Indenture among EXCO Resources, Inc. and Wilmington Trust Company




 Exhibit 4.1 
 EXECUTION COPY 
  
  
  
 EXCO RESOURCES, INC. 
 Issuer 
 SUBSIDIARY GUARANTORS 
 7 1/4% Senior Notes Due 2011 
  
  
 INDENTURE 
 Dated as of January 20, 2004 
  
  
 WILMINGTON TRUST COMPANY

 Trustee 
  
  
  
 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)	 	 		  	7.08; 7.10
	(c)	 	 		  	N.A.
	311(a)	 	 		  	7.11
	(b)	 	 		  	7.11
	(c)	 	 		  	N.A.
	312(a)	 	 		  	2.05
	(b)	 	 		  	14.03
	(c)	 	 		  	14.03
	313(a)	 	 		  	7.06
	(b)	 	 		  	7.06
	(c)	 	 		  	14.02
	(d)	 	 		  	7.06
	314(a)	 	 		  	 4.03; 4.16; 13.03;
 14.04; 14.05

	(b)	 	 		  	12.02; 12.04
	(c)	(1)	 		  	14.04
	(c)	(2)	 		  	14.04
	(c)	(3)	 		  	N.A.
	(d)	 	 		  	12.02; 12.04; 12.05
	(e)	 	 		  	14.05
	(f)	 	 		  	4.16
	315(a)	 	 		  	7.01
	(b)	 	 		  	7.05
	(c)	 	 		  	7.01
	(d)	 	 		  	7.01
	(e)	 	 		  	6.10
	316(a)	(last sentence)	 		  	14.06
	(a)	(1)(A)	 		  	6.05
	(a)	(1)(B)	 		  	6.04
	(a)	(2)	 		  	N.A.
	(b)	 	 		  	6.06; 6.07
	317(a)	(1)	 		  	6.08
	(a)	(2)	 		  	6.09
	(b)	 	 		  	2.04
	318(a)	 	 		  	14.01

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








 TABLE OF CONTENTS 
  


					
	 	  	 	  	Page
	ARTICLE 1
	
	Definitions and Incorporation by Reference
			
	SECTION 1.01.	  	Definitions	  	1
	SECTION 1.02.	  	Other Definitions	  	28
	SECTION 1.03.	  	Incorporation by Reference of Trust Indenture Act	  	28
	SECTION 1.04.	  	Rules of Construction	  	28
	
	ARTICLE 2
	
	The Securities
			
	SECTION 2.01.	  	Form and Dating	  	30
	SECTION 2.02.	  	Execution and Authentication	  	30
	SECTION 2.03.	  	Registrar and Paying Agent	  	30
	SECTION 2.04.	  	Paying Agent To Hold Money in Trust	  	31
	SECTION 2.05.	  	Securityholder Lists	  	31
	SECTION 2.06.	  	Transfer and Exchange	  	31
	SECTION 2.07.	  	Replacement Securities	  	31
	SECTION 2.08.	  	Outstanding Securities	  	31
	SECTION 2.09.	  	Temporary Securities	  	32
	SECTION 2.10.	  	Cancellation	  	32
	SECTION 2.11.	  	Defaulted Interest	  	32
	SECTION 2.12.	  	CUSIP Numbers	  	32
	SECTION 2.13.	  	Issuance of Additional Securities	  	32
	
	ARTICLE 3
	
	Redemption
			
	SECTION 3.01.	  	Notices to Trustee	  	33
	SECTION 3.02.	  	Selection of Securities to Be Redeemed	  	33
	SECTION 3.03.	  	Notice of Redemption	  	33
	SECTION 3.04.	  	Effect of Notice of Redemption	  	34
	SECTION 3.05.	  	Deposit of Redemption Price	  	34
	SECTION 3.06.	  	Securities Redeemed in Part	  	34
	
	ARTICLE 4
	
	Covenants
			
	SECTION 4.01.	  	Covenant Suspension	  	34
	SECTION 4.02.	  	Payment of Securities	  	34
	SECTION 4.03.	  	SEC Reports	  	35
	SECTION 4.04.	  	Limitation on Indebtedness	  	35
	SECTION 4.05.	  	Limitation on Restricted Payments	  	38
	SECTION 4.06.	  	Limitation on Restrictions on Distributions from Restricted Subsidiaries	  	41
	SECTION 4.07.	  	Limitation on Sales of Assets and Subsidiary Stock	  	42
	SECTION 4.08.	  	Limitation on Affiliate Transactions	  	45
	SECTION 4.09.	  	Limitation on Line of Business	  	46
	SECTION 4.10.	  	Permitted MLP Transaction	  	46
	SECTION 4.11.	  	Change of Control	  	47

  

 i 










					
	SECTION 4.12.	  	Limitation on Liens	  	48
	SECTION 4.13.	  	Limitation on Sale/Leaseback Transactions	  	48
	SECTION 4.14.	  	Future Guarantors	  	48
	SECTION 4.15.	  	Impairment of Security Interest	  	48
	SECTION 4.16.	  	Compliance Certificate	  	49
	SECTION 4.17.	  	Further Instruments and Acts	  	49
	
	ARTICLE 5
	
	Successor Company
			
	SECTION 5.01.	  	When Company May Merge or Transfer Assets	  	50
	
	ARTICLE 6
	
	Defaults and Remedies
			
	SECTION 6.01.	  	Events of Default	  	51
	SECTION 6.02.	  	Acceleration	  	52
	SECTION 6.03.	  	Other Remedies	  	53
	SECTION 6.04.	  	Waiver of Past Defaults	  	53
	SECTION 6.05.	  	Control by Majority	  	53
	SECTION 6.06.	  	Limitation on Suits	  	53
	SECTION 6.07.	  	Rights of Holders to Receive Payment	  	54
	SECTION 6.08.	  	Collection Suit by Trustee	  	54
	SECTION 6.09.	  	Trustee May File Proofs of Claim	  	54
	SECTION 6.10.	  	Undertaking for Costs	  	54
	SECTION 6.11.	  	Waiver of Stay or Extension Laws	  	55
	
	ARTICLE 7
	
	Trustee
			
	SECTION 7.01.	  	Duties of Trustee	  	55
	SECTION 7.02.	  	Rights of Trustee	  	56
	SECTION 7.03.	  	Individual Rights of Trustee	  	56
	SECTION 7.04.	  	Trustee’s Disclaimer	  	56
	SECTION 7.05.	  	Notice of Defaults	  	56
	SECTION 7.06.	  	Reports by Trustee to Holders	  	56
	SECTION 7.07.	  	Compensation and Indemnity	  	57
	SECTION 7.08.	  	Replacement of Trustee	  	57
	SECTION 7.09.	  	Successor Trustee by Merger	  	58
	SECTION 7.10.	  	Eligibility; Disqualification	  	58
	SECTION 7.11.	  	Preferential Collection of Claims Against Company	  	58
	
	ARTICLE 8
	
	Discharge of Indenture; Defeasance
			
	SECTION 8.01.	  	Discharge of Liability on Securities; Defeasance	  	58
	SECTION 8.02.	  	Conditions to Defeasance	  	59
	SECTION 8.03.	  	Application of Trust Money	  	60
	SECTION 8.04.	  	Repayment to Company	  	60
	SECTION 8.05.	  	Indemnity for Government Obligations	  	60
	SECTION 8.06.	  	Reinstatement	  	60

  

 ii 










					
	
	ARTICLE 9
	
	Amendments
			
	SECTION 9.01.	  	Without Consent of Holders	  	60
	SECTION 9.02.	  	With Consent of Holders	  	61
	SECTION 9.03.	  	Compliance with Trust Indenture Act	  	62
	SECTION 9.04.	  	Revocation and Effect of Consents and Waivers	  	62
	SECTION 9.05.	  	Notation on or Exchange of Securities	  	63
	SECTION 9.06.	  	Trustee To Sign Amendments	  	63
	SECTION 9.07.	  	Payment for Consent	  	63
	
	ARTICLE 10
	
	Subsidiary Guaranties
			
	SECTION 10.01.	  	Guaranties	  	63
	SECTION 10.02.	  	Limitation on Liability	  	65
	SECTION 10.03.	  	Successors and Assigns	  	65
	SECTION 10.04.	  	No Waiver	  	65
	SECTION 10.05.	  	Modification	  	65
	SECTION 10.06.	  	Release of Subsidiary Guarantor	  	65
	SECTION 10.07.	  	Contribution	  	66
	
	ARTICLE 11
	
	Subordination of Taurus Acquisition Guaranty
			
	SECTION 11.01.	  	Agreement To Subordinate	  	66
	SECTION 11.02.	  	Liquidation, Dissolution, Bankruptcy	  	66
	SECTION 11.03.	  	Prohibition on Payments	  	67
	SECTION 11.04.	  	Demand for Payment	  	67
	SECTION 11.05.	  	When Distribution Must Be Paid Over	  	67
	SECTION 11.06.	  	Subrogation	  	67
	SECTION 11.07.	  	Relative Rights	  	67
	SECTION 11.08.	  	Subordination May Not Be Impaired by Taurus Acquisition	  	67
	SECTION 11.09.	  	Rights of Trustee and Paying Agent	  	67
	SECTION 11.10.	  	Distribution or Notice to Representative	  	68
	SECTION 11.11.	  	Article 11 Not To Prevent Events of Default or Limit Right To Demand Payment	  	68
	SECTION 11.12.	  	Trustee Entitled To Rely	  	68
	SECTION 11.13.	  	Trustee To Effectuate Subordination	  	68
	SECTION 11.14.	  	Trustee Not Fiduciary for Holders of Indebtedness Under the Credit Agreement	  	68
	SECTION 11.15.	  	Reliance by Holders of Indebtedness Under the Credit Agreement on Subordination Provisions	  	69
	
	ARTICLE 12
	
	Pledged Stock
			
	SECTION 12.01.	  	Collateral and Security Documents	  	70
	SECTION 12.02.	  	Recordings and Opinions	  	71
	SECTION 12.03.	  	Release of Collateral	  	71
	SECTION 12.04.	  	Permitted Releases Not To Impair Lien; Trust Indenture Act Requirements	  	72

  

 iii 










					
	SECTION 12.05.	  	Certificates to the Trustee	  	72
	SECTION 12.06.	  	Suits To Protect the Collateral	  	72
	SECTION 12.07.	  	Authorization of Receipt of Funds by the Trustee Under the Pledge Agreement	  	73
	SECTION 12.08.	  	Purchaser Protected	  	73
	SECTION 12.09.	  	Powers Exercisable by Receiver or Trustee	  	73
	SECTION 12.10.	  	Release upon Termination of the Company’s Obligations	  	73
	SECTION 12.11.	  	Collateral Agent.	  	73
	SECTION 12.12.	  	Designations	  	74
	
	ARTICLE 13
	
	Application of Trust Moneys
			
	SECTION 13.01.	  	“Trust Moneys” Defined	  	74
	SECTION 13.02.	  	Retirement of Securities	  	75
	SECTION 13.03.	  	Withdrawals of Insurance Proceeds and Condemnation Awards	  	75
	SECTION 13.04.	  	Powers Exercisable Notwithstanding Event of Default	  	77
	SECTION 13.05.	  	Powers Exercisable by Trustee or Receiver	  	77
	SECTION 13.06.	  	Disposition of Securities Retired	  	77
	SECTION 13.07.	  	Investment and Use of Trust Moneys	  	77
	
	ARTICLE 14
	
	Miscellaneous
			
	SECTION 14.01.	  	Trust Indenture Act Controls	  	78
	SECTION 14.02.	  	Notices	  	78
	SECTION 14.03.	  	Communication by Holders with Other Holders	  	78
	SECTION 14.04.	  	Certificate and Opinion as to Conditions Precedent	  	78
	SECTION 14.05.	  	Statements Required in Certificate or Opinion	  	79
	SECTION 14.06.	  	When Securities Disregarded	  	79
	SECTION 14.07.	  	Rules by Trustee, Paying Agent and Registrar	  	79
	SECTION 14.08.	  	Legal Holidays	  	79
	SECTION 14.09.	  	Governing Law	  	79
	SECTION 14.10.	  	No Recourse Against Others	  	79
	SECTION 14.11.	  	Successors	  	79
	SECTION 14.12.	  	Multiple Originals	  	79
	SECTION 14.13.	  	Table of Contents; Headings	  	79

  

					
	Rule 144A/Regulation S/IAI Appendix
			
	Exhibit 1	  	—	    	Form of Initial Security
			
	Exhibit A	  	—	    	Form of Exchange Security or Private Exchange Security
			
	Exhibit 2	  	—	    	Form of Transferee Letter of Representations

  

 iv 









 INDENTURE dated as of January 20, 2004, among EXCO RESOURCES, INC., a Texas corporation (the
“Company”), the SUBSIDIARY GUARANTORS (as defined below) from time to time party hereto and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as trustee (the “Trustee”). 
 Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 7 1/4% Senior Notes Due 2011 (the “Initial Securities”) and, if and when
issued pursuant to a registered exchange for Initial Securities, the Company’s 7 1/4% Senior Notes Due 2011 (the
“Exchange Securities”) and if and when issued pursuant to a private exchange for Initial Securities, the Company’s 7 1/4% Senior Notes Due 2011 (the “Private Exchange Securities”, together with the Exchange Securities and the Initial Securities, the “Securities”): 
 ARTICLE 1 
 Definitions and
Incorporation by Reference 
 SECTION 1.01. Definitions. 
 “Additional Assets” means (1) any property, plant or equipment or other assets (including Capital Stock of a Person engaged in a Related
Business) used 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 Company or another Restricted Subsidiary; or (3) Capital Stock
constituting a minority interest in any Person that at such time is a Restricted Subsidiary; provided, however, that any such Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a Related
Business. 
 “Additional Securities” means, subject to the Company’s
compliance with Section 4.04, 7 1/4% Senior Notes Due 2011 issued from time to time after the Issue Date under the terms of
this Indenture (other than pursuant to Section 2.06, 2.07, 2.09 or 3.06 of this Indenture and other than Exchange Securities or Private Exchange Securities issued pursuant to an exchange offer for other Securities outstanding under this
Indenture). 
 “Adjusted Consolidated Net Tangible Assets” or “ACNTA” means (without duplication), as of the date
of determination: 
 (a) the sum of: 
 (1) discounted future net revenue from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries calculated in accordance with SEC guidelines before any state or federal income
taxes, as estimated in a reserve report prepared as of the end of the fiscal year ending at least 45 days prior to the date of determination, which reserve report is prepared or audited by independent petroleum engineers, as increased by, as of
the date of determination, the discounted future net revenue calculated in accordance with SEC guidelines (utilizing the prices utilized in such year end reserve report) of: 
 (A) estimated proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries attributable to acquisitions
consummated since the date of such reserve report, and 








 (B) estimated crude oil and natural gas reserves of the Company and its Restricted
Subsidiaries attributable to extensions, discoveries and other additions and upward determinations of estimates of proved crude oil and natural gas reserves (including previously estimated development costs incurred during the period and the
accretion of discount since the prior period end) due to exploration, development or exploitation, production or other activities which reserves were not reflected in such reserve report which would, in accordance with standard industry practice,
result in such determinations, in each case calculated in accordance with SEC guidelines (utilizing the prices utilized in such year end reserve report) 
 and decreased by, as of the date of determination, the discounted future net revenue attributable to: 
 (C) estimated proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected in such reserve report produced or disposed of since the date of such reserve report, and

 (D) reductions in the estimated oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected
in such reserve report since the date of such reserve report attributable to downward determinations of estimates of proved crude oil and natural gas reserves due to exploration, development or exploitation, production or other activities conducted
or otherwise occurring since the date of such reserve report which would, in accordance with standard industry practice, result in such determinations, in each case calculated in accordance with SEC guidelines (utilizing the prices utilized in such
reserve report); 
 provided, however, that, in the case of each of the determinations made pursuant to clauses (A) through
(D), such increases and decreases shall be estimated by the Company’s engineers, except that if as a result of such acquisitions, dispositions, discoveries, extensions or revisions, there is a Material Change, then such increases and decreases
in the discounted future net revenue shall be confirmed in writing by an independent petroleum engineer; 
 (2) the
capitalized costs that are attributable to crude oil and natural gas properties of the Company and its Restricted Subsidiaries to which no proved crude oil and natural gas reserves are attributed, based on the Company’s books and records as of
a date no earlier than the end of the most recent fiscal quarter for which financial statements of the Company have been made publicly available prior to the date of determination; 
 (3) the Net Working Capital as of the end of the most recent fiscal quarter ending at least 45 days prior to the date of
determination; and 
 (4) the greater of (i) the net book value as of a date no earlier than the end of the most
recent fiscal quarter ending at least 45 days prior to the date of determination and (ii) the appraised value, as estimated by independent appraisers, of all other tangible assets, including mineral rights held under leases or other
contractual arrangements, of the Company and its Restricted Subsidiaries as of a date no earlier than the most recent fiscal year ending at least 45 days prior to the date of determination (provided, however, that the Company shall not be
required to obtain such an appraisal of such assets if no such appraisal has been performed); minus 
 (b) to the extent not otherwise
taken into account in the immediately preceding clause (a), the sum of 
 (1) minority interests; 
 (2) any natural gas balancing liabilities of the Company and its Restricted Subsidiaries reflected in the Company’s latest
audited consolidated financial statements; 
  

 2 









 (3) the discounted future net revenue, calculated in accordance with SEC guidelines
(utilizing the same prices utilized in the Company’s year-end reserve report), attributable to reserves subject to participation interests, overriding royalty interests or other interests of third parties, pursuant to participation,
partnership, vendor financing or other agreements then in effect, or which otherwise are required to be delivered to third parties; 
 (4) the discounted future net revenue calculated in accordance with SEC guidelines (utilizing the same prices utilized in the Company’s year-end reserve report), attributable to reserves that are required to be delivered to third
parties to fully satisfy the obligations of the Company and its Restricted Subsidiaries with respect to Volumetric Production Payments on the schedules specified with respect thereto; and 
 (5) the discounted future net revenue, calculated in accordance with SEC guidelines, attributable to reserves subject to Dollar
Denominated Production Payments that, based on the estimates of production included in determining the discounted future net revenue specified in the immediately preceding clause (a) (1) (utilizing the same prices utilized in the
Company’s year-end reserve report), would be necessary to satisfy fully the obligations of the Company and its Restricted Subsidiaries with respect to Dollar Denominated Production Payments on the schedules specified with respect thereto.

 Whether or not the Company uses the successful efforts method of accounting or the full cost (or similar method) method of accounting,
ACNTA will be calculated as if the Company were using the full cost (or similar method) method of accounting. 
 “Adjusted Treasury
Rate” means, with respect to any redemption date, (i) 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(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States 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 January 15, 2007, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month) or (ii) 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 year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date, in each case calculated on the third Business Day immediately preceding the redemption date, plus 0.50%. 
 “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 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. For purposes of Sections 4.05, 4.07 and 4.08 only, “Affiliate” shall
also mean any beneficial owner of Capital Stock representing 10% or more of the total voting power of the Voting Stock (on a fully diluted basis) of the Company or Parent or of rights or warrants to purchase such Capital Stock (whether or not
currently exercisable) and any Person who would be an Affiliate of any such beneficial owner pursuant to the first sentence hereof. 
  

 3 









 “Applicable Indebtedness” means: 
 (1) in respect of any asset that is the subject of an Asset Disposition at a time when such asset is included in the Collateral,
Senior Indebtedness or Indebtedness of a Subsidiary or any other non-debt obligation that, in each case, is secured at such time by Collateral under a Lien that takes priority over the Lien in respect of the Securities under the Pledge Agreement; or

 (2) in respect of any asset that is the subject of an Asset Disposition at a time when such asset is not included in
the Collateral but is owned, directly or indirectly, by a Foreign Subsidiary the stock of which is included in the Collateral, any Indebtedness or other obligation referred to in clause (1) above, any Indebtedness of such Foreign Subsidiary or
any Indebtedness of any other Foreign Subsidiary; provided, however, that such Foreign Subsidiary has not guaranteed unsecured Indebtedness of the Company or a Subsidiary Guarantor; or 
 (3) in respect of any other asset, Senior Indebtedness. 
 “Applicable Premium” means, with respect to a Security at any redemption date, the greater of (i) 1.00% of the principal amount of such
Security and (ii) the excess of (A) the present value at such redemption date of (1) the redemption price of such Security on January 15, 2007 (such redemption price being described in the third paragraph of paragraph 5 of
the Securities, exclusive of any accrued interest) plus (2) all required remaining scheduled interest payments due on such Security through January 15, 2007, computed using a discount rate equal to the Adjusted Treasury Rate, over
(B) the principal amount of such Security on such redemption date. 
 “Applicable Senior Indebtedness” means: 
 (1) in respect of any asset that is the subject of an Asset Disposition at a time when such asset is included in the Collateral,
Senior Indebtedness that is secured at such time by Collateral; or 
 (2) in respect of any asset that is the subject of
an Asset Disposition at a time when such asset is not included in the Collateral but is owned, directly or indirectly, by a Foreign Subsidiary the stock of which is included in the Collateral, Senior Indebtedness that is secured at such time by
Collateral or Senior Indebtedness of such Foreign Subsidiary; or 
 (3) in respect of any other asset, Senior
Indebtedness. 
 “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales, leases,
transfers or dispositions) by the Company or any Restricted Subsidiary, including any disposition by means of a merger, consolidation or similar transaction (each referred to for the purposes of this definition as a “disposition”), of

 (1) any shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares or shares
required by applicable law to be held by a Person other than the Company or a Restricted Subsidiary); 
 (2) all or
substantially all the assets of any division or line of business of the Company or any Restricted Subsidiary; or 
 (3) any other assets of the Company or any Restricted Subsidiary outside of the ordinary course of business of the Company or such Restricted Subsidiary 
  

 4 









 (other than, in the case of (1), (2) and (3) above, (A) a disposition by a Restricted Subsidiary to the
Company or by the Company or a Restricted Subsidiary to a Restricted Subsidiary, (B) for purposes of Section 4.07 only, (i) a disposition (other than a disposition of Collateral) that constitutes a Restricted Payment (or would
constitute a Restricted Payment but for the exclusions from the definition thereof) not prohibited by Section 4.05 and (ii) a disposition, other than a Permitted MLP Transaction, of all or substantially all the assets of the Company in
accordance with Section 5.01; (C) a disposition of assets (other than any assets that constitute Collateral) in a single transaction or a series of related transactions with a fair market value of less than $2.0 million; (D) a
disposition of cash or Temporary Cash Investments; (E) the trade or exchange, other than a Permitted MLP Transaction, by the Company or any Restricted Subsidiary of any oil or natural gas property or interest therein of the Company or such
Restricted Subsidiary for any oil or natural gas property or interest therein of another Person or for the Capital Stock of a Person engaged in the Oil and Gas Business, including any cash or cash equivalents necessary in order to achieve an
exchange of equivalent value; provided, however, that the value of the oil or natural gas property or interest therein received by the Company or any Restricted Subsidiary in such trade or exchange (including any cash or cash
equivalents) is at least equal to the fair market value (as determined in good faith by the Board of Directors, which determination shall be conclusive evidence of compliance with this provision) of the oil or natural gas property or interest
therein or Capital Stock of a Person engaged in the Oil and Gas Business (including any cash or cash equivalents) so traded or exchanged; and (F) the creation of a Lien (but not the sale or other disposition of the property subject to such
Lien)). 
 For purposes of Section 4.07 only, the disposition of Capital Stock of a Person will be treated as a disposition of all
Collateral owned by such Person if after giving effect to such disposition of such Capital Stock, the Company and the Restricted Subsidiaries do not control such Person. 
 “Attributable Debt” 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 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); provided, however, that if such
Sale/Leaseback Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation”. 
 “Average Life” means, as of the date of determination, with respect to any Indebtedness, 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 or redemption or similar payment with respect to such Indebtedness multiplied by the amount of such payment by
(2) the sum of all such payments. 
 “Board of Directors” means the Board of Directors of the Company or any committee thereof
duly authorized to act on behalf of such Board. 
 “Business Day” means each day which is not a Legal Holiday. 
 “Capital Lease Obligation” means an obligation that is required to be classified and accounted for as a capital lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation shall be the capitalized amount of such obligation determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of the last
payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a penalty. For purposes of Section 4.12, a Capital Lease Obligation will be deemed to be
secured by a Lien on the property being leased. 
  

 5 









 “Capital Stock” of any Person means any and all shares, interests (including partnership
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 such equity.

 “Change of Control” means the occurrence of any of the following events: 
 (1) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted
Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause (1) such person shall be deemed to have “beneficial ownership” of all shares that
any such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 35% of the total voting power of the Voting Stock of the Company; provided,
however, that the Permitted Holders beneficially own (as defined above), directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Company than such other person and do not have the
right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors (for purposes of this clause (1), such other person shall be deemed to beneficially own any Voting Stock of a
specified person held by a parent entity, if such other person is the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 35% of the voting power of the Voting Stock of such parent
entity and the Permitted Holders beneficially own (as defined in this proviso), directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent entity and do not have the right or ability by voting
power, contract or otherwise to elect or designate for election a majority of the board of directors of such parent entity); 
 (2) individuals who on the Issue Date constituted the Board of Directors of
the Company or the Parent Board (together with any new directors whose election by such Board of Directors of the Company or the Parent Board or whose nomination for election by the shareholders of the Company or Parent, as the case may be, was
approved by a vote of 66 2/3% of the directors of the Company or of Parent, as the case may be, then still in office who were
either directors on the Issue Date or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Company or the Parent Board then in office; 

(3) the adoption of a plan relating to the liquidation or dissolution of the Company; or 
 (4) the merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company,
or the sale of all or substantially all the assets of the Company (determined on a consolidated basis) to another Person other than (A) a transaction in which the survivor or transferee is a Person that is controlled by the Permitted Holders or
(B) a transaction following which (i) in the case of a merger or consolidation transaction, holders of securities that represented 100% of the Voting Stock of the Company immediately prior to such transaction (or other securities into
which such securities are converted as part of such merger or consolidation transaction) own directly or indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in such merger or consolidation transaction
immediately after such transaction and (ii) in the case of a sale of assets transaction, each transferee becomes an obligor in respect of the Securities and a Subsidiary of the transferor of such assets. 
 Notwithstanding the foregoing, a Permitted MLP Transaction shall not constitute a Change of Control. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Collateral” means all the collateral provided for and described in the Pledge Agreement. 
  

 6 









 “Collateral Agent” means Wilmington Trust Company, in its capacity as collateral agent for the
Securityholders, until a successor replaces it and, thereafter, means the successor. 
 “Company” means the party named as such in
this Indenture until a successor replaces it and, thereafter, means the successor and, for purposes of any provision contained herein and required by the TIA, each other obligor on the Securities. 
 “Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the
remaining term from the redemption date to January 15, 2007, that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a maturity most nearly
equal to January 15, 2007. 
 “Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of
the Adjusted Treasury Rate is applicable, the average of three, or such lesser number as is obtained by the Trustee, Reference Treasury Dealer Quotations for such redemption date. 
 “Consolidated Coverage Ratio” as of any date of determination means the ratio of 
 (1) the aggregate amount of EBITDA for the period of the most recent four consecutive fiscal quarters ending at least 45 days
prior to the date of such determination to 
 (2) Consolidated Interest Expense for such four fiscal quarters;

 provided, however, that 
 (A) if the Company or any Restricted Subsidiary has Incurred any Indebtedness since the beginning of such period that remains
outstanding or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or both, EBITDA and Consolidated Interest Expense for such period shall 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, 
 (B) if
the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the beginning of such period or if any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged (in each
case other than Indebtedness Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid and has not been replaced) on the date of the transaction giving rise to the need to calculate the Consolidated Coverage
Ratio, EBITDA and Consolidated Interest Expense for such period shall be calculated on a pro forma basis as if such discharge had occurred on the first day of such period and as if the Company or such Restricted Subsidiary has not earned the
interest income actually earned during such period in respect of cash or Temporary Cash Investments used to repay, repurchase, defease or otherwise discharge such Indebtedness, 
 (C) if since the beginning of such period the Company or any Restricted Subsidiary shall have made any Asset Disposition, EBITDA for
such period shall be reduced by an amount equal to 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 EBITDA (if negative), directly
attributable thereto for such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to the Consolidated Interest Expense directly attributable to any Indebtedness of the Company or any Restricted Subsidiary
repaid, repurchased, defeased or otherwise discharged with respect to the Company and the 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 Company and the continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such
sale), 
  

 7 









 (D) if since the beginning of such period the Company or any Restricted Subsidiary
(by merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary) or an acquisition of assets, including any acquisition of assets occurring in connection with a transaction
requiring a calculation to be made hereunder, which constitutes all or substantially all of an operating unit of a business, EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto
(including the Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first day of such period, and 
 (E) if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary since the beginning of such period) shall have made any Asset
Disposition, any Investment or acquisition of assets that would have required an adjustment pursuant to clause (C) or (D) above if made by the Company or a Restricted Subsidiary during such period, EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving pro forma effect thereto as if such Asset Disposition, Investment or acquisition occurred on the first day of such period. 
 For purposes of this definition, whenever pro forma effect is to be given to an acquisition of assets, the amount of income or earnings relating thereto and the amount of Consolidated Interest Expense
associated with any Indebtedness Incurred in connection therewith, the pro forma calculations shall be determined in good faith by a responsible financial or accounting Officer of the Company. If any Indebtedness bears a floating rate of
interest and is being given pro forma effect, the interest on such Indebtedness shall 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, but if the remaining term of such Interest Rate Agreement is less than 12 months, then such Interest Rate Agreement shall only be taken into account for that portion of the period equal to the
remaining term thereof). 
 If any Indebtedness is incurred under a revolving credit facility and is being given pro forma effect, the
interest on such Indebtedness shall be calculated based on the average daily balance of such Indebtedness for the four fiscal quarters subject to the pro forma calculation to the extent that such Indebtedness was incurred solely for working capital
purposes. 
 “Consolidated Interest Expense” means, for any period, the total interest expense of the Company and the consolidated
Restricted Subsidiaries, plus, to the extent not included in such total interest expense, and to the extent incurred by the Company or the Restricted Subsidiaries, without duplication, 
 (1) interest expense attributable to Capital Lease Obligations; 
 (2) amortization of debt discount and debt issuance cost; 
 (3) capitalized interest; 
 (4) non-cash interest expense; 
 (5) commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers’ acceptance financing; 
 (6) net payments pursuant to
Currency Agreements and Interest Rate Agreements; 
 (7) dividends accrued in respect of all Preferred Stock held by
Persons other than the Company or a Wholly Owned Subsidiary (other than dividends payable solely in Capital Stock (other than Disqualified Stock) of the Company); provided, however, that such dividends will be multiplied by a fraction,
the numerator of which is one and the denominator of which is one minus the effective combined tax rate of the issuer of such Preferred Stock (expressed as a decimal) for such period (as estimated by the chief financial officer of the Company in
good faith); 
 (8) interest incurred in connection with Investments in discontinued operations; 
  

