee, as applicable, has to such Subordinated Obligations until such time as such Subordinated Obligations are no longer so secured by a Lien; and 
  
 (2) in the case of Liens securing Senior Indebtedness of the Issuer or a Subsidiary Guarantor, the
Securities or Subsidiary Guarantees, as applicable, are secured by a Lien on such Principal Property or such shares of stock or Indebtedness on an equal and ratable basis with the Senior Indebtedness so secured until such time as such Senior
Indebtedness is no longer so secured by a Lien. 
  
 SECTION 3.6.
Limitation on Restrictions on Distributions from Restricted Subsidiaries. The Issuer will not, and will not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective any consensual encumbrance or
consensual restriction on the ability of any Restricted Subsidiary to: 
  

	 	(1)	pay dividends or make any other distributions on its Capital Stock or pay any Indebtedness or other obligations owed to the Issuer or any Restricted Subsidiary provided, that
the priority of any preferred stock in receiving dividends or liquidating distributions prior to dividends or liquidating distributions being paid on common stock shall not be deemed a restriction on the ability to make distributions on Capital
Stock; 

  

	 	(2)	make any loans or advances to the Issuer or any Restricted Subsidiary; or 

  

	 	(3)	transfer any of its property or assets to the Issuer or any Restricted Subsidiary. 

  
 The preceding provisions will not prohibit: 
  

	 	(i)	any encumbrance or restriction pursuant to an agreement in effect at or entered into on the Issue Date (including, without limitation, this Indenture, the indenture for the Existing
Senior Subordinated Notes and the Senior Credit Agreement in effect on such date); 

  

	 	(ii)	 any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to an agreement effecting a refinancing, renewal, increase, refunding, replacement,
modification or supplement of Indebtedness Incurred pursuant to an agreement 



  

 65 









	 	 
referred to in clause (i) of this paragraph or this clause (ii) or contained in any amendment to an agreement referred to in clause (i) of this paragraph or
this clause (ii); provided, however, that the encumbrances and restrictions with respect to such Restricted Subsidiary contained in any such agreement or amendment taken as a whole are no less favorable in any material respect (as
determined in good faith by the Issuer) to the holders of the Securities than the encumbrances and restrictions contained in such agreements referred to in clause (i) of this paragraph on the Issue Date; 


  

	 	(iii)	in the case of clause (3) of the first paragraph of this Section 3.6, any encumbrance or restriction: 

  

	 	(a)	that restricts in a customary manner the subletting, assignment or transfer of any Property or asset that is subject to a lease, license or similar contract, or the assignment or
transfer of any such lease, license or other contract; 

  

	 	(b)	contained in mortgages, pledges or other security agreements permitted under this Indenture securing Indebtedness of the Issuer or a Restricted Subsidiary to the extent such
encumbrances or restrictions restrict the transfer of the Property subject to such mortgages, pledges or other security agreements; or 

  

	 	(c)	pursuant to customary provisions restricting dispositions of real property interests set forth in any reciprocal easement agreements of the Issuer or any Restricted Subsidiary;


  

	 	(iv)	purchase money obligations for Property acquired in the ordinary course of business that impose encumbrances or restrictions of the nature described in clause (3) of the first
paragraph of this Section 3.6 on the property so acquired; 

  

	 	(v)	any restriction with respect to a Restricted Subsidiary (or any of its property or assets) imposed pursuant to an agreement entered into for the direct or indirect sale or
disposition of all or substantially all the Capital Stock or assets of such Restricted Subsidiary (or the Property or assets that are subject to such restriction) pending the closing of such sale or disposition; 

  

	 	(vi)	encumbrances or restrictions arising or existing by reason of applicable law or any applicable rule, regulation or order; 

  

	 	(vii)	customary supermajority voting provisions and other customary provisions in joint venture agreements, corporate charters, bylaws, 

  

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stockholders agreements and similar documents and agreements entered into in the ordinary course of business; 


  

	 	(viii)	customary encumbrances or restrictions imposed pursuant to any agreement referred to in the definition of “Permitted Business Investment”; 

  

	 	(ix)	encumbrances or restrictions in instruments evidencing Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the date on which such Subsidiary was acquired
by the Issuer; provided, however, that such encumbrances or restrictions are not created, incurred or assumed in connection with, or in contemplation of, such acquisition; 

  

	 	(x)	Indebtedness permitted under this Indenture containing encumbrances or restrictions that taken as a whole are not materially more restrictive (as determined in good faith by the
Board of Directors of the Issuer) than the encumbrances and restrictions otherwise contained in this Indenture; 

  

	 	(xi)	Encumbrances or restrictions contained in Hedging Obligations or Commodity Agreements permitted from time to time under this Indenture; 

  

	 	(xii)	Encumbrances securing Indebtedness otherwise permitted to be incurred under the provisions of Section 3.5 that limit the right of the debtor to dispose of the assets subject to such
Liens; 

  

	 	(xiii)	provisions with respect to the disposition or distribution of assets or property in joint venture agreements, stockholder agreements, asset sale agreements, sale leaseback
agreements, stock sale agreements and other similar agreements entered into in the ordinary course of business; 

  

	 	(xiv)	restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business; 

  

	 	(xv)	any Permitted Investment or any Permitted Lien; 

  

	 	(xvi)	Refinancing Indebtedness, provided that the restrictions contained in the agreements governing such Refinancing Indebtedness are no more restrictive, taken as a whole, than those
contained in the agreements governing the Indebtedness being refinanced; and 

  

	 	(xvii)	 provisions with respect to the disposition or distribution of assets or property in joint venture agreements or other similar agreements, including clawback,
“make-well” or “keep-well” 



  

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agreements, to maintain financial performance or results of operations of a joint venture entered into in the ordinary course of business



  
 SECTION 3.7. Limitation on Sales of
Assets and Subsidiary Stock. (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to, make any Asset Disposition unless: 
  

	 	(1)	the Issuer or such Restricted Subsidiary receives consideration at the time of such Asset Disposition at least equal to the fair market value thereof (as determined in good faith by
the Board of Directors and evidenced by a resolution of such Board in the case of an Asset Disposition having a fair market value of $20.0 million or greater) (including as to the value of all non-cash consideration), of the shares and assets
subject to such Asset Disposition; 

  

	 	(2)	at least 75% of the consideration from such Asset Disposition received by the Issuer or such Restricted Subsidiary, as the case may be, is in the form of cash, Cash Equivalents or
Additional Assets; and 

  

	 	(3)	an amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the Issuer or such Restricted Subsidiary, as the case may be: 


 

	 	(a)	to the extent the Issuer or any Restricted Subsidiary, as the case may be, elects (or is required by the terms of any Senior Indebtedness), to prepay, repay or purchase Senior
Indebtedness or Indebtedness (other than any Preferred Stock) of a Restricted Subsidiary that is a Subsidiary Guarantor (in each case other than Indebtedness owed to the Issuer or an Affiliate of the Issuer) within 360 days from the later of the
date of such Asset Disposition or the receipt of such Net Available Cash; and 

  

	 	(b)	to the extent the Issuer or such Restricted Subsidiary elects, to invest in Additional Assets and/or make capital expenditures in a Related Business, within 360 days from the later
of the date of such Asset Disposition or the receipt of such Net Available Cash. 

  
 Pending the final application of any Net Available Cash, the Issuer may temporarily reduce its revolving credit borrowings or otherwise invest such Net Available Cash in any manner that is not prohibited by this
Indenture. 
  
 (b) Any Net Available Cash from Asset Dispositions
that is not applied or invested as provided in Section 3.7(a)(3) will be deemed to constitute “Excess Proceeds.” On the 361st day after an Asset Disposition (or, if there exists any Senior Indebtedness with similar provisions
requiring the Issuer to make an offer to purchase such Senior Indebtedness, on the 451st day after an Asset Disposition), if the aggregate amount of Excess Proceeds exceeds $20.0 million, the Issuer will be required to make an offer (“Asset
Disposition Offer”) to all Holders of 

  

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Securities and to the extent required by the terms thereof, to all holders of other Senior Indebtedness outstanding with similar provisions requiring the
Issuer to make an offer to purchase such Senior Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Notes”), to purchase the maximum principal amount of Securities and any such Pari Passu Notes to which the Asset
Disposition Offer applies that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount equal to 100% of the principal amount thereof plus accrued and unpaid interest and Additional Interest, if any, to the date of
purchase, in accordance with the procedures set forth in this Indenture or the agreements governing the Pari Passu Notes, as applicable. To the extent that the aggregate amount of Securities and Pari Passu Notes so validly tendered and not properly
withdrawn pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the Issuer may use any remaining Excess Proceeds for general corporate purposes, subject to the other covenants contained in this Indenture. If the aggregate
principal amount of Securities surrendered by Holders thereof and other Pari Passu Notes surrendered by holders or lenders thereof, collectively, exceeds the amount of Excess Proceeds, the Trustee shall select the Securities to be purchased on a pro
rata basis on the basis of the aggregate principal amount of tendered Securities and Pari Passu Notes. Upon completion of such Asset Disposition Offer, the amount of Excess Proceeds shall be reset at zero. 
  
 (c)(1) The Asset Disposition Offer will remain open for a period of 20
Business Days following its commencement, except to the extent that a longer period is required by applicable law (the “Asset Disposition Offer Period”). No later than five Business Days after the termination of the Asset
Disposition Offer Period (the “Asset Disposition Purchase Date”), the Issuer will purchase the principal amount of Securities and Pari Passu Notes required to be purchased pursuant to this Section 3.7 (the “Asset
Disposition Offer Amount”) or, if less than the Asset Disposition Offer Amount has been so validly tendered, all Securities and Pari Passu Notes validly tendered in response to the Asset Disposition Offer. 
  
 (2) If the Asset Disposition Purchase Date is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid interest will be paid to the Person in whose name a Security is registered at the close of business on such record date, and no additional interest will be payable to
Holders of the Securities who tender Securities pursuant to the Asset Disposition Offer. 
  
 (3) On or before the Asset Disposition Purchase Date, the Issuer will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount of Securities and Pari
Passu Notes or portions of Securities and Pari Passu Notes thereof so validly tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less than the Asset Disposition Offer Amount has been validly tendered and not properly
withdrawn, all Securities and Pari Passu Notes so validly tendered and not properly withdrawn, in each case in integral multiples of $1,000. The Issuer will deliver to the Trustee an Officers’ Certificate stating that such Securities or
portions thereof were accepted for payment by the Issuer in accordance with the terms of this Section 3.7 and, in addition, the Issuer will deliver all certificates and notes required, if any, by the agreements governing the Pari Passu Notes.
The Issuer or the Paying Agent, as the case may be, will promptly (but in any case not later than five Business Days after termination of the Asset Disposition Offer Period) mail or deliver to each tendering Holder of Securities or holder or lender
of Pari Passu Notes, as the case may be, an amount equal to the purchase price of the Securities or Pari Passu Notes so validly 

  

 69 








 
tendered and not properly withdrawn by such holder or lender, as the case may be, and accepted by the Issuer for purchase, and the Issuer will promptly issue
a new Security, and the Trustee, upon delivery of an Officers’ Certificate from the Issuer will authenticate and mail or deliver such new Security to such Holder, in a principal amount equal to any unpurchased portion of the Security
surrendered; provided that each such new Security will be in a principal amount of $1,000 or an integral multiple of $1,000. In addition, the Issuer will take any and all other actions required by the agreements governing the Pari Passu
Notes. Any Security not so accepted will be promptly mailed or delivered by the Issuer to the Holder thereof. The Issuer will publicly announce the results of the Asset Disposition Offer on the Asset Disposition Purchase Date. 
  
 (d) For the purposes of this Section 3.7, the following will be deemed
to be cash: 
  

	 	(1)	the assumption by the transferee of Indebtedness (other than Subordinated Obligations or Disqualified Stock) of the Issuer or Indebtedness (other than Preferred Stock or
Subordinated Obligations) of any Restricted Subsidiary of the Issuer and the release of the Issuer or such Restricted Subsidiary from all liability on such Indebtedness in connection with such Asset Disposition (in which case the Issuer will,
without further action, be deemed to have applied such deemed cash to Indebtedness in accordance with Section 3.7(a)(3)(a) above); and 

  

	 	(2)	securities, notes or other obligations received by the Issuer or any Restricted Subsidiary of the Issuer from the transferee that are within 180 days of such Asset Disposition
converted by the Issuer or such Restricted Subsidiary into cash; and 

  

	 	(3)	accounts receivable of a business retained by the Issuer or any Restricted Subsidiary of the Issuer following the sale of such business; provided, that such accounts
receivable are not (x) past due more than 60 days and (y) do not have a payment date greater than 90 days from the date of the invoice creating such accounts receivable. 

  
 (e) The Issuer will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any
other securities laws or regulations in connection with the repurchase of Securities pursuant to this Section 3.7. To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 3.7,
the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Indenture by virtue of any conflict. 
  
 SECTION 3.8. Limitation on Affiliate Transactions. The Issuer will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, enter into or conduct any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any Affiliate of the Issuer (an “Affiliate
Transaction”) unless: 
  

	 	(1)	 the terms of such Affiliate Transaction are no less favorable to the Issuer or such Restricted Subsidiary, as the case may be, than those that could be 



  

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obtained by the Issuer or the relevant Restricted Subsidiary in a comparable transaction at the time of such transaction in arm’s-length dealings with a
Person who is not such an Affiliate; 


  

	 	(2)	in the event such Affiliate Transaction involves aggregate consideration in excess of $20.0 million, the terms of such transaction have been approved by a majority of the members of
the Board of Directors of the Issuer having no personal stake in such transaction, if any (and such majority or majorities, as the case may be, determines that such Affiliate Transaction satisfies the criteria in clause (1) above); and


  

	 	(3)	in the event such Affiliate Transaction involves aggregate consideration in excess of $40.0 million, the Issuer has received a written opinion from an independent investment banking
firm, appraiser or other expert of nationally recognized standing that such Affiliate Transaction is not materially less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s-length
basis from a Person that is not an Affiliate. 