 8 









 (9) interest accruing on any Indebtedness of any other Person to the extent such
Indebtedness is Guaranteed by (or secured by the assets of) the Company or any Restricted Subsidiary; and 
 (10) 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 Company) in connection with Indebtedness Incurred by such
plan or trust; 
 provided, however, that there shall be excluded from Consolidated Interest Expense (A) any non-cash amortization or
write-off of fees and expenses incurred in connection with the Transactions and (B) dividends and distributions in respect of the master limited partnership interests, general partnership interests, limited liability company interests or
royalty trust interests, as the case may be, in the MLP Subsidiary. 
 “Consolidated Net Income” means, for any period, the net
income of the Company and its consolidated Subsidiaries; provided, however, that there shall not be included in such Consolidated Net Income: 
 (1) any net income of any Person (other than the Company) if such Person is not a Restricted Subsidiary, except that 
 (A) subject to the exclusion contained in clause (5) below, the Company’s equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash actually distributed by such Person during such period to the Company or a Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to a Restricted Subsidiary,
to the limitations contained in clause (3) below); and 
 (B) the Company’s equity in a net loss of any such
Person for such period shall be included in determining such Consolidated Net Income; 
 (2) any net income (or loss) of
any Person acquired by the Company or a Subsidiary in a pooling of interests transaction (or any transaction accounted for in a manner similar to a pooling of interests) for any period prior to the date of such acquisition; 
 (3) any net income of any Restricted Subsidiary (other than the MLP Subsidiary) if such Restricted 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 Company, except that 
 (A) subject to the exclusion contained in clause (5) below, the Company’s equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed (or, if greater, for purposes of calculation of the Consolidated Coverage Ratio only, permitted at the date of
determination to be distributed) by such Restricted Subsidiary during such period to the Company or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another
Restricted Subsidiary, to the limitation contained in this clause); and 
 (B) the Company’s equity in a net loss of
any such Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income; 
  

 9 









 (4) any net income of the MLP Subsidiary, except that: 
 (A) subject to the exclusion contained in clause (5) below, the Company’s equity in the net income of the MLP Subsidiary
for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash permitted at the date of determination to be distributed by the MLP Subsidiary during such period to the Company or another Restricted Subsidiary as
a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary, to the limitation contained in clause (3) above); and 
 (B) the Company’s equity in a net loss of the MLP Subsidiary for such period shall be included in determining such Consolidated
Net Income; 
 (5) any gain (or loss) realized upon the sale or other disposition of any assets of the Company, its
consolidated Subsidiaries or any other Person (including pursuant to any sale-and-leaseback arrangement) which are not sold or otherwise disposed of in the ordinary course of business and any gain (or loss) realized upon the sale or other
disposition of any Capital Stock of any Person; 
 (6) any impairment losses on oil and natural gas properties;

 (7) extraordinary gains or losses; 
 (8) any unrealized non cash gains or losses or charges in respect of Hedging Obligations (including those resulting from the
application of FAS 133); 
 (9) any non cash compensation charge arising from any grant of stock, stock options or
other equity based awards; and 
 (10) the cumulative effect of a change in accounting principles; 
 in each case, for such period. Notwithstanding the foregoing, for the purpose of Section 4.05 only (but not the calculation of the Consolidated Coverage Ratio for
purposes of determining compliance with such covenant), there shall be excluded from Consolidated Net Income any repurchases, repayments or redemptions of Investments, proceeds realized on the sale of Investments or return of capital to the Company
or a Restricted Subsidiary to the extent such repurchases, repayments, redemptions, proceeds or returns increase the amount of Restricted Payments permitted under such Section pursuant to Section 4.05(a)(3)(D). 
 “Credit Agreement” means (i) the Second Amended and Restated Credit Agreement among Parent, the Company, certain of the Company’s
Subsidiaries, the lenders referred to therein, Bank One, NA, as Administrative Agent, BNP Paribas and JPMorgan Chase Bank, as Co-Syndication Agents, The Bank of Nova Scotia and Toronto Dominion (Texas), as Co-Documentation Agents, and Banc One
Capital Markets, Inc., as Lead Arranger and Sole Bookrunner, (ii) the Second Amended and Restated Credit Agreement, dated as of July 29, 2003 by and among Addison Energy Inc., the institutions named therein as lenders, Bank One,
NA, Canada Branch, as Administrative Agent, BNP Paribas (Canada) and JPMorgan Chase Bank, Toronto Branch, as Co-Syndication Agents, The Bank of Nova Scotia and The Toronto Dominion Bank, as Co-Documentation Agents, and Banc One Capital
Markets, Inc., as Lead Arranger and Bookrunner, and (iii) provided the Merger is consummated, the Credit Agreement among North Coast Energy, Inc., the lenders referred to therein and Union Bank of California, N.A., 

  

 10 









 
as Agent, in each case with respect to the foregoing clauses (i) through (iii), together with the related documents thereto (including the term loans
and revolving loans thereunder, any guarantees and security documents), as amended, extended, renewed, restated, supplemented or otherwise modified (in whole or in part, and without limitation as to amount, terms, conditions, covenants and other
provisions, including increasing the amount of available borrowings thereunder or adding Subsidiaries of Parent as additional borrowers or guarantors thereunder) from time to time, and any agreement (and related document) governing Indebtedness
incurred to Refinance but without limitation as to borrowers or guarantors, in whole or in part, the borrowings and commitments then outstanding or permitted to be outstanding under such Credit Agreement or a successor Credit Agreement, whether by
the same or any other lender or group of lenders. 
 “Credit Facilities” means the revolving credit facilities contained in the
Credit Agreement and any other facilities or financing arrangements that Refinance, in whole or in part, any such revolving credit facilities. 
 “Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement with respect to currency values. 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Disqualified Stock” means, with respect to any Person, any Capital Stock which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the
holder) or upon the happening of any event: 
 (1) matures or is mandatorily redeemable (other than redeemable only for
Capital Stock of such Person which is not itself Disqualified Stock) pursuant to a sinking fund obligation or otherwise; 
 (2) is convertible or exchangeable at the option of the holder for Indebtedness or Disqualified Stock; or 
 (3) is mandatorily redeemable or must be purchased upon the occurrence of certain events or otherwise, in whole or in part, 
 in each case on or prior to the 91st day after the Stated Maturity of the Securities; provided, however, that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to
require such Person to purchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control” occurring prior to the 91st day after the Stated Maturity of the Securities shall not constitute Disqualified Stock if (A) the “asset sale” or “change of control” provisions applicable to such Capital Stock are not more
favorable to the holders of such Capital Stock than the terms applicable to the Securities in Sections 4.07 and 4.11 of this Indenture and (B) any such requirement only becomes operative after compliance with such terms applicable to the
Securities, including the purchase of any Securities tendered pursuant thereto. 
 The amount of any Disqualified Stock that does not have a
fixed redemption, repayment or repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of such Disqualified Stock
is to be determined pursuant to the Indenture; provided, however, that if such Disqualified Stock could not be required to be redeemed, repaid or repurchased at the time of such determination, the redemption, repayment or repurchase
price will be the book value of such Disqualified Stock as reflected in the most recent financial statements of such Person. 
 “Dollar
Denominated Production Payments” means production payment obligations recorded as liabilities in accordance with GAAP, together with all undertakings and obligations in connection therewith. 
  

 11 









 “EBITDA” for any period means the sum of Consolidated Net Income, plus the following to the
extent deducted in calculating such Consolidated Net Income: 
 (1) all income tax expense of the Company and the
consolidated Restricted Subsidiaries; 
 (2) Consolidated Interest Expense; 
 (3) depreciation, depletion, exploration and amortization expense of the Company and the consolidated Restricted Subsidiaries
(excluding amortization expense attributable to a prepaid operating activity item that was paid in cash in a prior period); and 
 (4) all other non-cash charges of the Company and the consolidated Restricted Subsidiaries (excluding any such non-cash charge to the extent that it represents an accrual of or reserve for cash expenditures in any future period other
than non-cash charges resulting from the application of FAS 143), 
 in each case for such period, 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: 
 (A) the amount of deferred revenues that are amortized during such period and are attributable to reserves that are subject to Volumetric Production Payments; and 
 (B) amounts recorded in accordance with GAAP as repayments of principal and interest pursuant to Dollar Denominated Production
Payments. 
 Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the depreciation and amortization
and non-cash charges of, a Restricted Subsidiary shall be added to Consolidated Net Income to compute EBITDA only to the extent (and in the same proportion, including by reason of minority interests) that the net income or loss of such Restricted
Subsidiary was included in calculating Consolidated Net Income and only if a corresponding amount would be permitted at the date of determination to be dividended to the Company 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 such Restricted Subsidiary or its stockholders. 
 “Escrow Agreement” means the Escrow Agreement dated January 20, 2004 among the Company, the Subsidiary Guarantors and Wilmington Trust
Company, as escrow agent. 
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
 “Exchange Securities” means the debt securities of the Company issued pursuant to this Indenture in exchange for, and in an aggregate principal
amount equal to, the Initial Securities, in compliance with the terms of the Registration Rights Agreement. 
 “First Lien
Obligations” means (1) all Indebtedness Incurred by Parent, the Company and its Subsidiaries pursuant to Section 4.04(b)(1) or 4.04(b)(15) and secured by a Lien permitted under clause (7) or clause (20) of the definition of
Permitted Liens, (2) all other Obligations (not constituting Indebtedness) of Parent, the Company and its Subsidiaries under the agreements governing such Indebtedness and (3) all other Obligations of Parent, the Company and its
Subsidiaries in respect of Hedging Obligations or Obligations in respect of cash management services in connection with such first lien Indebtedness. 
 “Foreign Subsidiary” means any Restricted Subsidiary of the Company 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 
  

 12 









 (1) the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants; 
 (2) statements and pronouncements of the Financial Accounting
Standards Board; 
 (3) such other statements by such other entity as approved by a significant segment of the accounting
profession; and 
 (4) the rules and regulations of the SEC governing the inclusion of financial statements (including
pro forma financial statements) in periodic reports required to be filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting
staff of the SEC. All ratios and computations based on GAAP contained in this Indenture shall be computed in conformity with GAAP. 
 “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any 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 Person
(whether arising by virtue of partnership arrangements, or by agreements 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 the purpose 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” shall not
include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing any obligation.

 “Guaranty Agreement” means a supplemental indenture, in a form satisfactory to the Trustee, pursuant to which a Subsidiary
Guarantor guarantees the Company’s obligations with respect to the Securities on the terms provided for in this Indenture. 
 “Hedging Obligations” of any Person means the obligations of such Person pursuant to any Oil and Natural Gas Hedging Contract, Interest Rate Agreement or Currency Agreement. 
 “Holder” or “Securityholder” means the Person in whose name a Security is registered on the Registrar’s books. 
 “Incur” means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness of a
Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary. The term
“Incurrence” when used as a noun shall have a correlative meaning. 
 Solely for purposes of determining compliance with
Section 4.04: 
 (1) amortization of debt discount or the accretion of principal with respect to a non-interest
bearing or other discount security; 
 (2) the payment of regularly scheduled interest in the form of additional
Indebtedness of the same instrument or the payment of regularly scheduled dividends on Capital Stock in the form of additional Capital Stock of the same class and with the same terms; 
  

 13 









 (3) the obligation to pay a premium in respect of Indebtedness arising in connection
with the issuance of a notice of redemption or making of a mandatory offer to purchase such Indebtedness; and 
 (4) unrealized losses or charges in respect of Hedging Obligations (including those resulting from the application of FAS 133) 
 will not
be deemed to be the Incurrence of Indebtedness. 
 “Indebtedness” means, with respect to any Person on any date of determination
(without duplication): 
 (1) the principal in respect of (A) indebtedness of such Person for money borrowed and
(B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, including, in each case, any premium on such indebtedness to the extent such premium has become
due and payable; 
 (2) all Capital Lease Obligations of such Person and all Attributable Debt in respect of
Sale/Leaseback Transactions entered into by such Person; 
 (3) all obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations of such Person and all obligations of such Person under any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business);

 (4) all obligations of such Person for the reimbursement of any obligor on any letter of credit, bankers’
acceptance or similar credit transaction (other than obligations with respect to letters of credit securing obligations (other than obligations described in clauses (1) through (3) above) entered into in the ordinary course of
business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the tenth Business Day following payment on the letter of credit); 
 (5) the amount of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified
Stock of such Person or, with respect to any Subsidiary of such Person, the amount of all obligations of such Subsidiary with respect to any Preferred Stock of such Subsidiary, the principal amount of such Disqualified Stock or Preferred Stock to be
determined in accordance with this Indenture; 
 (6) all obligations of the type referred to in clauses (1) through
(5) of other Persons and all dividends of other Persons for the payment of which, in either case, such Person is responsible or liable, directly or indirectly, as obligor, guarantor or otherwise, including by means of any Guarantee; 

(7) all obligations of the type referred to in clauses (1) through (6) of other Persons secured by any Lien on any
property or asset of such Person (whether or not such obligation is assumed by such Person), the amount of such obligation being deemed to be the lesser of the value of such property or assets and the amount of the obligation so secured; 

(8) to the extent not otherwise included in this definition, Hedging Obligations of such Person; and 
 (9) any Guarantee by such Person of production or payment with respect to a Production Payment. 
 Except as expressly provided in clause (9) above, Production Payments and Reserve Sales shall not constitute “Indebtedness”. 
  

 14 









 Notwithstanding the foregoing, (A) in connection with the purchase by the Company or any Restricted Subsidiary of
any business or assets, the term “Indebtedness” will exclude post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the
performance of such business or assets after the closing; provided, however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the
amount is paid within 30 days thereafter and (B) following a Permitted MLP Transaction, the term “Indebtedness” will exclude the master limited partnership interests, general partnership interests, limited liability company
interests or royalty trust interests, as the case may be, in the MLP Subsidiary. 
 The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all obligations as described above; provided, however, that in the case of Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the accreted value thereof
at such time. 
 “Indenture” means this Indenture as amended or supplemented from time to time. 
 “Independent Qualified Party” means an investment banking firm, accounting firm or appraisal firm of national standing; provided,
however, that such firm is not an Affiliate of the Company. 
 “Intercreditor Agreement” means the Intercreditor Agreement,
dated as of January 20, 2004, among the Trustee, Bank One, NA, the Company and the Subsidiary Guarantors, as it may be amended from time to time in accordance with this Indenture. 
 “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement or other financial agreement or arrangement with
respect to exposure to interest rates. 
 “Investment” in any Person means any direct or indirect advance, loan (other than
advances to customers in the ordinary course of business that are recorded as accounts receivable on the balance sheet of the lender) or other extensions of credit (including by way of Guarantee or similar arrangement) 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. If
the Company or any Restricted Subsidiary issues, sells or otherwise disposes of any Capital Stock of a Person that is a Restricted Subsidiary such that, after giving effect thereto, such Person is no longer a Restricted Subsidiary, the Company or
any Restricted Subsidiary shall be deemed to have made an Investment on the date of such issuance, sale or other disposition equal to the fair market value of the Capital Stock of such Restricted Subsidiary not sold or disposed of or, if less, the
value of the Investment when made by the Company or such Restricted Subsidiary in the portion of such Person represented by such Capital Stock. The acquisition by the Company or any Restricted Subsidiary of a Person that holds an Investment in a
third Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person at such time. Except as otherwise provided for herein, the amount of an Investment shall be its fair market value at the time the
Investment is made and without giving effect to subsequent changes in value. 
 For purposes of the definition of “Unrestricted
Subsidiary”, the definition of “Restricted Payment” and Section 4.05, “Investment” shall include 
 (1) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the fair market value of the net assets of any Subsidiary of the Company at the time that such Subsidiary is designated an Unrestricted
Subsidiary; and 
 (2) any property transferred to or from an Unrestricted Subsidiary shall 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. 
 “Issue Date” means
January 20, 2004. 
  

 15 









 “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions are not
required to be open in the State of New York. 
 “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). 
 “Material
Change” means an increase or decrease (excluding changes that result solely from changes in prices and changes resulting from the incurrence of previously estimated development costs) of more than 50% during a fiscal quarter in the discounted
future net revenues from proved oil and natural gas reserves of the Company and the Restricted Subsidiaries, calculated in accordance with clause (a)(1) of the definition of ACNTA; provided, however, that the following will be
excluded from the calculation of Material Change: 
 (1) any acquisitions during the fiscal quarter of oil and natural
gas reserves that have been estimated by independent petroleum engineers and with respect to which a report or reports of such engineers exist; and 
 (2) any disposition of properties existing at the beginning of such fiscal quarter that have been disposed of in compliance with the covenant described under Section 4.07. 
 “Merger” means the merger of NCE Acquisition, Inc. with and into North Coast Energy, Inc. pursuant to the Merger Agreement.

 “Merger Agreement” means the agreement and plan of merger dated as of November 26, 2003, among the Company, NCE
Acquisition, Inc. and North Coast Energy, Inc., as amended and restated on December 4, 2003. 
 “Merger Date” means
the date the Merger is consummated. 
 “Moody’s” means Moody’s Investors Service, Inc. and any successor to its
rating agency business. 
 “Net Available Cash” from an Asset Disposition means cash payments received therefrom (including any
cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise and cash proceeds from the sale or other disposition of any securities received as consideration, 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 such properties or assets or received in any other non-cash form), in each case net of (without
duplication) 
 (1) all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and
all Federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP, 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 or other security agreement of any kind with respect to
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 Restricted Subsidiaries as a result of
such Asset Disposition; 
 (4) the deduction of appropriate amounts provided by the seller as a reserve, in accordance
with GAAP, against any liabilities associated with the property or other assets disposed in such Asset Disposition and retained by the Company or any Restricted Subsidiary after such Asset Disposition; and 
  

 16 









 (5) any portion of the purchase price from an Asset Disposition placed in escrow,
whether as a reserve for adjustment of the purchase price, for satisfaction of indemnities in respect of such Asset Disposition or otherwise in connection with that Asset Disposition; provided, however, that upon the termination of
that escrow, Net Available Cash will be increased by any portion of funds in the escrow that are released to the Company or any Restricted Subsidiary. 
 “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock or Indebtedness, means the cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof. 
 “Net Working Capital” of the Company means: 
 (1) all current assets of the Company and its Restricted Subsidiaries, except current assets from commodity price risk management activities arising in the ordinary course of business; minus 
 (2) all current liabilities of the Company and its Restricted Subsidiaries, except current liabilities included in Indebtedness and
current liabilities from commodity price risk management activities arising in the ordinary course of business, determined in accordance with GAAP. 
 “Obligations” means with respect to any Indebtedness, all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, and other amounts payable pursuant to the documentation governing such
Indebtedness. 
 “Offering Circular” means the confidential offering circular dated January 14, 2004, used in connection with
the offering of the Notes to be issued on the Issue Date. 
 “Officer” means the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company. 
 “Officers’ Certificate” means a certificate signed by two
Officers. 
 “Oil and Gas Business” means: 
 (1) the acquisition, exploration, exploitation, development, operation and disposition of interests in oil, natural gas, other
hydrocarbon and mineral properties; 
 (2) the gathering, marketing, distribution, treating, processing, storage,
refining, selling and transporting of any production from such interests or properties and the marketing of oil, natural gas, other hydrocarbons and minerals obtained from unrelated Persons; 
 (3) any business relating to or arising from exploration for or exploitation, development, production, treatment, processing,
storage, refining, transportation, gathering or marketing of oil, natural gas, other hydrocarbons and minerals and products produced in association therewith; 
 (4) any other related energy business, including power generation and electrical transmission business where fuel required by such
business is supplied, directly or indirectly, from oil, natural gas, other hydrocarbons and minerals produced substantially from properties in which the Company or the Restricted Subsidiaries, directly or indirectly, participate; 
 (5) any business relating to oil field sales and service; and 
 (6) any activity necessary, appropriate or incidental to the activities described in the preceding clauses (1) through
(5) of this definition. 
 “Oil and Natural Gas Hedging Contract” means any oil and natural gas hedging agreement and other
agreement or arrangement designed to protect the Company or any Restricted Subsidiary against fluctuations in oil and natural gas prices. 
  

 17 









 “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 Company or the Trustee. 
 “Parent” means EXCO Holdings Inc., a
Delaware corporation, and its successors. 
 “Parent Board” means the Board of Directors of Parent or any committee thereof duly
authorized to act on behalf of such Board. 
 “Permitted Business Investments” means Investments and expenditures made in the
ordinary course of, and of a nature that is or shall have become customary in, the Oil and Gas Business as means of actively exploiting, exploring for, acquiring, developing, processing, gathering, marketing or transporting oil, natural gas, other
hydrocarbons and minerals through agreements, transactions, interests or arrangements that 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 Oil and Gas Business jointly with third parties, including: 
 (1) ownership interests in oil, natural
gas, other hydrocarbon and mineral properties or gathering, transportation, processing, storage or related systems; and 
 (2) entry into, and Investments and expenditures in the form of or pursuant to, operating agreements, joint venture agreements, partnership agreements, working interests, royalty interests, mineral leases, processing agreements,
farm-in agreements, farm-out agreements, contracts for the sale, transportation or exchange of oil, natural gas, other hydrocarbons and minerals, production sharing agreements, development agreements, area of mutual interest agreements, unitization
agreements, pooling arrangements, joint bidding agreements, service contracts and other similar agreements with third parties (including Unrestricted Subsidiaries). 
 “Permitted Collateral Debt” means (1) Refinancing Indebtedness in respect of the Securities and (2) Refinancing Indebtedness in respect of First Lien Obligations. 
 “Permitted Holders” means any combination of Persons that beneficially own Capital Stock of Parent as of the Issue Date. 
 “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary in 
 (1) the Company, a Restricted Subsidiary or a Person that will, upon the making of such Investment, become a Restricted Subsidiary;
provided, however, that the primary business of such Restricted Subsidiary is a Related Business; 
 (2) another Person (A) 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 Company or a Restricted Subsidiary or
(B) for consideration consisting solely of Capital Stock of the Company; provided, however, that in both cases, such Person’s primary business is a Related Business; 
 (3) cash and Temporary Cash Investments; 
 (4) receivables owing to the Company or any Restricted Subsidiary if 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 Company 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 Company or such Restricted Subsidiary; 
  

 18 









 (7) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted Subsidiary or in satisfaction of judgments; 
 (8) any Person to the extent such Investment represents the non-cash portion of the consideration received for (A) an Asset Disposition as permitted pursuant to Section 4.07 or (B) a disposition of assets not
constituting an Asset Disposition; 
 (9) any Person where such Investment was acquired by the Company or any of the
Restricted Subsidiaries (A) in exchange for any other Investment or accounts receivable held by the Company or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the
issuer of such other Investment or accounts receivable or (B) as a result of a foreclosure by the Company or any of the Restricted Subsidiaries with respect to any secured Investment or other transfer of title with respect to any secured
Investment in default; 
 (10) any Person to the extent such Investments consist of prepaid expenses, negotiable
instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits made in the ordinary course of business by the Company or any Restricted Subsidiary; 
 (11) any Person to the extent such Investments consist of Hedging Obligations otherwise permitted under Section 4.04;

 (12) any Person to the extent such Investment exists on the Issue Date, and any extension, modification or renewal of
any such Investments existing on the Issue Date, but only to the extent not involving additional advances, contributions or other Investments of cash or other assets or other increases thereof (other than as a result of the accrual or accretion of
interest or original issue discount or the issuance of pay-in-kind securities, in each case, pursuant to the terms of such Investment as in effect on the Issue Date); 
 (13) Permitted Business Investments; 
 (14) Guarantees of performance or other obligations (other than Indebtedness) arising in the ordinary course in the Oil and Gas Business, including obligations under oil and natural gas exploration, development,
joint operating and related agreements and licenses or concessions related to the Oil and Gas Business; 
 (15) Persons
to the extent such Investments, when taken together with all other Investments made pursuant to this clause (15) outstanding on the date such Investment is made, do not exceed $20.0 million. 
 “Permitted Liens” means, with respect to any Person, 
 (1) pledges or deposits by such Person under workers’ 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 of 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 duties or for the payment of rent, in each case Incurred in the ordinary course of business;

  

 19 









 (2) Liens imposed by law, such as carriers’, warehousemen’s and
mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding
with an appeal or other proceedings for review and Liens arising solely by virtue of any statutory or common law provision relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds
maintained with a creditor depository institution; provided, however, that (A) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Company in excess of those set
forth by regulations promulgated by the Federal Reserve Board and (B) such deposit account is not intended by the Company or any Restricted Subsidiary to provide collateral to the depository institution; 
 (3) Liens for property taxes not yet subject to penalties for non-payment or which are being contested in good faith by appropriate
proceedings; 
 (4) Liens in favor of issuers of performance, bid or surety bonds, completion guarantees or letters of
credit 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; 
 (5) survey exceptions, 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 property or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which were not
Incurred in connection with Indebtedness and 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; 
 (6) Liens securing Indebtedness Incurred to finance the construction, purchase or lease of, or repairs, improvements or additions to,
property, plant or equipment of such Person; provided, however, that the Lien may not extend to any other property owned by such Person or any of its Restricted Subsidiaries at the time the Lien is Incurred (other than assets and
property affixed or appurtenant thereto), and the Indebtedness (other than any interest thereon) secured by the Lien may not be Incurred more than 180 days after the later of the acquisition, completion of construction, repair, improvement,
addition or commencement of full operation of the property subject to the Lien; 
 (7) Liens to secure Indebtedness
permitted under Section 4.04(b)(1) and any of the First Lien Obligations; 
 (8) Liens existing on the Issue Date;

 (9) Liens on property or shares of Capital Stock of another Person at the time such other Person becomes a Subsidiary
of such Person; provided, however, that the Liens may not extend to any other property owned by such Person or any of its Restricted Subsidiaries (other than assets and property affixed or appurtenant thereto); 
 (10) Liens on property at the time such Person or any of its Subsidiaries acquires the property, including any acquisition by means
of a merger or consolidation with or into such Person or a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property owned by such Person or any of its Restricted Subsidiaries (other than assets
and property affixed or appurtenant thereto); 
 (11) Liens securing Indebtedness or other obligations of a Subsidiary of
such Person owing to such Person or a Restricted Subsidiary of such Person; 
  

 20 









 (12) Liens securing Hedging Obligations so long as such Hedging Obligations relate
to Indebtedness that is, and is permitted to be under this Indenture, secured by a Lien on the same property securing such Hedging Obligations; 
 (13) Liens on, or related to, assets to secure all or part of the costs incurred in the ordinary course of the Oil and Gas Business for the exploration, drilling, development, production, processing,
transportation, marketing, storage or operation thereof; 
 (14) Liens on pipeline or pipeline facilities that arise
under operation of law; 
 (15) Liens arising in the ordinary course of business under operating agreements, joint
venture agreements, partnership agreements, oil, natural gas, other hydrocarbon and mineral leases, farm-out or farm-in agreements, division orders, contracts for the sale, transportation or exchange of oil or natural gas, unitization and pooling
declarations and agreements, area of mutual interest agreements and other agreements that are customary in the Oil and Gas Business and Liens securing Production Payments and Reserve Sales that are not prohibited by the Indenture; provided,
however, that such Liens do not extend to any property other than the property that is the subject of such Production Payments and Reserve Sales; 
 (16) Liens reserved in oil, natural gas, other hydrocarbon and mineral leases for bonus or rental payments and for compliance with the terms of such leases; 
 (17) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of any Indebtedness secured by any Lien
referred to in the foregoing clause (6), (8), (9) or (10); provided, however, that (A) such new Lien shall be limited to all or part of the same property and assets that secured or, under the written agreements pursuant
to which the original Lien arose, could secure the original Lien (plus improvements and accessions to such property or proceeds or distributions thereof) and (B) the Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (i) the outstanding principal amount or, if greater, committed amount of the Indebtedness described under clause (6), (8), (9) or (10) at the time the original Lien became a Permitted Lien and (ii) an
amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or replacement. 
 (18) Liens upon the Collateral securing the Securities, the Exchange Securities and any Additional Securities, if any: 
 (19) Liens securing Indebtedness of a Foreign Subsidiary other than Addison Energy Inc. permitted to be Incurred under Section 4.04; provided, however, that such Liens do not extend to any
property not owned by such Foreign Subsidiary; 
 (20) Liens to secure Indebtedness permitted under 4.04(b)(15) and
(b)(16); provided, however, that Liens to secure Indebtedness Incurred pursuant to Section 4.04 (b)(15) do not extend to any property then property of such MLP Subsidiary and its Subsidiaries; and 
 (21) In addition to Liens permitted by clauses (1) through (20) above, Liens that are incurred in the ordinary course of
business of the Company or any Restricted Subsidiary with respect to Indebtedness and other obligations that do not exceed $10.0 million at any time outstanding. 
 In each case set forth above, notwithstanding any stated limitation on the assets that may be subject to such Lien, a Permitted Lien on a specified asset or group or type of assets may include Liens on all
improvements, additions and accessions thereto and all products and proceeds thereof. 
 Notwithstanding the foregoing, “Permitted
Liens” will not include any Lien described in clause (6), (9) or (10) above to the extent such Lien applies to any Additional Assets acquired directly or indirectly from Net Available Cash pursuant to Section 4.07. For
purposes of this definition, the term “Indebtedness” shall be deemed to include interest on such Indebtedness. 
  

 21 









 “Permitted MLP Transaction” means, on one occasion only, the sale, transfer or other
disposition of all, substantially all or a substantial portion of the assets of the Company (determined on a consolidated basis) to one or more newly formed master limited partnerships, limited liability companies or royalty trusts (collectively,
the “MLP Subsidiary”); provided, however, that (1) at the time of, and at all times following, such sale, transfer or disposition, the Company is the managing general partner, managing member or operator, as the case may
be, of the MLP Subsidiary and holds at least 40% of the master limited partnership interests, limited liability company interests or royalty trust interests, as the case may be, and a majority of the general partnership interests, if applicable, in
the MLP Subsidiary, (2) on a pro forma basis for such sale, transfer or disposition, the Securities are rated one level higher than their ratings immediately prior to such sale, transfer or other disposition (and, in any event, not less than
one level higher than the Securities were rated as of the Issue Date) by each of Moody’s and Standard & Poor’s, in each case, with no negative outlook, (3) the MLP Subsidiary at the time of, and at all times following such
sale, transfer or disposition, is a Restricted Subsidiary, (4) there are no restrictions in the master limited partnership agreement, limited liability company agreement or royalty trust agreement, as the case may be, any other governing
documents of the MLP Subsidiary, any debt instruments to which the MLP Subsidiary is a party or otherwise that limit or prevent the MLP Subsidiary from making any pro rata (based on ownership percentage) distributions to the Company (except in the
case of receipt of a notice of default with respect to Indebtedness permitted to be Incurred by the MLP Subsidiary under Section 4.04); and (5) on a pro forma basis after giving effect to such sale, transfer or disposition and assuming
that (x) such sale, transfer or disposition had occurred at the beginning of the four consecutive fiscal quarters ended at least 45 days prior to the date of such sale, transfer or disposition, (y) none of the Securities are purchased
in the MLP Offer and (z) the Company had received in cash during such four fiscal quarter period its proportionate share (based on its ownership percentage of the MLP Subsidiary) of the consolidated net income of the MLP Subsidiary, the Company
could Incur at least $1.00 of Indebtedness under Section 4.04(a). 
 “Person” means any individual, corporation, partnership,
limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 
 “Pledge Agreement” means (a) the Pledge Agreement, dated as of January 20, 2004, between the Company and the Trustee. 
 “Preferred Stock”, as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person. 