  
 The preceding paragraph will not apply to: 
  

	 	(1)	any Restricted Payment (other than a Restricted Investment) permitted to be made pursuant to Section 3.4; 

  

	 	(2)	any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements, stock options and stock
ownership plans and other reasonable fees, compensation, benefits and indemnities paid or entered into by the Issuer or its Restricted Subsidiaries in the ordinary course of business to or with officers, directors or employees of the Issuer and its
Restricted Subsidiaries; 

  

	 	(3)	loans or advances to employees of the Issuer or any of its Restricted Subsidiaries in the ordinary course of business of the Issuer or any of its Restricted Subsidiaries;


  

	 	(4)	any transaction between the Issuer and a Restricted Subsidiary or between Restricted Subsidiaries; 

  

	 	(5)	the payment of reasonable and customary fees or compensation paid to, and indemnity or liability insurance provided on behalf of, officers, directors or employees of the Issuer or
any Restricted Subsidiary of the Issuer; 

  

	 	(6)	 any transaction between the Issuer and its Subsidiaries, between the Issuer and Plains Resources and its Subsidiaries or between a Restricted Subsidiary and Plains
Resources or its Subsidiaries pursuant to any of the Transition Agreements as in effect on the Issue Date, as these agreements 



  

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may be amended, modified or supplemented from time to time; provided, however that any future amendment, modification or supplement entered into after
the Issue Date will be permitted to the extent that its terms do not adversely affect the rights of any Holders of the Securities as compared to the terms of the agreements in effect on the Issue Date; 


  

	 	(7)	any transaction pursuant to the existing agreements between the Issuer and PAA as in effect on the date hereof, as these agreements may be amended, modified or supplemented from
time to time; provided, however, that any future amendment, modification or supplement entered into after the Issue Date will be permitted to the extent that its terms do not adversely affect the rights of any Holders of the Securities as
compared to the terms of the agreements in effect on the Issue Date; and 

  

	 	(8)	the performance of obligations of the Issuer or any of its Restricted Subsidiaries under the terms of any written agreement to which the Issuer or any of its Restricted Subsidiaries
is a party on the Issue Date, as these agreements may be amended, modified or supplemented from time to time; provided, however, that any future amendment, modification or supplement entered into after the Issue Date will be permitted to the
extent that its terms do not adversely affect the rights of any Holders of the Securities (as determined in good faith by the Issuer) as compared to the terms of the agreements in effect on the Issue Date; 

  

	 	(9)	any issuance or sale of Capital Stock (other than Disqualified Stock) to, or receipt of capital contribution from, Affiliates (or Person that thereby becomes an Affiliate) of the
Issuer; 

  

	 	(10)	transactions between the Issuer and any Person, a director of which is also a director of the Issuer; provided, however, that such director abstains from voting as a
director of the Issuer on any matter involving such other Person; 

  

	 	(11)	advances to employees for moving, entertainment and travel expenses, drawing accounts and similar expenditures in the ordinary course of business; and 

  

	 	(12)	any employment, consulting or similar agreement or other compensation arrangement entered into by the Issuer or any of its Restricted Subsidiaries in the ordinary course of business
of the Issuer or such Restricted Subsidiary and consistent with the past practice of the Issuer or such Restricted Subsidiary. 

  
 SECTION 3.9. Change of Control. If a Change of Control occurs, each Holder of Securities will have the right to require the Issuer to repurchase
all or any part (equal to $1,000 or an integral multiple thereof) of such Holder’s Securities at a purchase price in cash equal to 101% of the principal amount of the Securities plus accrued and unpaid interest and 

  

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Additional Interest, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date). 
  
 Within 30 days following any
Change of Control, the Issuer will mail a notice (the “Change of Control Offer”) to each registered Holder with a copy to the Trustee stating: 
  


	 	(1)	that a Change of Control has occurred and that such Holder has the right to require the Issuer to purchase such Holder’s Securities at a purchase price in cash equal to 101% of
the principal amount of such Securities plus accrued and unpaid interest and Additional Interest, if any, to the date of purchase (subject to the right of Holders of record on a record date to receive interest on the relevant interest payment date)
(the “Change of Control Payment”); 

  

	 	(2)	the repurchase date (which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed) (the “Change of Control Payment Date”); and


  

	 	(3)	the procedures determined by the Issuer, consistent with this Indenture, that a Holder must follow in order to have its Securities repurchased. 

  
 On the Change of Control Payment Date, the Issuer will, to the extent lawful:

  

	 	(1)	accept for payment all Securities or portions of Securities (equal to $1,000 or an integral multiple of $1,000) properly tendered pursuant to the Change of Control Offer;


  

	 	(2)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities so tendered; and 

  

	 	(3)	deliver or cause to be delivered to the Trustee the Securities so accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or
portions of Securities being purchased by the Issuer. 

  
 The Paying Agent will promptly mail to each Holder of Securities so tendered the Change of Control Payment for such Securities, and the Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a
new Security equal in principal amount to any unpurchased portion of the Securities surrendered, if any; provided that each such new Security will be in a principal amount of $1,000 or an integral multiple of $1,000. 
  
 If the Change of Control Payment Date is on or after an interest record date
and on or before the related interest payment date, any accrued and unpaid interest and Additional Interest, if any, will be paid to the Person in whose name a Security is registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender pursuant to the Change of Control Offer. 
  

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 The Issuer will not be required to make a Change of Control Offer upon a Change of Control if a third
party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Issuer and purchases all Securities validly
tendered and not withdrawn under such Change of Control Offer. 
  
 A Change of Control Offer may be made in advance of a Change of Control, and may be conditioned upon the occurrence of such Change of Control, if a definitive agreement is in place for the Change of Control at the time of making the Change
of Control Offer. 
  
 The Issuer will comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations in connection with the repurchase of Securities pursuant to this Section 3.9. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Indenture, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations described in this Indenture by virtue of
the conflict. 
  
 SECTION 3.10. Future Subsidiary
Guarantors. After the Issue Date, the Issuer will cause each Restricted Subsidiary other than the Congo Domestic Subsidiaries or a Foreign Subsidiary created or acquired by the Issuer to execute and deliver to the Trustee a Subsidiary Guarantee
pursuant to which such Subsidiary Guarantor will unconditionally Guarantee, on a joint and several basis, the full and prompt payment of the principal of, premium, if any, and interest and Additional Interest, if any, on the Securities on a senior
basis. In the case of the Congo Domestic Subsidiaries, the Issuer will cause each Congo Domestic Subsidiary to execute and deliver to the Trustee a Subsidiary Guarantee forty-five days after the Issue Date if such Congo Domestic Subsidiary is a
Restricted Subsidiary or guarantor under the Issuer’s Credit Facilities at such time. 
  
 SECTION 3.11. Limitation on Lines of Business. The Issuer will not, and will not permit any Restricted Subsidiary to, engage in any business other than a Related Business. 
  
 SECTION 3.12. Effectiveness of Covenants. The covenants described
under Sections 3.3, 3.4, 3.6, 3.7, 3.8 and 3.11 and clause (3) of Section 4.1 (collectively, the “Suspended Covenants”) will no longer be in effect from and after the first date on which
both (a) the Securities have an Investment Grade Rating from either of the rating agencies and (b) no Default or Event of Default has occurred and is continuing under this Indenture. 
  
 SECTION 3.13. Maintenance of Office or Agency. The Issuer will maintain in The City of New York, an office or agency
where the Securities may be presented or surrendered for payment, where, if applicable, the Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Issuer in respect of the Securities and
this Indenture may be served. The principal corporate trust office of the Trustee, or if the Trustee’s principal corporate trust office is not located in The City of New York, any other office or agency maintained by the Trustee in The City of
New York (the “Corporate Trust Office”), shall be such office or agency of the Issuer, unless the Issuer shall designate and maintain some other office or agency for one or more of such purposes. The Issuer will give prompt written
notice to the Trustee of any change in the location of any such office or agency. If at any time 

  

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the Issuer shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Issuer hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 
  
 The Issuer may also from time to time designate one or more other offices or
agencies (in or outside of The City of New York) where the Securities may be presented or surrendered for any or all such purposes and may from time to time rescind any such designation; provided, however, that no such designation or
rescission shall in any manner relieve the Issuer of its obligation to maintain an office or agency in The City of New York for such purposes. The Issuer will give prompt written notice to the Trustee of any such designation or rescission and any
change in the location of any such other office or agency. 
  
 SECTION 3.14. Corporate Existence. Subject to Article IV and Section 10.2, the Issuer will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and that of
each Restricted Subsidiary and the corporate rights (charter and statutory) licenses and franchises of the Issuer and each Restricted Subsidiary; provided, however, that the Issuer shall not be required to preserve any such existence (except
the Issuer), right, license or franchise if the Board of Directors of the Issuer shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer and each of its Restricted Subsidiaries, taken as a
whole, and that the loss thereof would not have a material adverse effect on the ability of the Issuer to perform its obligations under the Securities or this Indenture, provided, further, the Issuer may merge in accordance with Sections
4.1 and 10.2. 
  
 SECTION 3.15. Payment of Taxes and
Other Claims. The Issuer will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes, assessments and governmental charges levied or imposed upon the Issuer or any Subsidiary or upon
the income, profits or property of the Issuer or any Subsidiary and (ii) all lawful claims for labor, materials and supplies, which, if unpaid, might by law become a material liability or lien upon the property of the Issuer or any Restricted
Subsidiary, except for any Lien permitted to be incurred pursuant to subsections (3) and (4) of the definition of “Permitted Liens”; provided, however, that the Issuer shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings and for which appropriate reserves, if necessary (in the good faith judgment of management of
the Issuer), are being maintained in accordance with GAAP or where the failure to pay or discharge the same would not have a material adverse effect on the ability of the Issuer to perform its obligations under the Securities or this Indenture.

  
 SECTION 3.16. Compliance Certificate. The Issuer shall
deliver to the Trustee within 120 days after the end of each fiscal year of the Issuer an Officers’ Certificate stating that in the course of the performance by the signers of their duties as Officers of the Issuer they would normally have
knowledge of any Default or Event of Default and whether or not the signers know of any Default or Event of Default that occurred during such period. If they do, the certificate shall describe the Default or Event of Default, its status and what
action the Issuer is 

  

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taking or proposes to take with respect thereto. The Issuer also shall comply with TIA § 314(a)(4). 
  
 SECTION 3.17. Further Instruments and Acts. Upon the reasonable
request of the Trustee, the Issuer will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 SECTION 3.18. Statement by Officers as to Default. The Issuer shall
deliver to the Trustee, as soon as possible and in any event within 30 days after the Issuer become aware of the occurrence of any Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, an
Officers’ Certificate setting forth the details of such Event of Default or Default and the action which the Issuer are taking or propose to take in respect thereof. 
  
 ARTICLE IV 
  
 Successor Issuer 
  
 SECTION 4.1. Merger and Consolidation. The Issuer will not consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, unless: 
  

	 	(1)	the resulting, surviving or transferee Person (the “Successor Issuer”) will be a corporation, partnership, trust or limited liability company organized and existing
under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Issuer (if not the Issuer) will expressly assume, by supplemental indenture, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, all the obligations of the Issuer under the Securities and this Indenture; 

  

	 	(2)	immediately after giving effect to such transaction (and treating any Indebtedness that becomes an obligation of the Successor Issuer or any Subsidiary of the Successor Issuer as a
result of such transaction as having been Incurred by the Successor Issuer or such Subsidiary at the time of such transaction), no Default or Event of Default shall have occurred and be continuing; 

  

	 	(3)	immediately after giving effect to such transaction, (a) the Successor Issuer would be able to Incur at least an additional $1.00 of Indebtedness pursuant to the first paragraph of
Section 3.3 or (b) the Consolidated Coverage Ratio of the Successor Issuer shall not be less than the Consolidated Coverage Ratio of the Issuer immediately prior to such transaction; 

  

	 	(4)	 if the Issuer is not the continuing obligor under this Indenture, then any Subsidiary Guarantor, unless it is the Successor Issuer, shall have by 



  

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supplemental indenture to this Indenture confirmed that its Subsidiary Guarantee of the Securities shall apply to the Successor Issuer’s obligations
under this Indenture and the Securities; and 


  

	 	(5)	the Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with this Indenture. 

  
 For purposes of this Section 4.1, the sale, lease, conveyance, assignment, transfer, or other disposition of all or substantially all of the Properties and assets of one or more Subsidiaries of the Issuer,
which Properties and assets, if held by the Issuer instead of such Subsidiaries, would constitute all or substantially all of the Properties and assets of the Issuer on a consolidated basis, shall be deemed to be the transfer of all or substantially
all of the assets of the Issuer. 
  
 The Successor Issuer will
succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture, but, in the case of a lease of all or substantially all its assets, the Issuer will not be released from the obligation to pay the
principal of and interest and Additional Interest, if any, on the Securities. 
  
 Notwithstanding the preceding clause (3), (x) any Restricted Subsidiary of the Issuer may consolidate with, merge into or transfer all or part of its properties and assets to the Issuer or any Subsidiary Guarantor,
and (y) if then a corporation, the Issuer may merge with an Affiliate solely for the purpose of reincorporating the Issuer in another jurisdiction to realize tax or other benefits; provided that, in the case of a Restricted Subsidiary that merges
into the Issuer, the Issuer will not be required to comply with the preceding clause (4). 
  
 ARTICLE V 
  
 Redemption of
Securities 
  
 SECTION 5.1. Optional Redemption. The
Securities may be redeemed, as a whole or from time to time in part, subject to the conditions and at the redemption prices specified in the form of Securities set forth in Exhibits A and B hereto, which are hereby incorporated by reference and made
a part of this Indenture, together with accrued and unpaid interest and Additional Interest, if any, to the Redemption Date. 
  
 SECTION 5.2. Applicability of Article. Redemption of Securities at the election of the Issuer or otherwise, as permitted or required by any
provision of this Indenture, shall be made in accordance with such provision and this Article V. 
  
 SECTION 5.3. Election to Redeem; Notice to Trustee. The election of the Issuer to redeem any Securities pursuant to Section 5.1 shall
be evidenced by a resolution of the Board of Directors. In case of any redemption at the election of the Issuer, the Issuer shall, upon not later than the earlier of the date that is 45 days prior to the Redemption Date fixed by the Issuer or the
date on which notice is given to the Holders (unless a shorter notice shall be satisfactory to 

  

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the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities to be redeemed and shall deliver to the Trustee such
documentation and records as shall enable the Trustee to select the Securities to be redeemed pursuant to Section 5.4. 
  