“principal” of a Security means the principal of the Security plus the premium, if any, payable on the Security which is due or overdue or
is to become due at the relevant time. 
 “Production Payments and Reserve Sales” means the grant or transfer to any Person of a
Dollar Denominated Production Payment, Volumetric Production Payment, royalty, overriding royalty, net profits interest, master limited partnership interest or other interest in oil and natural 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. 
 “Public Equity
Offering” means an underwritten primary public offering of common stock of the Company or Parent pursuant to an effective registration statement under the Securities Act. 
 “Quotation Agent” means the Reference Treasury Dealer selected by the Trustee after consultation with the Company. 
 “Reference Treasury Dealer” means Credit Suisse First Boston LLC and its successors and assigns, Banc One Capital Markets, Inc. and its
successors and assigns and one other nationally recognized investment banking firm selected by the Company that is a primary U.S. Government securities dealer. 
  

 22 









 “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 immediately preceding such redemption date. 
 “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay, prepay, purchase, redeem, defease or retire, or to issue other Indebtedness in exchange or replacement for, such Indebtedness.
“Refinanced” and “Refinancing” shall have correlative meanings. 
 “Refinancing Indebtedness” means
Indebtedness that Refinances any Indebtedness of the Company or any Restricted Subsidiary existing on the Issue Date or Incurred in compliance with this Indenture, including Indebtedness that Refinances Refinancing Indebtedness; provided,
however, that: 
 (1) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of
the Indebtedness being Refinanced; 
 (2) such Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the Indebtedness being Refinanced; 
 (3) such Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue discount, an aggregate issue price) that is equal to or less than the aggregate principal amount (or if Incurred with original
issue discount, the aggregate accreted value) then outstanding (plus fees and expenses, including any premium and defeasance costs) under 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 at least to the same extent as the Indebtedness being Refinanced; 
 provided further,
however, that Refinancing Indebtedness shall not include (A) Indebtedness of a Subsidiary of the Company that Refinances Indebtedness of the Company or (B) Indebtedness of the Company or a Restricted Subsidiary that Refinances
Indebtedness of an Unrestricted Subsidiary. 
 “Registration Rights Agreement” means the Registration Rights Agreement dated
January 20, 2004, among the Company, the Subsidiary Guarantors, Credit Suisse First Boston LLC, Banc One Capital Markets, Inc., BNP Paribas Securities Corp., Comerica Securities, Inc., Fleet Securities, Inc., Scotia Capital
(USA) Inc. and TD Securities (USA) Inc. 
 “Related Business” means any Oil and Gas Business and any other business in
which the Company or any of the Restricted Subsidiaries was engaged on the Issue Date and any business related, ancillary or complementary to such business. 
 “Restricted Payment” with respect to any Person means: 
 (1) the declaration
or payment of any dividends or any other distributions of any sort in respect of its Capital Stock (including any payment in connection with any merger or consolidation involving such Person) or similar payment to the direct or indirect holders of
its Capital Stock (other than (A) dividends or distributions payable solely in its Capital Stock (other than Disqualified Stock), (B) dividends or distributions payable solely to the Company or a Restricted Subsidiary and (C) pro rata
dividends or other distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation)); 
  

 23 









 (2) the purchase, redemption or other acquisition or retirement for value of any
Capital Stock of the Company or a Restricted Subsidiary held by any Affiliate of the Company (other than by a Restricted Subsidiary), including in connection with any merger or consolidation and including the exercise of any option to exchange any
Capital Stock (other than into Capital Stock of the Company that is not Disqualified Stock); 
 (3) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value, prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment of any Subordinated Obligations of the Company or any Subsidiary Guarantor (other
than (A) from the Company or a Restricted Subsidiary or (B) the purchase, repurchase, redemption, defeasance 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 such purchase, repurchase, redemption, defeasance or other acquisition); or 
 (4) the making of any Investment (other than a Permitted Investment) in any Person. 
 “Restricted
Subsidiary” means any Subsidiary of the Company that is not an Unrestricted Subsidiary. 
 “Sale/Leaseback Transaction” means
an arrangement relating to property owned by the Company or a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company or a Restricted Subsidiary whereby the Company or a Restricted Subsidiary transfers such property to a Person
and the Company or a Restricted Subsidiary leases it from such Person. 
 “SEC” means the U.S. Securities and Exchange Commission.

 “Securities” means the Securities issued under this Indenture. 
 “Securities Act” means the U.S. Securities Act of 1933. 
 “Security Obligations” means (a) the due payment by the Company of (i) the Obligations and (ii) all other monetary obligations of the Company to any Secured Parties, in each case under this
Indenture, the Securities and the Pledge Agreement, including obligations to pay fees, expense reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including, monetary
obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) and (b) the due performance by the Company within applicable grace
periods of all other obligations of the Company under or pursuant to this Indenture, the Securities and the Pledge Agreement. 
 “Secured Parties” means (a) the Trustee, (b) the Collateral Agent, (c) each Securityholder and (d) the successors and assigns of each of the foregoing. 
 “Senior Indebtedness” means with respect to any Person: 
 (1) Indebtedness of such Person, whether outstanding on the Issue Date or thereafter Incurred; and 
 (2) all other Obligations of such Person (including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to such Person whether or not post-filing interest is allowed in such proceeding) in respect of Indebtedness described in clause (1) above, 
 unless, in the case of clauses (1) and (2), in the instrument creating or evidencing the same or pursuant to which the same is outstanding it is provided that such Indebtedness or other obligations are
subordinate in right of payment to the Securities or the Subsidiary Guaranty of such Person, as the case may be; provided, however, that Senior Indebtedness shall not include: 
 (A) any obligation of such Person to the Company or any Subsidiary; 
  

 24 









 (B) any liability for Federal, state, local or other taxes owed or owing by such
Person; 
 (C) any accounts payable or other liability to trade creditors arising in the ordinary course of business
(including guarantees thereof or instruments evidencing such liabilities); 
 (D) any Indebtedness or other Obligation of
such Person which is subordinate or junior in any respect to any other Indebtedness or other Obligation of such Person; or 
 (E) that portion of any Indebtedness which at the time of Incurrence is Incurred in violation of this Indenture. 
 “Senior Subordinated Indebtedness” means, with respect to Taurus Acquisition, the Taurus Guaranty and any other Indebtedness of Taurus Acquisition that specifically provides that such Indebtedness is to rank pari passu with
the Taurus Guaranty in right of payment and is not subordinated by its terms in right of payment to any Indebtedness or other obligation of Taurus Acquisition which is not Senior Indebtedness of Taurus Acquisition. 
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the Company within the meaning
of Rule 1-02 under Regulation S-X promulgated by the SEC. 
 “Specified Permitted Liens” means Permitted Liens, other
than any Liens described in clause (9), (10) or (11). 
 “Standard & Poor’s” means Standard &
Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor to its rating agency business. 
 “Stated
Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the final payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision (but
excluding any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any contingency unless such contingency has occurred). 
 “Subordinated Obligation” means, with respect to a Person, any Indebtedness of such Person (whether outstanding on the Issue Date or thereafter
Incurred) which is subordinate or junior in right of payment to the Securities or a Subsidiary Guaranty of such Person, as the case may be, pursuant to a written agreement to that effect. 
 “Subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of
the total voting power of shares of Voting Stock 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. 
 “Subsidiary Guarantor” means each Subsidiary of the Company that executes this Indenture as a guarantor on the Issue
Date and each other Subsidiary of the Company that thereafter guarantees the Securities pursuant to the terms of this Indenture. 
 “Subsidiary Guaranty” means a Guarantee by a Subsidiary Guarantor of the Company’s obligations with respect to the Securities. 
 “Taurus Acquisition” means Taurus Acquisition Inc., a Texas corporation, and its successors. 
 “Taurus Guaranty” means the Subsidiary Guaranty of Taurus Acquisition. 
 “Tax Sharing Agreement” means any tax
sharing agreement between the Company and Parent or any other Person with which Parent or the Company is required to, or is permitted to, file a consolidated, combined or unitary tax return or with which Parent or the Company is or could be
part of a consolidated group for tax purposes. 
  

 25 









 “Temporary Cash Investments” means any of the following: 
 (1) any investment in direct obligations of the United States of America or any agency thereof or obligations guaranteed by the
United States of America or any agency thereof; 
 (2) investments in demand and time deposit accounts, certificates of
deposit and money market deposits maturing within 180 days of the date of acquisition thereof issued by a bank or trust company which is organized under the laws of the United States of America, any State thereof or any foreign country
recognized by the United States of America, and which bank or trust company has capital, surplus and undivided profits aggregating in excess of $50.0 million (or the foreign currency equivalent thereof) and has outstanding debt which is rated
“A” (or such similar equivalent rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under the Securities Act) or any money-market fund sponsored by a registered broker dealer
or mutual fund distributor; 
 (3) investments in deposits available for withdrawal on demand with any commercial bank
that is organized under the laws of any country in which the Company or any Restricted Subsidiary maintains an office or is engaged in the Oil and Gas Business; provided, however, that (i) all such deposits have been made in such
accounts in the ordinary course of business and (ii) such deposits do not at any one time exceed $10.0 million in the aggregate; 
 (4) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clause (1) above entered into with a bank meeting the qualifications described in
clause (2) above; 
 (5) investments in commercial paper, maturing not more than 90 days after the date of
acquisition, issued by a corporation (other than an Affiliate of Parent) organized and in existence under the laws of the United States of America or any foreign country recognized by the United States of America with a rating at the time as of
which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to Standard and Poor’s; 
 (6) investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by Standard & Poor’s or “A” by Moody’s; and 
 (7) investments in money market funds that invest substantially all their assets in securities of the types described in clauses
(1) through (7) above. 
 “Tender Offer” means the tender offer launched on December 5, 2003 by NCE
Acquisition, Inc. for all of the common stock of North Coast Energy, Inc. 
 “TIA” means the Trust Indenture Act of 1939
(15 U.S.C. §§ 77aaa-77bbbb) as in effect on the Issue Date. 
 “Transactions” means, collectively, the following
transactions to occur on or prior to the Merger Date: (1) consummation of the Tender Offer, including the tender of shares representing at least 90% of North Coast Energy Inc.’s total outstanding shares plus shares issuable upon the
exercise of outstanding options and warrants, (2) consummation of the Merger and the other transactions contemplated in the Merger Agreement, (3) the execution and delivery of an amendment and restatement of the Credit Agreement and the
incremental borrowings thereunder, (4) the repayment of all amounts outstanding under the Senior Term Credit Agreement dated as of October 17, 2003, among the Company, EXCO Operating, LP, Parent, Taurus Acquisition, Inc. and the
institutions named therein as lenders, (5) the amendment and restatement of certain agreements governing long-term indebtedness of North Coast Energy, Inc. and (6) the payment of all fees and expenses then due and owing that are
required to be paid on or prior to the Merger Date in connection with the offering of the Securities and the foregoing clauses (1) through (5). 
  

 26 









 “Trustee” means Wilmington Trust Company until a successor replaces it and, thereafter, means
the successor. 
 “Trust Officer” means the Chairman of the Board, the President or any other officer or assistant officer of the
Trustee assigned by the Trustee to administer its corporate trust matters. 
 “Uniform Commercial Code” means the New York Uniform
Commercial Code as in effect from time to time. 
 “Unrestricted Subsidiary” means: 
 (1) any Subsidiary of the Company that at the time of determination shall be designated an Unrestricted Subsidiary by the Board of
Directors in the manner provided below; and 
 (2) any Subsidiary of an Unrestricted Subsidiary. 
 The Board of Directors may designate any Subsidiary of the Company (including any newly acquired or newly formed Subsidiary but excluding the MLP
Subsidiary and any Subsidiary of the MLP Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or holds any Lien on any property of, the Company or any Subsidiary of
the Company that is not a Subsidiary of the Subsidiary to be so designated; provided, however, that either (A) the Subsidiary to be so designated has total assets of $1,000 or less or (B) if such Subsidiary has assets greater
than $1,000, such designation would be permitted under Section 4.05. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that immediately after giving effect to such
designation (A) the Company could Incur $1.00 of additional Indebtedness under Section 4.04(a) and (B) no Default shall have occurred and be continuing. Any such designation by the Board of Directors shall be evidenced to the Trustee
by promptly filing with the Trustee a copy of the resolution of the Board of Directors giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the foregoing provisions. 
 “U.S. Dollar Equivalent” means with respect to any monetary amount in a currency other than U.S. dollars, at any time for determination
thereof, the amount of U.S. dollars obtained by converting such foreign currency involved in such computation into U.S. dollars at the spot rate for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date two Business Days prior to such determination. 
 Except as described in Section 4.04, whenever it is necessary to determine whether the Company or any Restricted Subsidiary has complied with any covenant in this Indenture or a Default has occurred and an amount
is expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar Equivalent determined as of the date such amount is initially determined in such currency. 
 “U.S. Government Obligations” means direct obligations (or certificates representing an ownership interest in such obligations) of the United
States of America (including any agency or instrumentality thereof) for the payment of which the full faith and credit of the United States of America is pledged and which are not callable at the issuer’s option. 
 “Volumetric Production Payments” means production payment obligations recorded as deferred 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 (or, in the case of the MLP Subsidiary, the general partnership interests of such MLP Subsidiary) then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof. 
  

 27 









 “Wholly Owned Subsidiary” means a Restricted Subsidiary all the Capital Stock of which (other
than directors’ qualifying shares) is owned by the Company or one or more other Wholly Owned Subsidiaries. 
 SECTION 1.02. Other
Definitions. 
  

			
	 Term
	  	 Defined in Section

	 “Appendix”
	  	2.01
	 “Affiliate Transaction”
	  	4.08(a)
	 “Bankruptcy Law”
	  	6.01
	 “Change of Control Offer”
	  	4.11(b)
	 “covenant defeasance option”
	  	8.01(b)
	 “Credit Agent”
	  	4.15
	 “Custodian”
	  	6.01
	 “Event of Default”
	  	6.01
	 “Guaranteed Obligations”
	  	10.01
	 “Investment Grade Ratings”
	  	4.01
	 “legal defeasance option”
	  	8.01(b)
	 “MLP Offer”
	  	4.10(b)
	 “Offer”
	  	4.07(b)
	 “Offer Amount”
	  	4.07(c)(2)
	 “Offer Period”
	  	4.07(c)(2)
	 “Paying Agent”
	  	2.03
	 “Purchase Date”
	  	4.07(c)(1)
	 “Registrar”
	  	2.03
	 “Successor Company”
	  	5.01(a)(1)
	 “Suspended Covenants”
	  	4.01
	 “Trust Moneys”
	  	13.01

 Terms not defined herein but defined in the Appendix shall have the meaning set forth in the
Appendix. 
 SECTION 1.03. 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 and the Subsidiary Guaranties;

 “indenture security holder” means a Securityholder; 
 “indenture to be qualified” means this Indenture; 
 “indenture trustee” or “institutional trustee” means the Trustee; and 
 “obligor” on the indenture securities means the Company, each Subsidiary Guarantor and any other obligor on the indenture securities. 
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
 SECTION 1.04. 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; 
  

 28 









 (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) secured Indebtedness shall not be deemed to be subordinate or junior to any other secured
Indebtedness merely because it has a junior priority with respect to the same collateral; 
 (8) 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; 
 (9) the principal amount of any Preferred Stock shall be (A) the maximum liquidation value of such Preferred Stock or
(B) the maximum mandatory redemption or mandatory repurchase price with respect to such Preferred Stock, whichever is greater; and 
 (10) all references to the date the Securities were originally issued shall refer to the Issue Date. 
  

 29 









 ARTICLE 2 
 The Securities 
 SECTION 2.01. Form and Dating. Provisions relating to the Initial Securities,
the Private Exchange Securities and the Exchange Securities are set forth in the Rule 144A/Regulation S/IAI Appendix attached hereto (the “Appendix”) which is hereby incorporated in, and expressly made part of, this Indenture.
The Initial Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in, and expressly made a part of, this Indenture. The Exchange Securities,
the Private Exchange Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture. The Securities may have
notations, legends or endorsements required by law, stock exchange rule, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). Each Security
shall be dated the date of its authentication. The terms of the Securities set forth in the Appendix and Exhibit A are part of the terms of this Indenture. 
 SECTION 2.02. Execution and Authentication. Two Officers shall sign the Securities for the Company by manual or facsimile signature. The Company’s seal shall be impressed, affixed, imprinted or reproduced
on the Securities and may be in facsimile form. 
 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. 
 A Security shall not be valid until an authorized signatory
of the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 The Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as
any Registrar, Paying Agent or agent for service of notices and demands. 
 SECTION 2.03. Registrar and Paying Agent. The Company
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
Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents. The term “Paying Agent” includes any additional paying agent.

 The Company 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 Company shall notify the Trustee of the name and address of any such agent. If the Company 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 7.07. The Company or any Wholly Owned Subsidiary incorporated or organized within the United
States of America may act as Paying Agent, Registrar, co-registrar or transfer agent. 
 The Company initially appoints the Trustee as
Registrar and Paying Agent in connection with the Securities. 
  

 30 









 SECTION 2.04. Paying Agent To Hold Money in Trust. Prior to 11:00 a.m. New York time on each
due date of the principal and interest on any Security, the Company shall deposit with the Paying Agent a sum sufficient to pay such principal and interest when so becoming due. The Company shall require each Paying Agent (other than the Trustee) to
agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the payment of principal of or interest on the Securities and shall notify the Trustee of any default
by the Company in making any such payment. If the Company 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 Company at any time may require a Paying Agent to pay
all money held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon complying with this Section 2.04, the Paying Agent shall have no further liability for the money delivered to the Trustee. 
 SECTION 2.05. 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, the Company 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 2.06. Transfer and Exchange. The Securities shall be issued in registered form and shall be transferable only upon the surrender of a Security for registration of transfer. When a Security is presented to the Registrar or a
co-registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of this Indenture and Section 8-401(1) of the Uniform Commercial Code are met. When Securities are presented to the
Registrar or a co-registrar with a request to exchange them for an equal principal amount of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met. The Company may require payment of a
sum sufficient to cover any tax, assessment or other governmental charge payable in connection with certain transfers and exchanges. 
 SECTION 2.07. Replacement 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 Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the Company,
such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, 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. The Company and the Trustee may charge the Holder for their expenses in replacing a Security. 
 Every replacement Security is
an additional Obligation of the Company. 
 SECTION 2.08. 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 as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Security. 
 If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
and the Company receive proof satisfactory to them that the replaced Security is held by a bona fide 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 interest payable on that date with respect to the Securities (or portions thereof) to be redeemed or
maturing, as the case may be, then on and after that date such Securities (or portions thereof) cease to be outstanding and interest on them ceases to accrue. 
  

 31 









 SECTION 2.09. Temporary Securities. Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities and deliver them in exchange for temporary Securities. 
 SECTION 2.10. Cancellation. The Company 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 and destroy (subject to the record retention requirements of the Exchange Act) all Securities surrendered for registration of transfer, exchange, payment or
cancellation and deliver a certificate of such destruction to the Company unless the Company directs the Trustee to deliver canceled Securities to the Company. The Company may not issue new Securities to replace Securities it has redeemed, paid or
delivered to the Trustee for cancellation. 
 SECTION 2.11. Defaulted Interest. If the Company defaults in a payment of interest on
the Securities, the Company shall pay defaulted interest (plus interest on such defaulted interest to the extent lawful) in any lawful manner. The Company may pay the defaulted interest to the persons who are Securityholders on a subsequent special
record date. The Company shall fix or cause to be fixed any such special record date and payment date to the reasonable satisfaction of the Trustee and shall promptly mail to each Securityholder a notice that states the special record date, the
payment date and the amount of defaulted interest to be paid. 
 SECTION 2.12. CUSIP Numbers. The Company 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 numbers. The Company shall promptly notify the Trustee, through written notice, of a change in the CUSIP numbers. 
 SECTION 2.13. Issuance of Additional Securities. The Company shall be entitled, subject to its compliance with Section 4.04, to, without the
consent of the Holders, issue Additional Securities under this Indenture in an unlimited aggregate principal amount which shall have identical terms as the Initial Securities issued on the Issue Date, other than with respect to the date of issuance
and issue price. The Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor shall be treated as a single class for all purposes under this
Indenture, including waivers, amendments, redemptions and offers to purchase. 
 With respect to any Additional Securities, the Company shall
set forth in a resolution of the Board of Directors and an Officers’ Certificate, a copy of each which shall be delivered to the Trustee, the following information: 
 (1) the aggregate principal amount of such Additional Securities to be authenticated and delivered pursuant to this Indenture;

 (2) the issue price, the issue date and the CUSIP number of such Additional Securities; provided,
however, that no Additional Securities may be issued unless such Additional Securities are fungible in all respects for Federal income tax purposes with the Securities then outstanding; and 
 (3) whether such Additional Securities shall be Transfer Restricted Securities and issued in the form of Initial Securities as set
forth in the Appendix to this Indenture or shall be issued in the form of Exchange Securities as set forth in Exhibit A. 
  

 32 









 Additionally, with respect to any Additional Securities, the Company shall deliver to the Trustee an
Opinion of Counsel as to the due authorization, execution, delivery and enforceability (with customary qualifications and exceptions) of such Additional Securities. 
 ARTICLE 3 
 Redemption 
 SECTION 3.01. Notices to Trustee. If the Company elects to redeem Securities pursuant to paragraph 5 of the Securities or is required to
redeem Securities pursuant to paragraph 6 of the Securities, it shall notify the Trustee in writing of the redemption date, the principal amount of Securities to be redeemed and the paragraph of the Securities pursuant to which the redemption
will occur. 
 If the Company elects to redeem Securities pursuant to paragraph 5 of the Securities, it shall give each notice to the
Trustee provided for in this Section at least 40 days before the redemption date unless the Trustee consents to a shorter period. If the Company is required to redeem Securities pursuant to paragraph 6 of the Securities, it shall give the
Trustee prompt notice thereof. Each such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect that such redemption will comply with the conditions herein. 
 SECTION 3.02. Selection of Securities to Be Redeemed. If fewer than all the Securities are to be redeemed, the Trustee shall select the Securities
to be redeemed pro rata, to the extent practicable. The Trustee shall make the selection from outstanding Securities not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities that have
denominations larger than $1,000. Securities and portions of them the Trustee selects shall be in principal amounts of $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of Securities to be redeemed. 
 SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60 days before a date for redemption of Securities (except in the case of redemption pursuant to paragraph 6 of the
Securities, in which case the notice shall be mailed within the time period specified in such paragraph), the Company shall mail a notice of redemption by first-class mail to each Holder of Securities to be redeemed at such Holder’s registered
address. 
 The notice shall identify the Securities to be redeemed and shall state: 
 (1) the redemption date; 
 (2) the redemption price; 
 (3) the name and address of the Paying Agent;

 (4) that Securities called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 (5) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the
particular Securities to be redeemed; 
 (6) that, unless the Company defaults in making such redemption payment,
interest on Securities (or portion thereof) called for redemption ceases to accrue on and after the redemption date; 
 (7) the paragraph of the Securities pursuant to which the Securities called for redemption are being redeemed; and 
 (8) that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Securities. 
  

 33 









 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name
and at the Company’s expense. In such event, the Company shall provide the Trustee with the information required by this Section. 
 SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed, Securities called for redemption become due and payable on the redemption date and at the redemption price stated in the notice. Upon surrender to the
Paying Agent, such Securities shall be paid at the redemption price stated in the notice, plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the
related interest payment date). Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder. 
 SECTION 3.05. Deposit of Redemption Price. Prior to 11:00 a.m. New York time on the redemption date, the Company shall deposit with the Paying Agent (or, if the Company or a Subsidiary is the Paying Agent,
shall segregate and hold in trust) money sufficient to pay the redemption price of and accrued and unpaid interest on all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which have been
delivered by the Company to the Trustee for cancellation. Upon request by the Company, the Paying Agent shall promptly return to the Company any money not required for redemption. 
 SECTION 3.06. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall
authenticate for the Holder (at the Company’s expense) a new Security equal in principal amount to the unredeemed portion of the Security surrendered. 
 ARTICLE 4 
 Covenants 
 SECTION 4.01. Covenant Suspension. During any period that the Securities have a rating equal to or higher than BBB- by S&P and Baa3 by
Moody’s (“Investment Grade Ratings”) and no Default has occurred and is continuing, the Company and the Restricted Subsidiaries shall not be subject to Section 4.04, 4.05, 4.06, 4.07, 4.08, 4.14 and 5.01(a)(3) (collectively, the
“Suspended Covenants”). In the event that the Company and the Restricted Subsidiaries are not subject to the Suspended Covenants for any period of time as a result of the preceding sentence, and subsequently one or both of S&P and
Moody’s downgrades the rating assigned to the Securities below BBB-, in the case of S&P, and below Baa3, in the case of Moody’s, then the Company and the Restricted Subsidiaries shall thereafter again be subject to the Suspended
Covenants (subject to subsequent suspension if the Securities again receive Investment Grade Ratings). 
 The Company shall give the Trustee
prompt written notice anytime that the Suspended Covenants do not apply. Otherwise, the Trustee shall assume that the Suspended Covenants apply. 
 SECTION 4.02. Payment of Securities. The Company shall promptly pay the principal of and interest on the Securities on the dates and in the manner provided in the Securities and in this Indenture. Principal and interest shall be
considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal and interest then due. 
 The Company shall pay interest on overdue principal at the rate specified therefor in the Securities, and it shall pay interest on overdue installments
of interest at the same rate to the extent lawful. 
  

 34 









 SECTION 4.03. SEC Reports. Whether or not the Company is subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall file with the SEC (subject to the next sentence) and provide the Trustee and Securityholders with such annual and other reports as are specified in Sections 13 and 15(d) of the Exchange
Act and applicable to a U.S. corporation subject to such Sections, such reports to be so filed and provided at the times specified for the filings of such reports under such Sections and containing all the information, audit reports and exhibits
required for such reports. If at any time, the Company is not subject to the periodic reporting requirements of the Exchange Act for any reason, the Company shall nevertheless continue filing the reports specified in the preceding sentence with the
SEC within the time periods required unless the SEC will not accept such a filing. The Company agrees that it shall not take any action for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC
will not accept such filings for any reason, the Company shall post the reports specified in the preceding sentence on its website within the time periods that would apply if the Company were required to file those reports with the SEC.
Notwithstanding the foregoing, the Company may satisfy such requirements prior to the effectiveness of the Exchange Offer Registration Statement or the Shelf Registration Statement (each as defined in the Registration Rights Agreement) by filing
with the SEC the Exchange Offer Registration Statement or Shelf Registration Statement, to the extent that any such registration statement contains substantially the same information as would be required to be filed by the Company if it were subject
to the reporting requirements of Section 13 or 15(d) of the Exchange Act, and by providing the Trustee and Securityholders with such registration statement (and any amendments thereto) promptly following the filing thereof. 
 At any time that any of the Company’s Subsidiaries are Unrestricted Subsidiaries, then the quarterly and annual financial information required by
the preceding paragraph will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in “Management’s Discussion and Analysis of Financial Condition and Results of
Operations,” of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company. 
 In addition, the Company shall furnish to the Holders of the Securities and to prospective investors, upon the requests of such Holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long the Securities are not freely transferable under the Securities Act. The Company also shall comply with the other provisions of TIA § 314(a). 

SECTION 4.04. Limitation on Indebtedness. (a) The Company shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or
indirectly, any Indebtedness; provided, however, that the Company and the Subsidiary Guarantors shall be entitled to Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a pro forma basis, the
Consolidated Coverage Ratio exceeds 2.5 to 1. 
 (b) Notwithstanding the foregoing paragraph (a), the Company and the
Restricted Subsidiaries shall be entitled to Incur any or all of the following Indebtedness: 
 (1) Indebtedness Incurred
by the Company, the Subsidiary Guarantors and Addison Energy Inc. pursuant to the Credit Agreement; provided, however, that, immediately after giving effect to any such Incurrence, the aggregate principal amount of all
Indebtedness Incurred under this clause (b)(1) and then outstanding does not exceed an amount equal to the greater of (A) $325.0 million less (x) the sum of all principal payments with respect to such Indebtedness pursuant to
Section 4.07(a)(3)(A) and (y) the amount of Indebtedness then outstanding pursuant to Section 4.04(b)(15) and (B) 40% of ACNTA as of the date of such Incurrence; 
  

 35 









 (2) Indebtedness owed to and held by the Company or a Restricted Subsidiary;
provided, however, that (A) 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 Company or a Restricted Subsidiary) shall be deemed, in each case, to constitute the Incurrence of such Indebtedness by the obligor thereon, (B) if the Company is the obligor on such Indebtedness, such Indebtedness is expressly
subordinated to the prior payment in full in cash of all obligations with respect to the Securities and (C) if a Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full
in cash of all obligations of such obligor or with respect to its Subsidiary Guaranty (it being understood that any Indebtedness owed by Addison Energy Inc. to Taurus Acquisition, Inc. need not comply with the requirements of this
clause (C)); 
 (3) the Securities (other than any Additional Securities); 
 (4) Indebtedness outstanding on the Issue Date (other than Indebtedness described in clause (1), (2) or (3) of this
Section 4.04(b)); 
 (5) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the date on
which such Restricted Subsidiary was acquired by the Company (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 Subsidiary or was acquired by the Company); provided, however, that on the date of such acquisition and after giving pro forma effect thereto, the Company would have been
able to Incur at least $1.00 of additional Indebtedness pursuant to Section 4.04(a); 
 (6) Refinancing Indebtedness
in respect of Indebtedness Incurred pursuant to Section 4.04(a) or pursuant to clause (3), (4) or (5) of this Section 4.04(b) 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), such Refinancing Indebtedness shall be Incurred only by such Subsidiary; 
 (7) Hedging Obligations consisting of Interest Rate Agreements directly related to Indebtedness permitted to be Incurred by the
Company and the Restricted Subsidiaries pursuant to this Indenture; 
 (8) Hedging Obligations consisting of Oil and
Natural Gas Hedging Contracts 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 Company and its Subsidiaries; 
 (9) obligations in respect of performance, bid and surety bonds and completion guarantees provided by the Company or any Restricted
Subsidiary in the ordinary course of business; 
 (10) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five Business Days of its Incurrence;

 (11) Indebtedness consisting of the Subsidiary Guaranty of a Subsidiary Guarantor and any Guarantee by the Company or
a Subsidiary Guarantor of Indebtedness Incurred pursuant to Section 4.04(a) or pursuant to clause (1), (3), (4), (13) or (14) of this Section 4.04(b) or pursuant to clause (6) of this Section 4.04(b) to the extent
the Refinancing Indebtedness Incurred thereunder directly or indirectly Refinances Indebtedness Incurred pursuant to Section 4.04(a) or pursuant to clause (3), (4), (13) or (14) of this Section 4.04(b); 
 (12) in-kind obligations relating to net oil or natural gas balancing positions arising in the ordinary course of business;

  

 36 









 (13) Indebtedness (including Capital Lease Obligations) Incurred by the Company or a
Restricted Subsidiary to finance the construction, purchase or lease of, or repairs, improvements or additions to, property, plant or equipment of such Person not more than 180 days after the later of the acquisition, completion of
construction, repair, improvement, addition or commencement of full operation of such property, plant or equipment, in an aggregate principal amount which, when added together with the amount of Indebtedness previously Incurred pursuant to this
clause (13) and then outstanding, does not exceed $10.0 million; 
 (14) Indebtedness of a Foreign Subsidiary
in an aggregate principal amount which, when added together with the amount of Indebtedness previously Incurred pursuant to this clause (14) and then outstanding, does not exceed $5.0 million; 
 (15) following a Permitted MLP Transaction, Indebtedness Incurred by the MLP Subsidiary and its Subsidiaries pursuant to the Credit
Agreement; provided, however, that immediately after giving effect to any such Incurrence, the aggregate principal amount of all Indebtedness Incurred under this clause (15) and then outstanding does not exceed $75.0 million;
and 
 (16) Indebtedness of the Company or any Subsidiary Guarantor in an aggregate principal amount which, when taken
together with all other Indebtedness of the Company and the Subsidiary Guarantors outstanding on the date of such Incurrence (other than Indebtedness permitted by clauses (1) through (15) of this Section 4.04(b) or
Section 4.04(a)), does not exceed $20.0 million. 
 (c) Notwithstanding the foregoing, neither the Company nor any Subsidiary
Guarantor shall Incur any Indebtedness pursuant to Section 4.04(b) if the proceeds thereof are used, directly or indirectly, to Refinance any Subordinated Obligations of the Company or a Subsidiary Guarantor unless such Indebtedness shall be
subordinated to the Securities or to the applicable Subsidiary Guaranty to at least the same extent as such Subordinated Obligations. 
 (d) For purposes of determining compliance with this Section 4.04, (1) any Indebtedness outstanding under the Credit Agreement (prior to the amendment and restatement thereof) on the Issue Date will be treated as Incurred on
the Issue Date under Section 4.04(b)(1); any Indebtedness remaining outstanding under the Credit Agreement after the application of the net proceeds from the sale of the Securities will be treated as Incurred on the Merger Date under
Section 4.04(b)(1); (2) in the event that an item of Indebtedness (or any portion thereof) meets the criteria of more than one of the types of Indebtedness described herein, the Company, in its sole discretion, shall classify such item of
Indebtedness (or any portion thereof) at the time of Incurrence and shall only be required to include the amount and type of such Indebtedness in one of the above clauses ( provided, however, that any Indebtedness originally classified
as Incurred pursuant to Section 4.04(b)(16) may later be reclassified as having been Incurred pursuant to Section 4.04(a) to the extent that such reclassified Indebtedness could be Incurred pursuant to Section 4.04(a) at the time of
such reclassification); and (3) at the time of Incurrence, the Company shall be entitled to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described herein. 
  

 37 









 (e) For purposes of determining compliance with any U.S. dollar-denominated restriction on the
Incurrence of Indebtedness where the Indebtedness Incurred is denominated in a different currency, the amount of such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of the Incurrence of such Indebtedness;
provided, however, that if any such Indebtedness denominated in a different currency is subject to a Currency Agreement with respect to U.S. dollars covering all principal, premium, if any, and interest payable on such Indebtedness,
the amount of such Indebtedness expressed in U.S. dollars shall be as provided in such Currency Agreement. The principal amount of any Refinancing Indebtedness Incurred in the same currency as the Indebtedness being Refinanced shall be the
U.S. Dollar Equivalent of the Indebtedness Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was determined based on a Currency Agreement, in which case the Refinancing Indebtedness shall be determined in
accordance with the preceding sentence, and (2) the principal amount of the Refinancing Indebtedness exceeds the principal amount of the Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent of such excess shall be
determined on the date such Refinancing Indebtedness is Incurred. 
 SECTION 4.05. Limitation on Restricted Payments. (a) The
Company shall not, and shall not permit any Restricted Subsidiary, directly or indirectly, to make a Restricted Payment if at the time the Company or such Restricted Subsidiary makes such Restricted Payment: 
 (1) a Default shall have occurred and be continuing (or would result therefrom); 
 (2) the Company is not entitled to Incur an additional $1.00 of Indebtedness under Section 4.04(a); or 
 (3) the aggregate amount of such Restricted Payment and all other Restricted Payments since the Issue Date would exceed the sum of
(without duplication): 
 (A) 50% of the Consolidated Net Income accrued during the period (treated as one accounting
period) from the beginning of the fiscal quarter immediately following the fiscal quarter during which the Issue Date occurs to the end of the most recent fiscal quarter ending at least 45 days prior to the date of such Restricted Payment (or,
in case such Consolidated Net Income shall be a deficit, minus 100% of such deficit); plus 
 (B) 100% of the
aggregate Net Cash Proceeds and 100% of the fair market value (as determined by the Board of Directors in good faith) of property other than cash received by the Company from the issuance or sale of its Capital Stock (other than Disqualified Stock)
subsequent to the Issue Date (other than an issuance or sale to a Subsidiary of the Company and other than an issuance or sale financed directly or indirectly with Indebtedness to an employee stock ownership plan or to a trust established by the
Company or any of its Subsidiaries for the benefit of their employees) and 100% of any cash capital contribution received by the Company from its shareholder subsequent to the Issue Date; plus 
 (C) the amount by which Indebtedness is reduced on the Company’s consolidated balance sheet upon the conversion or exchange
(other than by a Subsidiary of the Company) subsequent to the Issue Date of any Indebtedness convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the Company (plus the amount of any accrued interest then outstanding on
such Indebtedness to the extent the obligation to pay such interest is extinguished less the amount of any cash, or the fair value of any other property, distributed by the Company upon such conversion or exchange) provided, however,
that the foregoing amount shall not exceed the Net Cash Proceeds received by the Company or any Restricted Subsidiary from the sale of such Indebtedness (excluding Net Cash Proceeds from sales to a Subsidiary of the Company or, in the case of a sale
financed directly or indirectly with Indebtedness, to an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees); plus 
  

 38 









 (D) an amount equal to the sum of (i) the net reduction in the Investments
(other than Permitted Investments) made by the Company or any Restricted Subsidiary in any Person resulting from repurchases, repayments or redemptions of such Investments by such Person, proceeds realized on the sale of such Investment and proceeds
representing the return of capital (excluding dividends and distributions), in each case received by the Company or any Restricted Subsidiary, and (ii) to the extent such Person is an Unrestricted Subsidiary, the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of the net assets of such Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however, that the
foregoing sum shall not exceed, in the case of any such Person or Unrestricted Subsidiary, the amount of Investments (excluding Permitted Investments) previously made (and treated as a Restricted Payment) by the Company or any Restricted Subsidiary
in such Person or Unrestricted Subsidiary. 
 (b) The provisions of Section 4.05(a) shall not prohibit: 
 (1) any Restricted Payment made out of the Net Cash Proceeds of the substantially concurrent sale of, or made by exchange for,
Capital Stock of the Company (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary of the Company or an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the
benefit of their employees) or a substantially concurrent cash capital contribution received by the Company from its shareholder; provided, however, that (A) such Restricted Payment shall be excluded in the calculation of the
amount of Restricted Payments and (B) the Net Cash Proceeds from such sale or such cash capital contribution (to the extent so used for such Restricted Payment) shall be excluded from the calculation of amounts under Section 4.05(a)(3)(B);

 (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Subordinated
Obligations of the Company or a Subsidiary Guarantor made by exchange for, or out of the proceeds of the substantially concurrent sale of, Indebtedness of such Person which is permitted to be Incurred pursuant to Section 4.04; provided,
however, that such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value shall be excluded in the calculation of the amount of Restricted Payments; 
 (3) dividends paid within 60 days after the date of declaration thereof if at such date of declaration such dividend would have
complied with this Section 4.05; provided, however, that such dividends shall be included in the calculation of the amount of Restricted Payments; 
 (4) so long as no Default has occurred and is continuing, Restricted Payments to effect the repurchase or other acquisition of shares
of Capital Stock of the Company or any of its Subsidiaries from employees, former employees, directors or former directors of the Company or any of its Subsidiaries (or permitted transferees of such employees, former employees, directors or former
directors), pursuant to the terms of the agreements (including employment agreements) or plans (or amendments thereto) approved by the Board of Directors under which such individuals purchase or sell or are granted the option to purchase or sell,
shares of such Capital Stock; provided, however, that the aggregate amount of such repurchases and other acquisitions (excluding amounts representing cancelation of Indebtedness) shall not exceed in any calendar year $2.0 million
plus any unused amount permitted under this clause (4) for the immediately preceding year, but not to exceed $4.0 million in any single calendar year; provided further, however, that such repurchases and other acquisitions
shall be excluded in the calculation of the amount of Restricted Payments; 
  

 39 









 (5) payments of dividends on Disqualified Stock issued pursuant to
Section 4.04; provided, however, that at the time of payment of such dividend, no Default shall have occurred and be continuing (or result therefrom); provided further, however, that such dividends shall be excluded
in the calculation of the amount of Restricted Payments; 
 (6) repurchases of Capital Stock deemed to occur upon
exercise of stock options if such Capital Stock represents a portion of the exercise price of such options; provided, however, that such Restricted Payments shall be excluded in the calculation of the amount of Restricted Payments;

 (7) cash payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or
other securities convertible into or exchangeable for Capital Stock of the Company; provided, however, that any such cash payment shall not be for the purpose of evading this Section 4.05 (as determined in good faith by the Board
of Directors); provided further, however, that such payments shall be excluded in the calculation of the amount of Restricted Payments; 
 (8) in the event of a Change of Control, and if no Default shall have occurred and be continuing, the payment, purchase, redemption, defeasance or other acquisition or retirement of Subordinated Obligations of
the Company or any Subsidiary Guarantor, in each case, at a purchase price not greater than 101% of the principal amount of such Subordinated Obligations, plus any accrued and unpaid interest thereon; provided, however, that prior to
such payment, purchase, redemption, defeasance or other acquisition or retirement, the Company (or a third party to the extent permitted by this Indenture) has made a Change of Control Offer with respect to the Securities as a result of such Change
of Control and has repurchased all Securities validly tendered and not withdrawn in connection with such Change of Control Offer; provided further, however, that such repurchase and other acquisitions shall be included in the
calculation of the amount of Restricted Payments; 
 (9) payments of intercompany subordinated Indebtedness, the
Incurrence of which was permitted under Section 4.04(b)(2); provided, however, that no Default has occurred and is continuing or would otherwise result therefrom; provided further, however, that such payments shall
be excluded in the calculation of the amount of Restricted Payments; 
 (10) payments required pursuant to the terms of
the Merger Agreement to consummate the Tender Offer and the Merger; provided, however, that such payments shall be excluded in the calculation of the amount of Restricted Payments; 
 (11) following a Public Equity Offering of common stock by the Company, the declaration or payment of dividends on such common stock
of up to 6.00% per annum of the net cash proceeds received by the Company in all Public Equity Offerings; provided, however, that at the time of such declaration or payment, no Default shall have occurred and be continuing (or
result therefrom); provided further, however, that such dividends shall be included in the calculation of the amount of Restricted Payments; 
 (12) dividends and other payments to Parent to be used by Parent solely to pay its franchise taxes and other fees required to maintain its corporate existence and to pay for general corporate and overhead
expenses (including salaries and other compensation of employees) incurred by Parent in the ordinary course of its business; provided, however, that such dividends and other payments shall not exceed $500,000 in any calendar year;
provided further, however, that such dividends and other payments shall be excluded in the calculation of the amount of Restricted Payments; 
  

 40 









 (13) any payment by the Company to Parent pursuant to a Tax Sharing Agreement;
provided, however, that the amount of any such payment shall not exceed the amount of taxes that the Company would have been liable for on a stand-alone basis on a consolidated tax return with its Subsidiaries; provided further,
however, that such payments shall be excluded in the calculation of the amount of Restricted Payments; or 
 (14) Restricted Payments in an amount which, when taken together with all Restricted Payments made pursuant to this clause (14), does not exceed $5.0 million; provided, however, that such payments shall be
excluded in the calculation of the amount of Restricted Payments. 
 SECTION 4.06. Limitation on Restrictions on Distributions from
Restricted Subsidiaries. The Company shall not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted
Subsidiary to (a) pay dividends or make any other distributions on its Capital Stock to the Company or a Restricted Subsidiary or pay any Indebtedness owed to the Company, (b) make any loans or advances to the Company or (c) transfer
any of its property or assets to the Company, except: 
 (1) with respect to clauses (a), (b) and (c), 

(A) any encumbrance or restriction pursuant to an agreement in effect at or entered into on the Issue Date; 
 (B) any encumbrance or restriction with respect to a Restricted Subsidiary (other than the MLP Subsidiary) pursuant to an agreement
relating to any Indebtedness Incurred by such Restricted Subsidiary, or otherwise binding on such Restricted Subsidiary, on or prior to the date on which such Restricted Subsidiary was acquired by the Company or any Restricted Subsidiary (other than
Indebtedness Incurred as consideration in, or to provide all or any portion of the funds or credit support utilized to consummate, and other than any encumbrance or restriction entered into in contemplation of, the transaction or series of related
transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Company) and outstanding on such date; 
 (C) any encumbrance or restriction pursuant to an agreement effecting a Refinancing of Indebtedness Incurred pursuant to an agreement referred to in Section 4.06(1)(A) or (B) or this clause (C) or
contained in any amendment to an agreement referred to in Section 4.06(1)(A) or (B) or this clause (C); provided, however, that the encumbrances and restrictions with respect to such Restricted Subsidiary contained in
any such refinancing agreement or amendment are no more restrictive than the encumbrances and restrictions with respect to such Restricted Subsidiary contained in such predecessor agreements; 
 (D) any encumbrance or restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale
or disposition of all or substantially all the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or disposition; 
 (E) customary encumbrances and restrictions contained in agreements of the type described in the definition of the term “Permitted Business Investments”; 
  

 41 









 (F) any encumbrance or restriction pursuant to an agreement relating to any Capital
Lease Obligations, purchase money Indebtedness or Indebtedness owed by any Foreign Subsidiary other than Addison Energy Inc., in each case not Incurred in violation of the Indenture; provided, however, that (1) with respect
to purchase money Indebtedness or Capital Lease Obligations, such restrictions relate only to the property financed with such Indebtedness and (2) with respect to any Indebtedness owed by any such Foreign Subsidiary, such encumbrance or
restriction relates only to property owned by such Foreign Subsidiary and is not materially more restrictive to such Foreign Subsidiary than is customary in comparable financings, as determined in good faith by the Board of Directors; 
 (G) provisions in agreements or instruments which prohibit the payment of dividends or the making of other distributions with respect
to any Capital Stock of a Person other than on a pro rata basis; and 
 (H) any encumbrance or restriction with
respect to the MLP Subsidiary pursuant to an agreement relating to Indebtedness Incurred by such MLP Subsidiary to the extent such encumbrance or restriction only becomes operative following receipt of a notice of default with respect to such
Indebtedness; and 
 (2) with respect to clause (c) only, 
 (A) any encumbrance or restriction consisting of customary nonassignment provisions in leases governing leasehold interests to the
extent such provisions restrict the transfer of the lease or the property leased thereunder; and 
 (B) any encumbrance
or restriction contained in security agreements or mortgages securing Indebtedness of a Restricted Subsidiary to the extent such encumbrance or restriction restricts the transfer of the property subject to such security agreements or mortgages.

 SECTION 4.07. Limitation on Sales of Assets and Subsidiary Stock. (a) The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, consummate any Asset Disposition unless (1) the Company or such Restricted Subsidiary receives consideration at the time of such Asset Disposition at least equal to the fair market value
(including as to the value of all non-cash consideration), as determined in good faith by the Board of Directors, of the shares and assets subject to such Asset Disposition; (2) at least 75% of the consideration thereof received by the Company
or such Restricted Subsidiary is in the form of cash or cash equivalents, oil and natural gas properties or other assets to be used by the Company or any Restricted Subsidiary in the Oil and Gas Business or the Capital Stock of a Person that is
engaged in the Oil and Gas Business and that becomes a Restricted Subsidiary; and (3) an amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the Company (or such Restricted Subsidiary, as the case may be)
(A) to the extent the Company elects (or is required by the terms of any Applicable Indebtedness), to prepay, repay, redeem or purchase Applicable Indebtedness of the Company or a Subsidiary Guarantor (other than any Disqualified Stock) or, in
the case of an Asset Disposition by the MLP Subsidiary, Applicable Indebtedness of such MLP Subsidiary or its Subsidiaries, in each case other than Indebtedness owed to the Company or Subsidiary of the Company, within one year from the later of the
date of such Asset Disposition or the receipt of such Net Available Cash; (B) to the extent the Company elects, to acquire Additional Assets ( provided, however, that if the assets that were the subject of such Asset Disposition
constituted Collateral, then such Additional Assets shall be pledged at the time of their acquisition to the Trustee as Collateral for the Noteholders, subject to Specified Permitted Liens and the Intercreditor Agreement, unless such Additional
Assets are then owned by a Subsidiary Guarantor or by the MLP Subsidiary or one of its Subsidiaries) or to make capital expenditures in the Oil and Gas Business, in each case within one year from the later of the date of such Asset Disposition or
the receipt of such 

  

 42 









 
Net Available Cash; and (C) to the extent of the balance of such Net Available Cash after any application in accordance with either or both of clauses
(A) and (B), to make an Offer to the holders of the Securities (and to holders of other Applicable Senior Indebtedness of the Company or of a Subsidiary Guarantor designated by the Company) to purchase Securities (and such other Applicable
Senior Indebtedness of the Company or of a Subsidiary Guarantor) pursuant to and subject to the conditions of Section 4.07(b); provided, however, that in connection with any prepayment, repayment or purchase of Indebtedness
pursuant to clause (A) or (C) above, the Company or such Restricted Subsidiary shall permanently retire such Indebtedness and shall cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal
amount so prepaid, repaid or purchased. 
 Notwithstanding the foregoing, the 75% limitation referred to in Section 4.07(a)(2) shall be
deemed satisfied with respect to any Asset Disposition in which the cash or cash equivalents portion of the consideration received therefrom, determined in accordance with the foregoing provision on an after-tax basis, is equal to or greater than
what the after-tax cash proceeds would have been had such Asset Disposition complied with such 75% limitation. 
 The requirement of
Section 4.07(a)(3)(B) shall be deemed to be satisfied if an agreement (including a lease, whether a capital lease or an operating lease) committing to make the acquisitions or expenditures referred to therein is entered into by the Company or a
Restricted Subsidiary within the time period specified in such clause and such Net Available Cash is subsequently applied in accordance with such agreement within six months following such agreement. 
 Notwithstanding the foregoing provisions of this Section 4.07, unless the Asset Disposition involves the disposition of Collateral, the Company and
the Restricted Subsidiaries shall not be required to apply any Net Available Cash in accordance with this Section 4.07(a) except to the extent that the aggregate Net Available Cash from all Asset Dispositions which is not applied in accordance
with this Section 4.07(a) exceeds $15.0 million. Pending application of Net Available Cash pursuant to this Section 4.07(a), such Net Available Cash shall be invested in Temporary Cash Investments (which, if the assets that were the
subject of such Asset Disposition constituted Collateral, then such Temporary Cash Investments shall be pledged to the Trustee as Collateral for the benefit of the Noteholders, subject to Specified Permitted Liens and the Intercreditor Agreement,
pending such application) or applied to temporarily reduce revolving credit indebtedness that is Applicable Indebtedness. 
 For the purposes
of this Section 4.07(a), the following are deemed to be cash or cash equivalents: (i) the assumption of Indebtedness of the Company or any Restricted Subsidiary (other than Obligations in respect of Disqualified Stock or Preferred Stock of
the Company or a Subsidiary Guarantor) and the release of the Company or such Restricted Subsidiary from all liability on such Indebtedness in connection with such Asset Disposition and (ii) securities received by the Company or any Restricted
Subsidiary from the transferee that are promptly converted by the Company or such Restricted Subsidiary into cash, to the extent of the cash received in that conversion. 
 (b) In the event of an Asset Disposition that requires the purchase of Securities (and other Applicable Senior Indebtedness of the Company or a Subsidiary Guarantor) pursuant to Section 4.07(a)(3)(C), the
Company shall purchase Securities tendered pursuant to an offer by the Company for the Securities (and such other Applicable Senior Indebtedness) (the “Offer”) at a purchase price of 100% of their principal amount (or, in the event such
other Applicable Senior Indebtedness of the Company or such Subsidiary Guarantor was issued with significant original issue discount, 100% of the accreted value thereof), without premium, plus accrued but unpaid interest (or, in respect of such
other Applicable Senior Indebtedness of the Company or such Subsidiary Guarantor, such lesser price, if any, as may be provided for by the terms of such Applicable Senior Indebtedness in accordance with the procedures (including prorating in the
event of oversubscription) set forth in Section 4.07(c); provided, however, that the procedures for making an offer to holders of other Applicable Senior Indebtedness will be as provided for by the terms of such Applicable Senior


  

 43 









 
Indebtedness. If the aggregate purchase price of the Indebtedness tendered pursuant to the Offer exceeds the Net Available Cash allotted to their purchase,
the Company shall select the Indebtedness to be purchased on a pro rata basis but in round denominations, which in the case of the Securities will be denominations of $1,000 principal amount or multiples thereof. The Company shall not be
required to make an Offer to purchase Securities (and other Applicable Senior Indebtedness of the Company or a Subsidiary Guarantor) pursuant to this Section 4.07 if the Net Available Cash available therefor is less than $15.0 million
(which lesser amount shall be carried forward for purposes of determining whether such an Offer is required with respect to the Net Available Cash from any subsequent Asset Disposition). Upon completion of such an Offer, Net Available Cash shall be
deemed to be reduced by the aggregate amount of such Offer (whether or not accepted) and any then remaining Net Available Cash following such offer may be used for any purpose not prohibited by the Indenture. 
 (c) (1) Promptly, and in any event within 10 days after the Company becomes obligated to make an Offer, the Company shall deliver to the
Trustee and send, by first-class mail to each Holder, a written notice stating that the Holder may elect to have his Securities purchased by the Company either in whole or in part (subject to prorating as described in Section 4.07(b) in the
event the Offer is oversubscribed) in integral multiples of $1,000 of principal amount, at the applicable purchase price. The notice shall specify a purchase date not less than 30 days nor more than 60 days after the date of such notice
(the “Purchase Date”) and shall contain such information concerning the business of the Company which the Company in good faith believes will enable such Holders to make an informed decision (which at a minimum will include (A) the
most recently filed Annual Report on Form 10-K (including audited consolidated financial statements) of the Company, the most recent subsequently filed Quarterly Report on Form 10-Q and any Current Report on Form 8-K of the Company
filed subsequent to such Quarterly Report, other than Current Reports describing Asset Dispositions otherwise described in the offering materials (or corresponding successor reports), (B) a description of material developments in the
Company’s business subsequent to the date of the latest of such Reports and (C) if material, appropriate pro forma financial information) and all instructions and materials necessary to tender Securities pursuant to the Offer,
together with the information contained in clause (3). 
 (2) Not later than the date upon which written notice of
an Offer is delivered to the Trustee as provided above, the Company shall deliver to the Trustee an Officers’ Certificate as to (A) the amount of the Offer (the “Offer Amount”), including information as to any other Senior
Indebtedness included in the Offer, (B) the allocation of the Net Available Cash from the Asset Dispositions pursuant to which such Offer is being made and (C) the compliance of such allocation with the provisions of Section 4.07(a)
and (b). On such date, the Company shall also irrevocably deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust) in Temporary Cash Investments, maturing on the last day
prior to the Purchase Date or on the Purchase Date if funds are immediately available by open of business, an amount equal to the Offer Amount to be held for payment in accordance with the provisions of this Section. If the Offer includes other
Senior Indebtedness, the deposit described in the preceding sentence may be made with any other paying agent pursuant to arrangements satisfactory to the Trustee. Upon the expiration of the period for which the Offer remains open (the “Offer
Period”), the Company shall deliver to the Trustee for cancellation the Securities or portions thereof which have been properly tendered to and are to be accepted by the Company. The Trustee shall, on the Purchase Date, mail or deliver payment
(or cause the delivery of payment) to each tendering Holder in the amount of the purchase price. In the event that the aggregate purchase price of the Securities delivered by the Company to the Trustee is less than the Offer Amount applicable to the
Securities, the Trustee shall deliver the excess to the Company immediately after the expiration of the Offer Period for application in accordance with this Section 4.07. 
  

 44 









 (3) Holders electing to have a Security purchased shall be required to surrender the
Security, with an appropriate form duly completed, to the Company at the address specified in the notice at least three Business Days prior to the Purchase Date. Holders shall be entitled to withdraw their election if the Trustee or the Company
receives not later than one Business Day prior to the Purchase Date, a telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security which was delivered for purchase by the Holder and a statement
that such Holder is withdrawing his election to have such Security purchased. Holders whose Securities are purchased only in part shall be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered.

 (4) At the time the Company delivers Securities to the Trustee which are to be accepted for purchase, the Company
shall also deliver an Officers’ Certificate stating that such Securities are to be accepted by the Company pursuant to and in accordance with the terms of this Section. A Security shall be deemed to have been accepted for purchase at the time
the Trustee, directly or through an agent, mails or delivers payment therefor to the surrendering Holder. 
 (d) The Company shall
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. To the extent that the
provisions of any securities laws or regulations conflict with provisions of this Section, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section by
virtue of its compliance with such securities laws or regulations. 
 SECTION 4.08. Limitation on Affiliate Transactions. (a) The
Company shall not, and shall not permit any Restricted Subsidiary to, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property, employee compensation arrangements or the rendering of any service)
with, or for the benefit of, any Affiliate of the Company (an “Affiliate Transaction”) unless (1) the terms thereof are no less favorable to the Company or such Restricted Subsidiary than those that could be obtained at the time of
such transaction in arm’s-length dealings with a Person who is not an Affiliate; (2) if such Affiliate Transaction involves an amount in excess of $10.0 million, the terms of the Affiliate Transaction are set forth in writing and a
majority of the non-employee directors of the Company disinterested with respect to such Affiliate Transaction have determined in good faith that the criteria set forth in clause (1) are satisfied and have approved the relevant Affiliate
Transaction as evidenced by a resolution of the Board of Directors; and (3) if such Affiliate Transaction involves an amount in excess of $25.0 million, the Board of Directors shall also have received a written opinion from an Independent
Qualified Party to the effect that such Affiliate Transaction is fair, from a financial standpoint, to the Company and the Restricted Subsidiaries or is not less favorable to the Company and the Restricted Subsidiaries than could reasonably be
expected to be obtained at the time in an arm’s-length transaction with a Person who was not an Affiliate. 
  

 45 









 (b) The provisions of Section 4.08(a) shall not prohibit (1) any Investment (other than a
Permitted Investment) or other Restricted Payment, in each case permitted to be made pursuant to Section 4.05; (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 approved by the Board of Directors, (3) loans or advances to officers or employees in the ordinary course of business in accordance with the past practices of the Company or
the Restricted Subsidiaries, but in any event not to exceed $3.0 million in the aggregate outstanding at any one time; (4) the payment of reasonable fees to directors of the Company and the Restricted Subsidiaries who are not employees of
the Company or the Restricted Subsidiaries and the indemnification of, and reimbursement of reasonable out-of-pocket expenses incurred by, directors of the Company and the Restricted Subsidiaries in attending meetings of such directors; (5) any
transaction between or among the Company and a Restricted Subsidiary or joint venture or similar entity which would constitute an Affiliate Transaction solely because the Company or a Restricted Subsidiary owns an equity interest in or otherwise
controls such Restricted Subsidiary, joint venture or similar entity; (6) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the Company; and (7) any agreement as in effect on the Issue Date and described in the
Offering Circular or any amendments or other modifications, renewals or extensions of any such agreement (so long as such amendments or other modifications, renewals or extensions are not materially less favorable to the Company or the Restricted
Subsidiaries) and the transactions evidenced thereby. 
 SECTION 4.09. Limitation on Line of Business. The Company shall not, and
shall not permit any Restricted Subsidiary, to engage in any business other than a Related Business. 
 SECTION 4.10. Permitted MLP
Transaction. (a) Upon the occurrence of a Permitted MLP Transaction, each Holder shall have the right to require that the Company purchase such Holder’s Securities at a purchase price in cash equal to (A) if the Permitted MLP
Transaction is consummated at any time prior to January 15, 2007, 107.25% or (B) if the Permitted MLP Transaction is consummated at any time on or after January 15, 2007, the redemption price set forth under the third paragraph of
paragraph 5 of the Securities that would be applicable at such time if the Securities were being redeemed on the date of the Permitted MLP Transaction under such paragraph, in each case, such MLP Offer price being expressed as a percentage of
the principal amount of the Securities on the date of purchase, plus accrued and unpaid interest, if any, to the date of purchase (subject to the rights of Holders of record on the relevant record date to receive interest on the relevant interest
payment date). 
 (b) At least 30 days but not more than 60 days prior to the consummation of a Permitted MLP Transaction, the
Company shall mail a notice to each Holder with a copy to the Trustee (the “MLP Offer”) stating: 
 (1) that a
Permitted MLP Transaction is planned and that such Holder has the right to require the Company concurrently with the consummation of the Permitted MLP Transaction to purchase such Holder’s Securities at a purchase price in cash equal to the MLP
Offer price set forth in Section 4.10(a); 
 (2) the circumstances and relevant facts regarding such Permitted MLP
Transaction (including information with respect to pro forma historical income, cash flow and capitalization, in each case after giving effect to such Permitted MLP Transaction); 
 (3) the expected closing date of such Permitted MLP Transaction (the actual, if any, closing date being the purchase date);

 (4) the instructions, as determined by the Company, consistent with this Section 4.10, that a Holder must follow
in order to have its Securities purchased. 
  

 46 









 (c) Holders electing to have a Security purchased will be required to surrender the Security, with
an appropriate form duly completed, to the Company at the address specified in the notice at least three Business Days prior to the purchase date. Holders will be entitled to withdraw their election if the Trustee or the Company receives not later
than one Business Day prior to the purchase date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security which was delivered for purchase by the Holder and a statement that such
Holder is withdrawing his election to have such Security purchased. 
 (d) On the purchase date, all Securities purchased by the Company
under this Section shall be delivered by the Company to the Trustee for cancellation, and the Company shall pay the purchase price plus accrued and unpaid interest, if any, to the Holders entitled thereto. 
 (e) The Company shall 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. To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section by virtue of its compliance with such securities laws or regulations. 
 SECTION 4.11. Change of Control. (a) Upon the occurrence of a Change of Control, each Holder shall have the right to require that the Company
purchase such Holder’s Securities at a purchase price in cash equal to 101% of the principal amount thereof plus accrued and unpaid 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), in accordance with the terms contemplated in Section 4.11(b). 
 (b) Within 30 days following any Change of Control, the Company shall mail a notice to each Holder with a copy to the Trustee (the “Change of Control Offer”) stating: 
 (1) that a Change of Control has occurred and that such Holder has the right to require the Company to purchase such Holder’s
Securities at a purchase price in cash equal to 101% of the principal amount thereof on the date of purchase, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to
receive interest on the relevant interest payment date); 
 (2) the circumstances and relevant facts regarding such
Change of Control (including information with respect to pro forma historical income, cash flow and capitalization, in each case after giving effect to such Change of Control); 
 (3) the purchase date (which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed);
and 
 (4) the instructions, as determined by the Company, consistent with this Section, that a Holder must follow in
order to have its Securities purchased. 
 (c) Holders electing to have a Security purchased will be required to surrender the Security,
with an appropriate form duly completed, to the Company at the address specified in the notice at least three Business Days prior to the purchase date. Holders will be entitled to withdraw their election if the Trustee or the Company receives not
later than one Business Day prior to the purchase date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security which was delivered for purchase by the Holder and a statement
that such Holder is withdrawing his election to have such Security purchased. 
 (d) On the purchase date, all Securities purchased by
the Company under this Section shall be delivered by the Company to the Trustee for cancellation, and the Company shall pay the purchase price plus accrued and unpaid interest, if any, to the Holders entitled thereto. 
  