 SECTION 5.4. Selection by Trustee of Securities to Be Redeemed. If less than all the Securities are to be redeemed at any time pursuant to an
optional redemption, the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the outstanding Securities not previously called for redemption, in compliance with the
requirements of the principal securities exchange, if any, on which such Securities are listed, or, if such Securities are not so listed, on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall
deem fair and appropriate (and in such manner as complies with applicable legal requirements) and which may provide for the selection for redemption of portions of the principal of the Securities; provided, however, that no such partial
redemption shall reduce the portion of the principal amount of a Security not redeemed to less than $1,000. 
  
 The Trustee shall promptly notify the Issuer in writing of the Securities selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed. 
  
 For
all purposes of this Indenture, unless the context otherwise requires, all provisions relating to redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of
such Security which has been or is to be redeemed. 
  
 SECTION
5.5. Notice of Redemption. Notice of redemption shall be given in the manner provided for in Section 11.2 not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed. The Trustee
shall give notice of redemption in the Issuer’s name and at the Issuer’s expense; provided, however, that the Issuer shall deliver to the Trustee, at least 45 days prior to the Redemption Date (unless a shorter notice shall be
satisfactory to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice at the Issuer’s expense and setting forth the information to be stated in such notice as provided in the following items. 
  
 All notices of redemption shall state: 
  

	 	(1)	the Redemption Date, 

  

	 	(2)	the redemption price and the amount of accrued interest to the Redemption Date payable as provided in Section 5.7, if any, (except in the case of a redemption at the
Make-Whole Price, the notice need not set forth the Make-Whole Price but only the manner of calculation of such Make-Whole Price), 

  

	 	(3)	if less than all outstanding Securities are to be redeemed, the identification of the particular Securities (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Securities to be redeemed and the aggregate principal amount of Securities to be outstanding after such partial redemption, 

  

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	 	(4)	in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security,
the Holder will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed, 

  

	 	(5)	that on the Redemption Date the redemption price (and accrued interest, if any, to the Redemption Date payable as provided in Section 5.7) will become due and payable upon
each such Security, or the portion thereof, to be redeemed, and, unless the Issuer default in making the redemption payment, that interest on Securities called for redemption (or the portion thereof) will cease to accrue on and after said date,


  

	 	(6)	the place or places where such Securities are to be surrendered for payment of the Redemption Price and accrued interest, if any, 

  

	 	(7)	the name and address of the Paying Agent, 

  

	 	(8)	that Securities called for redemption (other than a Global Note) must be surrendered to the Paying Agent to collect the redemption price, 

  

	 	(9)	the CUSIP number, and that no representation is made as to the accuracy or correctness of the CUSIP number, if any, listed in such notice or printed on the Securities, and


  

	 	(10)	the paragraph of the Securities pursuant to which the Securities are to be redeemed. 

  
 Any redemption and notice thereof pursuant to this Indenture may in the Issuer’s discretion, be subject to the
satisfaction of one or more conditions precedent. 
  
 SECTION 5.6.
Deposit of Redemption Price. Not later than 11:00 a.m. New York time on the Redemption Date, the Issuer shall deposit with the Trustee or with a Paying Agent (or, if either of the Issuer is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 2.4) an amount of money sufficient to pay the redemption price of, and accrued interest on, all the Securities which are to be redeemed on that date. 
  
 SECTION 5.7. Securities Payable on Redemption Date. Notice of
redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the redemption price therein specified (together with accrued and unpaid interest, if any, to the Redemption Date),
and from and after such date (unless the Issuer shall default in the payment of the redemption price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Issuer at the redemption price, together with accrued and unpaid interest and Additional Interest, if any, to the Redemption Date (subject to the rights of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date). 
  

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 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the
principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate borne by the Securities. 
  
 SECTION 5.8. Securities Redeemed in Part. Any Security which is to be redeemed only in part (pursuant to the provisions of this Article V)
shall be surrendered at the office or agency of the Issuer maintained for such purpose pursuant to Section 3.13 (with, if the Issuer or the Trustee so require, due endorsement by, or a written instrument of transfer in form satisfactory to
the Issuer and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Issuer shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such
Security at the expense of the Issuer, a new Security or Securities, of any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so
surrendered, provided, that each such new Security will be in a principal amount of $1,000 or integral multiple thereof. 
  
 ARTICLE VI 
  
 Defaults and Remedies 
  
 SECTION 6.1. Events of Default. Each of the following is an “Event of Default”: 
  

	 	(1)	default in any payment of interest or Additional Interest, if any, on any Security under the Indenture when due, continued for 30 days; 

  

	 	(2)	default in the payment of principal of or premium, if any, on any Security when due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or
otherwise; 

  

	 	(3)	failure by the Issuer to comply with its obligations under Article IV; 

  


	 	(4)	failure by the Issuer to comply for 30 days after notice with any of its obligations under Sections 3.2, 3.3, 3.4, 3.5, 3.6, 3.7,
3.8, 3.9, 3.10, 3.11 and 3.13 (in each case, other than a failure to purchase Securities, which will constitute an Event of Default under clause (2) above and other than a failure to comply with Article IV
which will constitute an Event of Default under clause (3) above); 

  

	 	(5)	failure by the Issuer or any Subsidiary Guarantor to comply for 60 days after notice with its other agreements contained in this Indenture; 

  

	 	(6)	 default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Issuer or any of its Restricted Subsidiaries), other than Indebtedness owed to the Issuer 



  

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or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created after the Issue Date, which default:



  

	 	(a)	is caused by a failure to pay principal of, or interest, Additional Interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness (“Payment Default”); or 

  

	 	(b)	results in the acceleration of such Indebtedness prior to its maturity (the “cross acceleration provision”); 

  
 and, in each case, the principal amount of any such Indebtedness, together
with the principal amount of any other such Indebtedness under which there has been a payment default or the maturity of which has been so accelerated, aggregates $10.0 million or more; 
  

	 	(7)	any Subsidiary Guarantee shall be held in a judicial proceeding to be, or be asserted by the Issuer or any Subsidiary Guarantor, as applicable, not to be, enforceable or valid or
shall cease to be in full force and effect (except pursuant to the release or termination of any such Subsidiary Guarantee in accordance with this Indenture); 

  

	 	(8)	(a) the Issuer or Significant Subsidiary or a group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the Issuer and
its Restricted Subsidiaries), would constitute a Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

  

	 	(i)	commences a voluntary case or proceeding; 

  

	 	(ii)	consents to the entry of judgment, decree or order for relief against it in an involuntary case or proceeding; 

  

	 	(iii)	consents to the appointment of a Custodian of it or for any substantial part of its property; 

  

	 	(iv)	makes a general assignment for the benefit of its creditors; or 

  

	 	(v)	consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding against it; 

  
 or takes any comparable action under any foreign laws relating to insolvency; or 
  

	 	(b)	a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

  

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	 	(i)	is for relief against the Issuer or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements
for the Issuer and its Restricted Subsidiaries), would constitute a Significant Subsidiary in an involuntary case; 

  

	 	(ii)	appoints a Custodian of the Issuer or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Issuer and its Restricted Subsidiaries), would constitute a Significant Subsidiary or for any substantial part of its Property; or 

  

	 	(iii)	orders the winding up or liquidation of the Issuer or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Issuer and its Restricted Subsidiaries) would constitute a Significant Subsidiary; 

  
 or any similar relief is granted under any foreign laws and the order, decree or relief remains unstayed and in effect for 60 days; 
  

	 	(9)	failure by the Issuer or any Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the
Issuer and its Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $10.0 million (net of any amounts that a reputable and creditworthy insurance company has acknowledged liability for
in writing), which judgments are not paid, discharged or stayed for a period of 60 days (the “judgment default provision”). 

  
 However, a Default under clauses (4) and (5) of this Section 6.1 will not constitute an Event of Default until the Trustee or the Holders of 25% in
principal amount of the outstanding Securities notify the Issuer, and the Trustee in the case of a notice given by the Holders, of the Default and the Issuer does not cure such Default within the time specified in clauses (4) and (5) of this
Section 6.1 after receipt of such notice. 
  
 SECTION 6.2.
Acceleration. If an Event of Default (other than an Event of Default described in clause (8) of Section 6.1) occurs and is continuing, the Trustee by notice to the Issuer, or the Holders of at least 25% in principal amount of the
outstanding Securities by notice to the Issuer and the Trustee, may, and the Trustee at the request of such Holders shall, declare the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Securities to be due and
payable. Upon such a declaration, such principal, premium and accrued 

  

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and unpaid interest, if any, will be due and payable immediately. If an Event of Default described in clause (8) of Section 6.1 above occurs and is
continuing, the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Securities will become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. The Holders
of a majority in principal amount of the outstanding Securities may waive any or all past defaults (except with respect to nonpayment of principal, premium, interest or Additional Interest, if any) and rescind any such acceleration with respect to
the Securities and its consequences if (1) rescission would not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default, other than the nonpayment of the principal of, premium, if any, and
interest and Additional Interest, if any, on the Securities that have become due solely by such declaration of acceleration, have been cured or waived. 
  
 SECTION 6.3. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of
principal of (or premium, if any) or interest or Additional Interest, if any, on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 
  
 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in
the proceeding. A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No
remedy is exclusive of any other remedy. All available remedies are cumulative. 
  
 SECTION 6.4. Waiver of Past Defaults. The Holders of a majority in principal amount of the then outstanding Securities by notice to the Trustee may (a) waive, by their consent (including, without limitation
consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities), an existing Default or Event of Default and its consequences or compliance with any provisions except (i) a Default or Event of Default in the
payment of the principal of, or premium, if any, or interest or Additional Interest, if any, on a Security or (ii) a Default or Event of Default in respect of a provision that under Section 9.2 cannot be amended without the consent of each
Securityholder affected and (b) rescind any such acceleration with respect to the Securities and its consequences if rescission would not conflict with any judgment or decree of a court of competent jurisdiction. When a Default or Event of Default
is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any consequent right. 
  
 SECTION 6.5. Control by Majority. The Holders of a majority in principal amount of the outstanding Securities may direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to
Sections 7.1 and 7.2, that the Trustee determines is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability. Prior to taking any action hereunder, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action. 
  

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 SECTION 6.6. Limitation on Suits. Subject to Section 6.7, a Securityholder may not pursue
any remedy with respect to this Indenture or the Securities unless: 
  

	 	(1)	such Holder has previously given to the Trustee written notice stating that an Event of Default is continuing; 

  

	 	(2)	Holders of at least 25% in principal amount of the outstanding Securities have requested in writing that the Trustee pursue the remedy; 

  

	 	(3)	such Holders have offered to the Trustee reasonable security or indemnity against any loss, liability or expense; 

  

	 	(4)	the Trustee has not complied with such request within 60 days after receipt of the request and the offer of security or indemnity; and 

  

	 	(5)	the Holders of a majority in principal amount of the outstanding Securities have not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such
request within such 60-day period. 

  
 A
Securityholder may not use this Indenture to prejudice the rights of another Securityholder or to obtain a preference or priority over another Securityholder. 
  

SECTION 6.7. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture (including, without limitation,
Section 6.6), the right of any Holder to receive payment of principal of, premium (if any) or interest or Additional Interest, if any, when due on the Securities held by such Holder, on or after the respective due dates expressed in the
Securities, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 
  
 SECTION 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses (1) or (2) of Section 6.1
occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the
amounts provided for in Section 7.7. 
  
 SECTION 6.9.
Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Securityholders allowed in any judicial proceedings
relative to the Issuer, its Subsidiaries or its or their respective creditors or properties and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person
performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 7.7. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding, shall be denied for 

  

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any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding. 
  
 SECTION 6.10. Priorities. If the
Trustee collects any money or property pursuant to this Article VI, it shall pay out the money or property in the following order: 
  
 FIRST: to the Trustee for amounts due under Section 7.7; 
  
 SECOND: to Securityholders for amounts due and unpaid on the Securities for principal, premium, if any, and
interest and Additional Interest, if any, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities for principal and interest and Additional Interest, if any, respectively; and 
  
 THIRD: to the Issuer or the Subsidiary Guarantors or to such
other party as a court of competent jurisdiction may direct. 
  
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At least 15 days before such record date, the Issuer shall mail to each Securityholder and the Trustee a notice that
states the record date, the payment date and amount to be paid. 
  
 SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by the Issuer, a suit by a Holder pursuant to Section 6.7 or a suit
by Holders of more than 10% in outstanding principal amount of the Securities. 
  
 SECTION 6.12. Additional Payments. In the case of any Event of Default occurring by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Issuer with the intention of avoiding
payment of the premium that the Issuer would have had to pay if the Issuer then had elected to redeem the Securities pursuant to the optional redemption provisions of this Indenture or were required to repurchase the Securities, an equivalent
premium shall also become and be immediately due and payable to the extent permitted by law upon the acceleration of the Securities. If an Event of Default occurs prior to June 15, 2009 by reason of any willful action (or inaction) taken (or not
taken) by or on behalf of the Issuer with the intention of avoiding the prohibition on redemption of the Securities prior to June 15, 2009, the premium specified in this Indenture for the period commencing June 15, 2009 shall also become 

  

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immediately due and payable to the extent permitted by law upon the acceleration of the Securities. 
  
 SECTION 6.13. Waiver of Stay. 
  
 Each of the Issuer and the Subsidiary Guarantors covenant (to the extent
permitted by applicable law) that it will not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law wherever enacted, now or at any time hereafter in
force, which would prohibit or forgive the Issuer or any Subsidiary Guarantor from paying all of any portion of the principal of (premium, if any, on) or interest and Additional Interest, if any, on the Securities as contemplated herein, or which
may affect the covenants or the performance of this Indenture; and (to the extent that it may lawfully do so) each of the Issuer and the Subsidiary Guarantors hereby expressly waive all benefit or advantage of any such law, and covenants that they
will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 ARTICLE VII 
  
 Trustee 
  
 SECTION 7.1. Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested
in it by this Indenture and use the same degree of care and skill in their exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee will be under no obligation to exercise the rights or powers under this Indenture at the request or direction of any of the Holders unless such Holders have offered to the Trustee indemnity or security against
loss, liability or expense satisfactory to the Trustee in its sole discretion. 
  