 47 









 (e) Notwithstanding the foregoing provisions of this Section, the Company shall not be required to
make a Change of Control Offer following 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 Section applicable to a Change of Control
Offer made by the Company and purchases all Securities validly tendered and not withdrawn under such Change of Control Offer. 
 (f) The
Company shall 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. To the extent that
the provisions of any securities laws or regulations conflict with provisions of this Section, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section
by virtue of its compliance with such securities laws or regulations. 
 SECTION 4.12. Limitation on Liens. The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any Lien of any nature whatsoever on any of its properties (including Capital Stock of a Restricted Subsidiary), whether owned at the Issue Date or
thereafter acquired, other than (1) with respect to Collateral, (w) Specified Permitted Liens, (x) Liens securing the Securities (including Additional Securities, if any) and the Subsidiary Guarantees, (y) Liens securing First
Lien Obligations and (z) Liens securing Permitted Collateral Debt and (2) with respect to non-Collateral, Permitted Liens, without, in the case of clause (2), effectively providing that the Securities shall be secured equally and
ratably with (or prior to) the obligation so secured for so long as such obligation is secured. 
 SECTION 4.13. Limitation on
Sale/Leaseback Transactions. The Company shall not, and shall not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with respect to any property unless (a) the Company or such Restricted Subsidiary would be
entitled to (1) Incur Indebtedness in an amount equal to the Attributable Debt with respect to such Sale/Leaseback Transaction pursuant to Section 4.04 and (2) create a Lien on such property securing such Attributable Debt without
equally and ratably securing the Securities pursuant to Section 4.12, (b) the net proceeds received by the Company or any Restricted Subsidiary in connection with such Sale/Leaseback Transaction are at least equal to the fair market value
(as determined by the Board of Directors) of such property and (c) the Company applies the proceeds of such transaction in compliance with Section 4.07. 
 SECTION 4.14. Future Guarantors. The Company shall cause each domestic Restricted Subsidiary (other than the MLP Subsidiary and any Subsidiary of the MLP Subsidiary) that is a Significant Subsidiary and that
Incurs any Indebtedness in an original principal amount greater than $5.0 million to, and each Foreign Subsidiary that is a Significant Subsidiary and that enters into a Guarantee of any Senior Indebtedness (other than a Foreign Subsidiary that
Guarantees Senior Indebtedness Incurred by another Foreign Subsidiary), to, in each case, at the same time, execute and deliver to the Trustee a Guaranty Agreement pursuant to which such Restricted Subsidiary will Guarantee payment of the Securities
on the same terms and conditions as those set forth in Article 10 of this Indenture. 
 SECTION 4.15. Impairment of Security
Interest. The Company shall not, and the Company shall not permit any of the Restricted Subsidiaries to, take or knowingly or negligently omit to take, any action which action or omission might or would have the result of materially impairing
the security interest with respect to the Collateral for the benefit of the Trustee and the Holders of the Securities, and the Company shall not, and shall not permit any of the Restricted Subsidiaries to, grant to any Person other than the Credit
Agent (as defined in the Intercreditor Agreement) or the Trustee, for the benefit of the Trustee and the Holders of the Securities and the other beneficiaries described in the Pledge Agreement, any interest whatsoever in any of the Collateral;
provided, however, that a Permitted MLP Transaction shall not be deemed to constitute a violation of this covenant. 
  

 48 









 SECTION 4.16. Compliance Certificate. The Company shall deliver to the Trustee within
120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in the course of the performance by the signers of their duties as Officers of the Company they would normally have knowledge of any Default
and whether or not the signers know of any Default that occurred during such period. If they do, the certificate shall describe the Default, its status and what action the Company is taking or proposes to take with respect thereto. Additionally,
within five Business Days of the Company becoming aware of a Default or an Event of Default, the Company shall deliver written notice to the Trustee of such Default or Event of Default. The Company also shall comply with TIA § 314(a)(4).

 SECTION 4.17. Further Instruments and Acts. Upon request of the Trustee, the Company 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. 
  

 49 









 ARTICLE 5 
 Successor Company 
 SECTION 5.01. When Company May Merge or Transfer Assets. (a) The
Company shall not consolidate with or merge with or into, or convey, transfer or lease, in one transaction or a series of transactions, directly or indirectly, all or substantially all its assets to, any Person, unless: 
 (1) the resulting, surviving or transferee Person (the “Successor Company”) shall be a Person organized and existing under
the laws of the United States of America, any State thereof or the District of Columbia and the Successor Company (if not the Company) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture; 
 (2) immediately after giving pro forma effect to such transaction (and treating any Indebtedness which becomes an obligation of the Successor Company or any Subsidiary as a result of such transaction as having been Incurred by
the Successor Company or such Subsidiary at the time of such transaction), no Default shall have occurred and be continuing; 
 (3) immediately after giving pro forma effect to such transaction, the Successor Company would be able to Incur an additional $1.00 of Indebtedness pursuant to Section 4.04(a); 
 (4) the Company 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; and 
 (5) the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders will not recognize income, gain or loss for Federal income tax purposes as a result of such transaction 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 transaction had not occurred; 
 provided, however,
that (x) clauses (1), (3) and (5) will not be applicable to a Permitted MLP Transaction and (y) clause (3) will not be applicable to (A) a Restricted Subsidiary consolidating with, merging into or transferring all or
part of its properties and assets to the Company or another Subsidiary Guarantor that is a Wholly Owned Subsidiary or (B) the Company merging with an Affiliate of the Company solely for the purpose and with the sole effect of reincorporating
the Company in another jurisdiction. 
 For purposes of this Section 5.01, the sale, lease, conveyance, assignment, transfer or other
disposition in a single transaction or series of related transactions of all or substantially all of the properties and assets of one or more Subsidiaries of the Company, which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and assets of the Company on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company. 
 The Successor Company shall be the successor to the Company and shall succeed to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture, and the predecessor Company, except in the case of a lease, shall be released from the obligation to pay the principal of and interest on the Securities. 
 (b) The Company shall not permit any Subsidiary Guarantor to consolidate with or merge with or into, or convey, transfer or lease, in one
transaction or series of transactions, all or substantially all of its assets to any Person unless: (1) except in the case of a Subsidiary Guarantor (x) that has been disposed of in its entirety to another Person including, the MLP
Subsidiary (other than to the Company or any other Subsidiary of the Company), whether through a merger, consolidation or sale of Capital Stock or assets, (y) that, as a result of the disposition of all or a portion of its Capital Stock, ceases
to 

  

 50 









 
be a Subsidiary or (z) that has otherwise been released from its Subsidiary Guaranty in accordance with the terms thereof and the terms of this
Indenture, in each case, if in connection therewith the Company provides an Officers’ Certificate to the Trustee to the effect that the Company will comply with its obligations under Section 4.07 in respect of such disposition, the
resulting, surviving or transferee Person (if not such Subsidiary) shall be a Person organized and existing under the laws of the jurisdiction under which such Subsidiary was organized or under the laws of the United States of America, or any State
thereof or the District of Columbia, and such Person shall expressly assume, by an amendment to this Indenture, in a form satisfactory to the Trustee, all the obligations of such Subsidiary, if any, under its Subsidiary Guaranty;
(2) immediately after giving effect to such transaction or transactions on a pro forma basis (and treating any Indebtedness which becomes an obligation of the resulting, surviving or transferee Person as a result of such transaction as
having been issued by such Person at the time of such transaction), no Default shall have occurred and be continuing; and (3) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such Guaranty Agreement, if any, complies with this Indenture. 
 ARTICLE 6 
 Defaults and Remedies 
 SECTION 6.01.
Events of Default. An “Event of Default” occurs if: 
 (1) the Company defaults in any payment of
interest on any Security when the same becomes due and payable, and such default continues for a period of 30 days; 
 (2) the Company (A) defaults in the payment of the principal of any Security when the same becomes due and payable at its Stated Maturity, upon optional redemption, upon declaration of acceleration or otherwise, or (B) fails
to redeem or purchase Securities when required pursuant to this Indenture or the Securities; 
 (3) the Company fails to
comply with Section 4.10 and 5.01 above or with any of its obligations in the Escrow Agreement; 
 (4) the Company
fails to comply with Section 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.11, 4.12, 4.13, 4.14 or 4.15 (other than a failure to purchase Securities when required under Section 4.07 or 4.11) and such failure continues for 30 days after
the notice specified below; 
 (5) the Company or any Subsidiary Guarantor fails to comply with any of its agreements in
the Securities, this Indenture or the Pledge Agreement (other than those referred to in clause (1), (2), (3) or (4) above) and such failure continues for 60 days after the notice specified below; 
 (6) Indebtedness of the Company, any Subsidiary Guarantor or any Significant Subsidiary is not paid within any applicable grace
period after final maturity or is accelerated by the holders thereof because of a default and the total amount of such Indebtedness unpaid or accelerated exceeds $5.0 million, or its foreign currency equivalent at the time; 
 (7) the Company, any Subsidiary Guarantor or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 (A) commences a voluntary case; 
 (B) consents to the entry of an order for relief against it in an involuntary case; 
 (C) consents to the appointment of a Custodian of it or for all or substantially all of its property; or 
 (D) makes a general assignment for the benefit of its creditors; 
  

 51 









 or takes any comparable action under any foreign laws relating to insolvency; 
 (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (A) is for relief (with respect to the petition commencing such case) against the Company, a Subsidiary Guarantor or any Significant
Subsidiary in an involuntary case; 
 (B) appoints a Custodian of the Company, a Subsidiary Guarantor or any Significant
Subsidiary or for all or substantially all of its property; or 
 (C) orders the winding up or liquidation of the
Company, a Subsidiary Guarantor or any Significant Subsidiary; 
 or any similar relief is granted under any foreign laws and the order or
decree remains unstayed and in effect for 60 consecutive days; 
 (9) any judgment or decree (to the extent not covered
by insurance) for the payment of money in excess of $5.0 million or its foreign currency equivalent at the time is entered against the Company, a Subsidiary Guarantor or any Significant Subsidiary, remains outstanding for a period of 60
consecutive days following the entry of such judgment or decree and is not discharged, waived or the execution thereof stayed; 
 (10) any Subsidiary Guaranty ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary Guaranty) or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guaranty, as
the case may be; or 
 (11) the security interest under the Pledge Agreement shall, at any time, fail or cease to be in
full force and effect for any reason, other than the satisfaction in full of all Obligations under this Indenture and discharge of this Indenture or the release of such security interest in accordance with the provisions of this Indenture, for
30 days after notice as specified below or the Company or any Subsidiary Guarantor shall assert, in any pleading in any court of competent jurisdiction, that any such security interest is invalid or unenforceable. 
 The foregoing will constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. 
 The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (4), (5) or (11) is not an Event
of Default until the Company receives from the Trustee or the holders of at least 25% in principal amount of the outstanding Securities a notice specifying the default, demanding that the default be remedied and stating that such notice is a
“Notice of Default” and the Company does not cure such Default within the time specified above after receipt of such notice. 
 The
Company shall deliver to the Trustee, within 30 days after becoming aware of the occurrence thereof, written notice in the form of an Officers’ Certificate of any Event of Default under clause (6), (10) or (11) and any event
which with the giving of notice or the lapse of time would become an Event of Default under clause (4), (5) or (9), its status and what action the Company is taking or proposes to take with respect thereto. 
 SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.01(7) or (8) with respect to
the Company) occurs and is continuing, the Trustee by notice (as 

  

 52 









 
specified below) to the Company, or the Holders of at least 25% in principal amount of the Securities by notice (as specified below) to the Company and the
Trustee, may declare the principal of and accrued but unpaid interest on all the Securities to be due and payable by notice in writing to the Company specifying such Event of Default and stating that such notice is a “Notice of
Acceleration”. Upon such a declaration, such principal and interest shall be due and payable immediately. If an Event of Default specified in Section 6.01(7) or (8) with respect to the Company occurs and is continuing, the principal
of and interest on all the Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in principal amount of the
Securities by notice to the Trustee may waive an existing or past Event of Default and its consequences and may also rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except nonpayment of principal or interest that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 SECTION 6.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may, subject to the Intercreditor Agreement, pursue any
available remedy to collect the payment of principal of or interest 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 6.04. Waiver of Past Defaults. The Holders of a majority in principal amount of the Securities by notice to the Trustee may waive an
existing Default and its consequences except (a) a Default in the payment of the principal of or interest on a Security, (b) a Default arising from the failure to redeem or purchase any Security when required pursuant to this Indenture or
(c) a Default in respect of a provision that under Section 9.02 cannot be amended without the consent of each Securityholder affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other
Default or impair any consequent right. 
 SECTION 6.05. Control by Majority. The Holders of a majority in principal amount of the
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 Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability; provided, however, that
the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Subject to Section 7.01, in case an Event of Default occurs and is continuing, the Trustee will have no obligation to exercise any
of the rights or powers under this Indenture at the request or direction of the Securityholders unless prior to taking any action hereunder, such Securityholders have offered reasonable indemnification or security against all losses, liability and
expenses caused by taking or not taking such action. 
 SECTION 6.06. Limitation on Suits. Except to enforce the right to receive
payment of principal, premium (if any) or interest when due, no Securityholder may pursue any remedy with respect to this Indenture or the Securities unless: 
 (1) the Holder gives to the Trustee written notice stating that an Event of Default is continuing; 
  

 53 









 (2) the Holders of at least 25% in principal amount of the Securities make a written
request to the Trustee to pursue the remedy; 
 (3) such Holder or Holders offer to the Trustee reasonable security or
indemnity against any loss, liability or expense; 
 (4) the Trustee does not comply with the 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 Securities do not give the Trustee a direction inconsistent with the request during 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 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal of and interest 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 6.08. Collection Suit by Trustee. If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust against the Company 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 7.07. 
 SECTION 6.09. 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 Company, its creditors or its property and, unless prohibited by law or applicable
regulations, participate as a member of any official committee of creditors appointed in such matter and 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 7.07. 
 Priorities. If the Trustee collects any money or property pursuant to this Article 6, it shall pay out the money or property
in the following order: 
 FIRST: to the Trustee for amounts due under Section 7.07; 
 SECOND: to Securityholders for amounts due and unpaid on the Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities for principal and interest, respectively; and 
 THIRD: to the Company. 
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this
Section. At least 15 days before such record date, the Company shall mail to each Securityholder and the Trustee a notice that states the record date, the payment date and amount to be paid. 
 SECTION 6.10. 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 

  

 54 









 
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 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in principal amount of the Securities. 
 SECTION 6.11. Waiver of Stay or Extension Laws. The Company (to the extent it may lawfully do so) shall not at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every
such power as though no such law had been enacted. 
 ARTICLE 7 
 Trustee 
 SECTION 7.01. 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. 
 (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 or opinions furnished to the Trustee and conforming to the requirements of this Indenture.
However, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own wilful misconduct, except that: 
 (1) this paragraph does not limit the effect of paragraph (b) of this Section; 
 (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 6.05. 
 (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. 
 (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 Company. 
 (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 

  

 55 









 
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 and to the provisions of the TIA. 
 SECTION 7.02. Rights of
Trustee. (a) The Trustee may rely on any document 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. 
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate 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 the Officers’ Certificate or Opinion of Counsel. 
 (c) The Trustee may act through 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; provided, however, that the
Trustee’s conduct does not constitute wilful misconduct or negligence. 
 (e) The Trustee may consult with counsel, 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 to any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel. 
 SECTION 7.03. 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 Company 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 7.04.
Trustee’s Disclaimer. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Pledge Agreement, the Intercreditor Agreement, the Collateral or the Securities, it shall
not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement of the Company in the 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 7.05. Notice of Defaults. If a Default occurs and
is continuing and if it is known to the Trustee, the Trustee shall mail to each Securityholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of principal of or interest on any Security
(including payments pursuant to the mandatory redemption provisions of such Security, if any), the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is not
opposed to the interests of Securityholders. 
 SECTION 7.06. Reports by Trustee to Holders. As promptly as practicable after each
June 30 beginning with the June 30 following the date of this Indenture, and in any event prior to August 31 in each year, the Trustee shall mail to each Securityholder a brief report dated as of June 30 that complies with TIA
§ 313(a). The Trustee also shall comply with TIA § 313(b). 
 A copy of each report at the time of its mailing to Securityholders
shall be filed with the SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any delisting thereof. 

 

 56 









 SECTION 7.07. Compensation and Indemnity. The Company shall pay to the Trustee from time to time
reasonable compensation for its services. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred or made by it, including costs of collection, 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 Company shall indemnify the Trustee against any and all loss, liability or expense (including reasonable attorneys’ fees) incurred by it 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 7.07) and of defending itself against any claims (whether asserted by any Holder, the Company or otherwise). The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The Company shall defend the claim and the Trustee may have separate counsel
and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own wilful misconduct,
negligence or bad faith. 
 To secure the Company’s payment obligations in this Section, 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 and interest on particular Securities. 
 The Company’s payment obligations pursuant to this Section shall survive the discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(7) or
(8) with respect to the Company, the expenses are intended to constitute expenses of administration under the Bankruptcy Law. 
 SECTION
7.08. Replacement of Trustee. The Trustee may resign at any time by so notifying the Company. The Holders of a majority in principal amount of the Securities may remove the Trustee by so notifying the Trustee and may appoint a successor
Trustee. The Company 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, is removed by the Company or by the Holders of a majority in principal amount of the Securities and such Holders do not reasonably promptly appoint a successor Trustee, or if a vacancy exists
in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. 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 7.07. 
 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 10% in principal amount of the Securities may petition any court
of competent jurisdiction for the appointment of a successor Trustee. 
  

 57 









 If the Trustee fails to comply with Section 7.10, any Securityholder 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, the Company’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee. 
 SECTION 7.09. 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 provided that the
certificate of the Trustee shall have. 
 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 $50,000,000 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 Company 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
Company. 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. 
 ARTICLE 8 
 Discharge of Indenture;
Defeasance 
 SECTION 8.01. Discharge of Liability on Securities; Defeasance. (a) When (1) the Company delivers to the
Trustee all outstanding Securities (other than Securities replaced pursuant to Section 2.07) for cancellation or (2) all outstanding Securities have become due and payable, whether at maturity or on a redemption date as a result of the
mailing of a notice of redemption pursuant to Article 3 hereof (it being understood that all outstanding Securities will be deemed to be due and payable on such redemption date upon the making of such notice of redemption), and the Company
irrevocably deposits with the Trustee funds sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon to maturity or such redemption date (other than Securities replaced pursuant to Section 2.07),
and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 8.01(c), cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Company. 
 (b) Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (1) all its obligations under the Securities and this Indenture (“legal defeasance option”) or (2) its
obligations under Sections 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 and 4.15 and the operation of Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8), 6.01(9), 6.01(10) and 6.01(11) (but, in the case 

  

 58 









 
of Sections 6.01(7) and (8), with respect only to Significant Subsidiaries and Subsidiary Guarantors) and the limitations contained in
Section 5.01(a)(3) (“covenant defeasance option”). The Company may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. 
 If the Company exercises its legal defeasance option, payment of the Securities may not be accelerated because of an Event of Default with respect
thereto. If the Company exercises its covenant defeasance option, payment of the Securities may not be accelerated because of an Event of Default specified in Sections 6.01(4), 6.01(5) (with respect to the Pledge Agreement and Article 12 of
this Indenture), 6.01(6), 6.01(7), 6.01(8), 6.01(9), 6.01(10), 6.01(11) (but, in the case of Sections 6.01(6) and (7), with respect only to Significant Subsidiaries and Subsidiary Guarantors) or because of the failure of the Company to comply with
Section 5.01(a)(3). If the Company exercises its legal defeasance option or its covenant defeasance option, each Subsidiary Guarantor, if any, shall be released from all its obligations with respect to its Subsidiary Guaranty and the Company
will be released from its Obligations with respect to the Pledge Agreement. 
 Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge of those obligations that the Company terminates. 
 (c) Notwithstanding clauses (a) and (b) above, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this Article 8 shall survive until the Securities have been paid in full.
Thereafter, the Company’s obligations in Sections 7.07, 8.04 and 8.05 shall survive. 
 SECTION 8.02. Conditions to Defeasance.
The Company may exercise its legal defeasance option or its covenant defeasance option only if: 
 (1) the Company irrevocably
deposits in trust with the Trustee money or U.S. Government Obligations for the payment of principal of and interest on the Securities to maturity or redemption, as the case may be; 
 (2) the Company 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 and interest when due on all the Securities to maturity or redemption, as the case may be; 
 (3) 123 days
pass after the deposit is made and during the 123-day period no Default specified in Sections 6.01(7) or (8) with respect to the Company occurs which is continuing at the end of the period; 
 (4) the deposit does not constitute a default under any other agreement binding on the Company is not prohibited by Article 10;

 (5) the Company delivers to the Trustee an Opinion of Counsel 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; 
 (6) in the
case of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) 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 defeasance had not occurred; 
  

 59 









 (7) in the case of the covenant defeasance option, the Company shall have delivered
to the Trustee an Opinion of Counsel to the effect that the Securityholders will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant 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 covenant defeasance had not occurred; and 
 (8) the Company 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 as contemplated by this Article 8 have
been complied with. 
 Before or after a deposit, the Company may make arrangements satisfactory to the Trustee for the redemption of
Securities at a future date in accordance with Article 3. 
 SECTION 8.03. Application of Trust Money. The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this Article 8. 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 on the Securities. 
 SECTION 8.04. Repayment to Company. The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money or securities held by them at any time. 
 Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest that remains unclaimed for two years, and, thereafter, Securityholders entitled to the
money must look to the Company for payment as general creditors. 
 SECTION 8.05. Indemnity for Government Obligations. The Company
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 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 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 Company’s obligations under this Indenture and
the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Article 8 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 8; provided, however, that, if the Company has made any payment of interest on or principal of any Securities because of the reinstatement of its obligations, the Company 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 9 
 Amendments 
 SECTION 9.01. Without Consent of Holders. The Company, the Subsidiary Guarantors and the Trustee may amend this Indenture, the Pledge Agreement or the Securities without notice to or consent of any
Securityholder: 
 (1) to cure any ambiguity, omission, defect or inconsistency; 
 (2) to comply with Article 5; 
 (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

  

 60 









 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 make any change in Article 11 that would limit or terminate the
benefits available to any holder of Indebtedness under the Credit Agreement (or representatives therefor) under Article 11; 
 (5) to add Guarantees with respect to the Securities, including any Subsidiary Guaranties, or to further secure the Securities; 
 (6) to add to the covenants of the Company or a Subsidiary Guarantor for the benefit of the Holders or to surrender any right or power herein conferred upon the Company or a Subsidiary Guarantor; 
 (7) to make any change that does not adversely affect the rights of any Securityholder; 
 (8) to comply with any requirements of the SEC in connection with qualifying, or maintaining the qualification of, this Indenture
under the TIA; or 
 (9) to make any amendment to the provisions of the Indenture relating to the form, authentication,
transfer and legending of Securities; provided, however, that (a) compliance with the Indenture as so amended would not result in Securities being transferred in violation of the Securities Act or any other applicable securities
law and (b) such amendment does not materially affect the rights of Holders to transfer Securities. 
 An amendment under this Section
may not make any change that adversely affects (1) the rights under Article 11, Section 4.07(a) (solely as it relates to the release of Collateral), this paragraph of Section 9.01, the penultimate paragraph of Section 9.02
or Section 10.07 of any holder of Indebtedness then outstanding under the Credit Agreement or (2) the rights of the Company under Section 12.03 unless, in both cases, the holders of Indebtedness under the Credit Agreement (or any
group or representative thereof authorized to give a consent) consent to such change. 
 Notwithstanding the foregoing, the Pledge Agreement
may be amended without the consent of the Holders as provided in the last paragraph of Section 12.01. 
 After an amendment under this
Section becomes effective, the Company 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. 
 SECTION 9.02. With Consent of Holders. The Company, the Subsidiary Guarantors and the Trustee may amend this
Indenture, the Pledge Agreement and the Intercreditor Agreement 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 consents obtained in connection with a tender offer or exchange for the Securities) and any past default or non-compliance with any provisions may also be waived with the consent of the Holders of at least a majority in principal amount
of the Securities outstanding. However, without the consent of each Securityholder affected thereby, an amendment or waiver may not: 
 (1) reduce the amount of Securities whose Holders must consent to an amendment; 
 (2) reduce the rate of or
extend the time for payment of interest on any Security; 
 (3) reduce the principal of or change the Stated Maturity of
any Security; 
 (4) change the provisions applicable to the redemption of any Security contained in Article 3
hereto or paragraphs 5 or 6 of the Securities; 
  

 61 









 (5) make any Security payable in money other than that stated in the Security;

 (6) make any changes in the ranking or priority of any Security that would adversely affect the Securityholders;

 (7) make any change in Section 6.04 or 6.07 or the second sentence of this Section; 
 (8) make any change in, or release other than in accordance with this Indenture, any Subsidiary Guaranty or the Pledge Agreement that
would adversely affect the Securityholders; 
 (9) make any change in the Escrow Agreement that would adversely affect
the Securityholders; or 
 (10) make any change in the Pledge Agreement, the Intercreditor Agreement or the provisions in
the Indenture dealing with the Pledge Agreement or application of Trust proceeds of the Collateral that would adversely affect the Securityholders including, except as otherwise explicitly set forth in this Indenture, the Pledge Agreement or the
Intercreditor Agreement, any release of any Collateral from the Lien of the Indenture and the Pledge Agreement. 
 Notwithstanding the
foregoing, without the consent of any Holder of Securities, any amendment, waiver or consent agreed to by the Credit Agent or the holders of First Lien Obligations under any provision of the Pledge Agreement granting the first-priority Lien on any
Collateral to secure the First Lien Obligations will automatically apply to the comparable provision of the Pledge Agreement; provided, however, that if any such amendment, waiver or consent could reasonably be expected to be adverse
to the Securityholders or the interest of the Securityholders in the Collateral, such amendment, waiver or consent will not be applicable to the Pledge Agreement as provided above unless First Lien Obligations (including commitments in respect
thereof to the extent that such commitments are subject only to borrowing base requirements or other reasonable and customary funding conditions and are then available to be funded at the election of the Company) of no less than $20.0 million
(after giving effect to all borrowing base calculations) secured by first-priority Liens on the Collateral are then outstanding. Notwithstanding the foregoing, no such amendment, waiver or consent may have the effect of releasing the Collateral,
except to the extent set forth in Article 12. 
 It shall not be necessary for the consent of the Holders under this Section to approve
the particular form of any proposed amendment, waiver or consent but it shall be sufficient if such consent approves the substance thereof. 
 An amendment under this Section may not make any change that adversely affects (1) the rights under Article 11, Section 4.07(a) (solely as it relates to the release of Collateral), the penultimate paragraph of
Section 9.01, this paragraph of Section 9.02 or Section 10.07 of any holder of Indebtedness then outstanding under the Credit Agreement or (2) the rights of the Company under Section 12.03 unless, in both cases, the holders
of Indebtedness under the Credit Agreement (or any group or representative thereof authorized to give a consent) consent to such change. 
 Notwithstanding the foregoing, the Pledge Agreement may be amended without the consent of the Holders as provided in the last paragraph of Section 12.01. 
 After an amendment under this Section becomes effective, the Company 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. 
 SECTION 9.03. Compliance with Trust Indenture
Act. Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect. 
 SECTION 9.04. 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 

  

 62 









 
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. An amendment or waiver becomes effective upon the execution of such amendment or waiver by the Trustee. 
 The Company 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 be valid or effective for more than 120 days after such record date. 
 SECTION 9.05. 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 Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a 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 9.06. Trustee To Sign Amendments. The
Trustee shall sign any amendment authorized pursuant to this Article 9 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 Section 7.01) 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 and that such amendment is the legal, valid and binding obligation of the Company enforceable against it in accordance with its terms, subject to customary exceptions, and complies
with the provisions hereof (including Section 9.03). 
 SECTION 9.07. Payment for Consent. Neither the Company nor any Affiliate
of the Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture or the Securities unless such consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement. 

ARTICLE 10 
 Subsidiary
Guaranties 
 SECTION 10.01. Guaranties. Each Subsidiary Guarantor hereby unconditionally and irrevocably guarantees, jointly and
severally, to each Holder and to the Trustee and its successors and assigns (a) the full payment of principal of and interest on the Securities when due, whether at maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Company under this Indenture and the Securities and (b) the full performance within applicable grace periods of all other obligations of the Company under this Indenture and the Securities (all the foregoing being hereinafter
collectively called the “Guaranteed Obligations”). Each Subsidiary Guarantor further agrees 

  

 63 









 
that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice or further assent from such Subsidiary Guarantor and that
such Subsidiary Guarantor will remain bound under this Article 10 notwithstanding any extension or renewal of any Guaranteed Obligation. 
 Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any
default under the Securities or the Guaranteed Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (1) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Company or any other Person (including any Subsidiary Guarantor) under this Indenture, the Securities or any other agreement or otherwise; (2) any extension or renewal of any thereof; (3) any rescission, waiver,
amendment or modification of any of the terms or provisions of this Indenture, the Securities or any other agreement; (4) the release of any security held by any Holder or the Trustee for the Guaranteed Obligations or any of them; (5) the
failure of any Holder or the Trustee to exercise any right or remedy against any other guarantor of the Guaranteed Obligations; or (6) except as set forth in Section 10.06, any change in the ownership of such Subsidiary Guarantor.

 Each Subsidiary Guarantor further agrees that its Subsidiary Guaranty herein constitutes a guarantee of payment, performance and
compliance when due (and not a guarantee of collection) and waives any right to require that any resort be had by any Holder or the Trustee to any security held for payment of the Guaranteed Obligations. 
 Except as expressly set forth in Sections 8.01(b), 10.02 and 10.06, the obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any claim of 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 or the Trustee 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 such 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
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 on any Guaranteed Obligation is rescinded or must otherwise be restored by any Holder or
the Trustee upon the bankruptcy or reorganization of the Company or otherwise. 
 In furtherance of the foregoing and not in limitation of
any other right which any Holder or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay the principal of or interest on any Guaranteed Obligation when and as the same shall
become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Guaranteed Obligation, each Subsidiary Guarantor hereby promises to and shall, upon receipt of written demand by the Trustee,
forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount equal to the sum of (A) the unpaid amount of such Guaranteed Obligations, (B) accrued and unpaid interest on such Guaranteed Obligations (but only to the
extent not prohibited by law) and (C) all other monetary Guaranteed Obligations of the Company to the Holders and the Trustee. 
 Taurus
Acquisition agrees that it shall not be entitled to any right of subrogation in respect of any Guaranteed Obligations until payment in full of all Obligations and all obligations to which the Taurus Guaranty is subordinated as provided in
Article 11. Each Subsidiary Guarantor further agrees that, as 

  

 64 









 
between it, on the one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations may be accelerated as
provided in Article 6 for the purposes of such Subsidiary Guarantor’s Subsidiary Guaranty herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations, and
(ii) in the event of any declaration of acceleration of such Obligations as provided in Article 6, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor for the
purposes of this Section. 
 Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under this Section. 
 SECTION 10.02. Limitation on
Liability. Any term or provision of this Indenture to the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby guaranteed without
rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. 
 SECTION 10.03. Successors and Assigns. This Article 10 shall be binding upon each Subsidiary Guarantor and its successors and assigns and
shall enure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture and
in the Securities shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture. 
 SECTION 10.04. No Waiver. Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article 10 shall operate as a waiver thereof,
nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified are cumulative and not exclusive of
any other rights, remedies or benefits which either may have under this Article 10 at law, in equity, by statute or otherwise. 
 SECTION 10.05. Modification. No modification, amendment or waiver of any provision of this Article 10, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other circumstances. 
 SECTION 10.06. Release of
Subsidiary Guarantor. A Subsidiary Guarantor will be released from its obligations under this Article 10 (other than any obligation that may have arisen under Section 10.07) 
 (1) upon the sale or other disposition (including by way of consolidation or merger) of such Subsidiary Guarantor, including the sale
of disposition of Capital Stock of such Subsidiary Guarantor to the MLP Subsidiary or following which such Subsidiary Guarantor is no longer a Restricted Subsidiary; 
 (2) upon the sale or disposition of all or substantially all the assets of such Subsidiary Guarantor; 
 (3) upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with the terms of this Indenture;

 (4) at such time as such Subsidiary Guarantor does not have any Indebtedness outstanding that would have required such
Subsidiary Guarantor to enter into a Guaranty Agreement pursuant to Section 4.14 and the Company provides an Officers’ Certificate to the Trustee certifying that no 

  

 65 









 
such Indebtedness is outstanding and that the Company elects to have such Subsidiary Guarantor released from this Article 10; or 
 (5) upon defeasance of the Securities or discharge of this Indenture pursuant to Article 8; 
 provided, however, that in the case of clauses (1) and (2) above, (i) such sale or other disposition is made to a Person other than the
Company or a Subsidiary of the Company ( provided further, however, that any sale or other disposition to the MLP Subsidiary or to a Subsidiary of the MLP Subsidiary shall be permitted in accordance with clause (1) above),
(ii) such sale or disposition is otherwise permitted by this Indenture and (iii) the Company provides an Officers’ Certificate to the Trustee to the effect that the Company will comply with its obligations under Section 4.07.

 At the request of the Company, the Trustee shall execute and deliver an appropriate instrument evidencing such release. 
 SECTION 10.07. Contribution. Each Subsidiary Guarantor that makes a payment under its Subsidiary Guaranty shall be entitled upon payment in full
of all guarantied obligations under this Indenture to a contribution from each other Subsidiary Guarantor in an amount equal to such other Subsidiary Guarantor’s pro rata portion of such payment based on the respective net assets of all
the Subsidiary Guarantors at the time of such payment determined in accordance with GAAP (except that such contribution right against Taurus Acquisition is subordinated in right of payment to the prior payment in full in cash of the Indebtedness
under the Credit Agreement to the same extent as the rights and claims of the Securityholders under the Taurus Guaranty are subordinated as provided in Article 11 and as would be the case if such contribution right arose solely by reason of
such Subsidiary Guarantor being subrogated to the rights of the Securityholders by reason of such payment). 
 ARTICLE 11 

Subordination of Taurus Acquisition Guaranty 
 SECTION 11.01. Agreement To Subordinate. Taurus Acquisition agrees, and each Securityholder by accepting a Security agrees, that the Indebtedness evidenced by the Taurus Guaranty is subordinated in right of
payment, to the extent and in the manner provided in this Article 11, to the prior payment in full in cash of all Indebtedness under the Credit Agreement and that the subordination is for the benefit of and enforceable by the holders of such
Indebtedness. The Guaranteed Obligations of Taurus Acquisition shall in all respects rank pari passu with all other Senior Subordinated Indebtedness of Taurus Acquisition and only Senior Indebtedness of Taurus Acquisition (including its
Guaranty of Senior Indebtedness of the Company) shall rank senior to the Obligations of Taurus Acquisition in accordance with the provisions set forth herein. In addition to all indebtedness, liabilities and obligations included in the definition of
“Indebtedness”, all references in this Article 11 to “Indebtedness under the Credit Agreement” shall mean, without duplication, (i) all Indebtedness and Obligations under the Credit Agreement, (ii) all Hedging
Obligations secured by Liens granted in accordance with the Credit Agreement, (iii) interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to any Person obligated on such Indebtedness whether or
not post-filing interest is allowed in such proceeding and (iv) all Obligations of Taurus Acquisition with respect to its Guarantee of any of the Indebtedness or Obligations described in the foregoing clauses (i) and (ii). 
 SECTION 11.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the assets of Taurus Acquisition to creditors upon a
total or partial liquidation or a total or partial 

  

 66 









 
dissolution of Taurus Acquisition or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to Taurus Acquisition or its
property: 
 (1) holders of Indebtedness under the Credit Agreement shall be entitled to receive payment in full in cash
of such Indebtedness before Securityholders shall be entitled to receive any payment pursuant to the Taurus Guaranty; and 
 (2) until the Indebtedness under the Credit Agreement is paid in full in cash, any payment or distribution to which Securityholders would be entitled but for this Article 11 shall be made to holders of such Indebtedness as their
interests may appear, except that Securityholders may receive shares of stock and any debt securities of Taurus Acquisition that are subordinated to such Indebtedness to at least the same extent as the Taurus Guaranty. 
 SECTION 11.03. Prohibition on Payments. Taurus Acquisition shall not make any payments under the Taurus Guaranty or purchase, redeem or otherwise
retire or defease any Securities or other Obligations at any time prior to the payment in full in cash of the Indebtedness under the Credit Agreement. 
 SECTION 11.04. Demand for Payment. If a demand for payment is made on Taurus Acquisition pursuant to Article 10, the Trustee shall promptly notify the holders of Indebtedness under the Credit Agreement (or
their representatives) of such demand. 
 SECTION 11.05. When Distribution Must Be Paid Over. If a distribution is made to
Securityholders that because of this Article 11 should not have been made to them, the Securityholders who receive the distribution shall hold it in trust for holders of Indebtedness under the Credit Agreement and pay it over to them or their
representatives as their interests may appear. 
 SECTION 11.06. Subrogation. After all Indebtedness under the Credit Agreement is
paid in full in cash and until the Securities are paid in full, Securityholders shall be subrogated to the rights of holders of such Indebtedness to receive distributions applicable to Indebtedness under the Credit Agreement. A distribution made
under this Article 11 to holders of such Indebtedness which otherwise would have been made to Securityholders is not, as between Taurus Acquisition and the Securityholders, a payment by Taurus Acquisition on such Indebtedness. 
 SECTION 11.07. Relative Rights. This Article 11 defines the relative rights of Securityholders and holders of Indebtedness under the Credit
Agreement. Nothing in this Indenture shall: 
 (1) impair, as between Taurus Acquisition and Securityholders, the
obligation of Taurus Acquisition, which is absolute and unconditional, to pay its Subsidiary Guaranty to the extent set forth in Article 10; or 
 (2) prevent the Trustee or any Securityholder from exercising its available remedies upon a default by Taurus Acquisition under its Subsidiary Guaranty, subject to the Intercreditor Agreement and the rights of
holders of Indebtedness under the Credit Agreement to receive distributions otherwise payable to Securityholders. 
 SECTION 11.08.
Subordination May Not Be Impaired by Taurus Acquisition. No right of any holder of Indebtedness under the Credit Agreement to enforce the subordination of the Taurus Guaranty shall be impaired by any act or failure to act by Taurus
Acquisition or by its failure to comply with this Indenture. 
 SECTION 11.09. Rights of Trustee and Paying Agent. Neither the Trustee
nor the Paying Agent shall make any payments on the Taurus Guaranty unless a Trust Officer of the Trustee receives written notice that the Indebtedness under the Credit Agreement has been paid in full in cash and payments are permitted by this
Article 11 (which notice shall promptly be delivered by the representative of holders of Indebtedness under the Credit Agreement to the Trustee and the Paying Agent upon 

  

 67 









 
payment in full in cash of all Indebtedness under the Credit Agreement). The representative of holders of Indebtedness under the Credit Agreement shall be
entitled to give the notice. 
 The Trustee in its individual or any other capacity shall be entitled to hold Senior Indebtedness of Taurus
Acquisition with the same rights it would have if it were not the Trustee. The Registrar and co-registrar and the Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set forth in this Article 11 with
respect to any Senior Indebtedness of Taurus Acquisition which may at any time be held by it, to the same extent as any other holder of such Senior Indebtedness; and nothing in Article 7 shall deprive the Trustee of any of its rights as such
holder. Nothing in this Article 11 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.07. 
 SECTION 11.10. Distribution or Notice to Representative. Whenever any Person is to make a distribution or give a notice to holders of Indebtedness under the Credit Agreement, such Person shall be entitled to make such distribution or
give such notice to their representative (if any). 
 SECTION 11.11. Article 11 Not To Prevent Events of Default or Limit Right To
Demand Payment. The failure to make a payment pursuant to the Taurus Guaranty by reason of any provision in this Article 11 shall not be construed as preventing the occurrence of a Default. Nothing in this Article 11 shall have any
effect on the right of the Securityholders or the Trustee to make a demand for payment on Taurus Acquisition pursuant to the Taurus Guaranty. 
 SECTION 11.12. Trustee Entitled To Rely. Upon any payment or distribution pursuant to this Article 11, the Trustee and the Securityholders shall be entitled to rely (a) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 11.02 are pending, (b) upon a certificate of the liquidating trustee or agent or other Person making such payment or distribution to the Trustee or to the
Securityholders or (c) upon the representatives for the holders of Indebtedness under the Credit Agreement for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of such Indebtedness,
the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 11. In the event that the Trustee determines, in good faith, that evidence is required with
respect to the right of any Person as a holder of Indebtedness under the Credit Agreement to participate in any payment or distribution pursuant to this Article 11, the Trustee shall be entitled to request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of such Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such Person under
this Article 11, and, if such evidence is not furnished, the Trustee shall be entitled to defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. The provisions of Sections 7.01
and 7.02 shall be applicable to all actions or omissions of actions by the Trustee pursuant to this Article 11. 
 SECTION 11.13.
Trustee To Effectuate Subordination. Each Securityholder by accepting a Security authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between
the Securityholders and the holders of Indebtedness under the Credit Agreement as provided in this Article 11 and appoints the Trustee as attorney-in-fact for any and all such purposes. 
 SECTION 11.14. Trustee Not Fiduciary for Holders of Indebtedness Under the Credit Agreement. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Indebtedness under the Credit Agreement and shall not be liable to any such holders if it shall mistakenly pay over or distribute to Securityholders or the Company or any other Person, money or assets to which any holders of
such Indebtedness shall be entitled by virtue of this Article 11 or otherwise. 
  

 68 









 SECTION 11.15. Reliance by Holders of Indebtedness Under the Credit Agreement on Subordination
Provisions. Each Securityholder by accepting a Security acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Indebtedness under the Credit
Agreement, whether such Indebtedness was created or acquired before or after the issuance of the Securities, to acquire and continue to hold, or to continue to hold, such Indebtedness and such holder of Indebtedness under the Credit Agreement shall
be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Indebtedness. 
  

 69 









 ARTICLE 12 
 Pledged Stock 
 SECTION 12.01. Collateral and Security Documents. The due payment of the
principal of and interest (including Additional Interest, if any) on the Securities when and as the same shall be due and payable, whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest
on the overdue principal of and interest (including Additional Interest, if any) on the Securities and performance of all other Security Obligations of the Company to the Securityholders, the Trustee or the Collateral Agent under this Indenture, the
Securities and the Pledge Agreement, according to the terms hereunder or thereunder, are secured as provided in the Pledge Agreement, which define the terms of the Liens that secure the Security Obligations, subject to the terms of the Intercreditor
Agreement. The Trustee and the Company hereby acknowledge and agree that the Trustee or the Collateral Agent, as the case may be, holds the Collateral in trust for the benefit of the Trustee and the Holders, in each case pursuant to the terms of the
Pledge Agreement and subject to the provisions of the Intercreditor Agreement. Each Holder, by accepting a Security, consents and agrees to the terms of the Pledge Agreement (including the provisions providing for foreclosure and release of
Collateral) and the Intercreditor Agreement as the same may be in effect or may be amended from time to time in accordance with their terms and this Indenture, and authorizes and directs the Trustee and the Collateral Agent to enter into the Pledge
Agreement and the Intercreditor Agreement and to perform its obligations and exercise its rights thereunder in accordance therewith; provided, however, that if any of the provisions of the Pledge Agreement or the Intercreditor
Agreement limit, qualify or conflict with the duties imposed by the provisions of the TIA, or if any of the provisions of the Intercreditor Agreement conflict with the duties imposed by the provisions of the TIA, the TIA shall control. The Company
shall deliver to the Trustee (if it is not itself then the Collateral Agent) copies of all documents delivered to the Collateral Agent pursuant to the Pledge Agreement, and will do or cause to be done all such acts and things as may be required by
the next sentence of this Section 12.01, to assure and confirm to the Trustee and the Collateral Agent the security interest in the Collateral contemplated hereby, by the Pledge Agreement or any part thereof, as from time to time constituted,
so as to render the same available for the security and benefit of this Indenture and of the Securities secured hereby, according to the intent and purposes herein expressed. The Company shall take, and shall cause its Subsidiaries to take, any and
all actions reasonably required to cause the Pledge Agreement to create and maintain, as security for the Security Obligations of the Company hereunder, a valid and enforceable perfected Lien and security interest in and on all of the Collateral
(subject to the terms of the Intercreditor Agreement), in favor of the Collateral Agent for the benefit of the Trustee and the Holders, second in priority (subject to Specified Permitted Liens) to any and all security interests at any time granted
in the Collateral to secure the First Lien Obligations. 
 Notwithstanding the foregoing, at no time will any shares of Capital Stock of such
Subsidiaries constitute Collateral to the extent that at such time Rule 3-16 of Regulation S-X under the Securities Act requires (or is replaced with another rule or regulation or any other law, rule or regulation is adopted which would
require) the filing with the SEC (or any other governmental agency) of separate financial statements of any Subsidiary of the Company as a result of the fact that such shares of Capital Stock secure the Securities, but only to the extent and for so
long as necessary to not be subject to such requirement. At such times, the Pledge Agreement may be amended or modified, without the consent of any Holder of Securities, to the extent considered necessary to reflect the operation of the foregoing
sentence. 
  

 70 









 SECTION 12.02. Recordings and Opinions. (a) The Company shall furnish to the Collateral Agent
and the Trustee (if the Trustee is not then the Collateral Agent) on or before June 15 in each year beginning with June 15, 2004, an Opinion of Counsel dated as of such date, either: 
 (1) to the effect that, in the opinion of such counsel, such action has been taken with respect to the recordings, registerings,
filings, re recordings, re-registerings and re-filings of this Indenture, the Pledge Agreement and all financing statements, continuation statements or other instruments of further assurance as is necessary to maintain and perfect the Lien of this
Indenture or the Pledge Agreement in the Collateral and reciting with respect to the security interests in such Collateral the details of such action or referencing to prior Opinions of Counsel in which such details are given, and stating that all
financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the rights of the Holders and the Trustee hereunder and under the Pledge Agreement with respect to such Lien; or

 (2) to the effect that, in the opinion of such counsel, no such action is necessary to maintain and perfect such Lien.

 (b) The Company will otherwise comply with the provisions of TIA § 314(b) and (d). 
 SECTION 12.03. Release of Collateral. (a) Subject to subsections (b) and (c) of this Section 12.03, Collateral may be released
from the Lien and security interest created by the Pledge Agreement at any time or from time to time in accordance with the provisions of the Pledge Agreement, the Intercreditor Agreement or as provided hereby. Upon the request of the Company
pursuant to an Officers’ Certificate certifying that all conditions precedent hereunder have been met, the Company shall be entitled to a release of assets included in the Collateral from the Liens securing the Securities, and the Collateral
Agent and the Trustee (if the Trustee is not then the Collateral Agent) shall release the same from such Liens at the Company’s sole cost and expense, under one or more of the following circumstances (whether prior to or after the discharge of
the First Lien Obligations): 
 (1) payment in full of the principal of, accrued and unpaid interest (including
additional interest, if any) on the Securities and all other Security Obligations that are due and payable at or prior to the time such principal, accrued and unpaid interest (including additional interest, if any) are paid; 
 (2) to the extent permitted under this Indenture, the sale or other disposition (including by way of consolidation or merger) of any
Subsidiary whose Capital Stock is pledged as Collateral under the Pledge Agreement to the MLP Subsidiary or following which such Subsidiary is no longer a Subsidiary; 
 (3) the sale or other disposition (other than to the Company or a Restricted Subsidiary, but including to the MLP Subsidiary) of all
or substantially all of the assets of any Subsidiary whose Capital Stock is pledged as Collateral under the Pledge Agreement; 
 (4) as to Collateral that constitutes Net Available Cash from the sale of Collateral that has been offered to, but not accepted by, the Holders and is used by the Company as set forth in the last sentence of Section 4.07(b), the
consummation of such offering; or 
 (5) the release by holders of the First Lien Obligations of their first Liens on
such Collateral; provided, however, that after giving effect to such release, First Lien Obligations (including commitments in respect thereof to the extent that such commitments are subject only to borrowing base requirements or other
reasonable and customary funding conditions and are then available to be funded at the election of the Company) of no less than $20.0 million (after giving effect to all borrowing base calculations) secured by the first-priority Liens on the
remaining Collateral remain outstanding. 
  

 71 









 Upon receipt of such Officers’ Certificate and any necessary or proper instruments of termination,
discharge, satisfaction or release prepared by the Company, the Trustee or Collateral Agent, as appropriate, shall execute, deliver or acknowledge such instruments or releases to evidence the release of any Collateral permitted to be released
pursuant to this Indenture or the Pledge Agreement. 
 (b) Except as otherwise provided in the Intercreditor Agreement, no Collateral
may be released from the Lien and security interest created by the Pledge Agreement and this Indenture unless the Officers’ Certificate required by this Section 12.03, dated not more than 30 days prior to the date of the application
for such release, has been delivered to the Collateral Agent and the Trustee (if the Trustee is not then the Collateral Agent). 
 (c) At any time when a Default or Event of Default has occurred and is continuing and the maturity of the Securities has been accelerated (whether by declaration or otherwise) and the Trustee (if not then the Collateral Agent) has
delivered a notice of acceleration to the Collateral Agent, no release of Collateral pursuant to the provisions of this Indenture or the Pledge Agreement will be effective as against the Holders, unless such release is a release contemplated in
Sections 12.03(a)(1), (a)(2), (a)(3) or (a)(5). 
 SECTION 12.04. Permitted Releases Not To Impair Lien; Trust Indenture Act
Requirements. The release of any Collateral from the terms hereof and of the Pledge Agreement or the release of, in whole or in part, the Liens created by the Pledge Agreement, shall not be deemed to impair the Lien on the Collateral in
contravention of the provisions hereof if and to the extent the Collateral or Liens are released pursuant to the Pledge Agreement and pursuant to the terms of this Article 12. The Trustee and each of the Holders acknowledge that a release of
Collateral or a Lien strictly in accordance with the terms of the Pledge Agreement and of this Article 12 shall not be deemed for any purpose to be an impairment of the Lien on the Collateral in contravention of the terms of this Indenture. To
the extent applicable, the Company and each obligor on the Securities shall cause TIA § 313(b), relating to reports, and TIA § 314(d), relating to the release of property or securities from the Lien hereof and of the Pledge Agreement, to
be complied with. Any certificate or opinion required by § 314(d) of the TIA may be made by an officer of the Company, except in cases which § 314(d) of the TIA requires that such certificate or opinion be made by an independent person,
which person shall be an independent engineer, appraiser or other expert selected or approved by the Trustee and the Collateral Agent in the exercise of reasonable care. 
 SECTION 12.05. Certificates to the Trustee. In the event that the Company wishes to release Collateral in accordance with this Indenture and the Pledge Agreement at a time when the Trustee is not itself also
the Collateral Agent and the Company has delivered the certificates and documents required by the Pledge Agreement and Section 12.03 hereof, the Company shall determine whether it has sent to the Trustee all documentation required by TIA §
314(d) in connection with such release and, based on such determination, shall deliver a certificate to the Collateral Agent, with a copy to the Trustee, setting forth such determination. 
 SECTION 12.06. Suits To Protect the Collateral. Subject to the provisions of Article 7 hereof and the Intercreditor Agreement, the Trustee in
its sole discretion and without the consent of the Holders, on behalf of the Holders, shall be entitled to, or shall be entitled to direct the Collateral Agent to, take all actions it deems necessary or appropriate in order to: 
 (a) enforce any of the terms of the Pledge Agreement; and 
 (b) collect and receive any and all amounts payable in respect of the Security Obligations of the Company hereunder. 
 Subject to the provisions of the Pledge Agreement and the Intercreditor Agreement, the Trustee shall have power to institute and to maintain such suits and proceedings as it may deem expedient to prevent any
impairment of the Collateral by any acts which shall be unlawful or in violation of any of 

  

 72 









 
the Pledge Agreement or this Indenture, and such suits and proceedings as the Trustee, in its sole discretion, shall deem expedient to preserve or protect
its interests and the interests of the Holders in the Collateral (including power to institute and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment, rule or order that
may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such enactment, rule or order would impair the Lien on the Collateral or be prejudicial to the interests of the Holders or the Trustee). 
 SECTION 12.07. Authorization of Receipt of Funds by the Trustee Under the Pledge Agreement. Subject to the provisions of the Intercreditor
Agreement, the Trustee shall be entitled to receive any funds for the benefit of the Holders distributed under the Pledge Agreement, and to make further distributions of such funds to the Holders according to the provisions of this Indenture.

 SECTION 12.08. Purchaser Protected. In no event shall any purchaser in good faith of any property purported to be released
hereunder be bound to ascertain the authority of the Collateral Agent or the Trustee to execute the release or to inquire as to the satisfaction of any conditions required by the provisions hereof for the exercise of such authority or to see to the
application of any consideration given by such purchaser or other transferee; nor shall any purchaser or other transferee of any property or rights permitted by this Article 12 to be sold be under any obligation to ascertain or inquire into the
authority of the Company to make any such sale or other transfer. 
 SECTION 12.09. Powers Exercisable by Receiver or Trustee. In case
the Collateral shall be in the possession of a receiver or trustee, lawfully appointed, the powers conferred in this Article 12 upon the Company with respect to the release, sale or other disposition of such property may be exercised by such
receiver or trustee, and an instrument signed by such receiver or trustee shall be deemed the equivalent of any similar instrument of the Company or of any officer or officers thereof required by the provisions of this Article 12; and if the
Trustee or the Collateral Agent shall be in the possession of the Collateral under any provision of this Indenture or the Pledge Agreement, then such powers may be exercised by the Trustee. 
 SECTION 12.10. Release upon Termination of the Company’s Obligations. In the event that the Company delivers to the Trustee, in form and
substance reasonably acceptable to it, an Officers’ Certificate certifying that all the obligations under this Indenture, the Securities and the Pledge Agreement have been satisfied and discharged by complying with the provisions of
Article 8 and Section 7.07 or by the payment in full of the Company’s obligations under the Securities, this Indenture and the Pledge Agreement, and all such obligations have been so satisfied, the Trustee shall deliver to the Company
and the Collateral Agent a notice stating that the Trustee, on behalf of the Holders, disclaims and gives up any and all rights it has in or to the Collateral (other than with respect to funds held by the Trustee pursuant to Article 8), and any
rights it has under the Pledge Agreement, and upon receipt by the Collateral Agent of such notice, the Collateral Agent shall be deemed not to hold a Lien in the Collateral on behalf of the Trustee. 
 SECTION 12.11. Collateral Agent. 
 (a) The Trustee is hereby appointed to act as initial Collateral Agent, and hereby accepts such appointment, and is hereby authorized to appoint co-Collateral Agents as necessary in its sole discretion. Except as otherwise explicitly
provided herein or in the Pledge Agreement or the Intercreditor Agreement, neither the Collateral Agent nor any of its respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.
The Collateral Agent shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither the Collateral Agent nor any of 

  

 73 









 
its officers, directors, employees or agents shall be responsible for any act or failure to act hereunder, except for its own willful misconduct, negligence
or bad faith. 
 (b) The Trustee, as Collateral Agent, is hereby authorized and directed to (i) enter into the Pledge Agreement,
(ii) enter into the Intercreditor Agreement, (iii) bind the Holders on the terms as set forth in the Pledge Agreement and the Intercreditor Agreement and (iv) perform and observe its obligations under the Pledge Agreement and the
Intercreditor Agreement. 
 (c) If the Company (i) Incurs First Lien Obligations at any time when no intercreditor agreement is in
effect or at any time when Indebtedness constituting First Lien Obligations entitled to the benefit of an existing intercreditor agreement is concurrently retired, and (ii) delivers to the Collateral Agent an Officers’ Certificate so
stating and requesting the Collateral Agent to enter into an intercreditor agreement in favor of a designated agent or representative for the holders of the Indebtedness so incurred, the Collateral Agent shall (and is hereby authorized and directed
to) enter into such intercreditor agreement substantially similar to the Intercreditor Agreement, bind the Holders on the terms set forth therein, and perform and observe its obligations thereunder. 
 SECTION 12.12. Designations. Except as provided in the next sentence, for purposes of the provisions hereof and the Intercreditor Agreement
requiring the Company to designate Indebtedness for the purposes of the term “First Lien Indebtedness” or any other such designations hereunder or under the Intercreditor Agreement, any such designation shall be sufficient if the relevant
designation is set forth in writing, signed on behalf of the Company by an Officer and delivered to the Trustee, the Collateral Agent and the Credit Agent. For all purposes hereof and the Intercreditor Agreement, the Company hereby designates the
Obligations pursuant to the Credit Agreement as in effect on the Issue Date and as amended and restated on the Merger Date as “First Lien Indebtedness.” 
 ARTICLE 13 
 Application of Trust Moneys 
 SECTION 13.01. “Trust Moneys” Defined. All cash or cash equivalents received by the Trustee or the Collateral Agent on behalf of the
Trustee, in each case, consistent with and not in contravention of the Intercreditor Agreement: 
 (1) upon the release
of Collateral from the Lien of this Indenture and the Pledge Agreement, including all moneys received in respect of the principal of all purchase money, governmental and other obligations; 
 (2) as compensation for, or proceeds of sale of, any part of the Collateral taken by eminent domain or purchased by, or sold pursuant
to an order of, a governmental authority or otherwise disposed of; or 
 (3) as proceeds of insurance upon any part of
the Collateral (other than any liability insurance proceeds payable to the Trustee or the Collateral Agent for any loss, liability or expense incurred by it); 
 (all such moneys being herein sometimes called “Trust Moneys”), shall be held by the Trustee (or the Collateral Agent as the agent of the Trustee) for the benefit of the Holders of Securities as a part of the Collateral, shall be
held in United States dollars or U.S. dollar denominated obligations, and, upon any entry upon or sale of the Collateral or any part thereof pursuant to Article 6 hereof or the Pledge Agreement, in each case, subject to the Intercreditor
Agreement, said Trust Moneys shall be applied, subject to the Intercreditor Agreement, in accordance with the Pledge Agreement; but, prior to any such entry or sale, all or any part of the Trust Moneys may be withdrawn, and shall be released, paid
or applied by the Trustee or the Collateral Agent, as appropriate, from time to time as provided in Sections 13.02 to 13.05, inclusive, and may be applied by the Trustee as provided in Section 13.07(b). 
  