 (b) Except during the continuance of an Event of Default: 
  

	 	(1)	the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and 

  

	 	(2)	in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates, opinions or orders furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall examine such certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other
facts stated therein). 

  

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 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that: 
  

	 	(1)	this paragraph does not limit the effect of paragraph (b) of this Section 7.1; 

  

	 	(2)	the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent
facts; and 

  

	 	(3)	the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5.


  
 (d) Every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.1. 
  
 (e) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Issuer. 
  
 (f) Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law. 
  
 (g) No provision
of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (h) Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the
provisions of this Section 7.1 and to the provisions of the TIA. 
  
 (i) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from each Issuer shall be sufficient if signed by an Officer of such Issuer. 
  
 (j) The Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses (including reasonable
attorneys’ fees and expenses) and liabilities that might be incurred by it in compliance with such request or direction. 
  
 SECTION 7.2. Rights of Trustee. Subject to Section 7.1: 
  
 (a) The Trustee may conclusively rely on any document (whether in its original or facsimile form) reasonably believed by it
to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 
  

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 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate and/or
an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officers’ Certificate or Opinion of Counsel. 
  
 (c) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of
any agent appointed with due care. 
  
 (d) The Trustee shall not
be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, unless the Trustee’s conduct constitutes willful misconduct or negligence. 
  
 (e) The Trustee may consult with counsel of its selection, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and the Securities shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel. 
  
 (f) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a Default is received by a
Trust Officer at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture. 
  
  
 (g) The Trustee is not required to make any inquiry or investigation into
facts or matters stated in any document but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit and, if the Trustee determines to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Issuer. 
  
 (h) The Trustee is not required to take notice or shall not be deemed to have notice of any Default or Event of Default hereunder, unless a Trust Officer of the Trustee has actual knowledge thereof or has received
notice in writing of such Default or Event of Default from the Issuer or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding, and in the absence of any such notice, the Trustee may conclusively assume that no
such Default or Event of Default exists. 
  
 (i) The Trustee is
not required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture. 
  
 (j) In the event the Trustee receives inconsistent or conflicting requests and indemnity from two or more groups of Holders of Securities, each
representing less than the aggregate principal amount of Securities outstanding required to take any action thereunder, the Trustee, in its sole discretion may determine what action, if any, shall be taken. 
  
 (k) The Trustee’s immunities and protections from liability and its
right to indemnification in connection with the performance of its duties under this Indenture shall extend to the Trustee’s officers, directors, agents, attorneys and employees. Such immunities and protections and right to indemnification,
together with the Trustee’s right to compensation, 

  

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shall survive the Trustee’s resignation or removal, the discharge of this Indenture and final payments of the Securities. 
  
 (l) The permissive right of the Trustee to take actions permitted by this
Indenture shall not be construed as an obligation or duty to do so. 
  
 SECTION 7.3. Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Issuer or its Affiliates with the same rights it would have
if it were not Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
  
 SECTION 7.4. Trustee’s Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Issuer’s use of the proceeds from the Securities, and it shall not be responsible for any
statement of the Issuer in this Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee’s certificate of authentication. 
  
 SECTION 7.5. Notice of Defaults. If a Default or Event of Default
occurs and is continuing and if a Trust Officer has actual knowledge thereof, the Trustee shall mail to each Securityholder notice of the Default or Event of Default within the earlier of 90 days after it occurs or 30 days after the Trustee has
knowledge of such default. Except in the case of a Default or Event of Default in payment of principal of, premium (if any), interest or Additional Interest, if any, on any Security (including payments pursuant to the optional redemption or required
repurchase provisions of such Security, if any), the Trustee may withhold the notice if and so long a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of Securityholders. 
  
 SECTION 7.6. Reports by Trustee to Holders. As promptly as practicable
after each May 15, beginning with the May 15, following the date of this Indenture, and for so long as the Securities remain outstanding, the Trustee shall mail to each Securityholder a brief report dated as of such reporting date that complies with
TIA § 313(a). The Trustee also shall comply with TIA § 313(b). The Trustee shall also transmit by mail all reports required by TIA § 313(c). 
  
 A copy of each report at the time of its mailing to Securityholders shall be filed with the Commission and each stock exchange (if any) on which the
Securities are listed. The Issuer agrees to notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any delisting thereof. 
  
 SECTION 7.7. Compensation and Indemnity. The Issuer shall pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder as the Issuer and the Trustee shall from time to time agree in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, costs of preparing and reviewing reports, certificates and other documents, costs of
preparation and mailing of notices 

  

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to Securityholders, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee’s agents, counsel, accountants and experts. The Issuer shall indemnify the Trustee against any and all loss, liability, damages, claims or expense (including reasonable attorneys’ fees and expenses) incurred by it
without negligence or willful misconduct on its part in connection with the administration of this trust and the performance of its duties hereunder, including the costs and expenses of enforcing this Indenture (including this Section 7.7)
and of defending itself against any claims (whether asserted by any Securityholder, the Issuer or otherwise). The Trustee shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Issuer
shall not relieve the Issuer of their obligations hereunder. The Issuer shall defend the claim and the Trustee shall provide reasonable cooperation at the Issuer’s expense in the defense. The Trustee may have separate counsel and the Issuer
shall pay the fees and expenses of such counsel provided that the Issuer shall not be required to pay such fees and expenses if it assumes the Trustee’s defense, and, in the reasonable judgment of outside counsel to the Trustee, there is no
conflict of interest between the Issuer and the Trustee in connection with such defense. The Issuer shall not be under any obligation to pay for any written settlement without its consent, which consent shall not be unreasonably delayed, conditioned
or withheld. The Issuer need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own willful misconduct or negligence. 
  
 To secure the Issuer’s payment obligations in this Section 7.7,
the Trustee shall have a Lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay principal of, interest and Additional Interest, if any, on particular Securities.

  
 The Issuer’s payment obligations pursuant to this
Section 7.7 shall survive the discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in clause (8) of Section 6.1 with respect to the Issuer, the expenses are intended to constitute
expenses of administration under any Bankruptcy Law. 
  
 SECTION
7.8. Replacement of Trustee. The Trustee may resign at any time by so notifying the Issuer. The Holders of a majority in principal amount of the then outstanding Securities may remove the Trustee by so notifying the Trustee and may appoint a
successor Trustee. The Issuer shall remove the Trustee if: 
  

	 	(1)	the Trustee fails to comply with Section 7.10; 

  

	 	(2)	the Trustee is adjudged bankrupt or insolvent; 

  

	 	(3)	a receiver or other public officer takes charge of the Trustee or its property; or 

  

	 	(4)	the Trustee otherwise becomes incapable of acting. 

  
 If the Trustee resigns or is removed by the Issuer or by the Holders of a majority in principal amount of the then outstanding Securities and such Holders
do not reasonably promptly appoint a successor Trustee, or if a vacancy exists in the office of the Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Issuer shall promptly appoint a successor
Trustee. 
  

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 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to
the Issuer. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of
its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 
  
 If a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the then outstanding Securities may petition, at the Issuer’s expense, any court of competent jurisdiction for the appointment of a
successor Trustee. 
  
 If the Trustee fails to comply with
Section 7.10, unless the Trustee’s duty to resign is stayed as provided in TIA § 310(b), any Securityholder who has been a bona fide Holder of a Security for at least six months may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee. 
  
 Notwithstanding the replacement of the Trustee pursuant to this Section 7.8, the Issuer’s obligations under Section 7.7 shall continue for the benefit of the retiring Trustee. 
  
 SECTION 7.9. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the
successor Trustee. 
  
 In case at the time such successor or
successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture, any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities
either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture. 
  
 SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least $100 million as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA §
310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Issuer are
outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
  
 SECTION 7.11. Preferential Collection of Claims Against Issuer. The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or
been removed shall be subject to TIA § 311(a) to the extent indicated. 
  

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 ARTICLE VIII 
  
 Discharge of Indenture; Defeasance 
  
 SECTION 8.1. Discharge of Liability on Securities; Defeasance. (a) Subject to Section 8.1(c), when (i)(x) the Issuer delivers to the Trustee
all outstanding Securities (other than Securities replaced pursuant to Section 2.9) for cancellation or (y) all outstanding Securities not theretofore delivered for cancellation have become due and payable, whether at maturity or upon
redemption or will become due and payable at their Stated Maturity within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption pursuant to Article V
hereof by the Trustee in the name and at the expense, of the Issuer; and the Issuer or the Subsidiary Guarantors have irrevocably deposited or caused to be deposited with the Trustee as funds in trust solely for the benefit of the Holders money in
U.S. dollars, non-callable U.S. Government Obligations, or a combination thereof, in such amounts as will be sufficient without consideration of any reinvestment of interest to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation for principal, premium, if any, and interest and Additional Interest, if any, to the date of deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be; (ii) the Issuer or the Subsidiary Guarantors have paid or have caused to be paid all sums then due and payable under this Indenture and the Securities; and (iii) the Issuer has delivered irrevocable instructions
to the Trustee under this Indenture to apply such funds to the payment of such Securities at maturity or the Redemption Date, as the case may be, then (A) the Indenture will be discharged and will cease to be of further effect as to all outstanding
Securities issued hereunder and the Subsidiary Guarantees issued hereunder (except as to surviving rights of registration of transfer or exchange of the Securities) and (B) the Trustee shall acknowledge satisfaction and discharge of this Indenture
(except as to surviving rights of registration of transfer or exchange of the Securities) on demand of the Issuer (accompanied by an Officers’ Certificate and an Opinion of Counsel which, taken together, state that all conditions precedent
specified herein relating to the satisfaction and discharge of this Indenture have been complied with) and at the cost and expense of the Issuer. 
  
 (b) Subject to Sections 8.1(c) and 8.2, the Issuer at any time may terminate (i) all its obligations under the Securities and this Indenture
and all obligations of the Subsidiary Guarantors under the Subsidiary Guarantees and this Indenture (“legal defeasance option”), and after giving effect to such legal defeasance, any omission to comply with such obligations shall no
longer constitute a Default or Event of Default or (ii) its obligations under Sections 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.14, 3.15, 6.12
and 4.1(3) and the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any
such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply with such covenants shall no longer constitute a Default or an Event of Default under Section
6.1(3), 6.1(4) and 6.1(5) and the operation of Sections 6.1(6), 6.1(7), 6.1(8) (but, in the case of Section 6.1(8), only with respect to a Significant Subsidiary or group of Restricted Subsidiaries that, when taken together
as of the last audited consolidated financial statements of the Issuer and its Restricted Subsidiaries, would constitute a Significant Subsidiary) and 6.1(9), and the events specified in such Sections shall no longer constitute an Event of
Default (clause (ii) being referred to as the “covenant defeasance  

  

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option”), but except as specified above, the remainder of this Indenture and the Securities shall be unaffected thereby. The Issuer may exercise
their legal defeasance option notwithstanding the prior exercise of their covenant defeasance option. If the Issuer exercises its covenant defeasance option, the Issuer may elect to have any Subsidiary Guarantees in effect at such time terminate.

  
 If the Issuer exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default, and the Subsidiary Guarantees in effect at such time shall terminate. If the Issuer exercises its covenant defeasance option, payment of the Securities may not be accelerated
because of an Event of Default specified in Section 6.1(4), 6.1(5) (as such Section relates to 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.14, 3.15,
4.1(3) and 6.12), 6.1(6), 6.1(7), 6.1(8) (but, in the case of Section 6.1(8), only with respect to a Significant Subsidiary or a group of Restricted Subsidiaries, that when taken together as of the latest audited
consolidated financial statements of the Issuer and its Restricted Subsidiaries, would constitute a Significant Subsidiary), or 6.1(9) or because of the failure of the Issuer to comply with Section 4.1(3). 
  
 Upon satisfaction of the conditions set forth herein and upon request of the
Issuer, the Trustee shall acknowledge in writing the discharge of those obligations that the Issuer terminate. 
  
 (c) Notwithstanding the provisions of Sections 8.1(a) and (b), the Issuer’s obligations in Sections 2.2, 2.3,
2.4, 2.5, 2.6, 2.9, 2.10, 3.1, 3.13, 3.14, 3.15, 3.16, 3.17, 3.18, 6.7, 7.7, 7.8 and in this Article VIII shall survive until the
Securities have been paid in full. Thereafter, the Issuer’s obligations in Sections 7.7, 8.4 and 8.5 shall survive. 
  
 SECTION 8.2. Conditions to Defeasance. The Issuer may exercise its legal defeasance option or its covenant defeasance option only if: 

 
 (1) the Issuer irrevocably deposits in trust with the
Trustee for the benefit of the Holders money in U.S. dollars or U.S. Government Obligations, or a combination thereof, for the payment of principal, premium, if any, and interest and Additional Interest, if any, on the Securities to maturity or
redemption, as the case may be; 
  
 (2) the
Issuer delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and interest when due and without reinvestment on the deposited U.S. Government
Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal, premium, if any, interest and Additional Interest, if any, when due on all the Securities to
maturity; 
  
 (3) no Default or Event of Default
shall have occurred and be continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 
  
 (4) such legal defeasance or covenant defeasance shall not result in a breach or violation of, or constitute
a Default under, any material agreement or instrument (other than this Indenture) to which the Issuer or any of their Subsidiaries is a party or by which the Issuer or any of their Subsidiaries is bound; 
  

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 (5) the Issuer shall have delivered to the Trustee an Opinion of Counsel (subject to
customary assumptions and exclusions) to the effect that (A) the Securities and (B) assuming no intervening bankruptcy of the Issuer between the date of deposit and the 91st day following the deposit and that if a Holder of the Securities is an
insider of the Issuer within the meaning of the Bankruptcy Law, after the 366th day following the deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ right generally; 
  
 (6) the
Issuer deliver to the Trustee an Opinion of Counsel (subject to customary assumptions and exclusions) to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940; 
  
 (7) in the
case of the legal defeasance option, the Issuer shall have delivered to the Trustee an Opinion of Counsel (subject to customary assumptions and exclusions) in the United States stating that (i) the Issuer has received from, or there has been
published by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Securityholders will not recognize income, gain or loss for federal income tax purposes as a result of such defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such legal defeasance had not occurred; 
  
 (8) in the case of the covenant defeasance option, the Issuer shall have delivered to the Trustee an Opinion of Counsel (subject to customary assumptions and exclusions) in the United States to the effect that the
Securityholders will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amount, in the same manner and at the same times as
would have been the case if such deposit and covenant defeasance had not occurred; and 
  
 (9) the Issuer delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent
to the defeasance and discharge of the Securities and this Indenture as contemplated by this Article VIII have been complied with. 
  
 SECTION 8.3. Application of Trust Money. The Trustee shall hold in trust money or U.S. Government Obligations deposited with it pursuant to this
Article VIII. It shall apply the deposited money and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of and interest and Additional Interest, if any, on the
Securities. 
  
 SECTION 8.4. Repayment to Issuer. The
Trustee and the Paying Agent shall promptly turn over to the Issuer upon request any excess money, U.S. Government Obligations or securities held by them upon payment of all the obligations under this Indenture. 
  

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 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the
Issuer upon request any money held by them for the payment of principal of or interest on the Securities that remains unclaimed for two years, and, thereafter, Securityholders entitled to the money must look to the Issuer for payment as general
creditors. 
  
 SECTION 8.5. Indemnity for U.S. Government
Obligations. The Issuer shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations. 
  
 SECTION 8.6. Reinstatement. If the Trustee
or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this Article VIII by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the obligations of the Issuer and Subsidiary Guarantors under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Article
VIII until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article VIII; provided, however, that, if the Issuer have made any payment of interest
on or principal of any Securities because of the reinstatement of their obligations, the Issuer shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations held by the
Trustee or Paying Agent. 
  
 ARTICLE IX 
  
 Amendments 
  
 SECTION 9.1. Without Consent of Holders. The Issuer, the Subsidiary
Guarantors and the Trustee may amend this Indenture or the Securities without notice to or consent of any Securityholder: 
  
 (1) to cure any ambiguity, omission, defect or inconsistency; 
  
 (2) provide for the assumption by a successor corporation, partnership, trust or limited liability company
of the obligations of the Issuer under this Indenture; 
  
 (3) to provide for uncertificated Securities in addition to or in place of certificated Securities; provided, however, that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code or in
a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; 
  
 (4) to add or release Subsidiary Guarantees in accordance with the terms of this Indenture; provided, that in the case of an
addition of a Subsidiary Guarantor, as set forth in the forth in the form of the Subsidiary Guarantee attached to the Indenture as Exhibit C, the signature of any Subsidiary Guarantor existing at the time of the addition of such Subsidiary Guarantee
is not required on such Subsidiary Guarantee; 
  
 (5) to secure the Securities; 
  

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 (6) to add to the covenants of the Issuer and the Subsidiary Guarantors for the benefit
of the Holders or to surrender any right or power herein conferred upon the Issuer; 
  
 (7) to make any change that does not adversely affect the rights of any Securityholder; 
  
 (8) provide for the issuance of Additional Securities in
accordance with the provisions set forth herein; or 
  
 (9) to comply with any requirements of the Commission in connection with qualifying, or maintaining the qualification of, this Indenture under the TIA. 
  

After an amendment under this Indenture becomes effective, the Issuer is required to mail to the Holders a notice briefly describing such amendment.
However, the failure to give such notice to all the Holders, or any defect therein, will not impair or affect the validity of the amendment and, subject to Sections 6.4 and 6.7, any existing Default or Event of Default (other than a Default or Event
of Default in the payment of principal of, premium if any, or interest or Additional Interest, if any, on, the Securities, except a payment Default resulting from an acceleration that has been rescinded). 
  
 SECTION 9.2. With Consent of Holders. The Issuer, the Subsidiary
Guarantors and the Trustee may amend or supplement this Indenture or the Securities without notice to any Securityholder but with the written consent of the Holders of at least a majority in principal amount of the Securities then outstanding
(including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities). However, without the consent of each Securityholder affected, an amendment may not: 
  
 (1) reduce the principal amount of Securities whose Holders
must consent to an amendment; 
  
 (2) reduce the
stated rate of or extend the stated time for payment of interest and Additional Interest, if any, on any Security; 
  
 (3) reduce the principal of or extend the Stated Maturity of any Security; 
  
 (4) whether through an amendment or waiver of provisions in the covenants, definitions or otherwise, reduce
the premium payable upon the redemption or repurchase of any Security or change the time at which any Security may or shall be redeemed or repurchased as described under Article V, Section 3.7, Section 3.9 or any similar
provision; 
  
 (5) make any Security payable in
currency other than that stated in the Security; 
  
 (6) impair the right of any Holder to receive payment of premium, if any, principal of and interest and Additional Interest, if any, on such Holder’s Securities on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Securities; 
  

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 (7) reduce the relative ranking of any Securities or Subsidiary Guarantees; or

  
 (8) make any change to the amendment
provisions which require each Holder’s consent or to the waiver provisions. 
  
 It shall not be necessary for the consent of the Holders under this Section 9.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance
thereof. A consent to any amendment or waiver under this Indenture by any Holder of the Securities given in connection with a tender of such Holder’s Securities will not be rendered invalid by such tender. 
  
 After an amendment under this Section becomes effective, the Issuer shall
mail to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.2. 
  
 SECTION 9.3. Compliance with Trust Indenture Act. Every amendment or
supplement to this Indenture or the Securities shall comply with the TIA as then in effect. 
  
 SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Securityholder.

  
 For purposes of this Indenture, the written consent of the
Holder of a Global Security shall be deemed to include any consent delivered by an Agent Member by electronic means in accordance with the Automated Tender Offer Procedures system or other customary procedures of, and pursuant to authorization by,
DTC. 
  
 The Issuer may, but shall not be obligated to, fix a
record date for the purpose of determining the Securityholders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding
the immediately preceding paragraph, those Persons who were Securityholders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take
any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall become valid or effective more than 120 days after such record date. 
  
 SECTION 9.5. Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding the changed terms and return it to the Holder. Alternatively, if the Issuer or the Trustee so determines, the
Issuer in exchange for the Security shall issue and the Trustee shall authenticate a 

  

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new Security that reflects the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such
amendment. 
  
 SECTION 9.6. Trustee To Sign Amendments. The
Trustee shall sign any amendment authorized pursuant to this Article IX if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably satisfactory to it and to receive, and (subject to Sections 7.1 and 7.2) shall be fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating
that such amendment is authorized or permitted by this Indenture. 
  
 ARTICLE X 
  
 Subsidiary Guarantee 
  
 SECTION 10.1. Subsidiary Guarantee. Each Subsidiary Guarantor hereby
fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, to each Holder of the Securities and the Trustee the full and punctual payment when due,
whether at maturity, by acceleration, by redemption or otherwise, of the principal of, premium, if any, interest and Additional Interest, if any, on the Securities and all other monetary obligations of the Issuer under this Indenture (all the
foregoing being hereinafter collectively called the “Obligations”). Each Subsidiary Guarantor further agrees (to the extent permitted by law) that the Obligations may be extended or renewed, in whole or in part, without notice or
further assent from it, and that it will remain bound under this Article X notwithstanding any extension or renewal of any Obligation. 
  
 Each Subsidiary Guarantor waives presentation to, demand of payment from and protest to the Issuer of any of the Obligations and also waives notice of
protest for nonpayment. Each Subsidiary Guarantor waives notice of any default under the Securities or the Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (a) the failure of any Holder to assert any claim
or demand or to enforce any right or remedy against the Issuer or any other person under this Indenture, the Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Indenture, the Securities or any other agreement; (d) the release of any security held by any Holder or the Trustee for the Obligations or any of them; (e) the failure of any Holder to exercise
any right or remedy against any other Subsidiary Guarantor; or (f) any change in the ownership of the Issuer. 
  
 Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a Guarantee of payment when due (and not a Guarantee of
collection) and waives any right to require that any resort be had by any Holder to any security held for payment of the Obligations. 
  
 Except as expressly set forth in Sections 8.1(b) and 10.2, the obligations of each Subsidiary Guarantor hereunder shall not be subject to
any reduction, limitation, impairment or termination for any reason (other than payment of the Obligations in full), including any claim of 

  

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waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever
or by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder to assert any claim or demand or to enforce any remedy under this Indenture, the Securities or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Subsidiary Guarantor or would otherwise operate
as a discharge of such Subsidiary Guarantor as a matter of law or equity. 
  
 Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
interest or Additional Interest, if any, on any of the Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy or reorganization of the Issuer or otherwise. 
  
 In furtherance of the foregoing and not in limitation of any other right
which any Holder has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the Issuer to pay any of the Obligations when and as the same shall become due, whether at maturity, by acceleration, by redemption or
otherwise, each Subsidiary Guarantor hereby promises to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such Obligations then
due and owing and (ii) accrued and unpaid interest on such Obligations then due and owing (but only to the extent not prohibited by law) and except as provided in Section 10.2. 
  
 Each Subsidiary Guarantor further agrees that, as between such Subsidiary Guarantor, on the one hand, and the Holders, on
the other hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated as provided in this Indenture for the purposes of its Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby and (y) in the event of any such declaration of acceleration of such Obligations, such Obligations (whether or not due and payable) shall forthwith become due and payable by the Subsidiary
Guarantor for the purposes of this Subsidiary Guarantee. 
  
 Each
Subsidiary Guarantor also agrees to pay any and all reasonable costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or the Holders in enforcing any rights under this Section 10.1. 
  
 SECTION 10.2. Limitation on Liability; Termination, Release and
Discharge. 
  
 (a) The obligations of each Subsidiary
Guarantor hereunder will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor (including, but not limited to, Senior Indebtedness of a Subsidiary Guarantor) and
after giving effect to any collections from or payments made by or on behalf of 

  

 99 








 
any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to its
contribution obligations under this Indenture, result in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state law. 
  
 (b) Subject to Article IV and Section 3.7, each Subsidiary
Guarantor may consolidate with or merge into or sell all or substantially all of its property and assets to the Issuer or another Subsidiary Guarantor without limitation. Subject to Section 3.7 and Article IV, each Subsidiary Guarantor
may consolidate with or merge into or sell all or substantially all its assets to a Person other than the Issuer or another Subsidiary Guarantor (whether or not Affiliated with the Subsidiary Guarantor), except that if the surviving Person of any
such merger or consolidation is a Subsidiary of the Issuer, such merger, consolidation or sale shall not be permitted unless (i) the Person formed by or surviving any such consolidation or merger assumes all the obligations of such Subsidiary under
the Subsidiary Guarantee pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee in respect of the Securities, this Indenture and the Subsidiary Guarantee; (ii) immediately after giving effect to such
transaction no covenants under Article III are violated; (iii) immediately after giving effect to such transaction, no Default or Event of Default exists; and (iii) the Issuer deliver to the Trustee an Officers’ Certificate and an
Opinion of Counsel addressed to the Trustee with respect to the foregoing matters. Upon the sale or disposition of a Subsidiary Guarantor (by merger, consolidation, the sale of its Capital Stock or the sale of all or substantially all of its
properties and assets (other than by lease)), whether or not the Subsidiary Guarantor is the surviving corporation in such transaction, to a Person (whether or not an Affiliate of the Subsidiary Guarantor) which is not the Issuer or a Restricted
Subsidiary of the Issuer, which sale or disposition is otherwise in compliance with this Indenture (including, without limitation, Sections 3.4 and 3.7 ), such Subsidiary Guarantor will be deemed released from its Subsidiary Guarantee
and the related obligations set forth in the indenture; provided, however, that any such termination shall occur only to the extent that all obligations of such Subsidiary Guarantor under all of its guarantees of, and under all of its pledges of
assets or other security interests which secure other Indebtedness of the Issuer or any other Restricted Subsidiary will also terminate upon such sale or other disposition; provided, however, that any such termination will occur only to the
extent that all obligations of such Subsidiary Guarantor under the Senior Credit Agreement and any other agreements relating to any other Indebtedness of the Issuer or its Restricted Subsidiaries will also terminate upon such release, sale or
transfer. 
  
 (c) A Subsidiary Guarantor will be deemed released
and relieved of its obligations under this Indenture and its Subsidiary Guarantee without any further action required on the part of the Issuer or such Subsidiary Guarantor upon the designation of such Subsidiary Guarantor as an Unrestricted
Subsidiary in accordance with the terms of this Indenture. 
  
 SECTION 10.3. Limitation of Subsidiary Guarantors’ Liability. Each Subsidiary Guarantor, and by its acceptance hereof each Holder, hereby confirm that it is the intention of all such parties that the guarantee by such Subsidiary
Guarantor pursuant to its Subsidiary Guarantee not constitute a fraudulent transfer or conveyance for purposes of the Federal Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state
law. To effectuate the foregoing intention, the Holders and each Subsidiary Guarantor hereby irrevocably agree that the obligations of such 

  

 100 








 
Subsidiary Guarantor under its Subsidiary Guarantee will be limited to the maximum amount as will, after giving effect to all other contingent and fixed
liabilities (including, but not limited to, Senior Indebtedness of a Subsidiary Guarantor) of such Subsidiary Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to Section 10.4 hereof, result in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting such a fraudulent
conveyance or fraudulent transfer. This Section 10.3 is for the benefit of the creditors of each Subsidiary Guarantor. 
  
 SECTION 10.4. Contribution. In order to provide for just and equitable contribution among the Subsidiary Guarantors, the Subsidiary Guarantors
agree, that in the event any payment or distribution is made by any Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee, such Funding Guarantor will be entitled to a contribution from each other Subsidiary
Guarantor (if any) in a pro rata amount based on the Adjusted Net Assets of each Subsidiary Guarantor (including the Funding Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging the Issuer’s
obligations with respect to the Securities or any other Subsidiary Guarantor’s obligations with respect to its Subsidiary Guarantee. 
  
 ARTICLE XI 
  
 Miscellaneous 
  
 SECTION 11.1. Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the provision
required by the TIA shall control. Each Subsidiary Guarantor in addition to performing its obligations under its Subsidiary Guarantee shall perform such other obligations as may be imposed upon it with respect to this Indenture under the TIA.

  
 SECTION 11.2. Notices. Any notice or communication
shall be in writing and delivered in person, by telecopier or overnight air courier guaranteeing next day delivery or mailed by first-class mail addressed as follows: 
  
 if to the Issuer: 
  
 Plains Exploration & Production Company 
 700 Milam Street, Suite 3100 
 Houston, Texas 77002 
 Attention: John F. Wombwell, General Counsel 
  

 101 








 if to the Trustee: 
  
 Wells Fargo Bank, N.A. 
 505 Main Street 
 Fort Worth, Texas 76102 
 Attention: Melissa Scott 
  
 The
Issuer or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication mailed to a registered Securityholder shall be mailed to the Securityholder at the Securityholder’s address as it appears
on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. Any notice or communication shall also be mailed to any Person described in TIA § 3.13(c), to the extent required by the TIA.

  
 Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 SECTION 11.3. Communication by Holders with other Holders.
Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under this Indenture or the Securities. The Issuer, the Trustee, the Registrar and anyone else shall have the protection of TIA
§ 312(c). 
  
 SECTION 11.4. Certificate and Opinion as to
Conditions Precedent. Upon any request or application by the Issuer to the Trustee to take or refrain from taking any action under this Indenture, the Issuer shall furnish to the Trustee: 
  
 (1) an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 
  
 (2) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 
  
 In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion as to such matters in one or several documents. 

 
 Any certificate or opinion of an Officer of the Issuer or any Subsidiary
Guarantor may be based, insofar as it relates to legal matters, upon a certificate of opinion of, or representations by, counsel, unless such Officer knows, or in the exercise of reasonable care 

  

 102 








 
should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any
such certificate or Opinion of Counsel may be based, and may state that it is so based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or Officers of the Issuer or such Subsidiary
Guarantor stating that the information with respect to such factual matters is in possession of the Issuer or such Subsidiary Guarantor, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate of opinion or
representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one
instrument. 
  
 SECTION 11.5. Statements Required in
Certificate or Opinion. Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
  

(1) a statement that the individual making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with. 
  
 SECTION 11.6. When Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Issuer or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control
with the Issuer shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee knows
are so owned shall be so disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination. 
  
 SECTION 11.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by, or a meeting of, Securityholders.
The Registrar and the Paying Agent may make reasonable rules for their functions. 
  
 SECTION 11.8. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other day on which commercial banking institutions are authorized or required to be closed in Minneapolis, Minnesota, New
York, New York or Fort Worth, Texas. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, 

  

 103 








 
and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected. 
  
 SECTION 11.9. GOVERNING LAW. THIS INDENTURE AND THE SECURITIES SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 11.10. No Recourse Against Others. No director, officer, employee, incorporator, partner or stockholder of the Issuer or any Subsidiary Guarantor, as such, shall have any liability for any obligations
of the Issuer or the Subsidiary Guarantors under the Securities, this Indenture or the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of such obligations or their creation. Each holder by accepting a Security waives and
releases all such liability. The waiver and release are part of the consideration for issuance of the Securities. 
  
 SECTION 11.11. Successors. All agreements of the Issuer in this Indenture and the Securities shall bind its successors. All agreements of the
Trustee in this Indenture shall bind its successors. 
  
 SECTION
11.12. Multiple Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Indenture.

  
 SECTION 11.13. Qualification of Indenture. The Issuer
shall qualify this Indenture under the TIA in accordance with the terms and conditions of the Registration Rights Agreement and shall pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Issuer, the Trustee and
the Holders) incurred in connection therewith, including, but not limited to, costs and expenses of qualification of this Indenture and the Securities and printing this Indenture and the Securities. The Trustee shall be entitled to receive from the
Issuer any such Officers’ Certificates or other documentation as it may reasonably request in connection with any such qualification of this Indenture under the TIA. 
  
 SECTION 11.14. Severability. In case any provision in this Indenture or in the Securities shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 SECTION 11.15. No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret any other indenture, loan or debt
agreement of either of the Issuer or any Subsidiary or any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture or the Guarantees. 
  
 SECTION 11.16. Table of Contents; Headings. The table of contents, cross-reference sheet and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof. 
  

 104 








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

			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Executive Vice President and Chief Financial Officer

	
	ARGUELLO, INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO ENERGY COMPANY
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Executive Vice President and Chief Financial Officer

	
	NUEVO GHANA INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO INTERNATIONAL INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO OFFSHORE COMPANY
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer



  

 105 









			
	NUEVO PERMIAN INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO PERMIAN LIMITED PARTNERSHIP
	
	 By:   NUEVO TEXAS INc., in its capacity as general partner of Nuevo
Permian Limited Partnership

		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO RESOURCES INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	NUEVO TEXAS INC.
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	PACIFIC INTERSTATE OFFSHORE COMPANY
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	PLAINS E&P COMPANY
		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer



  

 106 









			
	 PLAINS RESOURCES INTERNATIONAL INC.

		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	 PMCT INC

		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Vice President and Treasurer

	
	 PXP GULF COAST INC.

		
	By:	 	/s/ Stephen A. Thorington
	 	 	 Name:  Stephen A. Thorington

	 	 	 Title:    Executive Vice President and Chief

	 	 	 Financial Officer

	
	 WELLS FARGO BANK, N.A.,
as Trustee

		
	By:	 	/s/ Melissa Scott
	 	 	 Name:  Melissa Scott

	 	 	 Title:    Vice President



  

 107 








 EXHIBIT A 
  
 [FORM OF FACE OF SECURITY] 
  
 [Applicable Restricted Securities Legend] 
 [Depository Legend, if applicable] 
  

			
	 No. [        ]
	 	Principal Amount $[                    ]
	 	 	CUSIP NO. [                    ]

  
 PLAINS EXPLORATION
& PRODUCTION COMPANY 
  
 7 1/8% Senior Note due 2014 
  
 Plains Exploration & Production Company, a Delaware corporation (the “Issuer”), promises to pay to CEDE &
CO., or registered assigns, the principal sum of [                    ] Dollars or such greater or lesser amount as shall be reflected on the
books and records of the custodian with respect to the Global Security (as appointed by DTC) (the “Securities Custodian”), 1 on June 15, 2014. 
  
 Interest Payment
Dates: June 15 and December 15 
 Record Dates: June 1 and December 1 
  
 Additional provisions of this Security are set forth on the other side of this Security. 


	1	Global Security only 

  

 A-1 









			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:



  

									
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 	 	 	 
			
	 WELLS FARGO BANK, N.A.
 as Trustee, certifies that this is one of the Securities referred to in the Indenture.
	 	 	 	 
					
	By	 	 	 	 	 	 	 	 
	 	 	Authorized Signatory	 	 	 	 Date:
	 	 

  

 A-2 








 [FORM OF REVERSE SIDE OF SECURITY] 
  
 7 1/8% Senior Note due 2014 
  
 1. Interest 

 
 Plains Exploration & Production Company, a Delaware corporation (the
“Issuer”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. 
  
 The Issuer will pay interest semiannually in arrears on June 15 and December 15 of each year commencing December 15, 2004. Interest on the Securities will
accrue from the most recent date to which interest has been paid on the Securities or, if no interest has been paid, from and including June 30, 2004. The Issuer shall pay interest on overdue principal or premium, if any (plus interest on such
interest to the extent lawful), at the rate borne by the Securities to the extent lawful and will pay Additional Interest as provided for in the Registration Rights Agreement. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. 
  
 2. Method of Payment 
  
 By no later than 11:00 a.m. (New York City time) on the date on which any
principal of or interest or Additional Interest, if any, on any Security is due and payable, the Issuer shall deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if any, interest and Additional Interest, if
any. The Issuer will pay interest (except Defaulted Interest) and Additional Interest, if any, to the Persons who are registered Holders of Securities at the close of business on the June 1 or December 1 next preceding the interest payment date even
if Securities are cancelled, repurchased or redeemed after the record date and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Issuer will pay principal and interest and
Additional Interest, if any, in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in respect of Securities represented by a Global Security (including principal, premium, if any,
and interest and Additional Interest, if any) will be made by the transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Issuer will make all payments in respect of a Definitive Security (including
principal, premium, if any, and interest and Additional Interest, if any) by mailing a check to the registered address of each Holder thereof. 
  
 3. Paying Agent and Registrar 
  
 Initially, Wells Fargo Bank, N.A. (the “Trustee”), will act as Trustee, Paying Agent and Registrar. The Issuer may appoint and change any Paying
Agent, Registrar or co-registrar without notice to any Securityholder. The Issuer or any of the Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar. 
  

 A-3 








 4. Indenture 
  
 The Issuer issued the Securities under an Indenture dated as of June 30, 2004 (as it may be amended or supplemented from time to time in accordance with
the terms thereof, the “Indenture”), among the Issuer, the Subsidiary Guarantors party thereto and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the Issue Date (the “Act”). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities
are subject to all terms in the Indenture, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
  
 The Securities are general unsecured senior obligations of the Issuer. The aggregate principal amount of securities that may be authenticated and
delivered under the Indenture is unlimited. The Indenture imposes certain limitations, among other things, on the ability of the Issuer and the Restricted Subsidiaries to incur or guarantee additional debt; pay dividends on stock; redeem stock or
redeem subordinated debt; make investments; create liens in favor of other senior debt and subordinated debt; enter into agreements that restrict dividends from Restricted Subsidiaries; sell assets; enter into transactions with Affiliates; merge or
consolidate and enter into different lines of business; provided, however, certain of such limitations will no longer be in effect if (a) the Securities receive a rating of “BBB-” or higher from Standard & Poor’s
Ratings Group (or its successors) and “Baa3” or higher from Moody’s Investors Service, Inc. (or its successors) and (b) no Default or Event of Default has occurred and is continuing under the Indenture. 
  
 To guarantee the due and punctual payment of the principal, premium, if any,
and interest and Additional Interest, if any, on the Securities and all other amounts payable by the Issuer under the Indenture and the Securities when and as the same shall be due and payable, whether at maturity, by acceleration or otherwise,
according to the terms of the Securities and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed (and future Subsidiary Guarantors, together with the Subsidiary Guarantors, will unconditionally guarantee), jointly and severally,
such obligations on a senior basis pursuant to the terms of the Indenture. 
  
 5.
Redemption 
  
 Except as set forth below, the Securities
will not be redeemable at the option of the Issuer prior to June 15, 2009. On and after such date, the Securities will be redeemable, at the Issuer’s option, in whole or in part, at any time upon not less than 30 nor more than 60 days prior
notice mailed by first-class mail to each Holder’s registered address, at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest and Additional Interest, if any, thereon, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date) if redeemed during the 12-month period commencing on June 15 of the years indicated below:

  

 A-4 









				
	 Period

	  	Redemption
Price

	 
	 2009
	  	103.563	%
	 2010
	  	102.375	%
	 2011
	  	101.188	%
	 2012 and thereafter
	  	100.000	%

  
 Securities will also
be redeemable, in whole or in part, at the option of the Issuer at any time or from time to time, prior to June 15, 2009, at the Make-Whole Price. 
  
 The notice of redemption with respect to the foregoing redemption need not set forth the Make-Whole Price but only the manner of calculation thereof. The
Issuer will notify the Trustee of the Make-Whole Price with respect to any redemption promptly after the calculation, and the Trustee shall not be responsible for such calculation. 
  
 In addition, at any time and from time to time prior to June 15, 2007, the Issuer may redeem in the aggregate up to 35% of
the aggregate principal amount of the Securities (which includes Additional Securities) with the Net Cash Proceeds of one or more Equity Offerings received by the Issuer at a redemption price (expressed as a percentage of principal amount) of
107.125% plus accrued and unpaid interest and Additional Interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided,
however, that (1) at least 65% of the aggregate principal amount of the Securities, including any Additional Securities, remains outstanding after each such redemption and (2) each such redemption occurs within 120 days of the date of closing of
such Equity Offering. 
  
 Notice of any redemption upon an Equity
Offering may be given prior to the completion of the related Equity Offering, and any such redemption or notice may at the Issuer’s discretion, be subject to one or more conditions precedent, including completion of the related Equity Offering.

  
 If the optional Redemption Date is on or after an interest
record date and on or before the related interest payment date, the accrued and unpaid interest and Additional Interest, if any, will be paid to the Person in whose name the Security is registered at the close of business on such record date, and no
additional interest will be payable to Holders whose Securities will be subject to redemption by the Issuer. 
  
 In the case of any partial redemption, selection of the Securities for redemption will be made by the Trustee in compliance with the requirements of the
principal national securities exchange, if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Securities of $1,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the notice of redemption relating to such Security shall state the portion of the principal
amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Security. On and after 

  

 A-5 








 
the Redemption Date, interest will cease to accrue on Securities or portions thereof called for redemption as long as the Issuer has deposited with the
Paying Agent funds in satisfaction of the applicable redemption price pursuant to the Indenture. 
  
 6. Repurchase Provisions 
  
 (a) Upon a Change of Control any Holder of Securities will have the right to cause the Issuer to repurchase all or any part of the Securities of such Holder at a purchase price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest and Additional Interest, if any, to the date of repurchase (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date) as provided in, and subject
to the terms of, the Indenture. 
  
 (b) In the event of an Asset
Disposition that requires the purchase of Securities pursuant to Section 3.7(b) of the Indenture, the Issuer will be required to apply such Excess Proceeds to the repayment of the Securities and any Pari Passu Notes in accordance with the
procedures set forth in Section 3.7 of the Indenture. 
  
 7.
Denominations; Transfer; Exchange 
  
 The Securities are in
registered form without coupons in denominations of principal amount of $1,000 and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer or exchange of (i) any Securities selected for redemption (except, in
the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or (ii) any Securities for a period beginning 15 days before an interest payment date and ending on such interest payment date. 
  
 8. Persons Deemed Owners 
  
 The registered Holder of this Security may be treated as the owner of it for all purposes. 
  
 9. Unclaimed Money 
  
 If money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the
money back to the Issuer at their request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Issuer and not to the Trustee for payment. 
  
 10. Defeasance 
  
 Subject to certain conditions set forth in the Indenture, the Issuer at any time may terminate some or all of its
obligations under the Securities and the Indenture if the Issuer deposits with the Trustee money or U.S. Government Obligations for the payment of principal, 

  

 A-6 








 
premium, interest and Additional Interest, if any, on the Securities to redemption or maturity, as the case may be. 
  
 11. Amendment, Waiver 
  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the
written consent or electronic consent pursuant to the second paragraph of Section 9.4 of the Indenture, as applicable, of the Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any default (other
than with respect to nonpayment or in respect of a provision that cannot be amended without the written consent of each Securityholder affected) or noncompliance with any provision may be waived with the written consent or electronic consent
pursuant to the second paragraph of Section 9.4 of the Indenture, as applicable, of the Holders of a majority in principal amount of the then outstanding Securities. Subject to certain exceptions set forth in the Indenture, without the
consent of any Securityholder, the Issuer and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article IV of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add guarantees with respect to the Securities, to release a Subsidiary Guarantor in accordance with the Indenture or to secure the Securities, or to add additional covenants of
the Issuer and the Subsidiary Guarantors, or surrender rights and powers conferred on the Issuer, or to comply with any requirement of the Commission in connection with qualifying or maintaining the qualification of the Indenture under the Act, or
to make any change that does not adversely affect the rights of any Securityholder, or to provide for the issuance of Additional Securities. 
  
 12. Defaults and Remedies 
  
 Under the Indenture, Events of Default include in summary form: (i) default for 30 days in payment of interest or Additional Interest, if any, when due on
the Securities; (ii) default in payment of principal or premium, if any, on the Securities at Stated Maturity, upon required repurchase, upon optional redemption pursuant to paragraphs 5 and 6 of the Securities, upon declaration or otherwise; (iii)
the failure by the Issuer to comply with its obligations under Article IV of the Indenture; (iv) failure by the Issuer to comply for 30 days after notice with any of its obligations under the covenants described under Sections 3.2
through 3.11 inclusive of the Indenture (in each case, other than a failure to purchase Securities when required pursuant to Section 3.7 or 3.9 or Article V, which failure shall constitute an Event of Default under clause
(ii) above); (v) the failure by the Issuer to comply for 60 days after notice with its other agreements contained in the Indenture or under the Securities (other than those referred to in (i), (ii), (iii) or (iv) above); (vi) default under any
mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Issuer or any of its Restricted Subsidiaries), other than Indebtedness owed to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created after the Issue Date, which default (a) is caused by a failure to
pay principal of, or interest or Additional Interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness (“Payment Default”) or (b) results in the acceleration of such
Indebtedness prior to its maturity (the “cross acceleration provision”) and, in each case, the principal amount of any such Indebtedness, together with the principal amount of 

  

 A-7 








 
any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more;
(vii) certain events of bankruptcy, insolvency or reorganization of the Issuer or a Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the Issuer and their
Restricted Subsidiaries), would constitute a Significant Subsidiary (the “bankruptcy provisions”); (viii) failure by the Issuer or any Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest
audited consolidated financial statements for the Issuer and its Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $10.0 million (net of any amounts with respect to which a reputable
and creditworthy insurance company has acknowledged liability for in writing), which judgments are not paid, discharged or stayed for a period of 60 days (the “judgment default provision”), or (ix) any Subsidiary Guarantee shall be
held in a judicial proceeding to be, or be asserted by the Issuer or any Subsidiary Guarantor, as applicable, not to be, enforceable or valid or shall cease to be in full force and effect (except pursuant to the release or termination of any such
Subsidiary Guarantee in accordance with the Indenture). However, a default under clauses (iv) and (v) will not constitute an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the outstanding Securities notify
the Issuer and the Trustee, in the case of a notice given by the Holders, of the default and the Issuer does not cure such default within the time specified in clauses (iv) and (v) hereof after receipt of such notice. 
  
 If an Event of Default occurs and is continuing (other than an Event of
Default described in clause (vii) above), the Trustee or the Holders of at least 25% in principal amount of the Securities may declare all the Securities to be due and payable. Certain events of bankruptcy or insolvency are Events of Default which
will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 
  
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Securityholders notice of any continuing Default or Event of Default (except a Default or Event of Default in payment of principal or interest) if it determines that withholding notice is in their interest. 
  
 13. Trustee Dealings with the Issuer 
  
 Subject to certain limitations set forth in the Indenture, the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Issuer or their Affiliates and may otherwise deal with the Issuer or their
Affiliates with the same rights it would have if it were not Trustee. 
  
 14.
No Recourse Against Others 
  
 No director, officer,
employee, incorporator, partner or stockholder of the Issuer, or any Subsidiary Guarantor, as such, shall have any liability for any obligations of the Issuer or 

  

 A-8 








 
the Subsidiary Guarantors under the Securities, the Indenture, the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of, such
obligations of their creation. Each Holder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities. 
  
 15. Authentication 
  
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its
behalf) manually signs the certificate of authentication on the other side of this Security. 
  
 16. Abbreviations 
  
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with rights of survivorship and not as tenants in
common), CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors Act). 
  
 17.
CUSIP Numbers 
  
 Pursuant to a recommendation promulgated
by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 18. Governing Law 
  
 This Security shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 The Issuer will furnish to any Securityholder upon written request and
without charge to the Securityholder a copy of the Indenture, which has in it the text of this Security in larger type. Requests may be made to: 
  
 Plains Exploration & Production Company 
 700 Milam Street, Suite 3100 
 Houston, Texas 77002 
  
 Attention: General Counsel 
  

 A-9 








 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to 
  

 (Print or type assignee’s name, address and zip code) 
  

 (Insert assignee’s soc.
sec. or tax I.D. No.) 
  
 and irrevocably appoint
                     agent to transfer this Security on the books of the Issuer. The agent may substitute another to act for him. 

 

							
	 	 	 	 
	 Date:
                                       
 
	  	 	  	 Your Signature:
	  	 


					
		
	 Signature Guarantee:
	  	 
	(Signature must be guaranteed)
	
	 
	Sign exactly as your name appears on the other side of this Security.

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Commission Rule 17Ad-15. 
  
 In connection with any transfer or exchange of any of the Securities
evidenced by this certificate occurring prior to the date that is two years after the later of the date of original issuance of such Securities and the last date, if any, on which such Securities were owned by the Issuer or any Affiliate of the
Issuer, the undersigned confirms that such Securities are being: 
  
 CHECK ONE BOX BELOW: 
  

	 	1 ̈	acquired for the undersigned’s own account, without transfer; or 

  

	 	2 ̈	transferred to the Issuer; or 

  

	 	3 ̈	transferred pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”); or 

  

	 	4 ̈	transferred pursuant to an effective registration statement under the Securities Act; or 

  

	 	5 ̈	transferred pursuant to and in compliance with Regulation S under the Securities Act; or 

  

 A-10 









	 	6 ̈	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the Trustee a signed
letter containing certain representations and agreements (the form of which letter appears as Section 2.7 of the Indenture); or 

  

	 	7 ̈	transferred pursuant to another available exemption from the registration requirements of the Securities Act of 1933. 

  
 Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered Holder thereof; provided, however, that if box (5), (6) or (7) is checked, the Trustee or the Issuer may require, prior to registering any such transfer of the
Securities, in their sole discretion, such legal opinions, certifications and other information as the Trustee or the Issuer may reasonably request to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as the exemption provided by Rule 144 under such Act. 
  

					
			
	  	 	 	 	  
	 	 	 	 	 Signature

			
	 Signature Guarantee:
	 	 	 	 
			
	  	 	 	 	  
	 (Signature must be guaranteed)
	 	 	 	 Signature


  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Commission Rule 17Ad-15. 
  
 TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that it is purchasing this Security
for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as
amended, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  
 _______________________________ 
 Dated: 
  

 A-11 








 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Issuer pursuant to Section 3.7 or Section 3.9 of
the Indenture, check either box: 
  
  ̈      ̈ 
 3.7     3.9 
  
 If you want to elect to have only part of this Security purchased by the Issuer pursuant to Section 3.7 or Section 3.9 of the Indenture,
state the amount in principal amount (must be integral multiple of $1,000): $ 
  

					
			
	 Date:                         
	  	 Your Signature
	  	 
	 	  	 (Sign exactly as your name appears on the other side of the Security)



					
		
	 Signature Guarantee:
	  	 
	(Signature must be guaranteed)

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Commission Rule 17Ad-15. 
  

 A-12 








 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY1 
  
 The following increases or decreases in this Global Security have been made: 
  

									
	 Date of
Exchange

	 	 Amount of decrease
in Principal Amount
of this Global
Security

	 	 Amount of increase
in Principal Amount
of this Global
Security

	  	Principal Amount of
this Global Security
following such
decrease or increase

	  	Signature of
authorized signatory
of Trustee or
Securities
Custodian


	 	 	 	 	 	  	 	  	 



	1	Include only if security is issued in global form. 

  

 A-13 








 EXHIBIT B 
  
 [FORM OF FACE OF EXCHANGE SECURITY] 
  
 [Depository Legend, if applicable] 
  

			
	No. [            ]	 	Principal Amount $[                    ]
	 	 	CUSIP NO. [                    ]

  
 PLAINS EXPLORATION
& PRODUCTION COMPANY 
  
 7 1/8% Senior Note due 2014 
  
 Plains Exploration & Production Company, a Delaware corporation (the “Issuer”), promises to pay to CEDE &
CO., or registered assigns, the principal sum of [                    ] Dollars or such greater or lesser amount as shall be reflected on the
books and records of the custodian with respect to the Global Security (as appointed by DTC) (the “Securities Custodian”),1 on June 15, 2014. 
  
 Interest Payment Dates:
June 15 and December 15 
 Record Dates: June 1 and December 1 
  
 Additional provisions of this Security are set forth on the other side of this Security. 
  
  


	1	Global Security only 

  

 B-1 









			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	 
	 	 	 Name:
 Title:



  
 TRUSTEE’S CERTIFICATE OF

     AUTHENTICATION 
  
 WELLS FARGO BANK, N.A. 
 as Trustee, certifies 
 that this is one of 
 the Securities referred 
 to in the Indenture. 
  

					
	By	  	 	  	 
	 	  	Authorized Signatory	  	 Date:


  

 B-2 








 [FORM OF REVERSE SIDE OF EXCHANGE SECURITY] 
  
 7 1/8% Senior Note due 2014 
  
 1. Interest 

 
 Plains Exploration & Production Company, a Delaware corporation (the
“Issuer”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. 
  
 The Issuer will pay interest semiannually in arrears on June 15 and December 15 of each year commencing December 15, 2004. Interest on the Securities will
accrue from the most recent date to which interest has been paid on the Securities or, if no interest has been paid, from and including June 30, 2004. The Issuer shall pay interest on overdue principal or premium, if any (plus interest on such
interest to the extent lawful), at the rate borne by the Securities to the extent lawful and will pay Additional Interest as provided for in the Registration Rights Agreement. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. 
  
 2. Method of Payment 
  
 By no later than 11:00 a.m. (New York City time) on the date on which any
principal of or interest or Additional Interest, if any, on any Security is due and payable, the Issuer shall deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if any, interest and Additional Interest, if
any. The Issuer will pay interest (except Defaulted Interest) and Additional Interest, if any, to the Persons who are registered Holders of Securities at the close of business on the June 1 or December 1 next preceding the interest payment date
even if Securities are cancelled, repurchased or redeemed after the record date and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Issuer will pay principal and interest
and Additional Interest, if any, in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in respect of Securities represented by a Global Security (including principal, premium, if
any, and interest and Additional Interest, if any) will be made by the transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Issuer will make all payments in respect of a Definitive Security
(including principal, premium, if any, and interest and Additional Interest, if any) by mailing a check to the registered address of each Holder thereof. 
  
 3. Paying Agent and Registrar 
  
 Initially, Wells Fargo Bank, N.A. (the “Trustee”), will act as Trustee, Paying Agent and Registrar. The Issuer may appoint and change any Paying
Agent, Registrar or co-registrar without notice to any Securityholder. The Issuer or any of the Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar. 
  

 B-3 








 4. Indenture 
  
 The Issuer issued the Securities under an Indenture dated as of June 30, 2004 (as it may be amended or supplemented from time to time in accordance with
the terms thereof, the “Indenture”), among the Issuer, the Subsidiary Guarantors party thereto and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the Issue Date (the “Act”). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities
are subject to all terms in the Indenture, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
  
 The Securities are general unsecured senior obligations of the Issuer. The aggregate principal amount of securities that may be authenticated and
delivered under the Indenture is unlimited. The Indenture imposes certain limitations, among other things, on the ability of the Issuer and the Restricted Subsidiaries to incur or guarantee additional debt; pay dividends on stock; redeem stock or
redeem subordinated debt; make investments; create liens in favor of other senior debt and subordinated debt; enter into agreements that restrict dividends from Restricted Subsidiaries; sell assets; enter into transactions with Affiliates; merge or
consolidate and enter into different lines of business; provided, however, certain of such limitations will no longer be in effect if (a) the Securities receive a rating of “BBB-” or higher from Standard & Poor’s
Ratings Group (or its successors) and “Baa3” or higher from Moody’s Investors Service, Inc. (or its successors) and (b) no Default or Event of Default has occurred and is continuing under the Indenture. 
  
 To guarantee the due and punctual payment of the principal, premium, if any,
and interest and Additional Interest, if any, on the Securities and all other amounts payable by the Issuer under the Indenture and the Securities when and as the same shall be due and payable, whether at maturity, by acceleration or otherwise,
according to the terms of the Securities and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed (and future Subsidiary Guarantors, together with the Subsidiary Guarantors, will unconditionally guarantee), jointly and severally,
such obligations on a senior basis pursuant to the terms of the Indenture. 
  
 5.
Redemption 
  
 Except as set forth below, the Securities
will not be redeemable at the option of the Issuer prior to June 15, 2009. On and after such date, the Securities will be redeemable, at the Issuer’s option, in whole or in part, at any time upon not less than 30 nor more than 60 days prior
notice mailed by first-class mail to each Holder’s registered address, at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest and Additional Interest, if any, thereon, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date) if redeemed during the 12-month period commencing on June 15 of the years indicated below:

  

 B-4 









				
	 Period

	  	Redemption
Price

	 
	 2009
	  	103.563	%
	 2010
	  	102.375	%
	 2011
	  	101.188	%
	 2012 and thereafter
	  	100.000	%

  
 Securities will also
be redeemable, in whole or in part, at the option of the Issuer at any time or from time to time, prior to June 15, 2009, at the Make-Whole Price. 
  
 The notice of redemption with respect to the foregoing redemption need not set forth the Make-Whole Price but only the manner of calculation thereof. The
Issuer will notify the Trustee of the Make-Whole Price with respect to any redemption promptly after the calculation, and the Trustee shall not be responsible for such calculation. 
  
 In addition, at any time and from time to time prior to June 15, 2007, the Issuer may redeem in the aggregate up to 35% of
the aggregate principal amount of the Securities (which includes Additional Securities) with the Net Cash Proceeds of one or more Equity Offerings received by the Issuer at a redemption price (expressed as a percentage of principal amount) of
107.125% plus accrued and unpaid interest and Additional Interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided,
however, that (1) at least 65% of the aggregate principal amount of the Securities, including any Additional Securities, remains outstanding after each such redemption and (2) each such redemption occurs within 120 days of the date of closing of
such Equity Offering. 
  
 Notice of any redemption upon an Equity
Offering may be given prior to the completion of the related Equity Offering, and any such redemption or notice may at the Issuer’s discretion, be subject to one or more conditions precedent, including completion of the related Equity Offering.

  
 If the optional Redemption Date is on or after an interest
record date and on or before the related interest payment date, the accrued and unpaid interest and Additional Interest, if any, will be paid to the Person in whose name the Security is registered at the close of business on such record date, and no
additional interest will be payable to Holders whose Securities will be subject to redemption by the Issuer. 
  
 In the case of any partial redemption, selection of the Securities for redemption will be made by the Trustee in compliance with the requirements of the
principal national securities exchange, if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Securities of $1,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the notice of redemption relating to such Security shall state the portion of the principal
amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Security. On and after 
  

 B-5 








 the Redemption Date, interest will cease to accrue on Securities or portions thereof called for redemption as long as the
Issuer has deposited with the Paying Agent funds in satisfaction of the applicable redemption price pursuant to the Indenture. 
  
 6. Repurchase Provisions 
  
 (a) Upon a Change of Control any Holder of Securities will have the right to cause the Issuer to repurchase all or any part of the Securities of such
Holder at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the date of repurchase (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date) as provided in, and subject to the terms of, the Indenture. 
  
 (b) In the event of an Asset Disposition that requires the purchase of Securities pursuant to Section 3.7(b) of the Indenture, the Issuer will be
required to apply such Excess Proceeds to the repayment of the Securities and any Pari Passu Notes in accordance with the procedures set forth in Section 3.7 of the Indenture. 
  
 7. Denominations; Transfer; Exchange 
  
 The Securities are in registered form without coupons in denominations of principal amount of $1,000 and whole multiples of $1,000. A Holder may transfer
or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.
The Registrar need not register the transfer or exchange of (i) any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or (ii) any Securities for a period
beginning 15 days before an interest payment date and ending on such interest payment date. 
  
 8. Persons Deemed Owners 
  
 The registered Holder of this Security may be treated as the owner of it for all purposes. 
  
 9. Unclaimed Money 
  
 If
money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Issuer at their request unless an abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look only to the Issuer and not to the Trustee for payment. 
  
 10. Defeasance 
  
 Subject
to certain conditions set forth in the Indenture, the Issuer at any time may terminate some or all of its obligations under the Securities and the Indenture if the Issuer deposits with the Trustee money or U.S. Government Obligations for the payment
of principal, 
  

 B-6 








 premium, interest and Additional Interest, if any, on the Securities to redemption or maturity, as the case may be.

  
 11. Amendment, Waiver 
  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent or electronic consent pursuant to the second paragraph of Section 9.4 of the Indenture, as applicable, of the Holders of at least a majority in principal amount of the then outstanding
Securities and (ii) any default (other than with respect to nonpayment or in respect of a provision that cannot be amended without the written consent of each Securityholder affected) or noncompliance with any provision may be waived with the
written consent or electronic consent pursuant to the second paragraph of Section 9.4 of the Indenture, as applicable, of the Holders of a majority in principal amount of the then outstanding Securities. Subject to certain exceptions set
forth in the Indenture, without the consent of any Securityholder, the Issuer and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article IV of the Indenture,
or to provide for uncertificated Securities in addition to or in place of certificated Securities, or to add guarantees with respect to the Securities, to release a Subsidiary Guarantor in accordance with the Indenture or to secure the Securities,
or to add additional covenants of the Issuer and the Subsidiary Guarantors, or surrender rights and powers conferred on the Issuer, or to comply with any requirement of the Commission in connection with qualifying or maintaining the qualification of
the Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder, or to provide for the issuance of Additional Securities. 
  
 12. Defaults and Remedies 
  
 Under the Indenture, Events of Default include in summary form: (i) default for 30 days in payment of interest or Additional Interest, if any, when due on
the Securities; (ii) default in payment of principal or premium, if any, on the Securities at Stated Maturity, upon required repurchase, upon optional redemption pursuant to paragraphs 5 and 6 of the Securities, upon declaration or otherwise; (iii)
the failure by the Issuer to comply with its obligations under Article IV of the Indenture; (iv) failure by the Issuer to comply for 30 days after notice with any of its obligations under the covenants described under Sections 3.2
through 3.11 inclusive of the Indenture (in each case, other than a failure to purchase Securities when required pursuant to Section 3.7 or 3.9 or Article V, which failure shall constitute an Event of Default under clause
(ii) above); (v) the failure by the Issuer to comply for 60 days after notice with its other agreements contained in the Indenture or under the Securities (other than those referred to in (i), (ii), (iii) or (iv) above); (vi) default under any
mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Issuer or any of its Restricted Subsidiaries), other than Indebtedness owed to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created after the Issue Date, which default (a) is caused by a failure to
pay principal of, or interest or Additional Interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness (“Payment Default”) or (b) results in the acceleration of such
Indebtedness prior to its maturity (the “cross acceleration provision”) and, in each case, the principal amount of any such Indebtedness, together with the principal amount of 
  

 B-7 








 any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $10.0 million or more; (vii) certain events of bankruptcy, insolvency or reorganization of the Issuer or a Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Issuer and their Restricted Subsidiaries), would constitute a Significant Subsidiary (the “bankruptcy provisions”); (viii) failure by the Issuer or any Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the Issuer and its Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $10.0 million
(net of any amounts with respect to which a reputable and creditworthy insurance company has acknowledged liability for in writing), which judgments are not paid, discharged or stayed for a period of 60 days (the “judgment default
provision”), or (ix) any Subsidiary Guarantee shall be held in a judicial proceeding to be, or be asserted by the Issuer or any Subsidiary Guarantor, as applicable, not to be, enforceable or valid or shall cease to be in full force and
effect (except pursuant to the release or termination of any such Subsidiary Guarantee in accordance with the Indenture). However, a default under clauses (iv) and (v) will not constitute an Event of Default until the Trustee or the Holders of at
least 25% in principal amount of the outstanding Securities notify the Issuer and the Trustee, in the case of a notice given by the Holders, of the default and the Issuer does not cure such default within the time specified in clauses (iv) and (v)
hereof after receipt of such notice. 
  
 If an Event of Default
occurs and is continuing (other than an Event of Default described in clause (vii) above), the Trustee or the Holders of at least 25% in principal amount of the Securities may declare all the Securities to be due and payable. Certain events of
bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 
  
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse
to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders notice of any continuing Default or Event of Default (except a Default or Event of Default in payment of principal or interest) if it determines that withholding notice is in their interest. 

 
 13. Trustee Dealings with the Issuer 
  
 Subject to certain limitations set forth in the Indenture, the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Issuer or their Affiliates and may otherwise deal with the Issuer or their
Affiliates with the same rights it would have if it were not Trustee. 
  
 14.
No Recourse Against Others 
  
 No director, officer,
employee, incorporator, partner or stockholder of the Issuer or any Subsidiary Guarantor, as such, shall have any liability for any obligations of the Issuer or 
  


 B-8 








 the Subsidiary Guarantors under the Securities, the Indenture, the Subsidiary Guarantees or for any claim based on, in
respect of, or by reason of, such obligations of their creation. Each Holder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities. 
  
 15. Authentication 
  
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its
behalf) manually signs the certificate of authentication on the other side of this Security. 
  
 16. Abbreviations 
  
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with rights of survivorship and not as tenants in
common),
 CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors Act). 
  
 17. CUSIP Numbers 
  
 Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  
 18. Governing Law 
  
 This Security shall be governed by, and construed in accordance with, the
laws of the State of New York. 
  
 The Issuer will furnish to any
Securityholder upon written request and without charge to the Securityholder a copy of the Indenture, which has in it the text of this Security in larger type. Requests may be made to: 
  
 Plains Exploration & Production Company 
 700 Milam Street, Suite 3100 
 Houston, Texas 77002 
  
 Attention: General Counsel 
  

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 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to 
  

 (Print or type assignee’s name, address and zip code) 
  

 (Insert assignee’s soc.
sec. or tax I.D. No.) 
  
 and irrevocably appoint
                     agent to transfer this Security on the books of the Issuer. The agent may substitute another to act for him. 

 

  

			
	Date:
                                        
    	 	Your Signature:
                                        
                            

  
 Signature Guarantee:
                                        
                                        
                                        
                                        
                     
 (Signature must
be guaranteed) 
  

 Sign exactly
as your name appears on the other side of this Security. 
  
 The signature(s)
should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Commission Rule 17Ad-15. 

 

 B-10 








 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Issuer pursuant to Section 3.7 or Section 3.9 of
the Indenture, check either box: 
  

			
	 ̈	 	 ̈
	3.7	 	3.9

  
 If you want to elect
to have only part of this Security purchased by the Issuer pursuant to Section 3.7 or Section 3.9 of the Indenture, state the amount in principal amount (must be integral multiple of $1,000): $ 
  
 Date:
                             Your Signature
                                        
                                        
                                        
             
 (Sign exactly as your name appears on the other side of the
Security) 
  
 Signature Guarantee:
                                        
                                        
                                        
                                        
     
 (Signature must be guaranteed) 
  
 The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program), pursuant to Commission Rule 17Ad-15. 
  

 B-11 








 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY1 
  
 The following increases or decreases in this Global Security have been made: 
  

									
	 Date of Exchange

	 	 Amount of decrease in
Principal Amount of this
Global Security

	 	 Amount of increase in
Principal Amount of this
Global Security

	 	 Principal Amount of this
Global Security following
such decrease or increase

	 	 Signature of authorized
signatory of Trustee or
Securities Custodian


	 	 	 	 	 	 	 	 	 

  
  


	1	Include only if security is issued in global form. 

  

 B-12 








 EXHIBIT C 
  
 FORM OF SUBSIDIARY GUARANTEE 
  
 This Supplemental Indenture, dated as of
                     (this “Supplemental Indenture” or “Subsidiary Guarantee”), among [name of future Subsidiary
Guarantor] (the “Guarantor”), Plains Exploration & Production Company (together with its successors and assigns, the “Issuer”) and Wells Fargo Bank, N.A., as Trustee under the Indenture referred to below.

  
 W I T N E S S E T H: 
  
 WHEREAS, the Issuer, certain of its domestic Restricted Subsidiaries (the
“Subsidiary Guarantors”) and the Trustee have heretofore executed and delivered an Indenture, dated as of June 30, 2004 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the
initial issuance of an aggregate principal amount of $250,000,000 of 7 1/8% Senior Notes due 2014 of the Issuer
(the “Securities”); 
  
 WHEREAS,
Section 3.10 of the Indenture provides that the Issuer is required to cause each Restricted Subsidiary other than a Foreign Subsidiary created or acquired by the Issuer and each of the Congo Domestic Subsidiaries, to the extent set forth in
the Indenture, to execute and deliver to the Trustee a Subsidiary Guarantee pursuant to which such Subsidiary Guarantor will unconditionally Guarantee, on a joint and several basis with the other Subsidiary Guarantors, the full and prompt payment of
the principal of, premium, interest and Additional Interest, if any, on the Securities on a senior basis; and 
  
 WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee and the Issuer are authorized to execute and deliver this Supplemental Indenture to
amend the Indenture, without the consent of any Securityholder; 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guarantor, the Issuer and the Trustee mutually covenant and agree for the equal and ratable
benefit of the Holders of the Securities as follows: 
  
 ARTICLE I

  
 Definitions 
  
 SECTION 1.1 Defined Terms. As used in this Subsidiary Guarantee, terms
defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “Holders” in this Subsidiary Guarantee shall refer to the term “Securityholders” as defined in the
Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words “herein,” “hereof” and “hereby” and other words of similar import 
  

 C-1 








 used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section
hereof. 
  
 ARTICLE II 
  
 Agreement to be Bound; Subsidiary Guarantee 
  
 SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a
party to the Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Subsidiary Guarantor under the Indenture. The Guarantor agrees to be bound by all of the provisions
of the Indenture applicable to a Subsidiary Guarantor and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture. 
  
 SECTION 2.2 Subsidiary Guarantee. The Guarantor hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, jointly and severally with each Subsidiary Guarantor, to each Holder of the Securities and the Trustee, the full and punctual payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the Obligations pursuant to
Article X of the Indenture on a senior basis. 
  
 ARTICLE
III 
  
 Miscellaneous 
  
 SECTION 3.1 Notices. All notices and other communications to the
Guarantor shall be given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to the Issuer as provided in the Indenture for notices to the Issuer. 
  
 SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm
or corporation, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained. 
  
 SECTION 3.3 Governing Law. This Supplemental Indenture shall be
governed by, and construed in accordance with, the laws of the State of New York. 
  
 SECTION 3.4 Severability Clause. In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability. 
  
 SECTION 3.5 Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all
respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or
hereafter authenticated and delivered shall be bound hereby. 
  

 C-2 








 The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

  
 SECTION 3.6 Counterparts. The parties hereto may sign
one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. 
  
 SECTION 3.7 Headings. The headings of the Articles and the sections in this Subsidiary Guarantee are for convenience of reference only and shall
not be deemed to alter or affect the meaning or interpretation of any provisions hereof. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written. 
  

			
	 [GUARANTOR],
 as a Subsidiary
Guarantor

		
	By:	 	 
	 	 	 Name:
 Title:



  

			
	WELLS FARGO BANK, N.A., as Trustee
		
	By:	 	 
	 	 	 Name:
 Title:



  

			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	 
	 	 	 Name:
 Title:



  

 C-3