 74 









 SECTION 13.02. Retirement of Securities. Subject to the terms of the Intercreditor Agreement, the
Trustee shall, or shall direct, as appropriate, the Collateral Agent to deliver to the Trustee Trust Moneys to, apply Trust Moneys from time to time to the payment of the principal of and interest on any Securities, at final maturity or to the
redemption thereof or the purchase thereof upon tender or in the open market or at private sale or upon any exchange or in any one or more of such ways, including pursuant to a redemption under Article 3 or a required purchase pursuant to
Section 4.07, as the Company shall request, upon receipt by the Trustee of the following: 
 (1) a resolution of the
Board of Directors directing the application pursuant to this Section of a specified amount of Trust Moneys (denominated in U.S. dollars) and in case any such moneys are to be applied to payment, designating any Securities so to be paid and, in case
any such moneys are to be applied to the purchase of any Securities, prescribing the method of purchase, the price or prices to be paid and the maximum principal amount of any Securities to be purchased and any other provisions of this Indenture
governing such purchase; 
 (2) additional cash (denominated in U.S. dollars) to the extent necessary to fund the entire
payment amount or purchase price, which cash shall be held by the Trustee in trust for such purpose; 
 (3) an
Officers’ Certificate, dated not more than five days prior to the date of the relevant application, stating 
 (A) that no Default exists; and 
 (B) that all conditions precedent and covenants herein provided for
relating to such application of Trust Moneys have been complied with; and 
 (4) an Opinion of Counsel stating that the
documents and the cash or cash equivalents, if any, which have been or are therewith delivered to and deposited with the Trustee conform to the requirements of this Indenture and that all conditions precedent herein provided for relating to such
application of Trust Moneys have been complied with. 
 Upon compliance with the foregoing provisions of this Section, the Trustee shall
apply Trust Moneys available therefor as directed and specified by such resolution, up to, but not exceeding, the principal amount, plus accrued interest and premiums, if any, of the Securities to be so paid, redeemed or purchased. 
 A resolution of the Board of Directors expressed to be irrevocable directing the application of Trust Moneys under this Section to the payment of the
principal of particular Securities shall for all purposes of this Indenture be deemed the equivalent of the deposit of money with the Trustee in trust for such purpose. Such Trust Moneys and any cash deposited with the Trustee pursuant to subsection
(2) of this Section shall not, after compliance with the foregoing provisions of this Section, be deemed to be part of the Collateral or Trust Moneys. 
 SECTION 13.03. Withdrawals of Insurance Proceeds and Condemnation Awards. (a) To the extent that any Trust Moneys consist of either (i) the proceeds of insurance upon any part of the Collateral or
(ii) any award for or the proceeds from any of the Collateral being taken by eminent domain, expropriation or other similar governmental taking or a requisition for title or sold pursuant to the exercise by any governmental authority of any
right which it may then have to purchase, or to designate a purchaser or to order a sale of any part of the Collateral, such Trust Moneys may be withdrawn by the Company and shall be paid by the Trustee or the Collateral Agent upon a written
instruction by the Company to the Trustee by the proper officer or officers of the Company to reimburse the Company 

  

 75 









 
for expenditures made, or to pay costs incurred, by the Company to repair, rebuild or replace the property destroyed, damaged or taken upon receipt by the
Trustee of the following: 
 (1) an Officers’ Certificate dated not more than 30 days prior to the date of the
application for the withdrawal and payment of such Trust Moneys, setting forth: 
 (A) that expenditures have been made,
or costs incurred, or will be incurred simultaneous with such withdrawal of Trust Moneys, by the Company in a specified amount for the purpose of making certain repairs, rebuildings and replacements of the Collateral, which shall be briefly
described; 
 (B) that no part of such expenditures, in any previous or then pending application, has been or is being
made the basis for the withdrawal of any Trust Moneys pursuant to this Section 13.03; 
 (C) that no part of such
expenditures or costs has been paid out of either the proceeds of insurance upon any part of the Collateral not required to be paid to the Trustee or the Collateral Agent, as appropriate, under the Pledge Agreement or any award for or the proceeds
from any of the Collateral being taken not required to be paid to the Trustee or the Collateral Agent, as appropriate, under the Pledge Agreement, as the case may be; 
 (D) that there is no outstanding indebtedness or other obligation, other than costs for which payment is being requested, known to
the Company, after due inquiry, for the purchase price or construction of such repairs, rebuildings or replacements, or for labor, wages, materials or supplies in connection with the making thereof, which, if unpaid, might become the basis of a
vendor’s, mechanics’, laborer’s, materialmen’s, statutory or other similar Lien upon any of such repairs, rebuildings or replacement, which Lien might, in the opinion of the signers of such certificate, materially impair the
security afforded by such repairs, rebuildings or replacement; and 
 (E) that no Default or Event of Default shall have
occurred and be continuing. 
 (b) To the extent applicable, in connection with any withdrawal of Trust Moneys pursuant to
Section 13.03(a), the Company and each obligor shall cause § 314 of the TIA relating to the release of property or securities from the Lien hereof and of the Pledge Agreement to be complied with. Any certificate or opinion required by
§ 314 of the TIA may be made by an officer of the Company, except in cases in which the TIA requires that such certificate or opinion be made by an independent person. 
 (c) Upon compliance with the foregoing provisions of this Section, the Trustee shall pay on Company request an amount of Trust Moneys of the
character aforesaid equal to the amount of the expenditures or costs stated in the Officers’ Certificate required by paragraph (A) of subsection (1) of Section 13.03(a). Subject to the Intercreditor Agreement, unless the
Collateral Agent and Trustee shall otherwise agree, all insurance relating to the Collateral must name the Collateral Agent and Trustee as an insured, but without liability for premiums, calls or assessments, and all amounts of whatsoever nature
payable under any insurance (to the extent covering the Collateral) must be payable to the Collateral Agent and Trustee for distribution, first to itself and thereafter to the Company, as owner of such Collateral or others as their interests may
appear. All amounts payable under any insurance with respect to Collateral involving any damage to Collateral not constituting an actual or constructive or an agreed or compromised total loss, the insurers may pay directly for the repair, salvage or
other charges involved or, if the Company shall have first fully repaired the damage or paid all of the salvage or other charges, may pay the Company as reimbursement therefor; provided, however, that if such amounts (including any
franchise or deductible) are in excess of $1,000,000, the insurers shall, subject to the Intercreditor Agreement, make such payment to the Collateral Agent. Subject to the Intercreditor Agreement, all payments of insurance in respect of Collateral
shall be made to the 

  

 76 









 
Collateral Agent if an Event of Default shall have occurred or any event which with the giving of notice or the lapse of time, or both, would constitute an
Event of Default. 
 SECTION 13.04. Powers Exercisable Notwithstanding Event of Default. Subject to the Intercreditor Agreement, in
case an Event of Default shall have occurred and shall be continuing, the Company, while in possession of the Collateral (other than cash, cash equivalents, securities and other personal property held by, or required to be deposited or pledged with,
the Trustee hereunder or under the Pledge Agreement), may do any of the things enumerated in Sections 13.02 and 13.03 if the Trustee in its discretion, or the Holders of a majority in aggregate principal amount of the outstanding Securities, by
appropriate action of such Holders, shall consent to such action, in which event any certificate filed under any of such Sections shall omit the statement to the effect that no Event of Default has occurred and is continuing. This Section 12.04
shall not apply, however, during the continuance of an Event of Default of the type specified in Section 6.01(1) or 6.01(2). 
 SECTION
13.05. Powers Exercisable by Trustee or Receiver. Subject to the Intercreditor Agreement, in case the Collateral (other than any cash, cash equivalents, securities and other personal property held by, or required to be deposited or pledged
with, the Trustee or the Collateral Agent hereunder or under the Pledge Agreement) shall be in the possession of a receiver or trustee lawfully appointed, the powers hereinbefore in this Article 13 conferred upon the Company with respect to the
withdrawal or application of Trust Moneys may be exercised by such receiver or trustee, in which case a certificate signed by such receiver or trustee shall be deemed the equivalent of any Officers’ Certificate required by this Article 13.
If the Trustee or the Collateral Agent shall be in possession of any of the Collateral hereunder or under the Pledge Agreement, such powers may be exercised by the Trustee or the Collateral Agent, as applicable, in its sole discretion. 

SECTION 13.06. Disposition of Securities Retired. All Securities received by the Trustee and for whose purchase Trust Moneys are applied under
this Article 13, if not otherwise canceled, shall be promptly canceled and destroyed by the Trustee in accordance with its customary practice. 
 SECTION 13.07. Investment and Use of Trust Moneys. (a) Subject to the Intercreditor Agreement, all or any part of any Trust Moneys held by the Trustee hereunder (except such as may be held for the account of any particular
Securities) or by the Collateral Agent on behalf of the Trustee, shall from time to time at the written direction of the Company be invested or reinvested in Temporary Cash Investments. Unless a Default occurs and is continuing, any interest on such
Temporary Cash Investments (in excess of any accrued interest paid at the time of purchase) which may be received by the Trustee or the Collateral Agent, as appropriate, shall be paid periodically to the Company upon their instruction. Such
Temporary Cash Investments shall be held by the Trustee as a part of the Collateral, subject to the same provisions hereof as the cash used by it to purchase such cash equivalents. The Trustee shall not be liable or responsible for any loss
resulting from such investments or sales except only for its own negligent action, its own negligent failure to act or its own willful misconduct in complying with this Section 13.07. 
 (b) If the Company shall fail to perform any of its covenants in this Indenture or under the Pledge Agreement, the Trustee may (but shall not be
required to), or direct the Collateral Agent to, at any time and from time to time, use, apply and advance any Trust Moneys held by it under this Article 13 or make advances to effect performance of any such covenant on behalf of the Company as
contemplated by this Indenture or the Pledge Agreement; provided, however, that the Trustee or the Collateral Agent, as appropriate, shall not be required to make any such advances from its own funds; provided further, however,
that all moneys so used or advanced by the Trustee, together (in the case of funds advanced by the Trustee) with interest at the rate borne by the Securities shall be repaid by the Company upon demand and such advances shall be secured under the
Pledge Agreement prior to the Securities. For repayment of all such advances the Trustee shall have the right to use and apply any 

  

 77 









 
Trust Moneys at any time held by it under Article 13, but no such use of Trust Moneys or advance shall relieve the Company from any Default. 

ARTICLE 14 
 Miscellaneous 

 SECTION 14.01. 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 required provision shall control. 
 SECTION 14.02.
Notices. Any notice or communication shall be in writing and delivered in person or mailed by first-class mail addressed as follows: 
 if to the Company or any Subsidiary Guarantor: 
 EXCO Resources, Inc. 
 12377 Merit Drive, Suite 1700 
 Dallas, TX 75251 
 Attention of General Counsel 
 if to the
Trustee: 
 Wilmington Trust Company 
 Rodney Square North 
 1100 North Market Street 
 Wilmington, DE 19890 
 Attention of Corporate Trust Division 
 The Company, any Subsidiary Guarantor 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 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. 
 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, except that notices to the Trustee shall be effective only upon receipt. 
 SECTION 14.03.
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 Company, any Subsidiary
Guarantor, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
 SECTION 14.04. Certificate and
Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take or refrain from taking any action under this Indenture, the Company 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. 
  

 78 









 SECTION 14.05. 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 14.06. 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 Company or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company 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 14.07. 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 14.08. Legal Holidays. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a
Legal Holiday, 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 14.09. Governing Law. This Indenture, the Pledge Agreement, the Intercreditor Agreement and the Securities shall be governed by, and construed in accordance with, the laws of the State of New York but
without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby. 
 SECTION 14.10. No Recourse Against Others. A director, officer, employee, stockholder or incorporator, as such, of the Company or any Subsidiary Guarantor or the Trustee shall not have any liability for any
obligations of the Company or any Subsidiary Guarantor under the Securities, any Subsidiary Guaranty, the Pledge Agreement or this Indenture or of such Subsidiary Guarantor under its Subsidiary Guaranty, the Pledge Agreement or this Indenture or for
any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of
the Securities. 
 SECTION 14.11. Successors. All agreements of the Company in this Indenture and the Securities shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its successors. 
 SECTION 14.12. 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 14.13. 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. 
  

 79 









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

			
	EXCO RESOURCES, INC.,
		
	By	 	 /s/ T.W. EUBANK

	Name:	 	T.W. Eubank
	Title:	 	President
	
	TAURUS ACQUISITION, INC.,
		
	By	 	 /s/ J. DOUGLAS RAMSEY

	Name:	 	J. Douglas Ramsey
	Title:	 	Vice President
	
	EXCO INVESTMENT I, LLC,
		
	By	 	 /s/ RICHARD L. HODGES

	Name:	 	Richard L. Hodges
	Title:	 	Vice President
	
	EXCO INVESTMENT II, LLC,
		
	By	 	 /s/ J. DOUGLAS RAMSEY

	Name:	 	J. Douglas Ramsey
	Title:	 	Vice President


  

 80 










			
	NCE ACQUISITION, INC.,
		
	By	 	 /s/ J. DOUGLAS RAMSEY

	Name:	 	J. Douglas Ramsey
	Title:	 	Vice President
	
	EXCO OPERATING, LP, by EXCO Investment II, LLC, its general partner
		
	By	 	 /s/ J. DOUGLAS RAMSEY

	Name:	 	J. Douglas Ramsey
	Title:	 	Vice President


  

 81 










			
	WILMINGTON TRUST COMPANY,
		
	By	 	 /s/ JAMES D. NESCI

	Name:	 	James D. Nesci
	Title:	 	Authorized Signer


  

 82 









 Rule 144A/REGULATION S/IAI APPENDIX 
 PROVISIONS RELATING TO INITIAL SECURITIES, 
 PRIVATE EXCHANGE SECURITIES AND
EXCHANGE SECURITIES 
 1. Definitions 
 1.1 Definitions 
 For the purposes of this Appendix the following terms shall have the meanings indicated below: 

“Applicable Procedures” means, with respect to any transfer or transaction involving a Temporary Regulation S Global Security or
beneficial interest therein, the rules and procedures of the Depository for such a Temporary Regulation S Global Security, to the extent applicable to such transaction and as in effect from time to time. 
 “Definitive Security” means a certificated Initial Security or Exchange Security or Private Exchange Security bearing, if required, the
appropriate restricted securities legend set forth in Section 2.3(e). 
 “Depository” means The Depository Trust Company, its
nominees and their respective successors. 
 “Distribution Compliance Period”, with respect to any Securities, means the period of
40 consecutive days beginning on and including the later of (i) the day on which such Securities are first offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the issue date with respect to such Securities. 
 “Exchange
Securities” means (1) the 7 1 / 4 % Senior Notes Due 2011 issued pursuant to the Indenture in connection with a Registered Exchange
Offer pursuant to a Registration Rights Agreement and (2) Additional Securities, if any, offered and sold by the Company pursuant to a registration statement filed with the SEC under the Securities Act. 
 “IAI” means an institutional “accredited investor,” as defined in Rule 501(a) (1), (2), (3) or (7) of
Regulation D under the Securities Act. 
 “Initial Purchasers” means (1) with respect to the Initial Securities issued on
the Issue Date, Credit Suisse First Boston LLC, Banc One Capital Markets, Inc., Banc of America Securities LLC, BNP Paribas Securities Corp., Comerica Securities, Inc., Fleet Securities, Inc., Scotia Capital (USA) Inc. and TD
Securities (USA) Inc. and (2) with respect to each issuance of Additional Securities, the Persons purchasing Additional Securities under the related Purchase Agreement. 
 “Initial Securities” means (1) $350,000,000 aggregate principal amount of 7
1 / 4 % Senior Notes Due 2011 issued on the Issue Date and (2) Additional Securities, if any, issued in a transaction exempt from the
registration requirements of the Securities Act. 
 “Private Exchange” means the offer by the Company, pursuant to a Registration
Rights Agreement, to the Initial Purchasers to issue and deliver to each such Initial Purchaser, in exchange for the Initial Securities held by such Initial Purchaser as part of the initial distribution of such Initial Securities, a like aggregate
principal amount of Private Exchange Securities. 
 “Private Exchange
Securities” means any 7 1 / 4 % Senior Notes Due 2011 issued in connection with a Private Exchange. 
 “Purchase Agreement” means (1) with respect to the Initial Securities issued on the Issue Date, the Purchase Agreement dated
January 14, 2004, among the Company, the Subsidiary Guarantors and the Initial Purchasers and (2) with respect to each issuance of Additional Securities, the purchase agreement or underwriting agreement among the Company and the Persons
purchasing such Additional Securities. 
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A.









 “Registered Exchange Offer” means the offer by the Company, pursuant to a Registration Rights
Agreement, to certain Holders of Initial Securities, to issue and deliver to such Holders, in exchange for the Initial Securities, a like aggregate principal amount of Exchange Securities registered under the Securities Act. 
 “Registration Rights Agreement” means (1) with respect to the Initial Securities issued on the Issue Date, the Registration Rights
Agreement dated January 20, 2004, among the Company, the Subsidiary Guarantors and the Initial Purchasers and (2) with respect to each issuance of Additional Securities issued in a transaction exempt from the registration requirements of
the Securities Act, the registration rights agreement, if any, among the Company, the Subsidiary Guarantors and the Persons purchasing such Additional Securities under the related Purchase Agreement. 
 “Rule 144A Securities” means all Securities offered and sold to QIBs in reliance on Rule 144A. 
 “Securities” means the Initial Securities, the Exchange Securities and the Private Exchange Securities, treated as a single class under the
Indenture. 
 “Securities Act” means the Securities Act of 1933. 
 “Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Depository), or any successor Person thereto,
and shall initially be the Trustee. 
 “Shelf Registration Statement” means the registration statement issued by the Company in
connection with the offer and sale of Initial Securities or Private Exchange Securities pursuant to a Registration Rights Agreement. 
 “Transfer Restricted Securities” means Securities that bear or are required to bear a legend relating to restrictions on transfer relating to the Securities Act set forth in Section 2.3(e). 
 1.2 Other Definitions 
  

			
	 Term
	  	Defined in
Section:
	 Agent Members
	  	2.1(b)
	 Global Securities
	  	2.1(a)
	 IAI Global Security
	  	2.1(a)
	 Permanent Regulation S Global Security
	  	2.1(a)
	 Regulation S
	  	2.1(a)
	 Regulation S Global Security
	  	2.1(a)
	 Rule 144A
	  	2.1(a)
	 Rule 144A Global Security
	  	2.1(a)
	 Temporary Regulation S Global Security
	  	2.1(a)

 2. The Securities 
 2.1 (a) Form and Dating. The Initial Securities will be offered and sold by the Company pursuant to a Purchase Agreement. The Initial Securities will be resold initially only to (i) QIBs in reliance
on Rule 144A under the Securities Act (“Rule 144A”) and (ii) Persons other than U.S. Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act (“Regulation S”). Initial
Securities may thereafter be transferred to, among others, QIBs, IAIs and purchasers in reliance on Regulation S, subject to the restrictions on transfer set forth herein. Initial Securities initially resold pursuant to Rule 144A shall be
issued initially in the form of one or more global Securities in definitive, fully registered form (collectively, the “Rule 144A Global Security”); Initial Securities initially resold to IAIs shall be issued initially in the form of
one or more global Securities in definitive, fully registered form (collectively, the “IAI Global Security”); and Initial Securities initially resold pursuant to Regulation S shall be issued initially in the form of one or more
temporary global securities 

  

 2 









 
in fully registered form (collectively, the “Temporary Regulation S Global Security”), in each case without interest coupons and with the
global securities legend and the applicable restricted securities legend set forth in Exhibit 1 hereto, which shall be deposited on behalf of the purchasers of the Initial Securities represented thereby with the Securities Custodian and
registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated by the Trustee as provided in this Indenture. Except as set forth in this Section 2.1(a), beneficial ownership interests in
the Temporary Regulation S Global Security will not be exchangeable for interests in the Rule 144A Global Security, the IAI Global Security, a permanent global security (the “Permanent Regulation S Global Security”, and
together with the Temporary Regulation S Global Security, the “Regulation S Global Security”) or any other Security prior to the expiration of the Distribution Compliance Period and then, after the expiration of the Distribution
Compliance Period, may be exchanged for interests in a Rule 144A Global Security, an IAI Global Security or the Permanent Regulation S Global Security only upon certification in form reasonably satisfactory to the Trustee that
(i) beneficial ownership interests in such Temporary Regulation S Global Security are owned either by non-U.S. persons or U.S. persons who purchased such interests in a transaction that did not require registration under the Securities Act
and (ii) in the case of an exchange for an IAI Global Security, certification that the interest in the Temporary Regulation S Global Security is being transferred to an IAI acquiring the securities for its own account or for the account of
another IAI. 
 Beneficial interests in Temporary Regulation S Global Securities or IAI Global Securities may be exchanged for interests
in Rule 144A Global Securities if (1) such exchange occurs in connection with a transfer of Securities in compliance with Rule 144A and (2) the transferor of the beneficial interest in the Temporary Regulation S Global
Security or the IAI Global Security, as applicable, first delivers to the Trustee a written certificate (in a form satisfactory to the Trustee) to the effect that the beneficial interest in the Temporary Regulation S Global Security or the IAI
Global Security, as applicable, is being transferred to a Person (a) who the transferor reasonably believes to be a QIB, (b) purchasing for its own account or the account of a QIB in a transaction meeting the requirements of
Rule 144A, and (c) in accordance with all applicable securities laws of the States of the United States and other jurisdictions. 
 Beneficial interests in Temporary Regulation S Global Securities and Rule 144A Global Securities may be exchanged for an interest in IAI Global Securities if (1) such exchange occurs in connection with a transfer of the
securities in compliance with an exemption under the Securities Act and (2) the transferor of the Regulation S Global Security or Rule 144A Global Security, as applicable, first delivers to the trustee a written certificate
(substantially in the form of Exhibit 2) to the effect that (A) the Regulation S Global Security or Rule 144A Global Security, as applicable, is being transferred (a) to an IAI acquiring the securities for its own account or
for the account of another IAI, in each case in a minimum principal amount of 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 and
(B) in accordance with all applicable securities laws of the States of the United States and other jurisdictions. 
 Beneficial
interests in a Rule 144A Global Security or an IAI Global Security may be transferred to a Person who takes delivery in the form of an interest in a Regulation S Global Security, whether before or after the expiration of the Distribution
Compliance Period, only if the transferor first delivers to the Trustee a written certificate (in the form provided in the Indenture) to the effect that such transfer is being made in accordance with Rule 903 or 904 of Regulation S or
Rule 144 (if applicable). 
 The Rule 144A Global Security, the IAI Global Security, the Temporary Regulation S Global
Security and the Permanent Regulation S Global Security are collectively referred to herein as “Global Securities”. The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments
made on the records of the Trustee and the Depository or its nominee as hereinafter provided. 
  

 3 









 (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a
Global Security deposited with or on behalf of the Depository. 
 The Company shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the Depository for such Global Security or Global Securities or the nominee of such Depository and (b) shall
be delivered by the Trustee to such Depository or pursuant to such Depository’s instructions or held by the Trustee as custodian for the Depository. 
 Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depository or by the Trustee as the
custodian of the Depository or under such Global Security, and the Company, the Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors or the Trustee shall be entitled to treat the Depository as the absolute owner
of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Subsidiary Guarantors, the Trustee or any agent of the Company, the Subsidiary Guarantors or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights of
a holder of a beneficial interest in any Global Security. 
 (c) Definitive Securities. Except as provided in this
Section 2.1 or Section 2.3 or 2.4, owners of beneficial interests in Global Securities shall not be entitled to receive physical delivery of Definitive Securities. 
 2.2 Authentication 
 The Trustee shall authenticate and deliver: (1) on the Issue Date, an aggregate principal
amount of $350.0 million 7 1/4% Senior Notes Due 2011, (2) any Additional Securities for an original issue in an
aggregate principal amount specified in the written order of the Company pursuant to Section 2.02 of the Indenture and (3) Exchange Securities or Private Exchange Securities for issue only in a Registered Exchange Offer or a Private
Exchange, respectively, pursuant to a Registration Rights Agreement, for a like principal amount of Initial Securities, in each case upon a written order of the Company signed by two Officers or by an Officer and either an Assistant Treasurer or an
Assistant Secretary of the Company. Such order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated and, in the case of any issuance of Additional Securities
pursuant to Section 2.13 of the Indenture, shall certify that such issuance is in compliance with Section 4.04 of the Indenture. 
 2.3 Transfer and Exchange 
  

	 	(a)	Transfer and Exchange of Definitive Securities. When Definitive Securities are presented to the Registrar with a request: 

  

	 	(x)	to register the transfer of such Definitive Securities; or 

  

	 	(y)	to exchange such Definitive Securities for an equal principal amount of Definitive Securities of other authorized denominations, 

 the Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however,
that the Definitive Securities surrendered for transfer or exchange: 
 (i) shall be duly endorsed or accompanied by a
written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, duly executed by the Holder thereof or its attorney duly authorized in writing; and 
  

 4 









 (ii) if such Definitive Securities are required to bear a restricted securities
legend, they are being transferred or exchanged pursuant to an effective registration statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below, and are accompanied by the
following additional information and documents, as applicable: 
 (1) if such Definitive Securities are being delivered
to the Registrar by a Holder for registration in the name of such Holder, without transfer, a certification from such Holder to that effect; or 
 (2) if such Definitive Securities are being transferred to the Company, a certification to that effect; or 
 (3) if such Definitive Securities are being transferred (x) pursuant to an exemption from registration in accordance with Rule 144A, Regulation S or Rule 144 under the Securities Act; or
(y) in reliance upon another exemption from the requirements of the Securities Act: (i) a certification to that effect (in the form set forth on the reverse of the Security) and (ii) if the Company so requests, an opinion of counsel
or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth in the legend set forth in Section 2.3(e)(i). 
 (b) Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a Global Security. A Definitive Security may not be exchanged for a beneficial interest in a Rule 144A Global
Security, an IAI Global Security or a Permanent Regulation S Global Security except upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive Security, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Trustee, together with: 
 (i) certification, in the form set forth
on the reverse of the Security, that such Definitive Security is either (A) being transferred to a QIB in accordance with Rule 144A, (B) being transferred to an IAI or (C) being transferred after expiration of the Distribution
Compliance Period by a Person who initially purchased such Security in reliance on Regulation S to a buyer who elects to hold its interest in such Security in the form of a beneficial interest in the Permanent Regulation S Global Security;
and 
 (ii) written instructions directing the Trustee to make, or to direct the Securities Custodian to make, an
adjustment on its books and records with respect to such Rule 144A Global Security (in the case of a transfer pursuant to clause (b)(i)(A)), IAI Global Security (in the case of a transfer pursuant to clause (b)(1)(B)) or Permanent
Regulation S Global Security (in the case of a transfer pursuant to clause (b)(i)(C)) to reflect an increase in the aggregate principal amount of the Securities represented by the Rule 144A Global Security, IAI Global Security or
Permanent Regulation S Global Security, as applicable, such instructions to contain information regarding the Depository account to be credited with such increase, 
 then the Trustee shall cancel such Definitive Security and cause, or direct the Securities Custodian to cause, in accordance with the standing instructions and procedures existing between the Depository and the
Securities Custodian, the aggregate principal amount of Securities represented by the Rule 144A Global Security, IAI Global Security or Permanent Regulation S Global Security, as applicable, to be increased by the aggregate principal
amount of the Definitive Security to be exchanged and shall credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security, IAI Global Security or Permanent
Regulation S Global Security, as applicable, equal to the principal amount of the Definitive Security so canceled. If no Rule 144A Global Securities, IAI Global Securities or Permanent Regulation S Global Securities, as applicable,
are then outstanding, the Company shall issue and the Trustee shall authenticate, upon written order of the 

  

 5 









 
Company in the form of an Officers’ Certificate of the Company, a new Rule 144A Global Security, IAI Global Security or Permanent Regulation S
Global Security, as applicable, in the appropriate principal amount. 
 (c) Transfer and Exchange of Global
Securities. 
 (i) The transfer and exchange of Global Securities or beneficial interests therein shall be effected
through the Depository, in accordance with this Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depository therefor. A transferor of a beneficial interest in a Global Security shall
deliver to the Registrar a written order given in accordance with the Depository’s procedures containing information regarding the participant account of the Depository to be credited with a beneficial interest in the Global Security. The
Registrar shall, in accordance with such instructions, instruct the Depository to credit to the account of the Person specified in such instructions a beneficial interest in the Global Security and to debit the account of the Person making the
transfer the beneficial interest in the Global Security being transferred. 
 (ii) If the proposed transfer is a transfer
of a beneficial interest in one Global Security to a beneficial interest in another Global Security, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the Global Security to which such interest
is being transferred in an amount equal to the principal amount of the interest to be so transferred, and the Registrar shall reflect on its books and records the date and a corresponding decrease in the principal amount of the Global Security from
which such interest is being transferred. 
 (iii) Notwithstanding any other provisions of this Appendix (other than the
provisions set forth in Section 2.4), a Global Security may not be transferred as a whole except by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such successor Depository. 
 (iv) In the event
that a Global Security is exchanged for Definitive Securities pursuant to Section 2.4 of this Appendix, prior to the consummation of a Registered Exchange Offer or the effectiveness of a Shelf Registration Statement with respect to such
Securities, such Securities may be exchanged only in accordance with such procedures as are substantially consistent with the provisions of this Section 2.3 (including the certification requirements set forth on the reverse of the Securities
intended to ensure that such transfers comply with Rule 144A, Regulation S or another applicable exemption under the Securities Act, as the case may be) and such other procedures as may from time to time be adopted by the Company.

 (d) Restrictions on Transfer of Temporary Regulation S Global Securities. During the Distribution
Compliance Period, beneficial ownership interests in Temporary Regulation S Global Securities may only be sold, pledged or transferred in accordance with the Applicable Procedures and only (i) to the Company, (ii) in an offshore
transaction in accordance with Regulation S (other than a transaction resulting in an exchange for an interest in a Permanent Regulation S Global Security) or (iii) pursuant to an effective registration statement under the Securities
Act, in each case in accordance with any applicable securities laws of any State of the United States. 
 (e) Legend. 
 (i) Except as permitted by the following paragraphs (ii), (iii) and (iv), each
Security certificate evidencing the Global Securities (and all Securities issued in exchange therefor or 

  

 6 









 
in substitution thereof), in the case of Securities offered otherwise than in reliance on Regulation S, shall bear a legend in substantially the
following form: 
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS
HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) 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 INVESTOR ACQUIRING THE SECURITIES 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, 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, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (V) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI), IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 Each certificate evidencing a Security
offered in reliance on Regulation S shall, in addition to the foregoing, bear a legend in substantially the following form: 
 THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN
REGULATION S UNDER THE SECURITIES ACT. 
  

 7 









 Each Definitive Security shall also bear the following additional legend: 
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
 (ii) Upon any sale
or transfer of a Transfer Restricted Security (including any Transfer Restricted Security represented by a Global Security) pursuant to Rule 144 under the Securities Act, the Registrar shall permit the transferee thereof to exchange such
Transfer Restricted Security for a certificated Security that does not bear the legend set forth above and rescind any restriction on the transfer of such Transfer Restricted Security, if the transferor thereof certifies in writing to the Registrar
that such sale or transfer was made in reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Security). 
 (iii) After a transfer of any Initial Securities or Private Exchange Securities pursuant to and during the period of the effectiveness of a Shelf Registration Statement with respect to such Initial Securities or
Private Exchange Securities, as the case may be, all requirements pertaining to legends on such Initial Security or such Private Exchange Security will cease to apply, the requirements requiring any such Initial Security or such Private Exchange
Security issued to certain Holders be issued in global form will cease to apply, and a certificated Initial Security or Private Exchange Security or an Initial Security or Private Exchange Security in global form, in each case without restrictive
transfer legends, will be available to the transferee of the Holder of such Initial Securities or Private Exchange Securities upon exchange of such transferring Holder’s certificated Initial Security or Private Exchange Security or directions
to transfer such Holder’s interest in the Global Security, as applicable. 
 (iv) Upon the consummation of a
Registered Exchange Offer with respect to the Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain Holders be issued in global form will still apply with respect to Holders of such
Initial Securities that do not exchange their Initial Securities, and Exchange Securities in certificated or global form, in each case without the restricted securities legend set forth in Exhibit 1 hereto will be available to Holders that
exchange such Initial Securities in such Registered Exchange Offer. 
 (v) Upon the consummation of a Private Exchange
with respect to the Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Securities that do not
exchange their Initial Securities, and Private Exchange Securities in global form with the global securities legend and the applicable restricted securities legend set forth in Exhibit 1 hereto will be available to Holders that exchange such
Initial Securities in such Private Exchange. 
 (f) Cancellation or Adjustment of Global Security. At such time as
all beneficial interests in a Global Security have either been exchanged for Definitive Securities, redeemed, purchased or canceled, such Global Security shall be returned to the Depository for cancellation or retained and canceled by the Trustee.
At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for Definitive Securities, redeemed, purchased or canceled, the principal amount of Securities represented by such Global Security shall be reduced
and an adjustment shall be made on the books and records of the Trustee (if it is then the Securities Custodian for such Global Security) with respect to such Global Security, by the Trustee or the Securities Custodian, to reflect such reduction.

  

 8 









 (g) 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 the Depository or other Person with respect to the accuracy of the records of the Depository 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 the Depository) of any notice (including any notice of redemption) or the payment of any amount, 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 under the Securities shall be given or made only to or upon the order of the registered Holders (which shall be the Depository or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Security shall be exercised only through the Depository subject to the applicable rules and procedures of the Depository. The Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository 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 Depository 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. 
 2.4 Certificated Securities 
 (a) A Global Security deposited with the
Depository or with the Trustee as Securities Custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form of Definitive Securities in an aggregate principal amount equal to the principal
amount of such Global Security, in exchange for such Global Security, only if such transfer complies with Section 2.3 hereof and (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for such
Global Security and the Depository fails to appoint a successor depositary or if at any time such Depository ceases to be a “clearing agency” registered under the Exchange Act and, in either case, a successor Depository is not appointed by
the Company within 90 days of such notice, or (ii) an Event of Default has occurred and is continuing or (iii) the Company, in its sole discretion, notifies the Trustee in writing that it elects to cause the issuance of Definitive
Securities under this Indenture. 
 (b) Any Global Security that is transferable to the beneficial owners thereof
pursuant to this Section 2.4 shall be surrendered by the Depository to the Trustee located at its principal corporate trust office in the Borough of Manhattan, The City of New York, to be so transferred, in whole or from time to time in part,
without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such Global Security, an equal aggregate principal amount of Definitive Securities of authorized denominations. Any portion of a Global Security
transferred pursuant to this Section 2.4 shall be executed, authenticated and delivered only in denominations of $1,000 principal amount and any integral multiple thereof and registered in such names as the Depository shall direct. Any
Definitive Security delivered in exchange for an interest in the Transfer Restricted Security shall, except as otherwise provided by Section 2.3(e) hereof, bear the applicable restricted securities legend and definitive note legend set forth in
Exhibit 1 hereto. 
 (c) Subject to the provisions of Section 2.4(b) hereof, the registered Holder of a Global
Security shall be entitled to grant proxies and otherwise authorize any Person, including Agent 

  

 9 









 
Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the
Securities. 
 (d) In the event of the occurrence of one of the events specified in Section 2.4(a) hereof, the
Company shall promptly make available to the Trustee a reasonable supply of Definitive Securities in definitive, fully registered form without interest coupons. In the event that the Definitive Securities are not issued to each such beneficial owner
promptly after the Registrar has received a request from the Holder of a Global Security to issue such Certificated Security, the Company expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Article 6
of the Indenture, the right of any beneficial holder of Securities to pursue such remedy with respect to the portion of the Global Security that represents such beneficial holder’s Securities as if such Certificated Securities had been issued.

  

 10 









 EXHIBIT 1 to Rule 144A/REGULATION S APPENDIX 
 [FORM OF FACE OF INITIAL SECURITY] 
 [Global
Securities Legend] 
 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 COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR 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 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 THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF
COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.] 
 [Restricted Securities Legend for Securities Offered 
 Otherwise than in Reliance on Regulation S] 
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) WITHIN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) 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
INVESTOR ACQUIRING THE SECURITIES 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, 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, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (V) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES 









 
ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 [Restricted Securities Legend for Securities Offered in 
 Reliance on Regulation S.] 
 THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN
REGULATION S UNDER THE SECURITIES ACT. 
 [Temporary Regulation S Global Security Legend] 
 EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE
PERMANENT REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION
COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S.
PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE. 
 AFTER THE EXPIRATION OF THE DISTRIBUTION
COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE
WITH RULE 144A AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED
(A) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING 

  

 2 









 
FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND (C) IN ACCORDANCE WITH
ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. 
 AFTER THE EXPIRATION OF THE DISTRIBUTION
COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS IN AN IAI GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH
AN EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY
IS BEING TRANSFERRED (A) 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 INVESTOR ACQUIRING THE SECURITIES 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, 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 AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. 
 BENEFICIAL INTERESTS IN A RULE 144A GLOBAL SECURITY OR AN IAI GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE
40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF
REGULATION S OR RULE 144 (IF AVAILABLE). 
 [Definitive Securities Legend] 
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  

 3 










			
	No.             	  	$             

 7 1/4% Senior Notes Due 2011 
 EXCO Resources, Inc., a Texas corporation, promises to pay to “Cede & Co.”, or registered assigns, the principal sum of             
Dollars on January 15, 2011. 
 Interest Payment Dates: January 15 and July 15. 
 Record Dates: January 1 and July 1. 
 Additional provisions of this Security are set forth on the other side of this Security. 
 Dated: 
  

											
		 		 		 		 	EXCO RESOURCES, INC.
						
		 		 		 		 	By	 	  

		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
				
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION	 		 		 	
				
	 WILMINGTON TRUST COMPANY
as Trustee, certifies that this is one of the Securities referred to in the Indenture.
	 		 		 	
						
		 	By	 	  
	 		 		 	
		 		 	Authorized Signatory	 		 		 	









 [FORM OF REVERSE SIDE OF INITIAL SECURITY] 
 7 1/4% Senior Note Due 2011 
 1. Interest 
 EXCO Resources, Inc., a Texas corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein
called the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above; provided, however, that if a Registration Default (as defined in the Registration Rights Agreement)
occurs, additional interest will accrue on this Security at a rate of 0.50% per annum (increasing by an additional 0.50% per annum after each consecutive 90-day period that occurs after the date on which such Registration Default occurs up
to a maximum additional interest rate of 1.5%) from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured. The Company will pay interest (including any
Additional Interest pursuant to the Registration Rights Agreement) semiannually in arrears on January 15 and July 15 of each year, commencing July 15, 2004. Interest on the Securities will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from January 20, 2004. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company will pay interest on overdue principal at the rate borne by this
Security plus 1.0% per annum, and it will pay interest on overdue installments of interest at the same rate to the extent lawful. 
 2. Method of
Payment 
 The Company will pay interest on the Securities (except defaulted interest) to the Persons who are registered holders of
Securities at the close of business on the January 1 or July 1 next preceding the interest payment date even if Securities are canceled 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 Company will pay principal and interest 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 the Securities
represented by a Global Security (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Company will make all payments in respect of a
certificated Security (including principal, premium and interest) by mailing a check to the registered address of each Holder thereof; provided, however, that payments on a certificated Security will be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect designating such account no later than 30 days
immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). 
 3. Paying Agent and
Registrar 
 Initially, Wilmington Trust Company, a Delaware banking corporation (the “Trustee”), will act as Paying Agent and
Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar. 

4. Indenture 
 The Company issued the Securities
under an Indenture dated as of January 20, 2004 (“Indenture”), among the Company, the Subsidiary Guarantors 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 date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto


  

 2 









 
in the Indenture. The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms.

 The Securities are senior obligations of the Company. The Company shall be entitled, subject to its compliance with Section 4.04 of
the Indenture, to issue Additional Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange
therefor will be treated as a single class for all purposes under the Indenture. The Indenture contains covenants that limit the ability of the Company and its subsidiaries to incur additional indebtedness; pay dividends or distributions on, or
redeem or repurchase capital stock; make investments; engage in transactions with affiliates; create liens on assets; transfer or sell assets; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate, merge or
transfer all or substantially all of its assets and the assets of its subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important exceptions and qualifications. 
 5. Optional Redemption 
 Except as set forth below and
in paragraph 6, the Company shall not be entitled to redeem the Securities. 
 Prior to January 15, 2007, the Company shall be
entitled at its option to redeem all, but not less than all, of the Securities at a redemption price equal to 100% of the principal amount of the Securities plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption date
(subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment date). The Company shall cause notice of such redemption to be mailed by first-class mail to each Holder’s registered address,
not less than 30 nor more than 60 days prior to the redemption date. 
 On or after January 15, 2007, the Company shall be entitled
at its option to redeem all or a portion of the Securities upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed in percentages of principal amount on the redemption date), plus accrued interest 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 January 15 of the years set forth below:

  

				
	 Period
	  	Redemption
Price	 
	 2007
	  	105.438	%
	 2008
	  	103.625	%
	 2009
	  	101.813	%
	 2010 and thereafter
	  	100.000	%

 In addition, prior to January 15, 2007, the Company shall be entitled at its option on one or
more occasions to redeem Securities (which includes Additional Securities, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities (which includes Additional Securities, if any) originally
issued at a redemption price (expressed as a percentage of principal amount) of 107.25%, plus accrued and unpaid interest to the redemption date, with the net cash proceeds from one or more Public Equity Offerings; provided, however,
that if the Public Equity Offering is an offering by Parent, a portion of the Net Cash Proceeds thereof equal to the amount required to redeem any such notes is contributed to the equity capital of the Company); provided, however, that
(1) at least 65% of such aggregate principal amount of Securities (which includes Additional Securities, if any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly,
by the Company or its Affiliates); and (2) each such redemption occurs within 90 days after the date of the related Public Equity Offering. 
  

 3 









 6. Mandatory Redemption 
 In the event the conditions precedent to the release to the Company of the Escrowed Funds (as defined in the Escrow Agreement) are not satisfied on or prior to March 4, 2004 or the Tender Offer or the Merger
Agreement is terminated at any time prior thereto, the Company shall redeem the Securities at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the related interest payment date). The Company will cause the notice of special mandatory redemption to be mailed no later than the next Business Day following March 4, 2004 or
following the date the Tender Offer or the Merger Agreement is terminated, as applicable, and will redeem the Securities three Business Days following the date of the notice of redemption. 
 7. Notice of Redemption 
 Except as set forth in
paragraph 6 above, notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger
than $1,000 principal amount may be redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is
deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
 8. Put Provisions 
 Upon a Change of Control, any
Holder of Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder at a repurchase price in cash equal to 101% of the principal amount of the Securities to be repurchased plus accrued
interest to the date of repurchase (subject to the right of holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture. 
 Upon consummation of a Permitted MLP Transaction, any Holder of Securities will have the right to cause the Company to repurchase all or any part of the
Securities of such Holder as provided in, and subject to the terms of, the Indenture at a repurchase price equal to (A) if the Permitted MLP Transaction is consummated at any time prior to January 15, 2007, 107.25% or (B) if the
Permitted MLP Transaction is consummated at any time on or after January 15, 2007, the redemption price set forth under the third paragraph of paragraph 5 of this Security that would be applicable at such time if the Securities were being
redeemed on the date of the Permitted MLP Transaction under such paragraph, in each case, such MLP Offer price being expressed as a percentage of the principal amount of the Securities on the date of purchase, plus accrued and unpaid interest, if
any, to the date of purchase (subject to the rights of Holders of record on the relevant record date to receive interest on the relevant interest payment date). 
 9. Guaranty 
 The payment by the Company of the principal of, and premium and interest on, the Securities is fully and
unconditionally guaranteed on a joint and several senior basis by each of the Subsidiary Guarantors (except that the guarantee of Taurus Acquisition is subordinated to the Credit Agreement) to the extent set forth in the Indenture. 
 10. Security 
 The Securities will be secured by a
second priority security interest (subject to Specified Permitted Liens) on the Collateral. The Collateral consists of 65% of the Capital Stock of Addison Energy Inc. and 100% of the Capital Stock of Taurus Acquisition, Inc.
Notwithstanding the foregoing, at no time will any shares of Capital Stock of such Subsidiaries constitute Collateral to the extent that at such time 

  

 4 









 
Rule 3-16 of Regulation S-X under the Securities Act requires (or is replaced with another rule or regulation or any other law, rule or regulation
is adopted which would require) the filing with the SEC (or any other governmental agency) of separate financial statements of any Subsidiary of the Company as a result of the fact that such shares of Capital Stock secure the Securities, but only to
the extent and for so long as necessary to not be subject to such requirement. At such times, the Pledge Agreement may be amended or modified, without the consent of any Holder of Securities, to the extent considered necessary to reflect the
operation of the foregoing sentence. 
 11. Denominations; Transfer; Exchange 
 The Securities are in registered form without coupons in denominations of $1,000 principal amount 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 of or exchange 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 any Securities for a period of 15 days
before a selection of Securities to be redeemed or 15 days before an interest payment date. 
 12. Persons Deemed Owners 
 The registered Holder of this Security may be treated as the owner of it for all purposes. 
 13. 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 Company at its request unless an abandoned property law designates another Person. After any such payment to the Company, Holders entitled to the money must look only to the Company
and not to the Trustee for payment. 
 14. Discharge and Defeasance 
 Subject to certain conditions, the Company at any time shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S.
Government Obligations for the payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
 15. Amendment,
Waiver 
 Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Pledge Agreement, the Intercreditor
Agreement and the Securities may be amended with the written consent of the Holders of at least a majority in principal amount outstanding of the Securities (including consents obtained in connection with a tender offer or exchange offer for
Securities) and (b) any past default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in principal amount outstanding of the Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the Subsidiary Guarantors and the Trustee shall be entitled to amend the Indenture, the Pledge Agreement, the Intercreditor Agreement or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article 5 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, including
Subsidiary Guaranties, or to further secure the Securities, or to add additional covenants or surrender rights and powers conferred on the Company or the Subsidiary Guarantors, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder. Notwithstanding the foregoing, without the consent of any Holder of Securities, any amendment, waiver or consent agreed to by the
Credit Agent or the holders of First Lien Obligations under any provision of the Pledge Agreement granting the first-priority Lien on any 

  

 5 









 
Collateral to secure the First Lien Obligations will automatically apply to the comparable provision of the Pledge Agreement; provided,
however, that if any such amendment, waiver or consent could reasonably be expected to be adverse to the Securityholders or the interest of the Securityholders in the Collateral, such amendment, waiver or consent will not be applicable to the
Pledge Agreement as provided above unless First Lien Obligations (including commitments in respect thereof to the extent that such commitments are subject only to borrowing base requirements or other reasonable and customary funding conditions and
are then available to be funded at the election of the Company) of no less than $20.0 million (after giving effect to all borrowing base calculations) secured by first-priority Liens on the Collateral are then outstanding. Notwithstanding the
foregoing, no such amendment, waiver or consent may have the effect of releasing the Collateral, except to the extent set forth in Article 12 of the Indenture. 
 16. Defaults and Remedies 
 Under the Indenture, Events of Default include (a) default for
30 days in payment of interest on the Securities; (b) default in payment of principal on the Securities at maturity, upon redemption pursuant to paragraph 5 or 6 of the Securities, upon acceleration or otherwise, or failure by the
Company to redeem or purchase Securities when required; (c) failure by the Company, or any Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time;
(d) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company if the amount accelerated (or so unpaid) exceeds $5.0 million (e) certain events of bankruptcy or
insolvency with respect to the Company and the Significant Subsidiaries; (f) certain judgments or decrees for the payment of money in excess of $5.0 million; (g) certain defaults with respect to Subsidiary Guaranties; and
(h) certain defaults relating to the Collateral under the Pledge Agreement. If an Event of Default occurs and is continuing, 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 immediately. 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 indemnity or security satisfactory to it. 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 (except a Default in payment of principal or interest) if and so long as it determines that withholding notice is not opposed to the interest of the Holders. 
 17. Trustee Dealings with the Company 
 Subject to
certain limitations imposed by the Act, 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 Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
 18. No Recourse Against
Others 
 A director, officer, employee, incorporator or stockholder, as such, of the Company or any Subsidiary Guarantor or the Trustee
shall not have any liability for any obligations of the Company or any Subsidiary Guarantor under the Securities, any Subsidiary Guaranty, the Pledge Agreement or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
  

 6 









 19. Authentication 
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
 20. 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 entireties), 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). 
 21. CUSIP Numbers 
 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures the Company 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. 
 22. Holders’ Compliance with Registration Rights Agreement. 
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration Rights Agreement, including the obligations
of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein. 
 23. Governing Law. 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 The
Company will furnish to any Securityholder upon written request and without charge to the Security holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
 EXCO Resources, Inc. 
 12377 Merit Drive,
Suite 1700 
 Dallas, TX 75251 
 Attention: General Counsel 
  

 7 









 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 Company. The agent may substitute another to act for him. 
  

							
	  

				
	Date:                     	  	Your Signature:	  	  
	  	
	
	  


 Sign exactly as your name appears on the other side of this Security. 
 In connection with any transfer of any of the Securities evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144(k)
under the Securities Act 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 Company or any Affiliate of the Company, the undersigned confirms that such Securities
are being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW 
  

	 ̈	to the Company; or 

  

	 ̈	pursuant to an effective registration statement under the Securities Act of 1933; or 

  

	 ̈	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act of 1933; or


  

	 ̈	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act of
1933; or 

  

 8 










	 ̈	pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933; or 

  

	 ̈	to an institutional “accredited investor” (as defined in Rule 501(a)(1),(2),(3) or (7) under the Securities Act of 1933) that has furnished to the Trustee a
signed letter containing certain representations and agreements. 

 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 (4), (5) or (6) is checked, the Trustee shall be entitled to
require, prior to registering any such transfer of the Securities, such legal opinions, certifications and other information as the Company has reasonably requested 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. 
  

					
		 		 	  

		 		 	Signature
			
	Signature Guarantee:	 		 	
			
	  
	 		 	  

	Signature must be guaranteed	 		 	Signature

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 9 









 TO BE COMPLETED BY PURCHASER IF (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, 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 Company and the Subsidiary Guarantors 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:                     	  	  

		  	Notice: To be executed by an executive officer

  

 10 









 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
 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 officer
 of Trustee
or
 Securities
 Custodian

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

 11 









 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.07, 4.10 or 4.11 of the Indenture, check the box:

  ̈ 
 If you want to elect to have only part of this Security purchased by the Company pursuant to Section 4.07, 4.10 or 4.11 of the Indenture, state the amount in principal amount: $ 
  

					
	Dated:                     	  	Your Signature:	  	  

		  		  	(Sign exactly as your name appears on the other side of this Security.)

  

							
	Signature Guarantee:	  	  

		  	(Signature must be guaranteed)

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 12 









 EXHIBIT A 
 [FORM OF FACE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY]*/**/ 
  
  
  

	*/	If the Security is to be issued in global form add the Global Securities Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1 captioned
“SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”. 


	**/	If the Security is a Private Exchange Security issued in a Private Exchange to an Initial Purchaser holding an unsold portion of its initial allotment, add the Restricted Securities
Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with the Assignment Form included in such Exhibit 1. 










			
	No.             	  	$             

 7 1/4% Senior Notes Due 2011 
 EXCO Resources, Inc., a Texas corporation, promises to pay to “Cede & Co.”, or registered assigns, the principal sum of             
Dollars on January 15, 2011. 
 Interest Payment Dates: January 15 and July 15. 
 Record Dates: January 1 and July 1. 
 Additional provisions of this Security are set forth on the other side of this Security. 
 Dated: 
  

											
		 		 		 		 	EXCO RESOURCES, INC.
						
		 		 		 		 	By	 	  

		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
				
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 		 		 	
				
	 WILMINGTON TRUST COMPANY
as Trustee, certifies that this is one of the Securities referred to in the Indenture.
	 		 		 	
						
		 		 		 		 	By	 	  

		 		 		 		 		 	Authorized Signatory

  

 2 









 [FORM OF REVERSE SIDE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY] 
 7 1/4% Senior Note Due 2011 
 1. Interest 
 EXCO Resources, Inc., a Texas corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above; provided, however, that if a Registration Default (as
defined in the Registration Rights Agreement) occurs, additional interest will accrue on this Security at a rate of 0.50% per annum (increasing by an additional 0.50% per annum after each consecutive 90-day period that occurs after the
date on which such Registration Default occurs up to a maximum additional interest rate of 1.5%) from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been
cured. The Company will pay interest (including any Additional Interest pursuant to the Registration Rights Agreement) semiannually in arrears on January 15 and July 15 of each year, commencing July 15, 2004. Interest on the
Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from January 20, 2004. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company will pay
interest on overdue principal at the rate borne by this Security plus 1.0% per annum, and it will pay interest on overdue installments of interest at the same rate to the extent lawful. 
 2. Method of Payment 
 The Company will pay interest
on the Securities (except defaulted interest) to the Persons who are registered holders of Securities at the close of business on the January 1 or July 1 next preceding the interest payment date even if Securities are canceled 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 Company will pay principal and interest 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 the Securities represented by a Global Security (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified
by The Depository Trust Company. The Company will make all payments in respect of a certificated Security (including principal, premium and interest) by mailing a check to the registered address of each Holder thereof; provided,
however, that payments on a certificated Security will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to such effect designating such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). 
 3. Paying Agent and Registrar 
 Initially, Wilmington
Trust Company, a Delaware banking corporation (the “Trustee”), will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar. 
  

 3 









 4. Indenture 
 The Company issued the Securities under an Indenture dated as of January 20, 2004 (“Indenture”), among the Company, the Subsidiary Guarantors 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 date of the Indenture (the “Act”). Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
 The Securities are senior obligations of the Company. The Company shall be entitled, subject to its compliance with Section 4.04 of the Indenture,
to issue Additional Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be
treated as a single class for all purposes under the Indenture. The Indenture contains covenants that limit the ability of the Company and its subsidiaries to incur additional indebtedness; pay dividends or distributions on, or redeem or repurchase
capital stock; make investments; engage in transactions with affiliates; create liens on assets; transfer or sell assets; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate, merge or transfer all or
substantially all of its assets and the assets of its subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important exceptions and qualifications. 
 5. Optional Redemption 
 Except as set forth below and in paragraph 6, the Company shall not be
entitled to redeem the Securities. 
 Prior to January 15, 2007, the Company shall be entitled at its option to redeem all, but not less
than all, of the Securities at a redemption price equal to 100% of the principal amount of the Securities plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption date (subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date). The Company shall cause notice of such redemption to be mailed by first-class mail to each Holder’s registered address, not less than 30 nor more than 60 days
prior to the redemption date. 
 On or after January 15, 2007, the Company shall be entitled at its option to redeem all or a portion of
the Securities upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed in percentages of principal amount on the redemption date), plus accrued interest 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 January 15 of the years set forth below: 
  

				
	 Period
	  	Redemption
Price	 
	 2007
	  	105.438	%
	 2008
	  	103.625	%
	 2009
	  	101.813	%
	 2010 and thereafter
	  	100.000	%

  

 4 









 In addition, prior to January 15, 2007, the Company shall be entitled at its option on one or more
occasions to redeem Securities (which includes Additional Securities, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities (which includes Additional Securities, if any) originally issued at
a redemption price (expressed as a percentage of principal amount) of 107.25%, plus accrued and unpaid interest to the redemption date, with the net cash proceeds from one or more Public Equity Offerings; provided, however, that if the
Public Equity Offering is an offering by Parent, a portion of the Net Cash Proceeds thereof equal to the amount required to redeem any such notes is contributed to the equity capital of the Company); provided, however, that (1) at
least 65% of such aggregate principal amount of Securities (which includes Additional Securities, if any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the
Company or its Affiliates); and (2) each such redemption occurs within 90 days after the date of the related Public Equity Offering. 
 6.
Mandatory Redemption 
 In the event the conditions precedent to the release to the Company of the Escrowed Funds (as defined in the
Escrow Agreement) are not satisfied on or prior to March 4, 2004 or the Tender Offer or the Merger Agreement is terminated at any time prior thereto, the Company shall redeem the Securities at a redemption price of 100% of the principal amount
thereof, plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the related interest payment date). The Company will cause the notice of special
mandatory redemption to be mailed no later than the next Business Day following March 4, 2004 or following the date the Tender Offer or the Merger Agreement is terminated, as applicable, and will redeem the Securities three Business Days
following the date of the notice of redemption. 
 7. Notice of Redemption 
 Except as set forth in paragraph 6 above, notice of redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger than $1,000 principal amount may be redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the
redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after such
date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
 8. Put Provisions 
 Upon a Change of Control, any Holder of Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder
at a repurchase price in cash equal to 101% of the principal amount of the Securities to be repurchased plus accrued interest to the date of repurchase (subject to the right of holders of record on the relevant record date to receive interest due on
the related interest payment date) as provided in, and subject to the terms of, the Indenture. 
  

 5 









 Upon consummation of a Permitted MLP Transaction, any Holder of Securities will have the right to cause
the Company to repurchase all or any part of the Securities of such Holder as provided in, and subject to the terms of, the Indenture at a repurchase price equal to (A) if the Permitted MLP Transaction is consummated at any time prior to
January 15, 2007, 107.25% or (B) if the Permitted MLP Transaction is consummated at any time on or after January 15, 2007, the redemption price set forth under the third paragraph of paragraph 5 of this Security that would be
applicable at such time if the Securities were being redeemed on the date of the Permitted MLP Transaction under such paragraph, in each case, such MLP Offer price being expressed as a percentage of the principal amount of the Securities on the date
of purchase, plus accrued and unpaid interest, if any, to the date of purchase (subject to the rights of Holders of record on the relevant record date to receive interest on the relevant interest payment date). 
 9. Guaranty 
 The payment by the Company of the
principal of, and premium and interest on, the Securities is fully and unconditionally guaranteed on a joint and several senior basis by each of the Subsidiary Guarantors (except that the guarantee of Taurus Acquisition is subordinated to the Credit
Agreement) to the extent set forth in the Indenture. 
 10. Security 
 The Securities will be secured by a second priority security interest (subject to Specified Permitted Liens) on the Collateral. The Collateral consists of
65% of the Capital Stock of Addison Energy Inc. and 100% of the Capital Stock of Taurus Acquisition, Inc. Notwithstanding the foregoing, at no time will any shares of Capital Stock of such Subsidiaries constitute Collateral to the extent
that at such time Rule 3-16 of Regulation S-X under the Securities Act requires (or is replaced with another rule or regulation or any other law, rule or regulation is adopted which would require) the filing with the SEC (or any other
governmental agency) of separate financial statements of any Subsidiary of the Company as a result of the fact that such shares of Capital Stock secure the Securities, but only to the extent and for so long as necessary to not be subject to such
requirement. At such times, the Pledge Agreement may be amended or modified, without the consent of any Holder of Securities, to the extent considered necessary to reflect the operation of the foregoing sentence. 
 11. Denominations; Transfer; Exchange 
 The
Securities are in registered form without coupons in denominations of $1,000 principal amount 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 of or exchange 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 any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment
date. 
 12. Persons Deemed Owners 
 The registered Holder of this Security may be treated as the owner of it for all purposes. 
 13. 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 Company at
its request unless an abandoned property law designates another Person. After any such payment to the Company, Holders entitled to the money must look only to the Company and not to the Trustee for payment. 
  

 6 









 14. Discharge and Defeasance 
 Subject to certain conditions, the Company at any time shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S.
Government Obligations for the payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
 15. Amendment,
Waiver 
 Subject to certain exceptions set forth in the Indenture, (a) the Indenture, the Pledge Agreement, the Intercreditor
Agreement and the Securities may be amended with the written consent of the Holders of at least a majority in principal amount outstanding of the Securities (including consents obtained in connection with a tender offer or exchange offer for
Securities) and (b) any past default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in principal amount outstanding of the Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company, the Subsidiary Guarantors and the Trustee shall be entitled to amend the Indenture, the Pledge Agreement, the Intercreditor Agreement or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article 5 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, including
Subsidiary Guaranties, or to further secure the Securities, or to add additional covenants or surrender rights and powers conferred on the Company or the Subsidiary Guarantors, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder. Notwithstanding the foregoing, without the consent of any Holder of Securities, any amendment, waiver or consent agreed to by the
Credit Agent or the holders of First Lien Obligations under any provision of the Pledge Agreement granting the first-priority Lien on any Collateral to secure the First Lien Obligations will automatically apply to the comparable provision of the
Pledge Agreement; provided, however, that if any such amendment, waiver or consent could reasonably be expected to be adverse to the Securityholders or the interest of the Securityholders in the Collateral, such amendment, waiver or
consent will not be applicable to the Pledge Agreement as provided above unless First Lien Obligations (including commitments in respect thereof to the extent that such commitments are subject only to borrowing base requirements or other reasonable
and customary funding conditions and are then available to be funded at the election of the Company) of no less than $20.0 million (after giving effect to all borrowing base calculations) secured by first-priority Liens on the Collateral are
then outstanding. Notwithstanding the foregoing, no such amendment, waiver or consent may have the effect of releasing the Collateral, except to the extent set forth in Article 12 of the Indenture. 
  

 7 









 16. Defaults and Remedies 
 Under the Indenture, Events of Default include (a) default for 30 days in payment of interest on the Securities; (b) default in payment of principal on the Securities at maturity, upon redemption
pursuant to paragraph 5 or 6 of the Securities, upon acceleration or otherwise, or failure by the Company to redeem or purchase Securities when required; (c) failure by the Company, or any Subsidiary Guarantor to comply with other
agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; (d) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company if the
amount accelerated (or so unpaid) exceeds $5.0 million (e) certain events of bankruptcy or insolvency with respect to the Company and the Significant Subsidiaries; (f) certain judgments or decrees for the payment of money in excess of
$5.0 million; (g) certain defaults with respect to Subsidiary Guaranties; and (h) certain defaults relating to the Collateral under the Pledge Agreement. If an Event of Default occurs and is continuing, 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 immediately. 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 indemnity or security satisfactory to it. 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 (except a Default in payment of principal or interest) if and so long as it determines that withholding notice
is in the interest of the Holders. 
 17. Trustee Dealings with the Company 
 Subject to certain limitations imposed by the Act, 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 Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
 18. No Recourse Against Others 
 A director,
officer, employee, incorporator or stockholder, as such, of the Company or any Subsidiary Guarantor or the Trustee shall not have any liability for any obligations of the Company under the Securities, any Subsidiary Guaranty, the Pledge Agreement or
the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration for
the issue of the Securities. 
 19. Authentication 
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
 20. 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 entireties), 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). 
  

 8 









 21. CUSIP Numbers 
 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures the Company 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. 
 22. Holders’ Compliance with Registration Rights Agreement. 
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration Rights Agreement, including the obligations
of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein. 
 23. Governing Law.

 THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 The Company will furnish to any Securityholder upon written request and without charge to the Security holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
 EXCO Resources, Inc. 
 12377 Merit
Drive, Suite 1700 
 Dallas, TX 75251 
 Attention: General Counsel 
 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 Company. The agent may substitute another to act for him. 
  

							
	Date:                     	  	Your Signature:	  	  
	  	

 Sign exactly as your name appears on the other side of this Security. 
  

 9 









 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.07, 4.10 or 4.11 of the Indenture, check the box:

  ̈ 
 If you want to elect to have only part of this Security purchased by the Company pursuant to Section 4.07, 4.10 or 4.11 of the Indenture, state the amount in principal amount: $ 
  

					
	Dated:                     	  	Your Signature:	  	  

		  		  	(Sign exactly as your name appears on the other side of this Security.)

  

							
	Signature Guarantee:	  	  

		  	(Signature must be guaranteed)

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 








 EXHIBIT 2 TO RULE 144A/REGULATION S/IAI APPENDIX 
 Form of Transferee Letter of Representation 
 EXCO Resources, Inc. 
 12377 Merit Drive, Suite 1700 
 Dallas, TX 75251 
 In care of 
 [                    ] 
 Ladies and Gentlemen:

 This certificate is delivered to request a transfer of
$[            ] principal amount of the 7 1/4% Senior Notes Due 2011
(the “Securities”) of Company (the “Company”). 
 Upon transfer, the Securities would be registered in the name of
the new beneficial owner as follows: 
  

					
	Name:	  	  
	  	
			
	Address:	  	  
	  	
			
	Taxpayer ID Numbers:	  	  
	  	

 The undersigned represents and warrants to you that: 
 We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
“Securities Act”)), purchasing for our own account or for the account of such 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 risks 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. 
 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 Company or any affiliate of the Company was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction Termination Date”) only (i) to the Company, (ii) in the United States
to a person whom the seller reasonably believes is a qualified institutional buyer in a transaction meeting the requirements of Rule 144A, (iii) 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 purchasing for its own account or for the account of
an institutional accredited investor, in each case in a minimum principal amount of the Securities of $250,000, (iv) outside the United States in a transaction complying with the provisions of Rule 904 under the Securities Act,
(v) pursuant to an exemption from registration under the Securities Act provided by Rule 144 (if available) or (vi) pursuant to an effective registration statement under the Securities Act, in each of cases (i) through
(vi) subject 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 (iii) 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 Company 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 Company and the Trustee reserve the right prior to the offer, sale or other transfer prior to the Resale Restriction Termination Date of the Securities pursuant to clause (iii), (iv) or (v) above to require the
delivery of an opinion of counsel, certifications or other information satisfactory to the Company and the Trustee. 
  

			
	TRANSFEREE:
		
	by	 	  

	Name:	 	
	Title: