Document:

exv10w1

Exhibit 10.1

A$150,000,000

FACILITY AGREEMENT

dated          2011

for

The MAC Services Group Pty Limited (ABN 53 003 657 510)

with

National Australia Bank Limited (ABN 12 004 044 937)

Freehills

Level 32

MLC Centre

19 Martin Place

SYDNEY NSW 2001

Australia

T 61 2 9225 5000

F +61 2 9322 4000

DX 361 Sydney

 

 

CONTENTS

	 	 	 	 	 
	CLAUSE	 	PAGE
	1. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	2. THE FACILITY
	 	 	16	 
	3. PURPOSE
	 	 	16	 
	4. REFINANCING OF EXISTING FACILITY
	 	 	16	 
	5. CONDITIONS OF UTILISATION
	 	 	16	 
	6. UTILISATION
	 	 	19	 
	7. REPAYMENT
	 	 	21	 
	8. PREPAYMENT AND CANCELLATION
	 	 	21	 
	9. INTEREST
	 	 	23	 
	10. INTEREST PERIODS
	 	 	24	 
	11. BREAK COSTS
	 	 	24	 
	12. FEES
	 	 	25	 
	13. TAX GROSS UP AND INDEMNITIES
	 	 	26	 
	14. INCREASED COSTS
	 	 	28	 
	15. OTHER INDEMNITIES
	 	 	28	 
	16. MITIGATION BY THE LENDER
	 	 	30	 
	17. COSTS AND EXPENSES
	 	 	30	 
	18. GUARANTEE AND INDEMNITY
	 	 	31	 
	19. REPRESENTATIONS
	 	 	34	 
	20. INFORMATION UNDERTAKINGS
	 	 	37	 
	21. FINANCIAL COVENANTS
	 	 	40	 
	22. GENERAL UNDERTAKINGS
	 	 	40	 
	23. EVENTS OF DEFAULT
	 	 	47	 
	24. CHANGES TO THE LENDER
	 	 	51	 
	25. CHANGES TO THE OBLIGORS
	 	 	53	 
	26. THE LENDER
	 	 	56	 
	27. SET-OFF
	 	 	57	 
	28. NOTICES
	 	 	57	 
	29. CALCULATIONS AND CERTIFICATES
	 	 	59	 
	30. PARTIAL INVALIDITY
	 	 	59	 
	31. REMEDIES AND WAIVERS
	 	 	59	 
	32. AMENDMENTS AND WAIVERS
	 	 	59	 
	33. COUNTERPARTS
	 	 	59	 
	34. GENERAL
	 	 	59	 
	35. INDEMNITIES AND REIMBURSEMENT
	 	 	60	 
	36. ACKNOWLEDGEMENT
	 	 	60	 

page 1

 

	 	 	 	 	 
	CLAUSE	 	PAGE
	37. GOVERNING LAW
	 	 	62	 
	38. ENFORCEMENT
	 	 	62	 
	SCHEDULE 1 THE ORIGINAL PARTIES
	 	 	63	 
	SCHEDULE 2 CONDITIONS PRECEDENT
	 	 	66	 
	SCHEDULE 3 UTILISATION REQUEST
	 	 	69	 
	SCHEDULE 4 FORM OF TRANSFER CERTIFICATE
	 	 	70	 
	SCHEDULE 5 FORM OF ACCESSION LETTER
	 	 	72	 
	SCHEDULE 6 FORM OF RESIGNATION LETTER
	 	 	73	 
	SCHEDULE 7 FORM OF COMPLIANCE CERTIFICATE
	 	 	74	 
	SCHEDULE 8 PART A — EXISTING SECURITY
	 	 	76	 
	PART B — NEW SECURITY
	 	 	78	 
	SCHEDULE 9 TIMETABLE
	 	 	79	 
	SCHEDULE 10 FORM OF CONDITIONS PRECEDENT CERTIFICATE
	 	 	80	 
	SCHEDULE 11 GROUP STRUCTURE DIAGRAM
	 	 	82	 

page 2

 

THIS AGREEMENT is dated          2011 and made between:

	(1)	 	The Mac Services Group Pty Limited (ABN 53 003 657 510) (the “Original Borrower”);
	 
	(2)	 	The Subsidiaries of the Original Borrower listed in Part I of Schedule 1 as original
guarantors (together with the Original Borrower, the “Original Guarantors”); and
	 
	(3)	 	National Australia Bank Limited (ABN 12 004 044 937) as lender (“Original Lender”)

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:

“Accession Letter” means a document substantially in the form set out in Schedule 5 (Form of
Accession Letter).

“Additional Borrower” means a company which becomes an Additional Borrower in accordance with
Clause 25 (Changes to the Obligors).

“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance with
Clause 25 (Changes to the Obligors).

“Additional Obligor” means an Additional Borrower or an Additional Guarantor.

“Authorisation” means:

	(a)	 	an authorisation, consent, approval, resolution, licence, exemption, filing, lodgement or
registration required by any Governmental Agency or any law; or
	 
	(b)	 	in relation to anything which will be fully or partly prohibited or restricted by law if a
Governmental Agency intervenes or acts in any way within a specified period after lodgement,
filing, registration or notification, the expiry of that period without intervention or
action.

“Authorised Officer” means:

	(a)	 	in respect of a Transaction Party, any director, or any person from time to time nominated as
an Authorised Officer by that Transaction Party by a notice to the Lender accompanied by
certified copies of signatures of all new persons so appointed (and in respect of which the
Lender has not received notice of revocation of which the appointment); and
	 
	(b)	 	in respect of the Lender, any person whose title or acting title includes the word Manager,
Head, Executive, Director or President or cognate expressions, or any secretary or director.

“Availability Period” means the period from and including the date of this Agreement to and
including the Termination Date.

page 1

 

“Available Commitment” means the Commitment minus:

	(a)	 	the amount of any outstanding Loans; and
	 
	(b)	 	in relation to any proposed Utilisation, the amount of any Loans that are due to be made on
or before the proposed Utilisation Date.

“BBR” for a period means:

	(a)	 	the average bid rate displayed at or about 10.30am (Sydney time) on the first day of that
period on the Reuters screen BBSY page for a term equivalent to the period; or
	 
	(b)	 	if:

	 	(i)	 	for any reason that rate is not displayed for a term equivalent to that
period; or
	 
	 	(ii)	 	the basis on which that rate is displayed is changed and in the opinion of
the Lender it ceases to reflect the Lender’s cost of funding to the same extent as at
the date of this Agreement,
	 
	 	 	 	then BBR will be the rate determined by the Lender to be the average of the buying
rates quoted to the Lender by 3 Reference Banks at or about that time on that
date. The buying rates must be for bills of exchange accepted by a leading
Australian bank and which have a term equivalent to the period. If there are no
buying rates the rate will be the rate notified by the Lender to the Original
Borrower to be the Lender’s cost of funding the relevant Loan for that period.

Rates will be expressed as a yield percent per annum to maturity and if necessary, will be rounded
up to the nearest fourth decimal place.

“Borrower” means an Original Borrower or an Additional Borrower unless it has ceased to be a
Borrower in accordance with Clause 25 (Changes to the Obligors).

“Borrowings” means, on the relevant Ratio Date, the outstanding principal, capital or nominal
amount and any fixed or minimum premium payable on prepayment or redemption of any indebtedness for
or in respect of Financial Indebtedness (other than Subordinated Financial Indebtedness and any
indebtedness owed by one Obligor to another Obligor) and any amount of redeemable shares which are
redeemable (other than at the option of the issuer) before the final Termination Date, in each
case, on that date.

“Break Costs” means the amount (if any) by which:

	(a)	 	the interest (excluding the Margin) which the Lender should have received for the period from
the date of receipt of all or any part of a Loan or Unpaid Sum to the last day of the current
Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum
received been paid on the last day of that Interest Period;
	 
	 	 	exceeds:
	 
	(b)	 	the amount which the Lender would be able to obtain by placing an amount equal to the
principal amount or Unpaid Sum received by it on deposit with a leading bank in the Australian
bank bill market or acquiring a bill of exchange accepted by a leading bank for a period
starting on the Business Day following receipt or recovery and ending on the last day of the
current Interest Period.
	 
	 	 	It is an amount payable in lieu of interest which would otherwise have been paid.

page 2

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general
business in Sydney.

“Closing Date” means the date on which all conditions precedent for the initial Utilisation have
been satisfied in accordance with this Agreement.

“Commitment” means:

	(a)	 	in relation to the Original Lender, the amount set opposite its name under the heading
“Commitment” in Part II of Schedule 1 (The Original Parties) and the amount of any other
Commitment transferred to it under this Agreement; and
	 
	(b)	 	in relation to any other Lender, the amount of any Commitment transferred to it under this
Agreement,
	 
	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.

“Compliance Certificate” means a certificate substantially in the form set out in Schedule 7 (Form
of Compliance Certificate).

“Conditions Precedent Certificate” means a certificate substantially in the form set out in
Schedule 10 (Form of Conditions Precedent Certificate)

“Contamination” means in respect of a property, the presence of a pollutant, contaminant,
dangerous, toxic or hazardous substance, petroleum or petroleum product, chemical, solid, special
liquid, industrial or other waste:

	(a)	 	in, on or under the property; or
	 
	(b)	 	in the ambient air and emanating from the property.

“Contested Tax” means a Tax payable by an Obligor where the Obligor is contesting its liability to
pay that Tax, and has reasonable grounds to do so.

“Controller” has the meaning given to it in section 9 of the Corporations Act.

“Corporations Act” means the Corporations Act 2001 (Cth).

“Costs” includes costs, charges, expenses and legal fees, including those incurred in connection
with advisers.

“Default” means an Event of Default or any event or circumstance specified in Clause 23 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination under the Finance Documents or any combination of any of the foregoing) be an Event
of Default.

“EBITDA” means, on the relevant Ratio Date, the aggregate earnings of the Group on a consolidated
basis before interest, income tax, abnormal items and extraordinary items, depreciation and
amortisation of intangibles for the 12 month period ending on that date.

“Environmental Law” means any legislation regulating a pollutant, contaminant, dangerous, toxic or
hazardous substance, petroleum or petroleum product, chemical, solid, special liquid, industrial or
other waste in connection with the protection of the environment or health and safety.

page 3

 

“Environmental Liability” means any actual or potential claim, action, damage, loss, liability,
cost, charge, expense, outgoing or payment incurred or which may be incurred in connection with:

	(a)	 	the investigation or remediation;
	 
	(b)	 	a claim by any third party;
	 
	(c)	 	any action, order, declaration or notice by a Governmental Agency under an Environmental Law;
or
	 
	(d)	 	any agreement between an Obligor and any:

	 	(i)	 	owner or occupier of land; or
	 
	 	(ii)	 	Governmental Agency;

of or in respect of Contamination of any Premises.

“Event of Default” means any event or circumstance specified as such in Clause 23 (Events of
Default).

“Existing Facility” means the facilities made available under the document entitled “Loan
Agreement”, dated 8 July 2008 (as amended and restated from time to time), between the Original
Borrower and the Original Lender (amongst others).

“Existing Security” means each Security listed in Schedule 8 — Part A.

“Facility” means the revolving loan facility made available under this Agreement as described in
Clause 2 (The Facility).

“Facility Office” means the office or offices in Australia notified by the Lender to the Original
Borrower in writing on or before the date it becomes a Lender (or, following that date, by not less
than five Business Days’ written notice to the Original Borrower) as the office or offices through
which the Lender will perform its obligations under this Agreement.

“Finance Document” means:

	(a)	 	this Agreement;
	 
	(b)	 	the Parent Guarantee;
	 
	(c)	 	any Subordination Deed;
	 
	(d)	 	any Security Document;
	 
	(e)	 	any Accession Letter;
	 
	(f)	 	any Compliance Certificate;
	 
	(g)	 	any Utilisation Request;
	 
	(h)	 	each Hedging Agreement;
	 
	(i)	 	any other document designated as such by the Lender and the Original Borrower; and

page 4

 

	(j)	 	any document entered into or given under or in connection with, or for the purpose of
amending or novating, any document referred to above.

“Financial Indebtedness” means any indebtedness for or in respect of:

	(a)	 	moneys borrowed;
	 
	(b)	 	any amount raised under any acceptance credit, bill acceptance or bill endorsement facility;
	 
	(c)	 	any amount raised pursuant to any note purchase facility or the issue of bonds, notes,
debentures, loan stock or any similar instrument;
	 
	(d)	 	the amount of any liability in respect of any lease or hire purchase contract which would, in
accordance with GAAP, be treated as a finance or capital lease;
	 
	(e)	 	receivables sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis);
	 
	(f)	 	any redeemable shares where the holder has the right, or the right in certain conditions, to
require redemption;
	 
	(g)	 	any amount raised under any other transaction (including any forward sale or purchase
agreement) having the commercial effect of a borrowing;
	 
	(h)	 	consideration for the acquisition of assets or services payable more than 90 days after
acquisition;
	 
	(i)	 	any derivative transaction entered into in connection with protection against or benefit from
fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the marked to market value shall be taken into account);
	 
	(j)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or
documentary letter of credit or any other instrument issued by a bank or financial
institution; and
	 
	(k)	 	the amount of any liability in respect of any guarantee or indemnity for any of the items
referred to in paragraphs (a) to (j) above.

“Financial Statements” means:

	(a)	 	a statement of financial performance;
	 
	(b)	 	a statement of financial position; and;
	 
	(c)	 	a statement of cash flow,
	 
	 	 	together with any notes to those documents and any accompanying reports, statements,
declarations and other documents or information.

“Financing Change Statement” a financing change statement within the meaning of the PPSA.

“Financing Statement” a financing statement within the meaning of the PPSA.

“GAAP” means generally accepted accounting principles, standards and practices in Australia.

page 5

 

“Governmental Agency” means any government or any governmental, semi-governmental or judicial
entity or authority. It also includes any self-regulatory organisation established under statute
or any stock exchange.

“Gross Debt” means, on the relevant Ratio Date, the aggregate principal amount of all obligations
of the Group for or in respect of Borrowings and so that no amount shall be included or excluded
more than once, on that date.

“Gross Interest” means, on the relevant Ratio Date, the aggregate amount of interest accrued by the
Group on a consolidated basis (including on Subordinated Financial Indebtedness) during the 12
month period ending on that date.

“Group” means the Original Borrower and its Subsidiaries.

“Group Structure Diagram” means the group structure diagram in Schedule 11, as amended or updated
by the delivery of a new diagram to the Lender under Clause 20.5 (Group structure chart).

“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a
Guarantor in accordance with Clause 25 (Changes to the Obligors).

“Head Company” means the head company (as defined in the Tax Act) of a Tax Consolidated Group.

“Hedging Agreement” means the agreement dated as of 6 October 2004 between the Original Borrower
and the Original Lender, as amended and supplemented from time to time.

“Indirect Tax” means any goods and services tax, consumption tax, value added tax or any tax of a
similar nature.

“Interest Cover Ratio ” means the interest cover ratio determined in accordance with Clause 21.1.

“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 10
(Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with
Clause 9.3 (Default interest).

“Lender” means:

	(a)	 	the Original Lender; and
	 
	(b)	 	any person which has become a Lender in accordance with Clause 24 (Changes to the Lender),
	 
	 	 	which in each case has not ceased to be a Lender in accordance with the terms of this
Agreement.

“Leverage Ratio” means the leverage ratio determined in accordance with Clause 21.2.

“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for
the time being of that loan.

“Margin” means the percentage rate per annum determined by reference to the table below, based on
the Leverage Ratio set out in the most recent Compliance Certificate provided to the Lender in
accordance with Clause 20.2:

page 6

 

	 	 	 
	Leverage Ratio:	 	Margin
	> 2.50x

	 	2.60% per annum
	 
	 	 
	> 2.00x and < = 2.50x

	 	2.50% per annum
	 
	 	 
	> 1.50x and < = 2.00x

	 	2.40% per annum
	 
	 	 
	> 1.00x and < = 1.50x

	 	2.30% per annum
	 
	 	 
	> 0.50x and < = 1.00x

	 	2.20% per annum
	 
	 	 
	< = 0.50x

	 	2.10% per annum

Any change in Margin will apply on and from the day immediately following the most recent Ratio
Date, until adjusted in accordance with this definition.

“Material Adverse Effect” means a material adverse effect on:

	(a)	 	the ability of the Obligors (taken as a whole) to comply with their payment and other
material obligations under any Finance Document; or
	 
	(b)	 	the Parent Guarantor’s ability to comply with its payment and other material obligations
under any Finance Document;
	 
	(c)	 	the Lender’s rights under a Finance Document; or
	 
	(d)	 	the business or financial condition of the Obligors taken as a whole;
	 
	(e)	 	the business or financial condition of the Parent Guarantor.

“Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	(a)	 	if there is no numerically corresponding day in the calendar month in which that period is to
end, that period shall end on the last Business Day in that calendar month; and
	 
	(b)	 	if an Interest Period begins on the last Business Day of a calendar month, that Interest
Period shall end on the last Business Day in the calendar month in which that Interest Period
is to end.

The above rules will only apply to the last Month of any period.

“Narrabri Trust” means The Narrabri Property Trust, constituted by a trust deed dated 27 July 2010.

“New Security” means each Security listed in Schedule 8 — Part B.

“Obligor” means a Borrower or a Guarantor, or some or all of them (as the context requires).

“Original Financial Statements” means the audited consolidated Financial Statements of the Group
for the financial year ended 30 June 2010.

“Original Obligor” means an Original Borrower or an Original Guarantor.

page 7

 

“Parent Guarantee” means the guarantee given by the Parent Guarantor in favour of the Lender on or
about the date of this Agreement.

“Parent Guarantor” means Oil States International, Inc.

“Party” means a party to this Agreement and includes its successors in title, permitted assigns and
permitted transferees.

“Permitted Financial Accommodation” means any financial accommodation or any Guarantee provided by
an Obligor in respect of financial accommodation:

	(a)	 	under the Finance Documents;
	 
	(b)	 	to another Obligor;
	 
	(c)	 	in the ordinary course of business up to a maximum aggregate amount for all Obligors of
$5,000,000; or
	 
	(d)	 	with the Lender’s prior written consent.

“Permitted Financial Indebtedness” means any Financial Indebtedness:

	(a)	 	under leases or hire purchase arrangements where the Financial Indebtedness incurred under
those leases or hire purchase arrangements does not exceed $10,000,000 in aggregate at any
time;
	 
	(b)	 	owed to trade creditors necessarily incurred in the ordinary course of business;
	 
	(c)	 	owed under the Finance Documents;
	 
	(d)	 	between an Obligor and a Subsidiary of the Parent Guarantor, which is subordinated pursuant
to the terms of a Subordination Deed, provided the maximum Financial Indebtedness subordinated
under such arrangement does not exceed $100,000,000 in aggregate at any time;
	 
	(e)	 	that is Permitted Financial Accommodation to any Obligor;
	 
	(f)	 	that is not otherwise permitted by paragraphs (a) to (e) above, provided that the aggregate
Financial Indebtedness of the Group permitted under this paragraph (f) does not exceed
$10,000,000 in aggregate at any time; or
	 
	(g)	 	otherwise incurred with the prior written consent of the Lender.

“Permitted Reorganisation” means:

	(a)	 	a re-organisation involving the business or assets of, or shares of (or other interests in),
any dormant member of the Group where all or substantially all of the business, assets, and
shares of (or other interests in) that member of the Group continue to be owned directly or
indirectly by the Original Borrower in the same or a greater percentage as prior to such
re-organisation (and may include the winding up or sale of a Subsidiary, or merger of
Subsidiaries), other than the business, assets and shares of (or other interests in) relevant
members of the Group which cease to be owned:

	 	(i)	 	as a result of a disposal or merger permitted under, but subject always to
the terms of, this Agreement; or

page 8

 

	 	(ii)	 	as a result of a disposal of shares (or partnership or other ownership
interests) in a member of the Group required to comply with applicable laws, provided
that any such disposal is limited to the minimum amount required to comply with such
applicable laws; and

	(b)	 	any other re-organisation involving one or more members of the Group approved in writing by
the Lender (acting reasonably),

provided that the Lender will continue to have the same or substantially equivalent guarantees,
indemnities and Security as before the reorganisation (to the extent business, assets, shares or
other interest are not disposed of as permitted under, but subject always to, the terms of this
Agreement).

“Permitted Security Interest” means each Security described in Clause 22.6(c).

“PPSA” means the Personal Property Securities Act 2009 (Cth).

“PPS Law” means:

	(a)	 	the PPSA;
	 
	(b)	 	any regulations made at any time under the PPSA;
	 
	(c)	 	any provision of the PPSA or any regulations made at any time under the PPSA;
	 
	(d)	 	any amendment to any of the above, made at any time; or
	 
	(e)	 	any amendment made at any time to any other legislation as a consequence of a PPS Law
referred to in paragraphs (a) to (d) above.

“PPSA Security Interest” means a security interest within the meaning of the PPSA.

“Premises” means any property owned or occupied by an Obligor or which is used by an Obligor to
carry on any activities.

“Quotation Day” means, in relation to any period for which an interest rate is to be determined,
the first day of that period.

“Ratio Date” means each 31 March, 30 June, 30 September and 31 December of each calendar year, with
the first such date commencing on 30 June 2011.

“Receiver” includes a receiver or receiver and manager.

“Reference Banks” means Australia and New Zealand Banking Group Limited (ACN 005 357 522),
Commonwealth Bank of Australia (ACN 123 123 124) and Westpac Banking Corporation (ACN 007 457 141)
or such other banks as may be appointed by the Lender in consultation with the Original Borrower.

“Relevant Party” means any Transaction Party or Subordinated Lender.

“Relevant Trust” means each of the following Trusts:

	(a)	 	The MAC Middlemount Property Trust, constituted by a trust deed dated 10 August
2007;
	 
	(b)	 	The Muswellbrook Property Trust, constituted by a trust deed dated 10 August 2007;

page 9

 

	(c)	 	The Wandoan Property Trust, constituted by a trust deed dated 13 March 2008;
	 
	(d)	 	The MAC Middlemount Leisure Centre Trust, constituted by a trust deed dated 5 December 2007;
and
	 
	(e)	 	The Karratha Property Trust, constituted by a trust deed dated 13 August 2008.

“Repeating Representations” means each of the representations set out in Clause 19 other than the
representations in Clauses 19.9 and 19.16.

“Resignation Letter” means a letter substantially in the form set out in Schedule 6 (Form of
Resignation Letter).

“Scheme” means a trust that is a registered managed investment scheme under section 601EB of the
Corporations Act.

“Screen Rate” means in relation to BBR, the average bid rate displayed at or about 10.30am (Sydney
time) on the first day of the relevant period on the Reuters screen BBSY page for a term equivalent
to the relevant period.

“Secured Money” means all debts and monetary liabilities of each Transaction Party to the Lender
under or in relation to any Finance Document and in any capacity, irrespective of whether the debts
or liabilities:

	(a)	 	are present or future;
	 
	(b)	 	are actual, prospective, contingent or otherwise;
	 
	(c)	 	are owed or incurred by or on account of any Obligor alone, or severally or jointly with any
other person;
	 
	(d)	 	are owed to or incurred for the account of the Lender alone, or severally or jointly with any
other person;
	 
	(e)	 	are owed to any other person as agent (whether disclosed or not) for or on behalf of the
Lender;
	 
	(f)	 	are owed or incurred as principal, interest, fees, charges, Taxes, damages (whether for
breach of contract or tort or incurred on any other ground), losses, Costs or expenses, or on
any other account;
	 
	(g)	 	are owed to or incurred for the account of the Lender directly or as a result of:

	 	(i)	 	the assignment or transfer to the Lender of any debt or liability of any
Transaction Party (whether by way of assignment, transfer or otherwise); or
	 
	 	(ii)	 	any other dealing with any such debt or liability;

	(h)	 	are owed to or incurred for the account of the Lender before the date of this Agreement or
before the date of any assignment of this Agreement to the Lender by any other person or
otherwise; or
	 
	(i)	 	comprise any combination of the above.

“Secured Property” means the rights, assets, property and undertaking the subject of a Security
Document.

page 10

 

“Security” means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement, notice or arrangement having a similar effect and
a PPSA Security Interest, but “Security” does not include any security interest provided for by one
of the following transactions if such transaction does not secure payment or performance of any
obligation, provided that, for the avoidance of doubt, such transaction is otherwise permitted by
the terms of the Finance Documents (and nothing in this definition is intended to modify such
terms):

	(a)	 	PPS Lease (as defined in the PPSA)
	 
	(b)	 	commercial consignment (as defined in the PPSA); and
	 
	(c)	 	transfer of account or chattel paper (each as defined in the PPSA).

“Security Document” means:

	(a)	 	each Existing Security and New Security;
	 
	(b)	 	each Security granted by a Transaction Party as security for, or to credit enhance the
payment of, the Secured Moneys; and
	 
	(c)	 	any document designated as a “Security Document” by the Lender and the Original Borrower.

“Serial Number” means a serial number within the meaning of the PPSA.

“Solvent” means, with respect to the Parent Guarantor,

	(a)	 	the fair value of the assets of the Parent Guarantor exceeds its debts and liabilities,
contingent or otherwise;
	 
	(b)	 	the present fair saleable value of the property of the Parent Guarantor is greater than the
amount that will be required to pay the probable liability associated with its debts and other
liabilities, contingent or otherwise, as such debts and other liabilities become absolute and
matured;
	 
	(c)	 	the Parent Guarantor is able to pay its debts and liabilities, contingent or otherwise, as
such debts and liabilities become absolute and matured; and
	 
	(d)	 	the Parent Guarantor does not have unreasonably small capital with which to conduct its
business in which it is engaged as such business is now conducted and is proposed to be
conducted from the date of this Deed.

“Specified Time” means a time determined in accordance with Schedule 9 (Timetable).

“Subordinated Financial Indebtedness” means Financial Indebtedness that falls within paragraph (d)
of the definition of Permitted Financial Indebtedness.

“Subordinated Lender” means any entity which is owed Subordinated Financial Indebtedness by any
Obligor.

“Subordination Deed” means a deed agreed between the Lender, the Original Borrower and a
Subordinated Lender in respect of Subordinated Financial Indebtedness.

“Subsidiary” has the meaning given in the Corporations Act, but as if body corporate includes any
entity. It also includes an entity required by current accounting practice to be included in the

page 11

 

consolidated annual financial statements of that entity or would be required if that entity were a
corporation.

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any delay in
paying any of the same).

“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a
Finance Document.

“Termination Date” means 30 November 2013.

“TFA” means the tax funding agreement dated 19 April 2011 between members of the Group and PTI
Holding Company 1 Pty Ltd and PTI Holding Company 2 Pty Ltd.

“Transaction Party” means an Obligor or the Parent Guarantor, or some or all of them (as the
context requires).

“Transfer Certificate” means a certificate substantially in the form set out in Schedule 4 (Form of
Transfer Certificate) or any other form agreed between the Lender and the Original Borrower.

“Transfer Date” means, in relation to a transfer, the later of:

	(a)	 	the proposed transfer date specified in the Transfer Certificate; and
	 
	(b)	 	the date which is the fifth Business Day after the date of delivery of the relevant Transfer
Certificate to the Original Borrower.

“Trust” means the trust of any Trustee.

“Trust Deed” means the trust deed of the relevant Trust.

“Trust Deed of Release” means the document entitled “Deed of Release — Loan Agreement” dated on or
about the date of this Agreement, between the Borrower, the Lender, The MAC Linen Services Pty Ltd
(ABN 54 120 171 511) and MSL Nominees Pty Limited (ACN 126 933 953) in its capacity as trustee of
The MAC Middlemount Property Trust and in its capacity as trustee of the Wandoan Property Trust.

“Trustee” means any trustee of an Obligor or any Obligor who is a trustee of a trust.

“TSA” means the tax sharing agreement dated 19 April 2011 between members of the Group and PTI
Holding Company 1 Pty Ltd and PTI Holding Company 2 Pty Ltd.

“Unpaid Sum” means any sum due and payable but unpaid by a Transaction Party under the Finance
Documents.

“Utilisation” means a utilisation of the Facility.

“Utilisation Date” means the date of a Utilisation, being the date on which a Loan is to be made.

“Utilisation Request” means a notice substantially in the form set out in Schedule 3 (Utilisation
Request).

	1.2	 	Construction
	 
	(a)	 	Any reference in this Agreement to:

page 12

 

	 	(i)	 	“assets” includes present and future properties, revenues and rights of every
description;
	 
	 	(ii)	 	a “Finance Document” or any other agreement or instrument is a reference to
that Finance Document or other agreement or instrument as amended or novated;
	 
	 	(iii)	 	“indebtedness” includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of money, whether present or future, actual or
contingent;
	 
	 	(iv)	 	a “person” or “entity” includes any person, firm, company, corporation,
government, state or agency of a state or any association, trust or partnership
(whether or not having separate legal personality) or two or more of the foregoing and
any reference to a particular person or entity (as so defined) includes a reference to
that person’s or entity’s executors, administrators, successors, substitutes
(including by novation) and assigns;
	 
	 	(v)	 	a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation and if not having the force of law,
with which responsible entities in the position of the relevant Party would normally
comply;
	 
	 	(vi)	 	the words “including”, “for example” or “such as” when introducing an example
do not limit the meaning of the words to which the example relates to that example or
examples of a similar kind;
	 
	 	(vii)	 	a provision of law or a regulation is a reference to that provision as
amended or re-enacted;
	 
	 	(viii)	 	a “liquidation” includes official management, appointment of an administrator,
compromise, arrangement, merger, amalgamation, reconstruction, winding up,
dissolution, deregistration, assignment for the benefit of creditors, scheme,
composition or arrangement with creditors, insolvency, bankruptcy, or a similar
procedure or, where applicable, changes in the constitution of any partnership or
person, or death; and
	 
	 	(ix)	 	unless a contrary indication appears, a time of day is a reference to Sydney
time;
	 
	 	(x)	 	“law” means common law, principles of equity, and laws made by parliament
(and laws made by parliament include State, Territory and Commonwealth laws and
regulations and other instruments under them);
	 
	 	(xi)	 	“accounting standards” is a reference to GAAP and a reference to an
accounting term is a reference to that term as it is used in those accounting
standards, or, if not inconsistent with those standards, in generally accepted
accounting principles and practices in Australia;
	 
	 	(xii)	 	a “derivative transaction” includes any derivative transaction entered into
in connection with protection against, or benefit from, fluctuation in any rate or
price;

page 13

 

	 	(xiii)	 	a reference to “determines” or “determined” means a determination made in the
absolute discretion of the person making the determination unless stated otherwise or
if required to act reasonably;
	 
	 	(xiv)	 	a reference to “enforce”, “enforced” or “enforcement” is taken to include a
reference to the meaning given to “Enforce” in the Corporations Act;
	 
	 	(xv)	 	a group of persons is a reference to any two or more of them collectively and
to each of them individually;
	 
	 	(xvi)	 	a reference to any thing (including an amount) is a reference to the whole
and each part of it;
	 
	 	(xvii)	 	“know your customer checks” means, with respect to a Transaction Party, any “know
your customer” or other identification checks or procedures of the Lender in order to
manage the Lender’s money-laundering or terrorism financing risk or to comply with any
anti-money laundering or counter-terrorism financing or economic and trade sanctions
laws in Australia or any other country in which that Transaction Party conducts its
business; and
	 
	 	(xviii)	 	writing and related expressions includes all means of reproducing words in a
tangible and permanently visible form.

	(b)	 	Section, Clause and Schedule headings are for ease of reference only.
	 
	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.
	 
	(d)	 	A Default is “continuing” if it has not been remedied to the satisfaction of the Lender or
waived in writing.
	 
	1.3	 	PPS Law
	 
	(a)	 	If:

	 	(i)	 	a PPS Law applies, or will at a future date apply to any of the Finance
Documents or any of the transactions contemplated by them, or the Lender determines
that a PPS Law applies, or will at a future date apply, to any of the Finance
Documents or any of the transactions contemplated by them; and
	 
	 	(ii)	 	in the opinion of the Lender (acting reasonably), the PPS Law:

	 	(A)	 	adversely affects or would or may adversely affect the
Lender’s security position or the rights or obligations of the Lender under or
in connection with the Finance Documents; or
	 
	 	(B)	 	enables or would enable the Lender’s security position to be
improved without adversely affecting the Obligors in a material respect,

	 	 	 	the Lender may (acting reasonably) from time to time give notice to the Obligors
requiring the Obligors to do anything, including:
	 
	 	(iii)	 	promptly providing all necessary information (including Serial Numbers) and
taking all necessary action (including obtaining any consent or agreement or giving
any notice) to enable the Lender to register fully valid and effective Financing
Statements or Financing Change Statements with respect to any

page 14

 

	 	 	 	PPSA Security Interest held or intended to be held by the Lender under the Finance
Documents at any time;
	 
	 	(iv)	 	amending any Finance Document or executing any new Finance Document,

	 	 	that in the Lender’s opinion (acting reasonably) is necessary to ensure that, to the
maximum possible extent, the Lender’s security position, and rights and obligations, are
not adversely affected as contemplated by Clause 1.3(a)(ii)(A) (or that any such adverse
effect is overcome), or that the Lender’s security position is improved as contemplated in
Clause 1.3(a)(ii)(B). The Obligors must comply with the requirements of that notice within
the time stipulated in the notice.

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SECTION 2

THE FACILITY

	2.	 	THE FACILITY
	 
	(a)	 	Subject to the terms of this Agreement, the Lender makes available to the Borrowers an
Australian dollar revolving loan facility in an aggregate amount equal to the Commitment.
	 
	(b)	 	At the end of the Availability Period, the whole of the Available Commitment is automatically
cancelled and the Commitment reduces to zero.
	 
	3.	 	PURPOSE
	 
	3.1	 	Purpose
	 
	 	 	Each Borrower shall apply all amounts borrowed by it under the Facility towards:
	 
	(a)	 	firstly, repayment of all amounts outstanding under the Existing Facility and each
Transaction Document (as defined in the Existing Facility) in full; and
	 
	(b)	 	thereafter for the following purposes:

	 	(i)	 	payment of Costs and expenses associated with the establishment of the
Facility;
	 
	 	(ii)	 	general corporate purposes (including capital expenditure and acquisitions)
of the Group; and
	 
	 	(iii)	 	any other purpose approved by the Lender in writing.

	3.2	 	Monitoring
	 
	 	 	The Lender is not bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.
	 
	4.	 	REFINANCING OF EXISTING FACILITY
	 
	(a)	 	All amounts outstanding under the Existing Facility shall be deemed to be outstanding under
this Agreement on and from the Closing Date.
	 
	(b)	 	The Existing Facility shall be automatically terminated after the Closing Date.
	 
	5.	 	CONDITIONS OF UTILISATION
	 
	5.1	 	Initial conditions precedent
	 
	 	 	No Borrower may deliver a Utilisation Request unless the Lender has received all of the
documents and other evidence listed in Part I of Schedule 2 (Conditions precedent) in form
and substance satisfactory to the Lender. The Lender shall notify the Original Borrower
promptly upon being so satisfied.
	 
	5.2	 	Further conditions precedent
	 
	 	 	The Lender will only be obliged to comply with Clause 6.4 (Loan availability) if on the
date of the Utilisation Request and on the proposed Utilisation Date:
	 
	(a)	 	the Lender has received a valid and irrevocable Utilisation Request;
	 
	(b)	 	no Default is continuing or would result from the proposed Loan;

page 16

 

	(c)	 	all Authorisations are in place; and
	 
	(d)	 	the Repeating Representations to be made by each Obligor are in all material respects correct
and not misleading (subject to any disclosure made by the Original Borrower to the Lender in
writing and which is agreed by the Lender in writing on or prior to the date of such
repetition).
	 
	5.3	 	Maximum number of Loans
	 
	 	 	A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation
2 or more Utilisations would have been requested during that Month.
	 
	5.4	 	Know your customer requirements
	 
	(a)	 	Each Obligor agrees that the Lender may delay, block or refuse to process any transaction
under the Finance Documents without incurring any liability if the Lender suspects that:

	 	(i)	 	the transaction may breach any anti-money laundering or counter-terrorism
financing or economic and trade sanctions law in Australia or any other country in
which a Transaction Party conducts its business;
	 
	 	(ii)	 	the transaction involves any person (natural, corporate or governmental) that
is itself sanctioned or is connected, directly or indirectly, to any person that is
sanctioned under economic and trade sanctions imposed by Australia or any other
country in which a Transaction Party conducts its business; or
	 
	 	(iii)	 	the transaction may directly or indirectly involve the proceeds of, or be
applied for the purposes of, unlawful conduct.

	(b)	 	Each Obligor must provide all information to the Lender which the Lender reasonably requires
in order to manage its money-laundering, terrorism financing or economic and trade sanctions
risk or to comply with any laws or regulations in Australia or any other country in which a
Transaction Party conducts its business.
	 
	(c)	 	Each Obligor declares and undertakes to the Lender that the processing of any transaction by
the Lender in accordance with that Obligor’s instructions will not breach any laws or
regulations in Australia or any other country in which a Transaction Party conducts its
business.
	 
	5.5	 	Protection for statutory proscriptions
	 
	 	 	Despite any other provision of a Finance Document to the contrary, the Lender is not
obliged to do or omit to do anything if it would, in its reasonable opinion, constitute a
breach of any law or regulation, including the Charter of the United Nations Act 1945
(Cth), the Charter of the United Nations (Dealing and Assets) Regulations 2008 (Cth), the
Banking (Foreign Exchange) Regulations 1959 (Cth) and any other applicable sanctions
legislation.
	 
	5.6	 	Condition subsequent
	 
	 	 	If:
	 
	(a)	 	the Narrabri Trust is not wound up; and
	 
	(b)	 	the relevant transfer forms (with an accompanying exemption letter issued by New South Wales
Office of State Revenue to the Original Borrower, confirming the availability of
reconstruction relief with respect to such transfer) transferring all of the rights, title and
interest in and to the property, assets and undertaking of the Trustee of the Narrabri Trust,
and all property of the Narrabri Trust, are not executed by the

page 17

 

	 	 	Original Borrower and lodged with the New South Wales Office of State Revenue for stamping,

in each case, on or prior to the date that is 60 days from the date of this Agreement, then the
Borrower undertakes to:

	(c)	 	procure the Obligor that is the Trustee of the Narrabri Trust at that time to become an
Additional Guarantor in its capacity as Trustee of the Narrabri Trust under and in accordance
with this Agreement; and
	 
	(d)	 	to make such amendments as are reasonably required by the Lender to this Agreement to reflect
that the Trustee of the Narrabri Trust is an Obligor and party to this Agreement.

page 18

 

SECTION 3

UTILISATION

	6.	 	UTILISATION
	 
	6.1	 	Delivery of a Utilisation Request
	 
	 	 	A Borrower may utilise the Facility by delivery to the Lender of a Utilisation Request not
later than the Specified Time (or such later time agreed to by the Lender in writing) duly
completed and signed by an Authorised Officer of the Borrower.
	 
	6.2	 	Completion of a Utilisation Request
	 
	(a)	 	Each Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

	 	(i)	 	the proposed Utilisation Date is a Business Day within the Availability
Period;
	 
	 	(ii)	 	the amount of the Utilisation complies with Clause 6.3 (Amount); and
	 
	 	(iii)	 	the proposed Interest Period complies with Clause 10 (Interest Periods).

	(b)	 	Only one Loan may be requested in each Utilisation Request.
	 
	6.3	 	Amount
	 
	 	 	The amount of the proposed Loan must be a minimum of $100,000 and an integral multiple of
$1,000 or, if less, the Available Commitment.
	 
	6.4	 	Loan availability
	 
	(a)	 	If the conditions set out in this Agreement have been met, the Lender shall make each Loan
available to the relevant Borrower the Utilisation Date through its Facility Office.
	 
	(b)	 	Where on the same day the Lender is obliged to provide a Loan to a Borrower and the Borrower
is obliged to repay a Loan, only the net amount need be provided in cash or repaid in cash, as
the case may be.
	 
	6.5	 	Reliquefication bills
	 
	(a)	 	Each Borrower irrevocably and for value authorises the Lender (at the option of the Lender)
from time to time:

	 	(i)	 	to prepare reliquefication bills of exchange in relation to a Loan to it; and
	 
	 	(ii)	 	to sign them as drawer or endorser in the name of and on behalf of the
Borrower.

	(b)	 	The total face amount of reliquefication bills prepared by the Lender and outstanding in
relation to any Loan must not at any time exceed:

	 	(i)	 	the principal amount of that Loan; plus
	 
	 	(ii)	 	the total interest on that Loan over the relevant Interest Period.

	(c)	 	Reliquefication bills must mature on or before the last day of the relevant Interest Period.
	 
	(d)	 	The Lender may realise or deal with any reliquefication bill prepared by it as it thinks fit.

page 19

 

	(e)   	(i)	 	The Lender shall indemnify the relevant Borrower on demand against all
liabilities, Costs and expenses incurred by the Borrower by reason of it being a party
to a reliquefication bill prepared by that Lender.
	 
	 	(ii)	 	This paragraph (e) does not affect any obligation of the relevant Borrower
under this Agreement. In particular the obligations of the Borrower to make payments
under this Agreement are not in any way affected by any liability of the Lender,
contingent or otherwise, under this indemnity.

	(f)	 	If a reliquefication bill prepared by the Lender is presented to the relevant Borrower and
that Borrower discharges it by payment, the amount of that payment will be deemed to have been
applied against the moneys payable to that Lender.

page 20

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	7.	 	REPAYMENT
	 
	 	 	Each Borrower which has drawn a Loan shall repay that Loan on the Termination Date.
	 
	8.	 	PREPAYMENT AND CANCELLATION
	 
	8.1	 	Illegality
	 
	 	 	If it becomes unlawful (or impossible as a result of a change in law or regulation) in any
jurisdiction for the Lender to perform any of its obligations as contemplated by this
Agreement or to fund or maintain any Loan:
	 
	(a)	 	the Lender shall promptly notify the Original Borrower upon becoming aware of that event;
	 
	(b)	 	upon the Lender notifying the Original Borrower, the Commitment will be immediately
cancelled; and
	 
	(c)	 	each Borrower shall repay each Loan made to that Borrower on:

	 	(i)	 	the later of the last day of the current Interest Period for the Loan and the
thirtieth day after the Lender has notified the Original Borrower; or
	 
	 	(ii)	 	if earlier, the date specified by the Lender in the notice delivered to the
Original Borrower (being no earlier than the last day of any applicable grace period
permitted by law).

	8.2	 	Change of control
	 
	(a)	 	If the Parent Guarantor ceases to Control the Original Borrower:

	 	(i)	 	the Original Borrower shall promptly notify the Lender upon becoming aware of
that event; and
	 
	 	(ii)	 	the Lender may, by not less than 90 days notice to the Original Borrower,
cancel the Facility and declare all outstanding Loans, together with accrued interest,
and all other amounts accrued under the Finance Documents, immediately due and
payable, whereupon the Facility will be cancelled and all such outstanding amounts
will become immediately due and payable.

	(b)	 	For the purpose of paragraph (a) above “Control” includes:

	 	(i)	 	“control” as defined in section 50AA of the Corporations Act; and
	 
	 	(ii)	 	the direct or indirect power to directly or indirectly:

	 	(A)	 	direct the management or policies of the corporation; or
	 
	 	(B)	 	control the membership of the board of directors,
	 
	 	 	 	whether or not the power has statutory, legal or equitable force or is
based on statutory, legal or equitable rights and whether or not it arises
by means of trusts, agreements, arrangements, understandings, practices,
the ownership of any interest in shares or stock of the corporation or
otherwise.

page 21

 

	8.3	 	Voluntary cancellation
	 
	 	 	The Original Borrower may, if it gives the Lender not less than 3 Business Days’ (or such
shorter period as the Lender may agree) prior notice, cancel the whole or any part (being a
minimum amount of $100,000 and a whole multiple of $10,000) of the Available Commitment.
The Commitment is cancelled to the extent of the Available Commitment cancelled under this
Clause 8.3.
	 
	8.4	 	Voluntary prepayment of Loans
	 
	 	 	The Borrower to which a Loan has been made may, if it gives the Lender not less than 4
Business Days’ (or such shorter period as the Lender may agree) prior notice, prepay the
whole or any part of the Loan (but if in part, being an amount that reduces the Loan by a
minimum amount of $100,000 and a whole multiple of $10,000).
	 
	8.5	 	Right of repayment and cancellation
	 
	(a)	 	If:

	 	(i)	 	any sum payable to the Lender by an Obligor is required to be increased under
paragraph (c) of Clause 13.2 (Tax gross-up); or
	 
	 	(ii)	 	the Lender claims indemnification from the Original Borrower under Clause
13.3 (Tax indemnity) or Clause 14.1 (Increased costs),
	 
	 	 	 	the Original Borrower may, whilst the circumstance giving rise to the requirement
or indemnification continues, give the Lender notice of cancellation of the
Commitment and its intention to procure the repayment of the Loans.

	(b)	 	On receipt of a notice referred to in paragraph (a) above, the Commitment shall immediately
be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after the Original Borrower has given
notice under paragraph (a) above (or, if earlier, the date specified by the Original Borrower
in that notice), each Borrower to which a Loan is outstanding shall repay that Loan.
	 
	8.6	 	Restrictions
	 
	(a)	 	Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be
irrevocable and, unless a contrary indication appears in this Agreement, shall specify the
date or dates upon which the relevant cancellation or prepayment is to be made and the amount
of that cancellation or prepayment.
	 
	(b)	 	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	(c)	 	Unless a contrary indication appears in this Agreement, any part of the Facility which is
prepaid may be reborrowed in accordance with the terms of this Agreement.
	 
	(d)	 	The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any
part of the Commitments except at the times and in the manner expressly provided for in this
Agreement.
	 
	(e)	 	No amount of the Commitment cancelled under this Agreement may be subsequently reinstated.

page 22

 

SECTION 5

COSTS OF UTILISATION

	9.	 	INTEREST
	 
	9.1	 	Calculation of interest
	 
	 	 	The rate of interest on each Loan for each Interest Period is the percentage rate per annum
which is the aggregate of:
	 
	(a)	 	the applicable Margin; and
	 
	(b)	 	BBR for that Interest Period.
	 
	9.2	 	Payment of interest
	 
	 	 	The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the
last day of each Interest Period (and, if the Interest Period is longer than six Months, on
the dates falling at six monthly intervals after the first day of the Interest Period).
	 
	9.3	 	Default interest
	 
	(a)	 	If a Transaction Party fails to pay any amount payable by it under a Finance Document on its
due date, interest shall accrue on the overdue amount from the due date up to the date of
actual payment (both before and after judgment) at a rate which, subject to paragraph (b)
below, is the sum of 2 per cent and the rate which would have been payable if the overdue
amount had, during the period of non-payment, constituted a Loan for successive Interest
Periods, each of a duration selected by the Lender (acting reasonably). Any interest accruing
under this Clause 9.3 shall be immediately payable by the Original Borrower on demand by the
Lender.
	 
	(b)	 	If any overdue amount consists of all or part of a Loan which became due on a day which was
not the last day of an Interest Period relating to that Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to that Loan; and
	 
	 	(ii)	 	the rate of interest applying to the overdue amount during that first
Interest Period shall be 2 percent plus the rate which would have applied if the
overdue amount had not become due.

	(c)	 	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue
amount at the end of each Interest Period applicable to that overdue amount but will remain
immediately due and payable.
	 
	9.4	 	Notification of rates of interest
	 
	 	 	The Lender shall promptly notify the relevant Borrower of the determination of a rate of
interest under this Agreement.
	 
	9.5	 	Market disruption
	 
	(a)	 	If the Lender determines that a Market Disruption Event occurs in relation to a Loan for any
Interest Period, then it shall promptly notify the Borrowers, and the rate of interest on that
Loan for the Interest Period shall be the rate per annum which is the sum of:

	 	(i)	 	the applicable Margin; and
	 
	 	(ii)	 	the rate notified to the Original Borrower by the Lender as soon as
practicable and in any event no later than the Business Day before interest is due to
be paid in respect of that Interest Period, to be that which expresses as a percentage
rate

page 23

 

	 	 	 	per annum the Cost to the Lender of funding its participation in that Loan from
whatever source or sources it may reasonably select.

	(b)	 	The Lender shall determine the rate notified by it under sub-paragraph (a)(ii) above in good
faith. The rate so notified and any notification under paragraph (c) below, will be
conclusive and binding on the parties in the absence of manifest error.
	 
	(c)	 	In this Agreement “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest Period the
Screen Rate is not available and none or only one of the Reference Banks supplies a
rate to the Lender to determine the BBR for the relevant currency and period; or
	 
	 	(ii)	 	before 5pm (Sydney time) on the Business Day after the Quotation Day for the
relevant Interest Period, the Lender determines that as a result of market
circumstances not limited to it the cost to it of funding its participation in the
Loan is or would be in excess of BBR.

	9.6	 	Alternative basis of interest or funding
	 
	(a)	 	If a Market Disruption Event occurs and the Lender or the Original Borrower so requires, the
Lender and the Original Borrower shall enter into negotiations (for a period of not more than
thirty days) with a view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall only apply with the prior
consent of the Lender and the Original Borrower, and then shall be binding on all Parties.
	 
	(c)	 	The Lender shall promptly inform the Borrowers of any alternative basis agreed under this
Clause 9.6.
	 
	10.	 	INTEREST PERIODS
	 
	10.1	 	Selection of Interest Periods
	 
	(a)	 	A Borrower (or the Original Borrower on behalf of a Borrower) may select an Interest Period
for a Loan in the Utilisation Request for that Loan signed by an Authorised Officer of that
Borrower, or the Original Borrower, as the case may be.
	 
	(b)	 	Subject to this Clause 10, a Borrower (or the Original Borrower) may select an Interest
Period of 1, 2, 3, 4, 5 or 6 Months or any other period agreed between the Original Borrower
and the Lender.
	 
	(c)	 	An Interest Period for a Loan shall not extend beyond the Termination Date.
	 
	(d)	 	Each Interest Period for a Loan shall start on the Utilisation Date or (if already made) on
the last day of its preceding Interest Period.
	 
	10.2	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month (if there
is one) or on the preceding Business Day (if there is not).
	 
	11.	 	BREAK COSTS
	 
	(a)	 	Each Borrower shall, within three Business Days of demand by the Lender, pay to the Lender
its Break Costs attributable to all or any part of a Loan or Unpaid Sum being

page 24

 

	 	 	paid by that Borrower on a day other than the last day of an Interest Period for that Loan
or Unpaid Sum.
	 
	(b)	 	The Lender shall, as soon as reasonably practicable after a demand by the Original Borrower,
provide a certificate to the Original Borrower confirming the amount of its Break Costs for
any Interest Period in which they accrue.
	 
	12.	 	FEES
	 
	12.1	 	Commitment fee
	 
	(a)	 	For the avoidance of doubt, the Original Borrower agrees to pay all commitment fees accrued
under the terms of clause 8.2 (Commitment fee) of the Existing Facility on the date on which
the Existing Facility is repaid and cancelled in full.
	 
	(b)	 	The Original Borrower shall pay to the Lender a fee in Australian dollars computed at the
rate of 50% of the applicable Margin on the Lender’s Available Commitment on the basis of a
365 day year and for the actual number of days elapsed, for the Availability Period.
	 
	(c)	 	The commitment fee accrues from the date of this Agreement and is payable in arrears on:

	 	(i)	 	each calendar quarter date after the date of this Agreement;
	 
	 	(ii)	 	the last day of the Availability Period; and
	 
	 	(iii)	 	the cancelled amount of the Commitment at the time the cancellation is
effective.

	12.2	 	Extension fee
	 
	 	 	If the Lender agrees in writing to extend the Termination Date, the Original Borrower shall
pay to the Lender a fee in Australian dollars on the date on which the Lender provides
written notice to the Original Borrower agreeing to the extended Termination Date (or such
later time as is agreed by the Lender in writing), in an amount and on terms agreed between
the Lender and the Original Borrower.

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SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	13.	 	TAX GROSS UP AND INDEMNITIES
	 
	13.1	 	Definitions
	 
	 	 	In this Clause 13:
	 
	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	“Tax Payment” means an increased payment made by an Obligor to the Lender under Clause 13.2
(Tax gross-up) or a payment under Clause 13.3 (Tax indemnity).
	 
	13.2	 	Tax gross-up
	 
	(a)	 	Subject to Clause 24.2, each Obligor shall make all payments to be made by it under the
Finance Documents without any Tax Deduction unless a Tax Deduction is required by law.
	 
	(b)	 	Each Party shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or
that there is any change in the rate or the basis of a Tax Deduction) notify the other Parties
accordingly.
	 
	(c)	 	If a Tax Deduction is required by law to be made by an Obligor except in relation to a Tax
described in Clause 13.3(b)(i) (Tax indemnity), the Obligor shall pay an additional amount
together with the payment so that, after making any Tax Deduction, the Lender receives an
amount equal to the payment which would have been due if no Tax Deduction had been required.
	 
	(d)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction
and any payment required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law.
	 
	(e)	 	Within thirty days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Lender
evidence satisfactory to the Lender, acting reasonably, that the Tax Deduction has been made
or (as applicable) any appropriate payment paid to the relevant taxing authority.
	 
	13.3	 	Tax indemnity
	 
	(a)	 	Subject to Clause 24.2, the Original Borrower shall (within three Business Days of demand by
the Lender) pay to the Lender an amount equal to the loss, liability or Cost which the Lender
determines will be or has been (directly or indirectly) suffered for or on account of Tax by
the Lender in respect of a Finance Document or a transaction or payment under it.
	 
	(b)	 	Paragraph (a) above shall not apply:

	 	(i)	 	with respect to any Tax assessed on the Lender:

	 	(A)	 	under the law of the jurisdiction in which the Lender is
incorporated or, if different, the jurisdiction (or jurisdictions) in which
the Lender is treated as resident for tax purposes; or
	 
	 	(B)	 	under the law of the jurisdiction in which the Lender’s
Facility Office is located in respect of amounts received or receivable in
that jurisdiction,

page 26

 

	 	 	 	if that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by the Lender, to
the extent the relevant loss, liability or Cost is compensated for by an increased
payment under Clause 13.2 (Tax gross-up); or

	(c)	 	The Lender, if making or intending to make a claim pursuant to paragraph (a) above shall
promptly notify the Original Borrower of the event which will give, or has given, rise to the
claim.
	 
	13.4	 	Tax Credit
	 
	 	 	If an Obligor makes a Tax Payment and the Lender determines in its absolute discretion
that:
	 
	(a)	 	a Tax Credit is attributable to that Tax Payment; and
	 
	(b)	 	the Lender has obtained, utilised and retained that Tax Credit,
	 
	 	 	subject to Clause 26.2 (Conduct of business by the Lender), the Lender shall pay an amount
to the Obligor which the Lender determines in its absolute discretion will leave it (after
that payment) in the same after-Tax position as it would have been in had the circumstances
not arisen which caused the Tax Payment to be required to be made by the Obligor.
	 
	13.5	 	Stamp duties and Taxes
	 
	 	 	The Original Borrower shall:
	 
	(a)	 	pay; and
	 
	(b)	 	within three Business Days of demand, indemnify the Lender against any Cost, loss or
liability that the Lender incurs in relation to,
	 
	 	 	all stamp duty, registration and other similar Taxes payable in respect of any Finance
Document.
	 
	13.6	 	Indirect Tax
	 
	(a)	 	All payments to be made by an Obligor under or in connection with any Finance Document have
been calculated without regard to Indirect Tax. If all or part of any such payment is the
consideration for a taxable supply or chargeable with Indirect Tax then, when the Obligor
makes the payment:

	 	(i)	 	it must pay to the Lender an additional amount equal to that payment (or
part) multiplied by the appropriate rate of Indirect Tax; and
	 
	 	(ii)	 	the Lender will promptly provide to the Obligor a tax invoice complying with
the relevant law relating to that Indirect Tax.

	(b)	 	Where a Finance Document requires an Obligor to reimburse the Lender for any Costs or
expenses, that Obligor shall also at the same time pay and indemnify the Lender against all
Indirect Tax incurred by the Lender in respect of the Costs or expenses save to the extent
that the Lender is entitled to repayment or credit in respect of the Indirect Tax. The Lender
will promptly provide to the Obligor a tax invoice complying with the relevant law relating to
that Indirect Tax.

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	14.	 	INCREASED COSTS
	 
	14.1	 	Increased costs
	 
	(a)	 	Subject to Clause 14.3 (Exceptions) the Original Borrower shall, within three Business Days
of a demand by the Lender, pay for the account of the Lender the amount of any Increased Costs
incurred by the Lender or any of its Affiliates as a result of:

	 	(i)	 	the introduction of or any change in (or in the interpretation,
administration or application of) any law or regulation; or
	 
	 	(ii)	 	compliance with any law or regulation,

	 	 	made after the date of this Agreement. This includes, without limitation, any law or
regulation with regard to capital adequacy, prudential limits, liquidity, reserve assets or
Tax.
	 
	(b)	 	In this Agreement “Increased Costs” means:

	 	(i)	 	a reduction in the rate of return from the Facility or on the Lender’s (or
its Affiliate’s) overall capital (including, without limitation, as a result of any
reduction in the rate of return on capital as more capital is required to be
allocated);
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance Document,
	 
	 	which is incurred or suffered by the Lender or any of its Affiliates to the extent that it
is attributable to the Lender having entered into the Commitment or funding or performing
its obligations under any Finance Document.

	14.2	 	Increased cost claims
	 
	(a)	 	If the Lender intends to make a claim pursuant to Clause 14.1 (Increased costs), it shall
notify the Original Borrower of the event giving rise to the claim.
	 
	(b)	 	The Lender shall, as soon as practicable after a demand by the Original Borrower, provide a
certificate confirming the amount of its Increased Costs.
	 
	14.3	 	Exceptions
	 
	 	 	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is:
	 
	(a)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	(b)	 	compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under
Clause 13.3 (Tax indemnity) but was not so compensated solely because one of the exclusions in
paragraph (b) of Clause 13.3 (Tax indemnity) or Clause 24.2 applied); or
	 
	(c)	 	attributable to the wilful breach by the Lender or its Affiliates of any law or regulation.
	 
	15.	 	OTHER INDEMNITIES
	 
	15.1	 	Currency indemnity
	 
	(a)	 	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment
or award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of:

page 28

 

	 	(i)	 	making or filing a claim or proof against that Obligor; or
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,
	 
	 	 	 	that Obligor shall as an independent obligation, within three Business Days of
demand, indemnify the Lender against any Cost, loss or liability arising out of or
as a result of the conversion including any discrepancy between (A) the rate of
exchange used to convert that Sum from the First Currency into the Second Currency
and (B) the rate or rates of exchange available to that person at the time of its
receipt of that Sum.

	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.
	 
	(c)	 	Payment of an amount in a currency other than the due currency does not discharge that amount
except to the extent of the amount of the due currency actually obtained when the recipient
converts the amount received into the due currency.
	 
	15.2	 	Other indemnities
	 
	 	 	The Original Borrower shall (or shall procure that an Obligor will), within three Business
Days of demand, indemnify the Lender against any Cost, expense, loss or liability
(including reasonable legal fees) incurred by the Lender as a result of:
	 
	(a)	 	the occurrence of any Default ;
	 
	(b)	 	any enquiry, investigation, subpoena (or similar order) or litigation with respect to any
Transaction Party or with respect to the transactions contemplated or financed under this
Agreement;
	 
	(c)	 	a failure by a Transaction Party to pay any amount due under a Finance Document on its due
date;
	 
	(d)	 	funding, or making arrangements to fund, a Loan requested in a Utilisation Request but not
made by reason of the operation of any one or more of the provisions of this Agreement (other
than by reason of default or negligence by the Lender alone); or
	 
	(e)	 	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given
by a Borrower.
	 
	15.3	 	Indemnity to the Lender
	 
	 	 	The Original Borrower shall promptly on demand indemnify the Lender against any Cost, loss
or liability incurred by the Lender (acting reasonably) as a result of:
	 
	(a)	 	investigating any event which it reasonably believes is a Default; or
	 
	(b)	 	obtaining professional advice from a person or consultant as to or consideration of any
matter of concern the Lender may have under the Finance Documents, or in relation to any
Secured Property or Security Document;
	 
	(c)	 	acting or relying on any notice, request or instruction which it reasonably believes to be
genuine, correct and appropriately authorised.

page 29

 

	16.	 	MITIGATION BY THE LENDER
	 
	16.1	 	Mitigation
	 
	(a)	 	The Lender shall in consultation with the Original Borrower take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount becoming payable
to it under, or the Commitment cancelled pursuant to, any of the following Clauses: Clause 8.1
(Illegality) or Clause 13 (Tax gross-up and indemnities) (other than Clause 13.6 (Indirect
Tax)) including (but not limited to) transferring its rights and obligations under the Finance
Documents to an Affiliate or another Facility Office.
	 
	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor under the
Finance Documents including under Clause 13 (Tax gross-up and indemnities).
	 
	16.2	 	Indemnity and limitation of liability
	 
	(a)	 	The Obligors shall indemnify the Lender for all Costs and expenses reasonably incurred by the
Lender as a result of steps taken by it under Clause 16.1 (Mitigation).
	 
	(b)	 	The Lender is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion
of the Lender (acting reasonably), to do so might be prejudicial to it.
	 
	17.	 	COSTS AND EXPENSES
	 
	17.1	 	Transaction expenses
	 
	 	 	The Original Borrower shall promptly on demand pay the Lender the amount of all Costs and
expenses (including reasonable legal fees) reasonably incurred by the Lender in connection
with the arrangement, negotiation, preparation, printing, execution, completion, stamping
and registration of:
	 
	(a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	(b)	 	any other Finance Documents.
	 
	17.2	 	Amendment costs
	 
	 	 	If a Transaction Party requests an amendment, discharge, release, waiver or consent, the
Original Borrower shall, within three Business Days of demand, reimburse the Lender for the
amount of all Costs and expenses (including reasonable legal fees) reasonably incurred by
or for the account of the Lender in responding to, evaluating, negotiating or complying
with that request or requirement.
	 
	17.3	 	Enforcement costs
	 
	 	 	The Original Borrower shall, on demand, pay to the Lender the amount of all Costs and
expenses (including reasonable legal fees) incurred by the Lender (and by any Receiver) in
connection with the enforcement of, or the preservation of any rights under, any Finance
Document or in connection with anything referred to in Clause 15.2(b) (Other indemnities).
	 
	17.4	 	Survival of obligations
	 
	 	 	The liability of the Obligors with respect to this Clause 17 survive the termination of
this Agreement.

page 30

 

SECTION 7

GUARANTEE

	18.	 	GUARANTEE AND INDEMNITY
	 
	18.1	 	Guarantee and indemnity
	 
	 	 	Each Guarantor irrevocably and unconditionally jointly and severally:
	 
	(a)	 	guarantees to the Lender punctual performance by each Obligor of all that Obligor’s
obligations under the Finance Documents;
	 
	(b)	 	undertakes with the Lender that whenever an Obligor does not pay any amount when due under or
in connection with any Finance Document (or anything which would have been due if the Finance
Document or the amount was enforceable, valid and not illegal), that Guarantor shall
immediately on demand pay that amount as if it was the principal obligor; and
	 
	(c)	 	indemnifies the Lender immediately on demand against any Cost, loss or liability suffered by
the Lender:

	 	(i)	 	if an Obligor does not pay any amount when due under or in connection with
any Finance Document;
	 
	 	(ii)	 	if any obligation guaranteed by it (or anything which would have been an
obligation guaranteed by it if not unenforceable, invalid or illegal) is or becomes
unenforceable, invalid or illegal. The amount of the loss recovered under this
sub-paragraph shall be equal to the amount which the Lender would otherwise have been
entitled to recover;
	 
	 	(iii)	 	if any of its obligations under Clauses 18.1(a) (Guarantee and indemnity) or
18.1(b) (Guarantee and indemnity) is or becomes unenforceable, invalid or illegal.
The amount of the loss recovered under this sub-paragraph shall be equal to the amount
which the Lender would otherwise have been entitled to recover; or
	 
	 	(iv)	 	if the Lender is obliged or, acting reasonably, agrees to pay an amount to a
liquidator of an Insolvent person in connection with a payment by an Obligor (for
example, the Lender may have to, or agree to, pay interest on the amount).

	 	 	Each of paragraphs (a), (b) and (c) is a separate obligation. None is limited by reference
to the other.
	 
	18.2	 	Continuing guarantee
	 
	 	 	This guarantee and indemnity is a continuing guarantee and indemnity and will extend to the
ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of
any intermediate payment or discharge in whole or in part.
	 
	18.3	 	Reinstatement
	 
	 	 	If any payment to or any discharge given by the Lender (whether in respect of the
obligations of any Obligor or any Security for those obligations or otherwise) is avoided
or reduced for any reason (including, without limitation, as a result of insolvency, breach
of fiduciary or statutory duties or any similar event):
	 
	(a)	 	the liability of each Obligor shall continue as if the payment, discharge, avoidance or
reduction had not occurred;

page 31

 

	(b)	 	the Lender shall be entitled to recover the value or amount of that Security or payment from
each Obligor, as if the payment, discharge, avoidance or reduction had not occurred, together
with any associated Costs; and
	 
	(c)	 	each Obligor shall do anything reasonably requested of it (including signing any document) to
reinstate any Security (including this guarantee and indemnity) held by the Lender from an
Obligor immediately before the payment, discharge, avoidance or reduction.
	 
	18.4	 	Waiver of defences
	 
	 	 	The obligations of each Guarantor under this Clause 18 will not be affected by an act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice
any of its obligations under this Clause 18 (without limitation and whether or not known to
it or the Lender) including:
	 
	(a)	 	any time, waiver or other concession or consent granted to, or composition with, any Obligor
or other person;
	 
	(b)	 	the release or resignation of any other Obligor or any other person;
	 
	(c)	 	any composition or arrangement with any creditor of any Obligor or other person;
	 
	(d)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to
perfect, execute, take up or enforce, any rights against, or Security over assets of, any
Obligor or other person or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full value of any
Security;
	 
	(e)	 	any incapacity or lack of power, authority or legal personality of or dissolution or change
in the members or status of any Obligor or any other person;
	 
	(f)	 	any amendment (however fundamental) or replacement of a Finance Document or any other
document or Security;
	 
	(g)	 	any unenforceability, illegality or invalidity of any obligation of any person under any
Finance Document or any other document or Security;
	 
	(h)	 	any set off, combination of accounts or counterclaim;
	 
	(i)	 	any insolvency or similar proceedings; or
	 
	(j)	 	this Agreement or any other Finance Document not being executed by or binding against any
other Obligor or any other party.
	 
	 	 	References in Clause 18.1 to obligations of any Obligor or amounts due will include what
would have been obligations or amounts due but for any of the above, as well as obligations
and amounts due which result from any of the above.
	 
	18.5	 	Immediate recourse
	 
	 	 	Each Guarantor waives any right it may have of first requiring the Lender (or any trustee
or agent on its behalf) to proceed against or enforce any other rights or Security or claim
payment from any person before claiming from that Guarantor under this Clause 18. This
waiver applies irrespective of any law or any provision of a Finance Document to the
contrary.

page 32

 

	18.6	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection
with the Finance Documents have been irrevocably paid in full, the Lender (or any trustee
or agent on its behalf) may:
	 
	(a)	 	refrain from applying or enforcing any other moneys, Security or rights held or received by
the Lender (or any trustee or agent on its behalf) in respect of those amounts, or apply and
enforce the same in such manner and order as it sees fit (whether against those amounts or
otherwise) and no Guarantor shall be entitled to the benefit of the same; and
	 
	(b)	 	hold in an interest-bearing suspense account any moneys received from any Guarantor or on
account of any Guarantor’s liability under this Clause 18 for as long as it sees fit and need
not apply those moneys towards satisfying any amount due to it under or in connection with the
Finance Documents.
	 
	18.7	 	Deferral of Guarantors’ rights
	 
	 	 	Until all amounts which may be or become payable by the Obligors under or in connection
with the Finance Documents have been irrevocably paid in full and unless the Lender
otherwise directs, no Guarantor will:
	 
	(a)	 	exercise any rights which it may have by reason of performance by it of its obligations under
the Finance Documents:

	 	(i)	 	to be indemnified by an Obligor or any other guarantor of, or provider of
Security for, any Obligor’s obligations under the Finance Documents;
	 
	 	(ii)	 	to claim any contribution from any other guarantor or provider of any
Security for any Obligor’s obligations under the Finance Documents; and/or
	 
	 	(iii)	 	to take the benefit (in whole or in part and whether by way of subrogation
or otherwise) of any rights of the Lender under the Finance Documents or of any other
guarantee or Security taken pursuant to, or in connection with, the Finance Documents
by the Lender;

	(b)	 	in any form of administration of an Obligor (including liquidation, winding up, bankruptcy,
voluntary administration, dissolution or receivership or any analogous process) prove for or
claim, or exercise any vote or other rights in respect of, any indebtedness of any nature owed
to it by an Obligor; or
	 
	(c)	 	reduce its liability under this guarantee or indemnity by claiming that it or another Obligor
or any other person has a right of set-off or counterclaim or any other right against the
Lender.
	 
	18.8	 	No set-off against assignees
	 
	 	 	If the Lender assigns or otherwise deals with its rights under the Finance Documents, no
Guarantor shall claim against any assignee (or any other person who has an interest in this
guarantee and indemnity) any right of set-off or counterclaim or any other right the
Guarantor has against the Lender.
	 
	18.9	 	Additional Security
	 
	 	 	This guarantee and indemnity is in addition to and is not in any way prejudiced by any
other guarantee and indemnity or Security now or subsequently held by the Lender.

page 33

 

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	19.	 	REPRESENTATIONS
	 
	 	 	Each Obligor makes the representations and warranties set out in this Clause 19 to the
Lender on the date of this Agreement and, in the case of the Repeating Representations, on
the other dates set out in Clause 19.25 (Repetition) (except in relation to matters
disclosed to the Lender in writing and accepted by the Lender in writing).
	 
	19.1	 	Status
	 
	(a)	 	It is a corporation, duly incorporated and validly existing under the laws of its
jurisdiction of incorporation.
	 
	(b)	 	It and each of its Subsidiaries has the power to own its assets and carry on its business as
it is being conducted.
	 
	19.2	 	Binding obligations
	 
	 	 	The obligations expressed to be assumed by it in each Finance Document to which it is
expressed to be a party are, subject to any necessary stamping and registration
requirements, equitable principles and laws generally affecting creditors’ rights, legal,
valid, binding and enforceable obligations.
	 
	19.3	 	Non-conflict with other obligations
	 
	 	 	The entry into and performance by it of, and the transactions contemplated by, the Finance
Documents do not and will not conflict with:
	 
	(a)	 	any law or regulation applicable to it;
	 
	(b)	 	its or any of its Subsidiaries’ constitutional documents; or
	 
	(c)	 	any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any
of its Subsidiaries’ assets in any material respect.
	 
	19.4	 	Power and authority
	 
	 	 	It has the power to enter into, perform and deliver, and has taken all necessary action to
authorise its entry into, performance and delivery of, the Finance Documents to which it is
a party and the transactions contemplated by those Finance Documents.
	 
	19.5	 	Authorisations
	 
	 	 	All Authorisations required or desirable:
	 
	(a)	 	to enable it lawfully to enter into, exercise its rights and comply with its obligations in
the Finance Documents to which it is a party;
	 
	(b)	 	to make the Finance Documents to which it is a party admissible in evidence in its
jurisdiction of incorporation; and
	 
	(c)	 	for it and its Subsidiaries to carry on their business and which are material,
	 
	 	 	have been obtained or effected and are in full force and effect.
	 
	19.6	 	Governing law and enforcement
	 
	(a)	 	The choice of law referred to in Clause 37 (Governing law) as the governing law of the
Finance Documents will be recognised and enforced in its jurisdiction of incorporation.

page 34

 

	(b)	 	Any judgment obtained against it in any jurisdiction referred to in Clause 38 (Enforcement)
in relation to a Finance Document will be recognised and enforced in its jurisdiction of
incorporation.
	 
	19.7	 	No filing or stamp taxes
	 
	 	 	Under the law of its jurisdiction of incorporation it is not necessary that the Finance
Documents be filed, recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration or similar tax be paid on or in relation to
the Finance Documents or the transactions contemplated by the Finance Documents.
	 
	19.8	 	No default
	 
	(a)	 	No Event of Default is continuing or might reasonably be expected to result from the making
of any Utilisation.
	 
	(b)	 	No other event or circumstance is outstanding which constitutes a default under any other
agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or
its Subsidiaries’) assets are subject which is reasonably likely to have a Material Adverse
Effect.
	 
	19.9	 	No misleading information
	 
	(a)	 	Any factual information provided by or on behalf of an Obligor or any other member of the
Group in connection with the Finance Documents and the transactions they contemplate was true
and accurate in all material respects as at the date it was provided or as at the date (if
any) at which it is stated.
	 
	(b)	 	Any financial projections provided by an Obligor have been prepared on the basis of recent
historical information and on the basis of reasonable assumptions.
	 
	(c)	 	Nothing has occurred or been omitted from the information provided in writing in connection
with the Finance Documents and no information has been given or withheld that results in the
information provided by an Obligor being untrue or misleading in any material respect.
	 
	19.10	 	Financial Statements
	 
	(a)	 	Its most recent Financial Statements were prepared in accordance with GAAP consistently
applied unless expressly disclosed to the contrary in those Financial Statements.
	 
	(b)	 	Its most recent Financial Statements give a true and fair view and represent its financial
condition, operations and state of affairs (consolidated in the case of the Original Borrower)
as at the date they were prepared and its financial performance during the relevant financial
year unless expressly disclosed to the contrary in the relevant Financial Statements.
	 
	(c)	 	There has been no material adverse change in its business or financial condition (or the
business or consolidated financial condition of the Group, in the case of the Original
Borrower) since the date to which the most recent Financial Statements given to the Lender
were prepared.
	 
	19.11	 	Pari passu ranking
	 
	 	 	Its payment obligations under the Finance Documents rank at least pari passu with the
claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally.

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	19.12	 	No proceedings pending or threatened
	 
	 	 	Other than the alleged patent infringement claim against the Original Borrower, there is no
pending or, to the best of its knowledge and belief, threatened proceeding affecting it or
any of its Subsidiaries or any of its assets before a court, authority, commission or
arbitrator which would be reasonably likely to be adversely determined against it, and if
so determined would have a Material Adverse Effect
	 
	19.13	 	Trustee
	 
	 	 	It does not:
	 
	(a)	 	enter any Finance Document as a Trustee;
	 
	(b)	 	hold any property as a Trustee; or
	 
	(c)	 	act as Trustee of a Trust,
	 
	 	 	except,
	 
	(d)	 	in the case of the Trustee of the Narrabri Trust, until such time as the Narrabri Trust is
terminated; or
	 
	(e)	 	as otherwise disclosed in the relevant Finance Document.
	 
	19.14	 	Authorised Signatures
	 
	 	 	Any person specified as its authorised signatory under Schedule 2 (Conditions precedent) or
Clause 20.4 (Information: miscellaneous) is authorised to sign Utilisation Requests and
other notices on its behalf except where it has previously notified the Lender that the
authority has been revoked.
	 
	19.15	 	Tax Consolidation
	 
	 	 	Each Obligor is a member of a Tax Consolidated Group (as defined in the Income Tax
Assessment Act 1997).
	 
	19.16	 	Disclosure
	 
	 	 	All information provided to the Lender by or on its behalf in relation to it, its assets,
business or affairs or the Finance Documents was correct and not misleading (by omission or
otherwise) in any material respect as at the time it was provided.
	 
	19.17	 	Group Structure
	 
	(a)	 	its only Subsidiaries are listed in the Group Structure Diagram; and
	 
	(b)	 	the Group Structure Diagram is true and correct in all respects and does not omit any
material information or details.
	 
	19.18	 	Environmental Liabilities
	 
	 	 	There are no Environmental Liabilities affecting its Secured Property which have had or are
reasonably likely to have a Material Adverse Effect.
	 
	19.19	 	Solvency
	 
	 	 	It is not insolvent and it is able to pay all its debts as and when they become due and
payable and there are no reasonable grounds for suspecting that it is insolvent or not able
to meet its debts as and when they become due and payable.
	 
	19.20	 	Security
	 
	 	 	Subject to any Permitted Security Interests, completion of registration and perfection
requirements and equitable principles and laws affecting creditor’s rights generally, each
Security Document it has granted to the Lender creates the Security purported to

page 36

 

	 	 	be created by it over the assets purported to be encumbered by it and has the priority it
is intended to have.
	 
	(a)	 	It is the sole legal and beneficial owner of the Secured Property purported to be charged or
mortgaged by it and all material assets included in its Financial Statements free of any
Security or other third party right or interest whatever other than Permitted Security
Interests.
	 
	(b)	 	Each share included in the Secured Property is fully paid and the constitutional documents of
the entity in which those shares or units are held do not restrict the transfer of those
            shares or units on enforcement of any Security, or can (and will, at the request of the
Lender) be amended to remove any such restriction.
	 
	19.21	 	Benefit
	 
	 	 	It benefits by entering into and performing the Finance Documents to which it is a party
and the transactions contemplated by them.
	 
	19.22	 	No benefit to related party
	 
	 	 	It has not, and no other party has, contravened or will contravene section 208 or section
209 of the Corporations Act by entering into any Finance Document or participating in any
transaction in connection with a Finance Document.
	 
	19.23	 	Compliance with laws
	 
	(a)	 	It complies with all laws and regulations material to the business operations of the Group
(taken as a whole); and
	 
	(b)	 	it complies with all applicable Environmental Laws and regulations,
	 
	 	 	where failure to comply has, or is reasonably likely to have a Material Adverse Effect.
	 
	19.24	 	No immunity
	 
	 	 	Neither it nor its assets has immunity from the jurisdiction of a court or from legal
process.
	 
	19.25	 	Repetition
	 
	 	 	The Repeating Representations are deemed to be made by each Obligor by reference to the
facts and circumstances then existing on:
	 
	(a)	 	the date of each Utilisation Request and the first day of each Interest Period; and
	 
	(b)	 	in the case of an Additional Obligor, the day on which the company becomes (or it is proposed
that the company becomes) an Additional Obligor.
	 
	19.26	 	Reliance
	 
	 	 	Each Obligor acknowledges that the Lender has entered into the Finance Documents in
reliance on the representations and warranties in this Clause 19 (Representations).
	 
	20.	 	INFORMATION UNDERTAKINGS

The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as
any amount is outstanding under the Finance Documents or any Commitment is in force.

	20.1	 	Financial Statements
	 
	 	 	The Original Borrower shall supply to the Lender:
	 
	(a)	 	as soon as the same become available, but in any event within 90 days after the end of each
of its financial years:

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	 	(i)	 	its audited consolidated Financial Statements for that financial year; and
	 
	 	(ii)	 	the audited Financial Statements of each Obligor for that financial year; and

	(b)	 	as soon as the same become available, but in any event within 45 days after the end of each
quarter of each of its financial years (other than when the audited consolidated Financial
Statements are being provided in accordance with Clause 20.1(a)), its consolidated unaudited
management accounts for that quarter.
	 
	20.2	 	Compliance Certificate
	 
	(a)	 	The Original Borrower shall supply to the Lender, within 45 days of each Ratio Date, a
Compliance Certificate setting out (in reasonable detail) computations as to compliance with
Clause 21 (Financial covenants).
	 
	(b)	 	Each Compliance Certificate shall be signed by one director of the Original Borrower or two
Authorised Officers.
	 
	20.3	 	Requirements as to Financial Statements
	 
	(a)	 	Each set of Financial Statements delivered by the Original Borrower pursuant to Clause 20.1
(Financial Statements) shall be certified by a director of the relevant company as
representing a true and fair view of the financial position and performance of the
consolidated entity or relevant Obligor (as the case may be) as at the date as at which those
Financial Statements were drawn up.
	 
	(b)	 	The Original Borrower shall procure that each set of Financial Statements of an Obligor
delivered pursuant to Clause 20.1 (Financial Statements) is prepared using GAAP, accounting
practices and financial reference periods consistent with those applied in the preparation of
the Original Financial Statements for that Obligor unless, in relation to any set of Financial
Statements, it notifies the Lender that there has been a change in GAAP, the accounting
practices or reference periods and its auditors (or, if appropriate, the auditors of the
Obligor) and it delivers to the Lender:

	 	(i)	 	a description of any change necessary for those Financial Statements to
reflect the GAAP, accounting practices and reference periods upon which that Obligor’s
Original Financial Statements were prepared; and
	 
	 	(ii)	 	sufficient information, in form and substance as may be reasonably required
by the Lender, to enable the Lender to determine whether Clause 21 (Financial
covenants) has been complied with and make an accurate comparison between the
financial position indicated in those Financial Statements or management accounts and
that Obligor’s Original Financial Statements.

	 	 	Any reference in this Agreement to those Financial Statements or management accounts shall
be construed as a reference to those Financial Statements or management accounts as
adjusted to reflect the basis upon which the Original Financial Statements were prepared.
	 
	20.4	 	Information: miscellaneous
	 
	(a)	 	The Original Borrower shall supply to the Lender:

	 	(i)	 	all documents dispatched by the Original Borrower to creditors generally (or
any class of them) at the same time as they are dispatched;
	 
	 	(ii)	 	promptly upon becoming aware of them, the details (limited to relevant
information reasonably determined by the Original Borrower, or any information
reasonably requested by the Lender, in each case subject to any

page 38

 

	 	 	 	confidentiality or legal professional privilege limitations) of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against any member of the Group and involve a claim exceeding $5,000,000 or that if
adversely determined against it would have a Material Adverse Effect;
	 
	 	(iii)	 	any proposal of any Governmental Agency to compulsorily acquire any of its
assets;
	 
	 	(iv)	 	the acquisition by it of a Subsidiary;
	 
	 	(v)	 	the acquisition by it or any of its Subsidiaries of any interest in real
property;
	 
	 	(vi)	 	promptly, such further information regarding the financial condition,
business and operations of any Secured Property or any member of the Group as the
Lender may reasonably request;
	 
	 	(vii)	 	promptly, notice of any change in Authorised Officers of any Borrower signed
by a director or secretary of the Borrower accompanied by specimen signatures of any
new signatories; and
	 
	 	(viii)	 	if it becomes aware of any circumstances which may give rise to a claim or to a
requirement of substantial expenditure by it, or cessation or alteration of its
activity which would have a Material Adverse Effect it must promptly notify the Lender
giving full and complete details of it and of the action it is taking and intends to
take to remedy or reduce the effects of such circumstances.

	(b)	 	The Obligors shall promptly comply with any written notice requesting the granting of access
to the Lender or persons authorised by the Lender on reasonable notice, and during normal
business hours to inspect any premises related to the Group and any Secured Property and take
copies of its records and each Obligor undertakes for the benefit of the Lender to do
everything in its power to assist the relevant Obligor to comply with its obligations under
this Clause. The notice period given under this Clause is to be determined by the Lender
(acting reasonably). Such notice may not be delivered more than once during any 12 month
period, unless a Default is continuing, in which case, unlimited notices may be delivered
while the Default is continuing. The Lender or any person authorised by the Lender to conduct
such inspection must comply with any policies or procedures of the Obligors during any such
inspection, using reasonable efforts and to the extent the Lender and that person is actually
made aware of such policies and procedures only. For the avoidance of doubt, nothing in this
Clause 20.4(b) restricts or replaces any rights of the Lender pursuant to Clause 23.17.
	 
	20.5	 	Group Structure Diagram
	 
	 	 	The Original Borrower will provide the Lender with an updated Group Structure Diagram
within 10 Business Days of the date that the then current Group Structure Diagram becomes
incorrect.
	 
	20.6	 	Notification of default
	 
	(a)	 	Each Obligor shall notify the Lender of any Default (and the steps, if any, being taken to
remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a
notification has already been provided by another Obligor).
	 
	(b)	 	Promptly upon a request by the Lender, the Original Borrower shall supply to the Lender a
certificate signed by two of its directors or senior officers on its behalf certifying that no
Default is continuing (or if a Default is continuing, specifying the Default and the steps, if
any, being taken to remedy it).

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	20.7	 	Know your customer checks
	 
	 	 	The Borrower shall supply promptly all documents and other evidence reasonably requested by
the Lender in order for the Lender or a proposed New Lender under Clause 24 (Changes to the
Lender) to carry out all necessary “know your customer” or other similar checks in relation
to a Transaction Party or proposed Additional Obligor under all applicable laws and
regulations where such information is not already available to the recipient.
	 
	21.	 	FINANCIAL COVENANTS
	 
	21.1	 	Interest Cover
	 
	 	 	The Original Borrower must ensure that on each Ratio Date the ratio of EBITDA to Gross
Interest is not less than 4.0:1.
	 
	21.2	 	Leverage Ratio
	 
	 	 	The Original Borrower must ensure that on each Ratio Date, the ratio of Gross Debt to
EBITDA is less than 3.0:1.
	 
	21.3	 	Accounting policy
	 
	(a)	 	If in the reasonable opinion of the Original Borrower or the Lender any changes to GAAP
materially alter the effect of the undertakings in this Clause or the related definitions, the
Original Borrower and the Lender will negotiate in good faith to amend the relevant
undertakings and definitions so that they have an effect comparable to that at the date of
this Agreement.
	 
	(b)	 	If the amendments are not agreed within 30 days (or any longer period agreed between the
Original Borrower and the Lender then the Original Borrower will provide with its Financial
Statements any reconciliation statements (audited, where applicable) necessary to enable
calculations based on GAAP as they were before those changes, and the changes will be ignored
for the purposes of this Clause.
	 
	21.4	 	Testing of financial undertakings
	 
	 	 	The financial undertaking set out in this Clause 21 (Financial Covenants) will be tested on
each Ratio Date by reference to the most recent Financial Statements or management accounts
and Compliance Certificate delivered pursuant to Clause 20.1 (Financial Statements) and
Clause 20.2 (Compliance Certificate).
	 
	22.	 	GENERAL UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 22 remain in force from the date of this Agreement for so
long as any amount is outstanding under the Finance Documents or any Commitment is in
force.
	 
	22.1	 	Purpose
	 
	 	 	Each Borrower undertakes to use the Facilities only for the purpose set out in Clause 3
(Purpose).
	 
	22.2	 	Authorisations
	 
	 	 	Each Obligor shall promptly:
	 
	(a)	 	obtain, comply with and do all that is necessary to maintain in full force and effect:

	 	(i)	 	any Authorisation required to enable it to perform its obligations under the
Finance Documents and to ensure the legality, validity, enforceability or
admissibility in evidence in its jurisdiction of incorporation of any Finance
Document; and

page 40

 

	 	(ii)	 	any material Authorisation required for it to carry on its business; and

	(b)	 	supply certified copies to the Lender of any Authorisation referred to in sub-paragraph
(a)(i).
	 
	22.3	 	Event of Default
	 
	 	 	Each Obligor must ensure that no Event of Default occurs.
	 
	22.4	 	Maintenance of capital
	 
	 	 	While a Default is continuing, an Obligor must not:
	 
	(a)	 	pass a resolution under sections 254N or 260B of the Corporations Act;
	 
	(b)	 	reduce or pass a resolution to reduce its capital other than:

	 	(i)	 	by redeeming preference shares which constitute Permitted Financial
Indebtedness; or
	 
	 	(ii)	 	with the Lender’s prior written consent;

	(c)	 	buy-back or pass a resolution to buy-back, any of its shares other than:

	 	(i)	 	by redeeming preference shares which constitute Permitted Financial
Indebtedness; or
	 
	 	(ii)	 	with the Lender’s prior written consent; or

	(d)	 	attempt or take any steps to do anything which it is not permitted to do under Clauses
22.4(a), (b) or (c).
	 
	22.5	 	Compliance with laws
	 
	 	 	Each Obligor shall comply in all respects with all laws to which it may be subject
(including, without limitation, any Environmental Law), if failure so to comply would
materially impair its ability to perform its obligations under the Finance Documents.
	 
	22.6	 	Negative pledge
	 
	(a)	 	No Obligor shall (and the Original Borrower shall ensure that no other member of the Group
will) create or permit to subsist any Security over any of its assets.
	 
	(b)	 	Without limiting paragraph (a), no Obligor shall (and the Original Borrower shall ensure that
no other member of the Group will):

	 	(i)	 	sell, transfer or otherwise dispose of any of its assets on terms whereby
they are or may be leased to or re-acquired by a Transaction Party, any other member
of the Group or its Affiliate;
	 
	 	(ii)	 	sell, transfer or otherwise dispose of any of its receivables on recourse
terms;
	 
	 	(iii)	 	enter any title retention arrangement;
	 
	 	(iv)	 	enter into any arrangement under which money or the benefit of a bank or
other account may be applied, set-off or made subject to a combination of accounts or
not repayable in certain circumstances; or
	 
	 	(v)	 	enter into any other preferential arrangement having a similar effect,

page 41

 

	 	 	 	in the case of paragraphs (iii) and (iv) in circumstances where the arrangement or
transaction is entered into primarily as a method of raising or securing Financial
Indebtedness or of financing the acquisition of an asset.

	(c)	 	Paragraphs (a) and (b) above do not apply to:

	 	(i)	 	any Existing Security and New Security except to the extent the principal
amount secured by that Security exceeds the amount stated in Schedule 8;
	 
	 	(ii)	 	any netting or set-off arrangement entered into by any member of the Group on
ordinary commercial terms in the ordinary course of the Group’s transactional banking
arrangements for the purpose of netting debit and credit balances;
	 
	 	(iii)	 	any lien arising by operation of law and in the ordinary course of trading
so long as the debt it secures is paid when due or contested in good faith and
appropriately provisioned;
	 
	 	(iv)	 	any Security, arrangement or transaction over or affecting any asset acquired
by a member of the Group after the date of this Agreement if:

	 	(A)	 	it was not created in contemplation of the acquisition of
that asset by a member of the Group;
	 
	 	(B)	 	the principal amount secured has not been increased in
contemplation of, or since the acquisition of that asset by a member of the
Group; and
	 
	 	(C)	 	it is removed or discharged within 3 months of the date of
acquisition of such asset;

	 	(v)	 	any Security, arrangement or transaction over or affecting any asset of any
entity which becomes a member of the Group after the date of this Agreement, where the
Security is created prior to the date on which that entity becomes a member of the
Group, if:

	 	(A)	 	it was not created in contemplation of the acquisition of
that entity;
	 
	 	(B)	 	the principal amount secured has not increased in
contemplation of or since the acquisition of that entity; and
	 
	 	(C)	 	it is removed or discharged within 3 months of that entity
becoming a member of the Group;

	 	(vi)	 	any title retention arrangement entered into by any member of the Group in
the ordinary course of trading on the supplier’s usual terms of sale (or on terms more
favourable to the members of the Group) so long as the debt it secures is paid when
due or contested in good faith and sufficient reserves of liquid assets have been set
aside to pay the debt if the contest is unsuccessful;
	 
	 	(vii)	 	any cross charge between members of a joint venture over joint venture
assets securing obligations to contribute to that joint venture or to repay other
joint venturers who contribute to the joint venture in default of the chargor doing
so; or
	 
	 	(viii)	 	any Security, arrangement or transaction securing the amount of any liability in
respect of any lease or hire purchase contract which would, in accordance with GAAP,
be treated as a finance or capital lease, provided such liabilities do not

page 42

 

	 	 	 	exceed $10,000,000 in aggregate (or its equivalent in another currency or
currencies); and
	 
	 	(ix)	 	any Security, arrangement or transaction securing indebtedness the principal
amount of which (when aggregated with the principal amount of any other indebtedness
which has the benefit of Security, or any such arrangement or transaction other than
any permitted under paragraphs (i) to (vii) above) does not exceed $10,000,000 in
aggregate (or its equivalent in another currency or currencies).

	22.7	 	Disposals
	 
	(a)	 	No Obligor shall (and the Original Borrower shall ensure that no other member of the Group
will), enter into a single transaction or a series of transactions (whether related or not)
and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any
asset.
	 
	(b)	 	Paragraph (a) above does not apply to any sale, lease, transfer or other disposal:

	 	(i)	 	as expressly permitted by Clause 22.6;
	 
	 	(ii)	 	from one Obligor to another, provided that the asset continues to form part
of the Secured Property;
	 
	 	(iii)	 	made in the ordinary course of trading of the disposing entity;
	 
	 	(iv)	 	of assets in exchange for other assets comparable or superior as to type,
value and quality and for a similar purpose;
	 
	 	(v)	 	of investments dealt in or listed on a securities exchange or
over-the-counter market, for arm’s length consideration;
	 
	 	(vi)	 	of worn out, obsolete, damaged or redundant assets or other property;
	 
	 	(vii)	 	pursuant to a Permitted Reorganisation;
	 
	 	(viii)	 	disposals not otherwise permitted under paragraphs (i) — (vii) where the higher of
the market value or consideration receivable (when aggregated with the higher of the
market value or consideration receivable for any other sale, lease, transfer or other
disposal under this paragraph (viii)) does not exceed $10,000,000 (or its equivalent
in another currency or currencies) in any financial year; or
	 
	 	(ix)	 	with the written consent of the Lender.

	(c)	 	No Obligor shall enter into any agreement under which any of its books or other debts are
factored or sold (other than any receivables to the extent they are sold on a non-recourse
basis).
	 
	22.8	 	Incurring Financial Indebtedness
	 
	 	 	No Obligor shall incur or permit to subsist any Financial Indebtedness other than Permitted
Financial Indebtedness.
	 
	22.9	 	No Acquisitions
	 
	 	 	No Obligor shall undertake any acquisitions unless, immediately following that acquisition,
the Original Borrower would be in pro-forma compliance with the financial covenants set out
in Clause 21 (Financial Covenants) or otherwise pursuant to a Permitted Reorganisation.

page 43

 

	22.10	 	Merger
	 
	 	 	No Obligor shall (and the Original Borrower shall ensure that no other member of the Group
will) enter into any amalgamation, demerger, merger or corporate reconstruction (other than
a merger or amalgamation with another Obligor or otherwise a solvent reconstruction or
amalgamation that are on terms acceptable to the Lender or otherwise pursuant to a
Permitted Reorganisation).
	 
	22.11	 	Joint ventures and partnerships
	 
	 	 	No Obligor shall enter into a partnership or joint venture with another person without the
consent of the Lender, provided that such consent will not be required where the proposed
partnership or joint venture is not reasonably likely to materially prejudice the interests
of the Lender (in the reasonable opinion of the Lender) under a Security Document.
	 
	22.12	 	Constituent documents
	 
	 	 	No Obligor shall change its constituent documents, or the constituent documents of a Scheme
or Trust (as the case may be) without the Lender’s prior written consent which consent must
not be unreasonably delayed or withheld.
	 
	22.13	 	Payment of Taxes and outgoings
	 
	(a)	 	Each Obligor must pay all Taxes when due, other than:

	 	(i)	 	Contested Taxes; or
	 
	 	(ii)	 	where failure to do so will not have or be likely to have a Material Adverse
Effect.

	(b)	 	Each Obligor must pay all Contested Taxes when the terms of any final determination or
settlement require those Contested Taxes to be paid.
	 
	22.14	 	Change of business
	 
	 	 	The Original Borrower shall procure that no substantial change is made to the general
nature of the business of the Original Borrower or the Group from that carried on at the
date of this Agreement.
	 
	22.15	 	Financial accommodation
	 
	 	 	An Obligor must not provide any financial accommodation, or give any Guarantee in respect
of any financial accommodation, to or for the benefit of any person, other than Permitted
Financial Accommodation.
	 
	22.16	 	Restrictions on dealings
	 
	 	 	An Obligor must not:
	 
	(a)	 	enter into an agreement;
	 
	(b)	 	acquire or dispose of an asset;
	 
	(c)	 	obtain or provide a service;
	 
	(d)	 	obtain a right or incur an obligation; or
	 
	(e)	 	implement any other transaction,
	 
	 	 	with any person, other than with the Parent Guarantor or any of its Subsidiaries, unless it
does so on terms which are no less favourable to it than arm’s length terms.

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	22.17	 	Undertakings regarding Secured Property
	 
	 	 	Each Obligor must:
	 
	(a)	 	maintenance of the Secured Property:

	 	(i)	 	maintain and protect its Secured Property;
	 
	 	(ii)	 	keep its Secured Property in a good state of repair and in good working order
allowing for fair wear and tear;
	 
	 	(iii)	 	remedy every defect in its title to any part of its Secured Property;
	 
	 	(iv)	 	take or defend all legal proceedings to protect or recover any of its Secured
Property; and
	 
	 	(v)	 	keep its Secured Property valid and subsisting and free from liability to
forfeiture, cancellation, avoidance or loss,

	 	 	in each case where failure to do so would, or would be reasonably likely to, have a
Material Adverse Effect.
	 
	(b)	 	Title documents: deposit with the Lender, all the Title Documents in respect of any of its
Secured Property which is subject to the fixed charge created under its Security promptly on:

	 	(i)	 	its execution of its Security;
	 
	 	(ii)	 	acquisition of any asset which forms part of its Secured Property and is
subject to the fixed charge created by its Security; and
	 
	 	(iii)	 	the floating charge which is created by its Security crystallising and
fixing;

	(c)	 	registration and protection of security: ensure that its Security is registered and filed in
all registers in all jurisdictions in which it must be registered and filed to ensure the
enforceability, validity and priority of the Security against all persons and to be effective
as a Security;
	 
	(d)	 	no caveats: cause any caveat which is lodged in respect of its Secured Property, other than a
caveat lodged by the Lender, to be removed as soon as reasonably practicable but in any event
within 10 Business Days after the date that it becomes aware of its existence.
	 
	22.18	 	Insurance
	 
	(a)	 	The Obligors shall take out and maintain (and shall ensure that each member of the Group
takes out and maintains) insurances with a reputable insurer in the manner and to the extent
which is in accordance with prudent business practice having regard to the nature of the
business and assets of the Obligors and the Group (including all insurance required by
applicable law).
	 
	(b)	 	Without limiting paragraph (a) above, each Obligor must ensure that every insurance policy
(other than worker’s compensation and public liability and any other third party liability)
is:

	 	(i)	 	taken out in the name of that Obligor, or a Subsidiary of the Parent
Guarantor with that Obligor as a named insured; and

page 45

 

	 	(ii)	 	within 60 days of a request from the Lender, notes the Lender as an
additional named insured.

	(c)	 	While an Event of Default is continuing, each Obligor must do all things reasonably required
by the Lender to enable the Lender to recover any money due in respect of an insurance policy.
	 
	(d)	 	Each Obligor must notify the Lender as soon as reasonably practicable after it becomes aware
of:

	 	(i)	 	an event which in relation to a Secured Property gives rise to a claim of
$1,000,000 or more under an insurance policy; and
	 
	 	(ii)	 	the cancellation for any reason of any insurance policy in relation to its
Secured Property.

	(e)	 	(i) Do not delete — hidden text for numbering purposes.

	 	(i)	 	Unless Clause 22.18(e)(iii) applies, if no Event of Default is continuing,
the proceeds of any insurance policy may be used for any purpose required by the
Obligor.
	 
	 	(ii)	 	Unless Clause 22.18(e)(iii) applies, if an Event of Default is continuing,
the proceeds in respect of any insurance policy must be used to pay the Secured Money
outstanding at that time or for any other purpose which the Lender approves.
	 
	 	(iii)	 	Clause 22.18(e)(i) and Clause 22.18(e)(ii) do not apply to proceeds received
from any workers’ compensation, public liability or other third party liability policy
or reinstatement policy to the extent that the proceeds are paid to a person entitled
to be compensated under the workers’ compensation or public liability policy, or under
a contract for the reinstatement of its Secured Property.

	(f)	 	Each Obligor must not do or omit to do, or allow or permit to be done or not done, anything
which may materially prejudice any insurance policy.
	 
	22.19	 	Distributions
	 
	 	 	If a Default is continuing at the time of the proposed action set out below, or will occur
as a result of the Obligor taking the proposed action, the Obligors undertake not to do any
of the following:
	 
	(a)	 	declare or make any distribution or dividend, or make any payment to holders of any:

	 	(i)	 	share, unit or other equity interest in or issued by the Obligor;
	 
	 	(ii)	 	rights to acquire such shares, units or other equity interests; or
	 
	 	(iii)	 	loans constituting Subordinated Financial Indebtedness provided to the
Obligor;

	(b)	 	make any payment in the nature of interest, distributions or dividends due under any
Subordinated Financial Indebtedness; or
	 
	(c)	 	pay any director fees, management fees, consultancy fees or other like payments to any
director, associate, or related body corporate of that Obligor.
	 
	22.20	 	Capital Expenditure
	 
	 	 	No Obligor shall (and the Original Borrower shall ensure that no other member of the Group
will) undertake any capital expenditure unless, immediately following the completion of the
works paid for by that capital expenditure, the Original Borrower

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	 	 	would, based on its
reasonable projections, be in pro-forma compliance with the financial covenants set out in
Clause 21 (Financial Covenants).
	 
	22.21	 	Tax Consolidation
	 
	 	 	The Borrowers shall ensure that:
	 
	(a)	 	the TSA and TFA are each maintained in full force and effect; and
	 
	(b)	 	each member of the Group complies with the TSA and the TFA,
	 
	and each Obligor undertakes for the benefit of the Lender to use its best endeavours to assist the
Borrowers comply with its obligations under this Clause 22.21.
	 
	22.22	 	Cross-guarantee
	 
	 	 	No Obligor shall enter into a deed of cross-guarantee for the purposes of ASIC Class Order
[CO 98/1418] other than with another Obligor.
	 
	23.	 	EVENTS OF DEFAULT
	 
	 	 	Each of the events or circumstances set out in this Clause 23 is an Event of Default.
23.1 Non-payment
	 
	 	 	A Relevant Party does not pay on the due date any amount payable pursuant to a Finance
Document at the place at and in the currency in which it is expressed to be payable unless:
	 
	(a)	 	its failure to pay is caused by administrative or technical error beyond the control of that
Relevant Party; and
	 
	(b)	 	payment is made within 3 Business Days of its due date.
	 
	23.2	 	Financial covenants
	 
	 	 	Any requirement of Clause 21 (Financial covenants) is not satisfied.
23.3 Other obligations
	 
	(a)	 	A Relevant Party does not comply with any provision of the Finance Documents (other than
those referred to in Clause 23.1 (Non-payment) and Clause 23.2 (Financial covenants) or with
any condition of any waiver or consent by the Lender under or in connection with any Finance
Document).
	 
	(b)	 	No Event of Default under paragraph (a) above will occur if the failure to comply is capable
of remedy and is remedied within 10 Business Days of the Lender giving notice to the Original
Borrower or the Original Borrower becoming aware of the failure to comply, whichever is the
earlier.
	 
	23.4	 	Misrepresentation
	 
	(a)	 	Any representation or statement made or deemed to be made by a Relevant Party in the Finance
Documents or any other document delivered by or on behalf of any Relevant Party under or in
connection with any Finance Document is or proves to have been incorrect or misleading in any
material respect when made or deemed to be made.
	 
	(b)	 	No Event of Default under paragraph (a) above will occur in relation to a representation
deemed to be made under the Finance Documents after the first Utilisation Date being
incorrect or misleading if it is
capable of remedy and is remedied
within 10 days of the Lender giving
notice to the Original Borrower, or
the Original Borrower becoming aware
of it whichever is first.

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	23.5	 	Cross default
	 
	(a)	 	Any Financial Indebtedness of any Transaction Party or any member of the Group is not paid
when due nor within any originally applicable grace period.
	 
	(b)	 	Any Financial Indebtedness of any Transaction Party or any member of the Group is declared to
be or otherwise becomes due and payable prior to its specified maturity as a result of an
event of default or review event (however described).
	 
	(c)	 	Any commitment for any Financial Indebtedness of any Transaction Party or member of the Group
is cancelled or suspended by a creditor of any Transaction Party or member of the Group (as
applicable) as a result of an event of default or review event (however described).
	 
	(d)	 	Any creditor of any Transaction Party or member of the Group becomes entitled to declare any
Financial Indebtedness of any Transaction Party or member of the Group (as applicable) due and
payable prior to its specified maturity as a result of an event of default or review event
(however described).
	 
	(e)	 	No Event of Default will occur under this Clause 23.5 if the aggregate amount of Financial
Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d)
above is less than:

	 	(i)	 	in the case of an Obligor, $10,000,000 (or its equivalent in any other
currency or currencies); or
	 
	 	(ii)	 	in the case of the Parent Guarantor, US$25,000,000 (or its equivalent in any
other currency or currencies).

	23.6	 	Insolvency
	 
	(a)	 	A Transaction Party or member of the Group:

	 	(i)	 	in the case of an Obligor, is or is presumed or is deemed to be unable or
admits inability to pay its debts as they fall due, suspends making payments on any of
its debts; or
	 
	 	(ii)	 	in the case of the Parent Guarantor, is not Solvent.

	(b)	 	A moratorium is declared in respect of any indebtedness of any Transaction Party or member of
the Group.
	 
	23.7	 	Insolvency proceedings
	 
	 	 	Any corporate action, legal proceedings or other procedure or step is taken in relation to:
	 
	(a)	 	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution,
administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of any Transaction Party or member of the Group other than a solvent liquidation or
reorganisation of any member of the Group which is not a Transaction Party except an
application made to a court for the purposes of winding up such a person which is disputed by
a Transaction Party acting diligently and in good faith and dismissed within 10 Business Days;
	 
	(b)	 	a composition, assignment or arrangement with any creditor of any Transaction Party or member
of the Group;
	 
	(c)	 	the appointment of a liquidator (other than in respect of a solvent liquidation of a member
of the Group which is not an Obligor), Controller, administrator, receiver,

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	 	 	administrator,
administrative receiver, compulsory manager or other similar officer in respect of any
Transaction Party or member of the Group or any of its assets except (other than in the case
of the appointment of an administrator) an application made to a court for the purposes of
appointing such a person which is disputed by a Transaction Party acting diligently and in
good faith and dismissed within 10 Business Days); or
	 
	(d)	 	enforcement of any Security over any assets of any Transaction Party or member of the Group,
	 
	 	 	or any analogous event occurs in any jurisdiction.
	 
	23.8	 	Creditors’ process
	 
	(a)	 	Any expropriation, attachment, sequestration, distress or execution affects any asset or
assets of any Transaction Party or member of the Group having an aggregate value of:

	 	(i)	 	in the case of an Obligor, $10,000,000; or
	 
	 	(ii)	 	in the case of the Parent Guarantor, US$25,000,000,

	 	 	and is not discharged within 10 Business Days.
	 
	(b)	 	A judgment in an amount exceeding:

	 	(i)	 	in the case of an Obligor, $5,000,000; or
	 
	 	(ii)	 	in the case of the Parent Guarantor, US$25,000,000,

	 	 	is obtained against a Transaction Party, or any member of the Group and is not discharged
within 10 Business Days, unless the Transaction Party or member of the Group will or has
appealed such judgment before the expiry of the period in which the Transaction Party or
member of the Group, can appeal and has set aside sufficient reserves to pay such judgment
should an appeal not be made within the relevant period or be unsuccessful.
	 
	23.9	 	Analogous event
	 
	 	 	Anything analogous to or having a substantially similar effect to any of the events
specified in Clauses 23.6 (Insolvency) to 23.8 (Creditors’ process) happens in relation to
a Transaction Party or a member of the Group under the laws of any jurisdiction.
	 
	23.10	 	Ceasing business
	 
	 	 	A Transaction Party ceases to carry on business, except if pursuant to a Permitted
Reorganisation.
	 
	23.11	 	Ownership of the Obligors
	 
	 	 	An Obligor (other than the Original Borrower) is not or ceases to be a Subsidiary of the
Original Borrower, except if pursuant to a Permitted Reorganisation.
	 
	23.12	 	Unlawfulness
	 
	 	 	It is or becomes unlawful for a Relevant Party to perform any of its obligations under the
Finance Documents.
	 
	23.13	 	Repudiation
	 
	 	 	A Relevant Party repudiates a Finance Document or evidences an intention to repudiate a
Finance Document.

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	23.14	 	Vitiation of Finance Documents
	 
	 	 	A provision of a Finance Document is or becomes or is claimed by a party other than the
Lender to be wholly or partly invalid, void, voidable or unenforceable in any material
respect.
	 
	23.15	 	Material adverse effect
	 
	 	 	An event occurs which has had, or is reasonably likely to have (or a series of events occur
which, together, have had, or are reasonably likely to have), a Material Adverse Effect.
	 
	23.16	 	Consequences of an Event of Default
	 
	 	 	On and at any time after the occurrence of an Event of Default which is continuing the
Lender may by notice to the Original Borrower:
	 
	(a)	 	cancel the Commitment whereupon it shall immediately be cancelled;
	 
	(b)	 	declare that all or part of the Loans, together with accrued interest, and all other amounts
accrued or outstanding under the Finance Documents be immediately due and payable, whereupon
they shall become immediately due and payable; and/or
	 
	(c)	 	declare that all or part of the Loans be payable on demand, whereupon they shall immediately
become payable on demand by the Lender.
	 
	23.17	 	Investigation of an Event of Default
	 
	 	 	If an Event of Default is continuing, the Lender may appoint a person to investigate this.
Each Obligor shall co-operate with (and the Borrowers shall ensure that each member of the
Group co-operates with) the person appointed and shall comply with every reasonable request
they make. If an Event of Default is or was continuing, the Borrowers shall within 3
Business Days of demand pay the Lender the amount of all Costs incurred by the Lender in
connection with any investigation.

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SECTION 9

CHANGES TO PARTIES

	24.	 	CHANGES TO THE LENDER
	 
	24.1	 	Assignments and transfers by the Lender
	 
	 	 	Subject to this Clause 24, the Lender (the “Existing Lender”) may:
	 
	(a)	 	assign any of its rights; or
	 
	(b)	 	transfer by novation any of its rights and obligations,
	 
	 	 	under the Finance Documents to another bank or financial institution or to a trust, fund or
other entity which is regularly engaged in or established for the purpose of making,
purchasing or investing in loans, Securities or other financial assets (including credit
derivatives) (the “New Lender”).
	 
	24.2	 	Conditions of assignment or transfer
	 
	(a)	 	The consent of the Original Borrower is required for an assignment or transfer by the Lender,
unless:

	 	(i)	 	the assignment or transfer is to an Affiliate of the Lender;
	 
	 	(ii)	 	an Event of Default is continuing; or
	 
	 	(iii)	 	the assignment or transfer is to a securitisation or funding vehicle where
the Lender remains lender of record.

	(b)	 	The consent of the Original Borrower to an assignment or transfer must not be unreasonably
withheld or delayed or subject to unreasonable conditions. The Original Borrower will be
deemed to have given its consent five Business Days after the Lender has requested it unless
consent is expressly refused by the Original Borrower within that time.
	 
	(c)	 	Where the Lender assigns rights but does not transfer by novation obligations, then for the
purposes of Clause 28, any amount received or recovered by the assignee will be taken to be
received by that Lender.
	 
	(d)	 	An assignment or transfer to a proposed New Lender will not be effective until the Existing
Lender has carried out all necessary “know your customer” or other similar checks in relation
to the New Lender under all applicable laws and regulations. On completion of those checks,
the Existing Lender shall promptly notify the New Lender.
	 
	(e)	 	A transfer will only be effective if the procedure set out in Clause 24.4 (Procedure for
transfer) is complied with.
	 
	(f)	 	If:

	 	(i)	 	the Lender assigns or transfers any of its rights or obligations under the
Finance Documents or changes its Facility Office; and
	 
	 	(ii)	 	as a result of circumstances existing at the date the assignment, transfer or
change occurs, an Obligor would be obliged to make a payment to the New Lender or
Lender acting through its new Facility Office under Clause 13 (Tax gross-up and
indemnities) or Clause 14 (Increased Costs),

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	 	 	then the New Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those Clauses to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the assignment, transfer or
change had not occurred.
	 
	(g)	 	A Lender may not assign or transfer any of its rights or obligations under the Finance
Documents or change its Facility Office, if the New Lender or the Lender acting through its
new Facility Office would be entitled to exercise any rights under Clause 8.1 (Illegality) as
a result of circumstances existing at the date the assignment, transfer or change is proposed
to occur.
	 
	(h)	 	A Lender must bear its own Costs and expenses (including legal fees) in connection with any
such assignment or transfer.
	 
	24.3	 	Limitation of responsibility of Existing Lender
	 
	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender for:

	 	(i)	 	the legality, validity, effectiveness, adequacy or enforceability of the
Finance Documents or any other documents;
	 
	 	(ii)	 	the financial condition of any Transaction Party or any other person;
	 
	 	(iii)	 	the performance and observance by any Transaction Party or any other person
of its obligations under the Finance Documents or any other documents; or
	 
	 	(iv)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Finance Document or any other document,
	 
	 	 	 	and any representations or warranties implied by law are excluded.

	(b)	 	Each New Lender confirms to the Existing Lender that it:

	 	(i)	 	has made (and shall continue to make) its own independent investigation and
assessment of the financial condition and affairs of each Transaction Party and its
related entities and any other person in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by the
Existing Lender in connection with any Finance Document; and
	 
	 	(ii)	 	will continue to make its own independent appraisal of the creditworthiness
of each Transaction Party and its related entities and any other person whilst any
amount is or may be outstanding under the Finance Documents or any Commitment is in
force.

	(c)	 	Nothing in any Finance Document obliges the Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and obligations
assigned or transferred under this Clause 24; or
	 
	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender by
reason of the non-performance by any Transaction Party or any other person of its
obligations under the Finance Documents or otherwise.

	24.4	 	Procedure for transfer
	 
	(a)	 	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) a
transfer is effected in accordance with paragraph (c) below when the Original Borrower

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	 	 	receives a duly completed and executed Transfer Certificate delivered by the Existing
Lender and the New Lender.
	 
	(b)	 	Each Party other than the Existing Lender irrevocably authorises the Lender to execute any
Transfer Certificate on its behalf.
	 
	(c)	 	On the Transfer Date:

	 	(i)	 	to the extent that in the Transfer Certificate the Existing Lender seeks to
transfer by novation its rights and obligations under this Agreement each of the
Obligors and the Existing Lender shall be released from further obligations towards
one another under this Agreement and their respective rights against one another shall
be cancelled (being the “Discharged Rights and Obligations”);
	 
	 	(ii)	 	each of the Obligors and the New Lender shall assume obligations towards one
another and/or acquire rights against one another which differ from the Discharged
Rights and Obligations only insofar as that Obligor and the New Lender have assumed
and/or acquired the same in place of that Obligor and the Existing Lender; and
	 
	 	(iii)	 	the New Lender shall become a Party as a “Lender”.

	24.5	 	Disclosure of information
	 
	 	 	The Lender may disclose to any of its Affiliates and any other person:
	 
	(a)	 	to (or through) whom the Lender assigns or transfers (or may potentially assign or transfer)
all or any of its rights and obligations under this Agreement;
	 
	(b)	 	with (or through) whom the Lender enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments may be made by
reference to, this Agreement or any Transaction Party;
	 
	(c)	 	to rating agencies to the extent required by them; or
	 
	(d)	 	to any person in connection with an exercise of rights under a Finance Document;
	 
	(e)	 	to any Party or any Party’s Affiliates, officers, employees, agents and attorneys, legal and
other advisers and auditors; or
	 
	(f)	 	to any person, law enforcement, regulatory agency or court to whom, and to the extent that,
information is required to be disclosed by any applicable law or regulation,
	 
	 	 	any information about any Transaction Party, the Group and the Finance Documents as the
Lender shall consider appropriate if, in relation to paragraphs (a), (b) and (in the case
of disclosure to a Party’s Affiliates) (e), the person to whom the information is to be
given has entered into a Confidentiality Undertaking.
	 
	25.	 	CHANGES TO THE OBLIGORS
	 
	25.1	 	Assignments and transfer by Obligors
	 
	 	 	No Obligor may assign any of its rights or transfer any of its rights or obligations under
the Finance Documents.
	 
	25.2	 	Additional Borrowers
	 
	(a)	 	The Original Borrower may request that any of its wholly owned Subsidiaries becomes an
Additional Borrower. That Subsidiary shall become an Additional Borrower if:

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	 	(i)	 	the Original Borrower gives at least 10 Business Days notice to the Lender;
	 
	 	(ii)	 	where the Lender has requested documents or information in relation to the
Subsidiary under Clause 20.7 (Know your customer checks) within 5 Business Days of
receiving notice under sub-paragraph (i), the Lender confirms to the Original Borrower
that it has received such documents or information (as applicable);
	 
	 	(iii)	 	the Lender approves the addition of that Subsidiary;
	 
	 	(iv)	 	the Original Borrower delivers to the Lender a duly completed and executed
Accession Letter;
	 
	 	(v)	 	the Original Borrower confirms that no Default is continuing or would occur
as a result of that Subsidiary becoming an Additional Borrower; and
	 
	 	(vi)	 	the Lender has received all of the documents and other evidence listed in
Part II of Schedule 2 (Conditions precedent) in relation to that Additional Borrower,
each in form and substance satisfactory to the Lender.

	(b)	 	The Lender shall notify the Original Borrower promptly upon being satisfied that it has
received (in form and substance satisfactory to it) all the documents and other evidence
listed in Part II of Schedule 2 (Conditions precedent).
	 
	25.3	 	Resignation of a Borrower
	 
	(a)	 	The Original Borrower may request that a Borrower (other than the Original Borrower) ceases
to be a Borrower by delivering to the Lender a Resignation Letter.
	 
	(b)	 	The Lender shall accept a Resignation Letter and notify the Original Borrower of its
acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the
Resignation Letter (and the Original Borrower has confirmed this is the case); and
	 
	 	(ii)	 	the Borrower is under no actual or contingent obligations as a Borrower under
any Finance Documents,
	 
	 	 	 	whereupon that company shall cease to be a Borrower and shall have no further
rights or obligations under the Finance Documents.

	(c)	 	The Lender shall notify the Original Borrower promptly after accepting and executing the
Resignation Letter.
	 
	(d)	 	If the Lender accepts and executes the Resignation Letter, the relevant Borrower shall cease
to be a Borrower with effect on and from the date specified in the Resignation Letter and
shall have no further rights or obligations in that capacity under the Finance Documents.
	 
	25.4	 	Additional Guarantors
	 
	(a)	 	The Original Borrower may request that any of its wholly owned Subsidiaries become an
Additional Guarantor. That Subsidiary shall become an Additional Guarantor if:

	 	(i)	 	the Original Borrower gives at least 10 Business Days notice to the Lender;
	 
	 	(ii)	 	where the Lender has requested documents or information in relation to the
Subsidiary under Clause 20.7 (Know your customer checks) within 5 Business Days of
receiving notice under sub-paragraph (i), the Lender confirms to the

page 54

 

	 	 	 	Original Borrower that it has received such documents or information (as
applicable);
	 
	 	(iii)	 	the Original Borrower delivers to the Lender a duly completed and executed
Accession Letter; and
	 
	 	(iv)	 	the Lender has received all of the documents and other evidence listed in
Part II of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor,
each in form and substance satisfactory to the Lender.

	(b)	 	The Lender shall notify the Original Borrower promptly upon being satisfied that it has
received (in form and substance satisfactory to it) all the documents and other evidence
listed in Part II of Schedule 2 (Conditions precedent).
	 
	(c)	 	The Lender shall notify the Original Borrower promptly after executing the Accession Letter.
	 
	(d)	 	If the Lender accepts and executes the Accession Letter, the relevant Subsidiary becomes a
Party as an “Additional Guarantor” with effect on and from, in the case of an Accession
Letter, the date specified in the Accession Letter and is bound by the terms of this
Agreement.
	 
	25.5	 	Repetition of Representations
	 
	 	 	Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that
the Repeating Representations are true and correct in relation to it as at the date of
delivery as if made by reference to the facts and circumstances then existing.
	 
	25.6	 	Resignation of a Guarantor
	 
	(a)	 	The Original Borrower may request that a Guarantor (other than the Original Borrower) ceases
to be a Guarantor by delivering to the Lender a Resignation Letter.
	 
	(b)	 	The Lender shall accept a Resignation Letter and notify the Original Borrower of its
acceptance if no Default is continuing or would result from the acceptance of the Resignation
Letter (and the Original Borrower has confirmed this is the case), whereupon that company
shall cease to be an Obligor and shall have no further rights or obligations under the Finance
Documents.
	 
	(c)	 	The Lender shall notify the Original Borrower promptly after accepting and executing the
Resignation Letter.
	 
	(d)	 	If the Lender accepts and executes the Resignation Letter, the relevant Guarantor shall cease
to be a Guarantor with effect on and from the date specified in the Resignation Letter and
shall have no further rights or obligations in that capacity under the Finance Documents.

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SECTION 11

ADMINISTRATION

	26.	 	THE LENDER
	 
	26.1	 	Deduction from amounts payable to the Lender
	 
	 	 	If any Obligor owes an amount to the Lender under the Finance Documents the Lender may,
after giving notice to that Obligor, deduct an amount not exceeding that amount from any
payments to that Obligor which the Lender would otherwise be obliged to make under the
Finance Documents and apply the amount deducted in or towards satisfaction of the amount
owed. For the purposes of the Finance Documents that Obligor shall be regarded as having
received any amount so deducted.
	 
	26.2	 	Conduct of business by the Lender

No provision of this Agreement will:

	(a)	 	interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever
manner it thinks fit;
	 
	(b)	 	oblige the Lender to investigate or claim any credit, relief, remission or repayment
available to it or the extent, order and manner of any claim; or
	 
	(c)	 	oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or
any computations in respect of Tax.
	 
	26.3	 	Payments to the Lender
	 
	(a)	 	On each date on which an Obligor is required to make a payment under a Finance Document, that
Obligor shall make the same available to the Lender (unless a contrary indication appears in a
Finance Document) for value on the due date at the time and in such funds specified by the
Lender as being customary at the time for settlement of transactions in the relevant currency
in the place of payment.
	 
	(b)	 	Payment shall be made to such account at the city of the Lender with such bank as the Lender
specifies.
	 
	26.4	 	Partial payments
	 
	(a)	 	If the Lender receives a payment that is insufficient to discharge all the amounts then due
and payable by an Obligor under the Finance Documents, the Lender shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following order:

	 	(i)	 	first, in or towards payment of any unpaid fees, Costs and expenses of the
Lender under the Finance Documents;
	 
	 	(ii)	 	secondly, in or towards payment of any accrued interest, fees or commission
due but unpaid under this Agreement;
	 
	 	(iii)	 	thirdly, in or towards payment of any principal due but unpaid under this
Agreement; and
	 
	 	(iv)	 	fourthly, in or towards payment of any other sum due but unpaid under the
Finance Documents.

	(b)	 	Paragraph (a) above will override any appropriation made by an Obligor.

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	26.5	 	No set-off by Obligors
	 
	 	 	All payments to be made by an Obligor under the Finance Documents shall be calculated and
be made without (and free and clear of any deduction for) set-off or counterclaim.
	 
	26.6	 	Business Days
	 
	(a)	 	Any payment which is due to be made on a day that is not a Business Day shall be made on the
next Business Day in the same calendar month (if there is one) or the preceding Business Day
(if there is not).
	 
	(b)	 	During any extension of the due date for payment of any principal or an Unpaid Sum under this
Agreement interest is payable on the principal or the Unpaid Sum at the rate payable on the
original due date.
	 
	26.7	 	Currency of account
	 
	(a)	 	Subject to paragraphs (b) and (c) below, the Australian dollar is the currency of account and
payment for any sum due from an Obligor under any Finance Document.
	 
	(b)	 	Each payment in respect of Costs, expenses or Taxes shall be made in the currency in which
the Costs, expenses or Taxes are incurred.
	 
	(c)	 	Any amount expressed to be payable in a currency other than Australian dollars shall be paid
in that other currency.
	 
	27.	 	SET-OFF
	 
	 	 	If a Default is continuing, the Lender may, but need not, set off any matured obligation
due from an Obligor under the Finance Documents (to the extent beneficially owned by the
Lender) against any matured obligation owed by the Lender to that Obligor (whether or not
matured), regardless of the place of payment, booking branch or currency of either
obligation. If the obligations are in different currencies, the Lender may convert either
obligation at a market rate of exchange in its usual course of business for the purpose of
the set-off.
	 
	28.	 	NOTICES
	 
	28.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with the Finance Documents shall be
made in writing and, unless otherwise stated, may be made by fax or letter or if the
recipient so agrees, by electronic transmission.
	 
	28.2	 	Addresses
	 
	 	 	The address, fax number and email address (and the department or officer, if any, for whose
attention the communication is to be made) of each Party for any communication or document
to be made or delivered under or in connection with the Finance Documents is:
	 
	(a)	 	that specified in Schedule 1 (The Original Parties) or notified in writing to the Lender (in
the case of any change made by any Obligor) or notified in writing to the Original Borrower
(in the case of any change made by the Lender) on or prior to the date on which it becomes a
Party; and
	 
	(b)	 	in the case of the Lender, that identified with its name below.
	 
	 	 	Address for service of Notices:

page 57 

 

				
	 	Lender:	 	National Australia Bank Limited, Level 18, 255 George Street, Sydney, NSW, 2000;
Fax: +61 2 9237 1652; email: Elsa.Masztak@nab.com.au; Attention: Elsa Masztak,
Director, Institutional Banking

	28.3	 	Delivery
	 
	(a)	 	Any communication or document made or delivered by one person to another under or in
connection with the Finance Documents will only be effective:

	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant address or five
Business Days after being deposited in the post postage prepaid in an envelope
addressed to it at that address; or
	 
	 	(iii)	 	if by way of electronic transmission:

	 	(A)	 	(if the recipient has agreed to receive the notice by
electronic transmission) upon receipt by the sender of a delivery receipt from
that addressee’s email address,
	 
	 	 	 	and, if a particular department or officer is specified as part of its
address details provided under Clause 28.2 (Addresses), if addressed to
that department or officer.

	(b)	 	Any communication or document to be made or delivered to the Lender will be effective only
when actually received by the Lender and then only if it is expressly marked for the attention
of the department or officer identified in Clause 28.2(b) (or any substitute department or
officer as the Lender shall specify for this purpose).
	 
	(c)	 	Any communication or document made or delivered to the Original Borrower in accordance with
this Clause will be deemed to have been made or delivered to each of the Obligors.
	 
	 	 	Subject to Clause 28.4 (Reliance), all notices must be signed by an Authorised Officer of
the sender.

	28.4	 	Reliance

Any notice sent under this Clause 28 (Notices) can be relied on by the recipient if the recipient
reasonably believes the notice to be genuine and if it bears what appears to be the signature
(original or facsimile) of an Authorised Officer of the sender (without the need for further
enquiry or confirmation). Each Party must take reasonable care to ensure that no forged, false or
unauthorised notices are sent to another Party.

	28.5	 	English language
	 
	(a)	 	Any notice given under or in connection with any Finance Document must be in English.
	 
	(b)	 	All other documents provided under or in connection with any Finance Document must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Lender, accompanied by a
certified English translation and, in this case, the English translation will prevail
unless the document is a constitutional, statutory or other official document.

page 58 

 

	28.6	 	Original Borrower and Obligors

Each Obligor irrevocably authorises the Original Borrower to give and receive notices and
communications on its behalf (including Utilisation Requests and Selection Notices). Other Parties
may rely on any such notice or communication by the Original Borrower as given on behalf of the
Obligor, and the Obligor is bound by it.

	29.	 	CALCULATIONS AND CERTIFICATES
	 
	29.1	 	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by the Lender are sufficient evidence of the
matters to which they relate unless the contrary is proved.

	29.2	 	Certificates and Determinations

Any certification or determination by the Lender of an exchange rate, a rate of interest or amount
under Clause 11 (Break Costs), Clause 13 (Tax gross up and indemnities) or Clause 14 (Increased
costs) or under any Finance Document is sufficient evidence of the matters to which it relates and
any certification or determination by the Lender of any other matter is sufficient evidence of the
matters to which it relates unless the contrary is proved.

	29.3	 	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and
is calculated on the basis of the actual number of days elapsed and a year of 365 days.

	30.	 	PARTIAL INVALIDITY

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction will in any way be affected or impaired.

	31.	 	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of the Lender, any right or remedy
under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of
any right or remedy prevent any further or other exercise or the exercise of any other right or
remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any
rights or remedies provided by law.

	32.	 	AMENDMENTS AND WAIVERS

Any term of the Finance Documents may be amended or waived only in writing with the consent of the
Lender and the Obligors and any such amendment or waiver will be binding on all Parties.

	33.	 	COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of the Finance Document.

	34.	 	GENERAL
	 
	34.1	 	Application to Finance Documents

If anything in this Clause 34 is inconsistent with a provision in another Finance Document, then
the provision in the other Finance Document prevails to the extent of the inconsistency for the
purposes of that Finance Document.

page 59 

 

	34.2	 	Consents and waivers

Each Obligor shall comply with all conditions in any consent or waiver the Lender gives under or in
connection with a Finance Document.

	34.3	 	Discretion in exercising rights

Unless the contrary intention appears, a party may exercise a right or remedy or give or refuse its
consent under or in connection with a Finance Document in any way it considers appropriate
(including by imposing conditions).

	34.4	 	No liability for loss

The Lender is not liable to any Obligor for any loss, liability or Costs caused by the exercise or
attempted exercise of, or failure to exercise, or delay in exercising, a right or remedy under or
in connection with a Finance Document other than any loss, liability or Costs which is attributable
to the gross negligence, fraud or wilful misconduct of the Lender.

	34.5	 	Conflict of interest

The Lender may exercise its rights or remedies under or in connection with a Finance Document even
if this involves a conflict of duty or the Lender has a personal interest in their exercise.

	34.6	 	Rights and obligations are unaffected

Rights given to the Lender under or in connection with a Finance Document, and an Obligor’s
obligations under it are not affected by any act or omission or any other thing which might
otherwise affect them under law or otherwise.

	34.7	 	Inconsistent law

To the extent permitted by law, each Finance Document prevails to the extent it is inconsistent
with any law.

	34.8	 	Supervening law

Any present or future law which varies the obligations of an Obligor under or in connection with a
Finance Document with the result that the Lender’s rights or remedies are adversely affected
(including by way of delay or postponement) is excluded except to the extent that its exclusion is
prohibited or rendered ineffective by law.

	34.9	 	Further steps

Each Obligor shall promptly do anything the Lender reasonably asks (such as obtaining consents,
signing and producing documents and getting documents completed and signed):

	(a)	 	to enable the Lender to exercise its rights under or in connection with any Finance Document;
	 
	(b)	 	to bind the Transaction Party and any other person intended to be bound under any Finance
Document; or
	 
	(c)	 	to enable the Lender to register any power of attorney in any Finance Document or any similar
power.
	 
	35.	 	INDEMNITIES AND REIMBURSEMENT

All indemnities and reimbursement obligations in each Finance Document are continuing and survive
termination of the Finance Document, repayment of the Loans and cancellation or expiry of the
Commitment.

	36.	 	ACKNOWLEDGEMENT

Except as expressly set out in the Finance Documents none of the Asia Pacific Loan Market
Association, the Lender or any of their advisers have given any representation or warranty or

page 60 

 

other assurance to any Obligor in relation to the Finance Documents and the transactions they
contemplate, including as to tax or other effects. The Obligors have not relied on any of them or
on any conduct (including any recommendation) by any of them. The Obligors have obtained their own
tax and legal advice.

The Code of Banking Practice does not apply to the Finance Documents and the transactions under
them.

page 61 

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

	37.	 	GOVERNING LAW

This Agreement is governed by New South Wales law.

	38.	 	ENFORCEMENT
	 
	38.1	 	Jurisdiction
	 
	(a)	 	The courts having jurisdiction in New South Wales have exclusive jurisdiction to settle any
dispute arising out of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute”).
	 
	(b)	 	The Parties agree that those courts are the most appropriate and convenient courts to settle
Disputes and accordingly no Party will argue to the contrary.
	 
	(c)	 	Each Party irrevocably waives any objection it may now or in the future have to the venue of
any proceedings, and any claim it may now or in the future have that any proceedings have been
brought in an inconvenient forum, where that venue falls within paragraph (a).
	 
	(d)	 	This Clause 38.1.1 is for the benefit of the Lender only. As a result, the Lender shall not
be prevented from taking proceedings relating to a Dispute in any other courts with
jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any
number of jurisdictions.
	 
	38.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, each Obligor
(other than an Obligor incorporated in Australia):
	 
	(a)	 	irrevocably appoints the Original Borrower as its agent for service of process in relation to
any proceedings in connection with any Finance Document; and
	 
	(b)	 	agrees that failure by a process agent to notify the relevant Obligor of the process will not
invalidate the proceedings concerned.
	 
	 	 	Each party expressly agrees and consents to the provisions of this Clause 38.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

page 62 

 

SCHEDULE 1

THE ORIGINAL PARTIES

PART I

THE ORIGINAL OBLIGORS

	 	 	 	 	 	 	 
	 	 	Name	 	Registration Number	 	Notice Details
	Original Borrower

	 	The MAC Services
Group Pty Limited
	 	ABN 53 003 657 510
	 	Address: Level 6, 10 Bond
Street, Sydney, NSW 2000
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Fax +61 2 8346 9299
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone +61 2 8346 9200
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Email: pmccann@themac.com.au
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention Peter McCann CFO
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	with a copy to
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Oil States International, Inc.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Address: Three Allen Center,
333 Clay Street, Suite 4620,
Houston, Texas 77002
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone +1 (713) 652-0582
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Email:
	 

	 	 	 	 	 	Bradley.Dodson@oilstates.com
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention: Bradley Dodson
	 
	 	 	 	 	 	 
	Original Guarantors

	 	MSL Nominees Pty Ltd
	 	ACN 126 933 953
	 	As for the Original Borrower
	 
	 	 	 	 	 	 
	 

	 	The MAC Linen
Services Pty Ltd
	 	ABN 54 120 171 511
	 	As for the Original Borrower
	 
	 	 	 	 	 	 
	 

	 	MSL Nominees
(Narrabri) Pty Ltd
	 	ACN 145 416 404
	 	As for the Original Borrower

page 63 

 

	 	 	 	 	 	 	 
	 	 	Name	 	Registration Number	 	Notice Details
	 

	 	MSL Nominees
(Karratha) Pty Ltd
	 	ACN 132 700 693
	 	As for the Original Borrower

page 64 

 

PART II

THE ORIGINAL LENDERS

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address for Service of
	Name of Original Lender	 	Commitment	 	Notice
	National Australia Bank 

Limited (ABN 12 004 044
937)

	 	$	150,000,000	 	 	Address Level 18, 255 George
Street, Sydney, 
NSW, 2000

Fax +61 2 9237 1652
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone +61 2 9237 1531
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Email:
	 

	 	 	 	 	 	Elsa.Masztak@nab.com.au
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention: Elsa Masztak,
Director, Institutional
Banking

page 65 

 

SCHEDULE 2

CONDITIONS PRECEDENT

PART I

CONDITIONS PRECEDENT TO INITIAL UTILISATION

	1.	 	Original Obligors
	 
	 	 	A Conditions Precedent Certificate in relation to each Obligor given by a director and
company secretary or two directors of the Obligor with the attachments referred to therein
and dated not earlier than 5 Business Days before the first Utilisation Date.
	 
	2.	 	Legal opinions

	 	(a)	 	A legal opinion of Freehills, legal advisers to the Lender in Australia,
substantially in the form distributed to the Original Lender prior to signing this
Agreement.
	 
	 	(b)	 	A legal opinion of Vinson & Elkins L.L.P., legal advisers to the Parent
Guarantor in the United States of America, substantially in the form distributed to
the Original Lender prior to signing this Agreement.

	3.	 	Other documents and evidence

	 	(a)	 	An original of each Finance Document duly executed by all of the parties to
it (to the extent not previously provided to the Lender and in the possession of the
Lender as at the date of this Agreement), and in the case of each New Security, duly
stamped or with sufficient clear funds to allow the Lender to attend to stamping.
	 
	 	(b)	 	all duly completed ASIC forms 309 and 350;
	 
	 	(c)	 	Evidence that any process agent referred to in Clause 38.2 (Service of
process), if not an Original Obligor, has accepted its appointment.
	 
	 	(d)	 	A copy of any other Authorisation or other document, opinion or assurance
which the Lender considers to be necessary or desirable (if it has notified the
Original Borrower accordingly) in connection with the entry into and performance of
the transactions contemplated by any Finance Document or for the validity and
enforceability of any Finance Document.
	 
	 	(e)	 	The Original Financial Statements of each Original Obligor.
	 
	 	(f)	 	Evidence that the fees, Costs and expenses then due from the Original
Borrower pursuant to Clause 12 (Fees) and Clause 17 (Costs and expenses) have been
paid or will be paid by the first Utilisation Date.
	 
	 	(g)	 	Evidence of satisfaction by the Transaction Parties of know your customer
checks, where such information is not already available to the Lender (as and if the
Lender requires).
	 
	 	(h)	 	Evidence that the first Utilisation will be applied to repay all amounts
owing under the Existing Facilities.
	 
	 	(i)	 	A Multi-Jurisdictional Mortgage Statement provided by the Borrowers to the
Lender, showing the dollar value of the Secured Property that is located in New

page 66 

 

	 	 	 	South Wales for the purposes of stamp duty legislation, as a proportion of the
dollar value of all Secured Property.

	 	(j)	 	Evidence that each of the Relevant Trusts has been wound up pursuant to and
in accordance with the terms of the Trust Deed of Release.

PART II

CONDITIONS PRECEDENT REQUIRED TO BE DELIVERED

BY AN ADDITIONAL OBLIGOR

	1.	 	An Accession Letter, duly executed by the Additional Obligor and the Original Borrower.
	 
	2.	 	A certified copy of the constitutional documents of the Additional Obligor (if any).
	 
	3.	 	A certified copy of a resolution of the board of directors of the Additional Obligor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Accession
Letter and the Finance Documents and resolving that it execute the Accession Letter;
	 
	 	(b)	 	to the effect that it is in the best interests of the Additional Obligor,
giving reasons;
	 
	 	(c)	 	on its behalf and / or a power of attorney for execution of the Accession
Letter; and
	 
	 	(d)	 	authorising a specified person or persons, on its behalf, as Authorised
Officers to sign and/or despatch all other documents and notices (including, in
relation to an Additional Borrower, any Utilisation Request) to be signed and/or
despatched by it under or in connection with the Finance Documents.

	4.	 	An original power of attorney for the execution of the Accession Letter, from the Additional
Obligor executed under common seal or by two directors or a director and a secretary.
	 
	5.	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 3 above.
	 
	6.	 	A certified copy of a resolution signed by all the holders of the issued shares of the
Additional Guarantor, approving the terms of, and the transactions contemplated by, the
Finance Documents to which the Additional Guarantor is a party and a certificate of solvency
by a director of that Additional Guarantor.
	 
	7.	 	A certificate of the Additional Obligor (signed by a director) confirming that borrowing or
guaranteeing, as appropriate, the Commitment would not cause any borrowing, guaranteeing or
similar limit binding on it to be exceeded.
	 
	8.	 	A certificate of an authorised signatory of the Additional Obligor certifying that each copy
document listed in this Part II of Schedule 2 is correct, complete and in full force and
effect as at a date no earlier than the date of the Accession Letter.
	 
	9.	 	A certificate or other evidence from any Additional Guarantor incorporated in Australia and
signed by a director certifying that such Additional Guarantor is not in breach of Chapter 2E
of the Corporations Act.

page 67 

 

	10.	 	A copy of any other Authorisation or other document, opinion or assurance which the Lender
considers to be necessary or desirable (if it has notified the Additional Obligor accordingly)
in connection with the entry into and performance of the transactions contemplated by the
Accession Letter or for the validity and enforceability of any Finance Document to which the
Additional Obligor is a party.
	 
	11.	 	If available, the latest audited Financial Statements of the Additional Obligor.
	 
	12.	 	A legal opinion of Freehills, legal advisers to the Lender in Australia.
	 
	13.	 	If the Additional Obligor is incorporated in a jurisdiction outside Australia, a legal
opinion of the legal advisers to the Borrower in the jurisdiction in which the Additional
Obligor is incorporated.
	 
	14.	 	If the proposed Additional Obligor is incorporated in a jurisdiction outside Australia,
evidence that the process agent specified in Clause 38.2 (Service of process), if not an
Obligor, has accepted its appointment in relation to the proposed Additional Obligor.
	 
	15.	 	A Security given by the Additional Obligor in favour of the Lender, consistent in form and
substance with the Existing Securities and duly stamped or with sufficient clear funds to
allow the Lender to attend to stamping.
	 
	16.	 	All duly completed forms, notices and other documents required to register or file with the
appropriate Governmental Agency any document referred to in item 15 above.

page 68 

 

SCHEDULE 3

UTILISATION REQUEST

	 	 	 

	From:

	 	[Borrower]
	 
	 	 
	To:

	 	[Lender]
	 
	 	 
	Dated:
	 	 

Dear Sirs

[Original Borrower] — [          ] Facility Agreement

dated [          ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement
shall have the same meaning in this Utilisation Request unless given a different meaning in
this Utilisation Request.
	 
	2.	 	We wish to borrow a Loan on the following terms:

	 	 	 

	Proposed Utilisation Date:

	 	[          ] (or, if that is not a Business Day, the next Business Day)
	 
	 	 
	Amount:

	 	[               ] or, if less, the Available Commitment
	 
	 	 
	Interest Period:

	 	[          ]

	3.	 	We confirm that each condition specified in Clause 5.2 (Further conditions precedent) is
satisfied on the date of this Utilisation Request.
	 
	4.	 	We confirm that no Default is continuing.
	 
	5.	 	The proceeds of this Loan should be credited to [account].
	 
	6.	 	This Utilisation Request is irrevocable.

Yours faithfully

 

Authorised Officer

[name of relevant Borrower]

page 69 

 

SCHEDULE 4

FORM OF TRANSFER CERTIFICATE

	 	 	 

	To:

	 	[          ] as Lender
	 
	 	 
	From:

	 	[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)
	 
	 	 
	Dated:
	 	 

[Original Borrower] — [          ] Facility Agreement

dated [          ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement
shall have the same meaning in this Transfer Certificate unless given a different meaning in
this Transfer Certificate.
	 
	2.	 	We refer to Clause 24.4 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender and the
New Lender novating all or part of the Existing Lender’s Commitment, rights and
obligations referred to in the Schedule in accordance with Clause 24.4 (Procedure for
transfer).
	 
	 	(b)	 	The proposed Transfer Date is [          ].
	 
	 	(c)	 	The Facility Office and address, fax number and attention details for notices
of the New Lender for the purposes of Clause 28.2 (Addresses) are set out in the
Schedule.

	3.	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in paragraph (c) of Clause 24.3 (Limitation of responsibility of Existing Lenders).
	 
	4.	 	This Transfer Certificate is governed by New South Wales law.

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for
payments,]

	 	 	 

	[Existing Lender]

	 	[New Lender]
	 
	 	 
	By:

	 	By:

This Transfer Certificate is accepted by the Lender and the Transfer Date is
confirmed as [     ].

page 70 

 

This Transfer Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

[Lender]

By:

page 71 

 

SCHEDULE 5

FORM OF ACCESSION LETTER

	 	 	 

	To:

	 	[          ] as Lender
	 
	 	 
	From:

	 	[Subsidiary] and [Original Borrower]
	 
	 	 
	Dated:
	 	 

Dear Sirs

[Original Borrower] — [          ] Facility Agreement

dated [          ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is an Accession Letter. Terms used in the Agreement shall
have the same meaning in this Accession Letter unless given a different meaning in this
Accession Letter.
	 
	2.	 	[Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the
terms of the Agreement as an Additional [Borrower]/[Guarantor] pursuant to Clause [25.2
(Additional Borrowers)]/[Clause 25.4 (Additional Guarantors)] of the Agreement. [Subsidiary]
is a company duly incorporated under the laws of [name of relevant jurisdiction].
	 
	3.	 	[Subsidiary’s] administrative details are as follows:
	 
	 	 	Address:
	 
	 	 	Fax No:
	 
	 	 	Attention:
	 
	4.	 	This Accession Letter may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Accession
Letter.
	 
	5.	 	This letter is governed by New South Wales law.
	 
	 	 	This Guarantor Accession Letter is executed and delivered as a deed.

	 	 	 

	[Insert execution clause for Borrowers] [Insert execution clause for Subsidiary]

	 
	 	 
	[Insert execution clause for Lender]
	 	 

page 72 

 

SCHEDULE 6

FORM OF RESIGNATION LETTER

	 	 	 

	To:

	 	[          ] as Lender
	 
	 	 
	From:

	 	[resigning Obligor] and [Original Borrower]
	 
	 	 
	Dated:
	 	 

Dear Sirs

[Original Borrower] — [          ] Facility Agreement

dated [          ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Resignation Letter. Terms used in the Agreement shall
have the same meaning in this Resignation Letter unless given a different meaning in this
Resignation Letter.
	 
	2.	 	Pursuant to [Clause 25.3 (Resignation of a Borrower)]/[Clause 25.6 (Resignation of a
Guarantor)], we request that [resigning Obligor] be released from its obligations as a
[Borrower]/[Guarantor] under the Agreement.
	 
	3.	 	We confirm that:

	 	(a)	 	no Default is continuing or would result from the acceptance of this request;
and
	 
	 	(b)	 	[                    ]

	4.	 	This Accession Letter may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Accession
Letter.
	 
	5.	 	This letter is governed by New South Wales law.
	 
	[Insert execution clause for Borrowers] [Insert execution clause for Subsidiary]

	 
	 	 	This Resignation Letter is accepted by the Lender and the resignation date is confirmed as
[*].
	 
	 	 	[Insert execution clause for Lender]

page 73 

 

SCHEDULE 7

FORM OF COMPLIANCE CERTIFICATE

	 	 	 
	To:

	 	[     ] as Lender
	 
	 	 
	From:

	 	[Original Borrower]
	 
	 	 
	Dated:
	 	 

Dear Sirs

[Original Borrower] — [     ] Facility Agreement

dated [     ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Compliance Certificate. Terms used in the Agreement
shall have the same meaning in this Compliance Certificate unless given a different meaning in
this Compliance Certificate.

	2.	 	We confirm that at the Ratio Date, the financial ratios required under Clause 21 (Financial
Covenants) have been calculated in accordance with that clause and the result of those
calculations are those set out in the table below under the column headed “Actual”:

	 	 	 	 	 
	Financial Covenants	 	Actual	 	Covenants
	Leverage Ratio
	 	 	 	less than 3.0:1 as at each Ratio Date
	 
	Interest Cover Ratio
	 	 	 	not less than 4.0:1 as at each Ratio Date

	3.	 	We confirm that on the Ratio Date, the Borrowers complied with Clause 21.
	 
	4.	 	We attach to this Compliance Certificate computations as to the Obligors compliance with
Clause 21 (Financial Covenants).
	 
	5.	 	We confirm that no Default is continuing.

	 	 	 	 	 	 	 

	Signed:
	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 
	 

	 	Director
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	Of
	 	Of	 	 
	 
	 	 	 	 	 	 
	 

	 	[Original Borrower]
	 	          [Original Borrower]	 	 

[insert applicable certification language]

page 74

 

                                                            

for and on behalf of

[name of auditors of the Original Borrower]

page 75

 

SCHEDULE 8

PART A — EXISTING SECURITY

Registered Charge

The registered mortgage debenture dated 11 March 1999 by the Original Borrower in favour of the Original Lender.

Registered Real Property Mortgages

	 	 	 	 	 	 	 	 	 
	Description	 	Title reference	 	Registered Proprietor	 	Mortgage	 	Date of execution
	Acacia St, Moranbah QLD

	 	Lot 2 on CP895577

Title reference 50301779
	 	The MAC Services Group Pty Limited
	 	703273065 -
Mortgage to
National Australia
Bank Limited.
	 	1 April 1999
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	708162769 -
Mortgage to
National Australia
Bank Limited.	 	18 June 2004
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 3 on SP167245

Title reference 50502911
	 	The MAC Services Group Pty Limited
	 	708162760 -
Mortgage to
National Australia
Bank Limited.
	 	27 September 2004
	 
	 	 	 	 	 	 	 	 
	Waverley St, Nebo QLD

	 	Lot 39 on SP 186539

Title reference 50606997
	 	The MAC Services Group Pty Limited
	 	707033963 -
Mortgage to
National Australia
Bank Limited.
	 	10 September 2003
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	709561237 -
Mortgage to
National Australia
Bank Limited.	 	6 April 2006
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 6 on RP 906888

Title reference 50191790
	 	The MAC Services Group Pty Limited
	 	707033967 -
Mortgage to
National Australia
Bank Limited.
	 	10 September 2003
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 13 on RP 906888

Title reference 50191797
	 	The MAC Services Group Pty Limited
	 	707033965 -
Mortgage to
National Australia
Bank Limited.
	 	10 September 2003
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 12 on RP 906888

Title reference 50191796
	 	The MAC Services Group Pty Limited
	 	705662914 -
Mortgage to
National Australia
Bank Limited.
	 	24 May 2002

page 76

 

	 	 	 	 	 	 	 	 	 
	Description	 	Title reference	 	Registered Proprietor	 	Mortgage	 	Date of execution
	 

	 	Lot 7 on RP 906888

Title reference 50191791
	 	The MAC Services Group Pty Limited
	 	708943585 -
Mortgage to
National Australia
Bank Limited.
	 	18 June 2004
	 
	 	 	 	 	 	 	 	 
	Queen Elizabeth Drive, Dysart QLD

	 	Lot 1 on SP 167864

Title reference 50518659
	 	The MAC Services Group Pty Limited
	 	7089435777 -
Mortgage to
National Australia
Bank Limited.
	 	26 August 2005
	 
	 	 	 	 	 	 	 	 
	Peak Downs 

Highway, Coppabella QLD

	 	Lot 10 in SP 124642

Title reference 50297145
	 	The MAC Services Group Pty Limited
	 	708943581 -
Mortgage to
National Australia
Bank Limited.
	 	10 June 2005
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 9 in SP 124642

Title reference 50297144
	 	The MAC Services Group Pty Limited
	 	709839849 -
Mortgage to
National Australia
Bank Limited.
	 	3 August 2006
	 
	 	 	 	 	 	 	 	 
	Gordon Adams Rd, Kambalda East WA

	 	Lot 44 on DP 180215
	 	The MAC Services Group Pty Limited
	 	L349236 — Mortgage
to National
Australia Bank
Limited.
	 	28 January 2010
	 
	 	 	 	 	 	 	 	 
	Roche Creek Road, Wandoan

	 	Lot 1 on RP 900597

Title reference 50129236
	 	The MAC Services Group Pty Limited	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Lot 6 on RP 900597

Title reference 50129241
	 	The MAC Services Group Pty Limited	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Centenary Drive, Middlemeount

	 	Lot 13 CNS188

Title Ref: 40059217
	 	The MAC Services Group Pty Limited	 	 	 	 

page 77

 

PART B — NEW SECURITY

An all assets fixed and floating charge granted by the Original Borrower, MSL Nominees
(Karratha) Pty Ltd, MSL Nominees (Narrabri) Pty Ltd, MSL Nominees Pty Ltd and The MAC Linen
Services Pty Ltd in their personal capacity in favour of the Original Lender, dated on or about the
date of this Agreement.

page 78

 

SCHEDULE 9

TIMETABLE

	 	 	 

	Delivery of a duly
completed Utilisation
Request (Clause 6.1
(Delivery of a
Utilisation Request)

	 	11am Sydney Time on a day that is a minimum of
3 Business Days prior to the proposed
Utilisation Date (unless otherwise agreed by
the Lender in writing)
	 
	 	 
	BBR is fixed

	 	10.30am Sydney time on the Utilisation Date

page 79

 

SCHEDULE 10

FORM OF CONDITIONS PRECEDENT CERTIFICATE

Part I

Original Obligors

	 	 	 

	To:

	 	[Lender] as Original Lender
	 
	 	 
	From:

	 	[Obligors]
	 
	 	 
	Dated:
	 	 

Dear Sirs

Facility Agreement

dated [          ] May 2011 (“Facility Agreement”)

	1	 	We refer to the Facility Agreement. This is a Conditions Precedent Certificate. Terms used
in the Facility Agreement shall have the same meaning in this Conditions Precedent Certificate
unless given a different meaning in this Conditions Precedent Certificate.

	2	 	We certify the following:

	 	(a)	 	attached to this certificate marked “A-1” to “A-[ ]” are copies of the
constitutional documents (including certificates of registration where relevant) of
each Original Obligor in the case of each Original Guarantor, amended (if necessary)
to include a provision of the type contemplated in section 187(a) of the Corporations
Act / [the constitutional documents last provided to the Lender have not been amended
or revoked since that date];
	 
	 	(b)	 	attached to this certificate marked “B-1” is a copy of extracts of a
resolution of the board of directors of the Original Obligors;
	 
	 	(c)	 	attached to this certificate marked “C-1” is a copy of the
corporate structure diagram of the Group / [the copy of the corporate structure
diagram of the Group last provided to the Lender under the Facility Agreement remains
unchanged since that date];
	 
	 	(d)	 	attached to this certificate marked “D-1” are the signatures of [
] who are persons authorised by the resolutions referred to in paragraph (b)
above;
	 
	 	(e)	 	each Original Guarantor is able to pay its debts as and when they become due
and payable;
	 
	 	(f)	 	borrowing or guaranteeing, as appropriate, the Commitment does not cause any
borrowing, guaranteeing or similar limit binding on any Original Obligor to be
exceeded;
	 
	 	(g)	 	no Original Obligor incorporated in Australia is in breach of Chapter 2E
(Related Party Transactions) or Part 2J.3 (Financial assistance) of the Corporations
Act; and
	 
	 	(h)	 	each document attached to this certificate is correct, complete and in full
force and effect as at a date no earlier than the date of this Conditions Precedent
Certificate.

page 80

 

	 	 	 	 	 

	Signed:
	 	 	 	 
	 

	 	 

Director
	 	 
	 

	 	Of	 	 
	 

	 	[Obligor]	 	 

page 81

 

SCHEDULE 11

GROUP STRUCTURE DIAGRAM

page 82

 

SIGNATURE PAGE

	 	 	 	 	 

	 

	 	Original Borrower	 	 
	 
	 	 	 	 
	 

	 	Signed by	 	 
	 

	 	The MAC Services Group Pty Limited	 	 
	 

	 	by	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ David Rowland	 	 
	 

	 	 

Company Secretary/Director
	 	 
	 
	 	 	 	 
	print name
	 	David Rowland	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Peter McCann	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	print name
	 	Peter McCann	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Original Guarantor	 	 
	 
	 	 	 	 
	 

	 	Signed by	 	 
	 

	 	MSL Nominees Pty Limited	 	 
	 

	 	by	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ David Rowland	 	 
	 

	 	 	 	 
	 

	 	Company Secretary/Director	 	 
	 
	 	 	 	 
	print name
	 	David Rowland	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Peter McCann	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	print name
	 	Peter McCann	 	 
	 

	 	 	 	 

page 83

 

	 	 	 	 	 

	 

	 	Original Guarantor	 	 
	 
	 	 	 	 
	 

	 	Signed by	 	 
	 

	 	MSL Nominees (Karratha) Pty Limited	 	 
	 

	 	by	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ David Rowland	 	 
	 

	 	 

Company Secretary/Director
	 	 
	 
	 	 	 	 
	print name
	 	David Rowland	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Peter McCann	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	print name
	 	Peter McCann	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Original Guarantor	 	 
	 
	 	 	 	 
	 

	 	Signed by	 	 
	 

	 	MSL Nominees (Narrabri) Pty Limited	 	 
	 

	 	by	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ David Rowland	 	 
	 

	 	 	 	 
	 

	 	Company Secretary/Director	 	 
	 
	 	 	 	 
	print name
	 	David Rowland	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Peter McCann	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	print name
	 	Peter McCann	 	 
	 

	 	 	 	 

page 84

 

	 	 	 	 	 

	 

	 	Original Guarantor	 	 
	 
	 	 	 	 
	 

	 	Signed by	 	 
	 

	 	The MAC Linen Services Pty Limited	 	 
	 

	 	by	 	 
	 
	 	 	 	 
		 	 	 	 
	sign here ►
	 	/s/ David Rowland 

Company Secretary/Director
	 	 
	 
	 	 	 	 
	print name
	 	David Rowland	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Peter McCann	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	print name
	 	Peter McCann	 	 
	 

	 	 	 	 

page 85

 

	 	 	 	 	 

	 

	 	Original Lender	 	 
	 
	 	 	 	 
	 

	 	Signed for	 	 
	 

	 	National Australia Bank Limited	 	 
	 

	 	by its attorney	 	 
	 
	 	 	 	 
		 	 	 	 
	sign here ►
	 	/s/ Maria Elsa Masztah 

Attorney
	 	 
	 
	 	 	 	 
	print name
	 	Maria Elsa Masztah	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	in the presence of	 	 
	 
	 	 	 	 
	sign here ►
	 	/s/ Kanwar Singh	 	 
	 

	 	 	 	 
	 

	 	Witness	 	 
	 
	 	 	 	 
	print name
	 	Kanwar Singh	 	 
	 

	 	 	 	 

page 86exv4w2

Exhibit 4.2

 

OASIS PETROLEUM INC.,

AS ISSUER

AND

ANY SUBSIDIARY GUARANTORS PARTY HERETO

AND

[_____________],

AS TRUSTEE

 

SENIOR INDENTURE

DATED AS OF _____________, 20__

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE

	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 
	 	 	 	 
	SECTION 101. Definitions
	 	 	1	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	7	 
	SECTION 103. Form of Documents Delivered to Trustee
	 	 	8	 
	SECTION 104. Acts of Holders; Record Dates
	 	 	8	 
	SECTION 105. Notices, Etc., to Trustee and Company
	 	 	10	 
	SECTION 106. Notice to Holders; Waiver
	 	 	11	 
	SECTION 107. Conflict with Trust Indenture Act
	 	 	11	 
	SECTION 108. Effect of Headings and Table of Contents
	 	 	11	 
	SECTION 109. Successors and Assigns
	 	 	11	 
	SECTION 110. Separability Clause
	 	 	12	 
	SECTION 111. Benefits of Indenture
	 	 	12	 
	SECTION 112. Governing Law
	 	 	12	 
	SECTION 113. Legal Holidays
	 	 	12	 
	SECTION 114. No Recourse Against Others
	 	 	12	 
	SECTION 115. Indenture May Be Executed in Counterparts
	 	 	12	 
	 
	 	 	 	 
	ARTICLE TWO

	SECURITY FORMS

	 
	 	 	 	 
	SECTION 201. Forms Generally
	 	 	13	 
	SECTION 202. Form of Face of Security
	 	 	13	 
	SECTION 203. Form of Reverse of Security
	 	 	15	 
	SECTION 204. Form of Notation of Subsidiary Guarantee
	 	 	18	 
	SECTION 205. Form of Legend for Global Securities
	 	 	19	 
	SECTION 206. Form of Trustee’s Certificate of Authentication
	 	 	19	 
	SECTION 207. Form of Conversion Notice
	 	 	19	 
	 
	 	 	 	 
	ARTICLE THREE

	THE SECURITIES

	 
	 	 	 	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	21	 
	SECTION 302. Denominations
	 	 	23	 
	SECTION 303. Execution, Authentication, Delivery and Dating
	 	 	23	 
	SECTION 304. Temporary Securities
	 	 	25	 
	SECTION 305. Registration, Registration of Transfer and Exchange
	 	 	25	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	27	 
	SECTION 307. Payment of Interest; Interest Rights Preserved
	 	 	28	 
	SECTION 308. Persons Deemed Owners
	 	 	29	 
	SECTION 309. Cancellation
	 	 	29	 
	SECTION 310. Computation of Interest
	 	 	29	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE FOUR

	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	SECTION 401. Satisfaction and Discharge of Indenture
	 	 	29	 
	SECTION 402. Application of Trust Money
	 	 	31	 
	 
	 	 	 	 
	ARTICLE FIVE

	REMEDIES

	 
	 	 	 	 
	SECTION 501. Events of Default
	 	 	31	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment
	 	 	33	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	34	 
	SECTION 504. Trustee May File Proofs of Claim
	 	 	34	 
	SECTION 505. Trustee May Enforce Claims Without Possession of Securities
	 	 	35	 
	SECTION 506. Application of Money Collected
	 	 	35	 
	SECTION 507. Limitation on Suits
	 	 	35	 
	SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	36	 
	SECTION 509. Restoration of Rights and Remedies
	 	 	36	 
	SECTION 510. Rights and Remedies Cumulative
	 	 	36	 
	SECTION 511. Delay or Omission Not Waiver
	 	 	37	 
	SECTION 512. Control by Holders
	 	 	37	 
	SECTION 513. Waiver of Past Defaults
	 	 	37	 
	SECTION 514. Undertaking for Costs
	 	 	37	 
	SECTION 515. Waiver of Usury, Stay or Extension Laws
	 	 	38	 
	 
	 	 	 	 
	ARTICLE SIX

	THE TRUSTEE

	 
	 	 	 	 
	SECTION 601. Certain Duties and Responsibilities
	 	 	38	 
	SECTION 602. Notice of Defaults
	 	 	38	 
	SECTION 603. Certain Rights of Trustee
	 	 	38	 
	SECTION 604. Not Responsible for Recitals or Issuance of Securities
	 	 	39	 
	SECTION 605. May Hold Securities
	 	 	39	 
	SECTION 606. Money Held in Trust
	 	 	40	 
	SECTION 607. Compensation and Reimbursement
	 	 	40	 
	SECTION 608. Conflicting Interests
	 	 	40	 
	SECTION 609. Corporate Trustee Required; Eligibility
	 	 	40	 
	SECTION 610. Resignation and Removal; Appointment of Successor
	 	 	41	 
	SECTION 611. Acceptance of Appointment by Successor
	 	 	42	 
	SECTION 612. Merger, Conversion, Consolidation or Succession to Business
	 	 	43	 
	SECTION 613. Preferential Collection of Claims Against Company and Subsidiary Guarantors
	 	 	43	 
	SECTION 614. Appointment of Authenticating Agent
	 	 	44	 

ii 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE SEVEN

	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 
	 	 	 	 
	SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	45	 
	SECTION 702. Preservation of Information; Communications to Holders
	 	 	45	 
	SECTION 703. Reports by Trustee
	 	 	46	 
	SECTION 704. Reports by Company and Subsidiary Guarantors
	 	 	46	 
	 
	 	 	 	 
	ARTICLE EIGHT

	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

	 
	 	 	 	 
	SECTION 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	46	 
	SECTION 802. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms
	 	 	47	 
	SECTION 803. Successor Substituted
	 	 	48	 
	 
	 	 	 	 
	ARTICLE NINE

	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 
	SECTION 901. Supplemental Indentures Without Consent of Holders
	 	 	48	 
	SECTION 902. Supplemental Indentures With Consent of Holders
	 	 	49	 
	SECTION 903. Execution of Supplemental Indentures
	 	 	51	 
	SECTION 904. Effect of Supplemental Indentures
	 	 	51	 
	SECTION 905. Conformity with Trust Indenture Act
	 	 	51	 
	SECTION 906. Reference in Securities to Supplemental Indentures
	 	 	51	 
	 
	 	 	 	 
	ARTICLE TEN

	COVENANTS

	 
	 	 	 	 
	SECTION 1001. Payment of Principal, Premium and Interest
	 	 	51	 
	SECTION 1002. Maintenance of Office or Agency
	 	 	52	 
	SECTION 1003. Money for Securities Payments to Be Held in Trust
	 	 	52	 
	SECTION 1004. Statement by Officers as to Default
	 	 	53	 
	SECTION 1005. Existence
	 	 	53	 
	SECTION 1006. Maintenance of Properties
	 	 	54	 
	SECTION 1007. Payment of Taxes and Other Claims
	 	 	54	 
	SECTION 1008. Maintenance of Insurance
	 	 	54	 
	SECTION 1009. Waiver of Certain Covenants
	 	 	54	 
	 
	 	 	 	 
	ARTICLE ELEVEN

	REDEMPTION OF SECURITIES

	 
	 	 	 	 
	SECTION 1101. Applicability of Article
	 	 	55	 
	SECTION 1102. Election to Redeem; Notice to Trustee
	 	 	55	 
	SECTION 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	55	 
	SECTION 1104. Notice of Redemption
	 	 	56	 

iii 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 1105. Deposit of Redemption Price
	 	 	57	 
	SECTION 1106. Securities Payable on Redemption Date
	 	 	57	 
	SECTION 1107. Securities Redeemed in Part
	 	 	57	 
	 
	 	 	 	 
	ARTICLE TWELVE

	[INTENTIONALLY OMITTED]

	 
	 	 	 	 
	ARTICLE THIRTEEN

	SUBSIDIARY GUARANTEES

	 
	 	 	 	 
	SECTION 1301. Applicability of Article
	 	 	58	 
	SECTION 1302. Subsidiary Guarantees
	 	 	58	 
	SECTION 1303. Execution and Delivery of Notations of Subsidiary Guarantees
	 	 	60	 
	SECTION 1304. Release of Subsidiary Guarantors
	 	 	60	 
	SECTION 1305. Additional Subsidiary Guarantors
	 	 	60	 
	SECTION 1306. Limitation on Liability
	 	 	61	 
	 
	 	 	 	 
	ARTICLE FOURTEEN

	[INTENTIONALLY OMITTED]

	 
	 	 	 	 
	ARTICLE FIFTEEN

	DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 
	SECTION 1501. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	61	 
	SECTION 1502. Defeasance and Discharge
	 	 	61	 
	SECTION 1503. Covenant Defeasance
	 	 	62	 
	SECTION 1504. Conditions to Defeasance or Covenant Defeasance
	 	 	62	 
	SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions
	 	 	64	 
	SECTION 1506. Reinstatement
	 	 	64	 
	 
	 	 	 	 
	ARTICLE SIXTEEN

	SINKING FUNDS

	 
	 	 	 	 
	SECTION 1601. Applicability of Article
	 	 	65	 
	SECTION 1602. Satisfaction of Sinking Fund Payments with Securities
	 	 	65	 
	SECTION 1603. Redemption of Securities for Sinking Fund
	 	 	65	 
	 
	 	 	 	 
	[Schedule I Subsidiary Guarantors]
	 	 	 	 

iv 

 

OASIS PETROLEUM INC.

RECONCILIATION AND TIE OF CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

	 	 	 	 	 
	 	 	INDENTURE
	TRUST INDENTURE ACT SECTION	 	SECTION
	Section 310(a)(1)
	 	 	609	 
	(a)(2)
	 	 	609	 
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	 	608, 610	 
	Section 311(a)
	 	 	613	 
	(b)
	 	 	613	 
	Section 312(a)
	 	 	701,702	 
	(b)
	 	 	702	 
	(c)
	 	 	702	 
	Section 313(a)
	 	 	703	 
	(b)
	 	 	703	 
	(c)
	 	 	703	 
	(d)
	 	 	703	 
	Section 314(a)
	 	 	704	 
	(a)(4)
	 	 	101,1004	 
	(b)
	 	Not Applicable
	(c)(1)
	 	 	102	 
	(c)(2)
	 	 	102	 
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	 	102	 
	Section 315(a)
	 	 	601	 
	(b)
	 	 	602	 
	(c)
	 	 	601	 
	(d)
	 	 	601	 
	(e)
	 	 	514	 
	Section 316(a)
	 	 	101	 
	(a)(1)(A)
	 	 	502, 512	 
	(a)(1)(B)
	 	 	513	 
	(a)(2)
	 	Not Applicable
	(b)
	 	 	508	 
	(c)
	 	 	104	 

v 

 

	 	 	 	 	 
	TRUST INDENTURE	 	INDENTURE
	ACT SECTION	 	SECTION
	Section 317(a)(1)
	 	 	503	 
	(a)(2)
	 	 	504	 
	(b)
	 	 	1003	 
	Section 318(a)
	 	 	107	 

NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

vi 

 

     INDENTURE, dated as of __________, 20___, among Oasis Petroleum Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 1001 Fannin Street, Suite 1500, Houston, Texas 77002, each of the
Subsidiary Guarantors (as hereinafter defined) party hereto and [_________], a [________], as
Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in this
Indenture provided.

     The Company and the Subsidiary Guarantors are members of the same consolidated group of
companies. The Subsidiary Guarantors will derive direct and indirect economic benefit from the
issuance of the Securities. Accordingly, each Subsidiary Guarantor has duly authorized the
execution and delivery of this Indenture to provide for its full, unconditional and joint and
several guarantee of the Securities to the extent provided in or pursuant this Indenture.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted at
the date of this instrument;

1

 

     (4) unless the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Indenture; and

     (5) the words “herein”, “hereof”, “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision.

     “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

     “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 specified 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; provided that direct or indirect
beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Board of Directors” means, with respect to the Company, either the board of directors of the
Company or any committee of that board duly authorized to act for it in respect hereof, and with
respect to any Subsidiary Guarantor, either the board of directors of such Subsidiary Guarantor or
any committee of that board duly authorized to act for it in respect hereof.

     “Board Resolution” means, with respect to the Company or a Subsidiary Guarantor, a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company or such Subsidiary
Guarantor, as the case may be, to have been duly adopted by its Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the Trustee.

     “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close.

     “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents (however designated) of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person.

     “Commission” means the Securities and Exchange Commission, from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

     “Common Stock” means the common stock, no par value, of the Company as the same exists at the
date of execution and delivery of this Indenture or other Capital Stock of the Company into which
such common stock is converted, reclassified or changed from time to time.

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     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or
an Assistant Secretary, and delivered to the Trustee.

     “Conversion Agent” means any Person authorized by the Company to convert any Securities on
behalf of the Company.

     “Corporate Trust Office” means the office of the Trustee in [______, _______] at which at any
particular time its corporate trust business in relation to this Indenture shall be administered,
such office being located on the date hereof at [_____________].

     “corporation” means a corporation, association, limited liability company, joint-stock company
or business trust.

     “Covenant Defeasance” has the meaning specified in Section 1503.

     “Debt” of any Person at any date means any obligation created, assumed or guaranteed by such
Person for the repayment of borrowed money.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Defeasance” has the meaning specified in Section 1502.

     “Depositary” means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under the Exchange Act that
is designated to act as Depositary for such Securities as contemplated by Section 301.

     “Event of Default” has the meaning specified in Section 501.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time.

     “Expiration Date” has the meaning specified in Section 104.

     “Global Security” means a Security that evidences all or part of the Securities of any series
and bears the legend set forth in Section 205 (or such legend as may be specified as contemplated
by Section 301 for such Securities).

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and

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any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to
be a part of and govern this instrument and any such supplemental indenture, respectively. The
term “Indenture” shall also include the terms of particular series of Securities established as
contemplated by Section 301.

     “interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date”, when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

     “Investment Company Act” means the Investment Company Act of 1940 and any statute successor
thereto, in each case as amended from time to time.

     “Maturity”, when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 501(5).

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors,
a Vice Chairman of the Board of Directors, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company or a Subsidiary
Guarantor, as the case may be, and delivered to the Trustee. One of the officers signing an
Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means, as to the Company or a Subsidiary Guarantor, a written opinion of
counsel, who may be counsel for the Company or such Subsidiary Guarantor, as the case may be, and
who shall be acceptable to the Trustee.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

     “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

     (1) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (2) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;

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     (3) Securities as to which Defeasance has been effected pursuant to Section 1502; and

     (4) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, made or taken any request, demand, authorization, direction,
notice, consent, waiver or other action hereunder as of any date, (A) the principal amount of an
Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon acceleration of the Maturity
thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable
at the Stated Maturity of a Security is not determinable, the principal amount of such Security
which shall be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding shall be the U.S.
dollar equivalent, determined as of such date in the manner provided as contemplated by Section
301, of the principal amount of such Security (or, in the case of a Security described in clause
(A) or (B) above, of the amount determined as provided in such clause), and (D) Securities owned by
the Company, any Subsidiary Guarantor or any other obligor upon the Securities or any Affiliate of
the Company, any Subsidiary Guarantor or of such other obligor shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent, waiver or other action,
only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company, a Subsidiary Guarantor or any other obligor
upon the Securities or any Affiliate of the Company, a Subsidiary Guarantor or of such other
obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of or any
premium or interest on any Securities on behalf of the Company.

     “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “Place of Payment”, when used with respect to the Securities of any series, means the place or
places where the principal of and any premium and interest on the Securities of that series are
payable as specified as contemplated by Section 301.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

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     “Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price”, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

     “Significant Subsidiary” means, at any date of determination, any Subsidiary that represents
10% or more of the Company’s consolidated total assets at the end of the most recent fiscal quarter
for which financial information is available or 10% or more of the Company’s consolidated net
revenues or consolidated operating income for the most recent four quarters for which financial
information is available.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

     “Stated Maturity”, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” of any Person means (1) a corporation more than 50% of the combined voting power
of the outstanding Voting Stock of which is owned, directly or indirectly, by such Person or by one
or more other Subsidiaries of such Person or by such Person and one or more Subsidiaries thereof or
(2) any other Person (other than a corporation) in which such Person, or one or more other
Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or
indirectly, has at least a majority ownership and power to direct the policies, management and
affairs thereof.

     “Subsidiary Guarantees” means the guarantees of each Subsidiary Guarantor as provided in
Article Thirteen.

     “Subsidiary Guarantors” means (i) the subsidiaries listed in Schedule I hereto; (ii)
each other Subsidiary of the Company that becomes a Subsidiary Guarantor in accordance with Section
1305 hereof; and (iii) any successor of the foregoing, in each case (i), (ii) and (iii) until such
Subsidiary Guarantor ceases to be such in accordance with Section 1304 hereof.

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     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.

     “U.S. Government Obligation” has the meaning specified in Section 1504.

     “Vice President”, when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president”.

     “Voting Stock” of any Person means Capital Stock of such Person which ordinarily has voting
power for the election of directors (or persons performing similar functions) of such Person,
whether at all times or only so long as no senior class of securities has such voting power by
reason of any contingency.

     “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person all of the
outstanding Capital Stock of which (other than directors’ qualifying shares) shall at the time be
owned by such Person or by one or more Wholly Owned Subsidiaries of such Person or by such Person
and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company or any Subsidiary Guarantor to the Trustee to
take any action under any provision of this Indenture, the Company and/or such Subsidiary
Guarantor, as appropriate, shall furnish to the Trustee such certificates and opinions as may be
required under the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers’ Certificate, if to be given by an officer of the Company or a Subsidiary
Guarantor, or an Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in this Indenture.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (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;

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     (3) a statement that, in the opinion of each 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, in the opinion of each such individual, such condition or
covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of the Company or a Subsidiary Guarantor may be
based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar
as it relates to factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company or such Subsidiary Guarantor stating that the information with
respect to such factual matters is in the possession of the Company or such Subsidiary Guarantor,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

SECTION 104. Acts of Holders; Record Dates.

     Whenever in this Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Securities of any or all series may take action (including the
making of any demand or request, the giving of any direction, notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action the Holders of such
specified percentage have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by Holders in person or by agent or proxy appointed in
writing, (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly
called and held in accordance with procedures approved by the Trustee, (c) by a combination of such
instrument or instruments and any such record of such a meeting of Holders or (d) in the case of
Securities evidenced by a Global Security, by any electronic transmission or other message, whether
or not in written format, that complies with the Depositary’s applicable procedures. Such evidence
(and the action embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the relevant Holders. Proof of execution of any such instrument or of a writing
appointing any such agent or proxy shall be sufficient for any purpose

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of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section.

     The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee deems sufficient. The ownership of Securities
shall be proved by the Security Register.

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

     The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or permitted by this
Indenture to be given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph shall not apply with
respect to, the giving or making of any notice, declaration, request or direction referred to in
the next paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set
forth in Section 106.

     The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section
512, in each case with respect to Securities of such series. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities of such series on such record date, and no
other

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Holders, shall be entitled to join in such notice, declaration, request or direction, whether
or not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the
requisite principal amount of Outstanding Securities of such series on such record date. Nothing
in this paragraph shall be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person be cancelled and of
no effect), and nothing in this paragraph shall be construed to render ineffective any action taken
by Holders of the requisite principal amount of Outstanding Securities of the relevant series on
the date such action is taken. Promptly after any record date is set pursuant to this paragraph,
the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section 106.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates may designate any day as the “Expiration Date” and from time to time may change the
Expiration Date to any earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in writing, and to
each Holder of Securities of the relevant series in the manner set forth in Section 106, on or
prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto which set such record date shall be
deemed to have initially designated the 180th day after such record date as the Expiration Date
with respect thereto, subject to its right to change the Expiration Date as provided in this
paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day
after the applicable record date.

     Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

SECTION 105. Notices, Etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with:

     (1) the Trustee by any Holder or by the Company or any Subsidiary Guarantor shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing in the English
language to or with the Trustee at its Corporate Trust Office, Attention: Corporate Trust
Department; or

     (2) the Company or any Subsidiary Guarantor by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing
in the English language and mailed, first-class postage prepaid, in the case of the Company
addressed to it at the address of its principal office specified in the first paragraph of

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this instrument or at any other address previously furnished in writing to the Trustee by the
Company and, in the case of any Subsidiary Guarantor, to it at the address of the Company’s
principal office specified in the first paragraph of this instrument, Attention: Chief Financial
Officer, or at any other address previously furnished in writing to the Trustee by such Subsidiary
Guarantor.

SECTION 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing in the English
language and mailed, first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date (if any), and not
earlier than the earliest date (if any), prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect
in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall
be filed with the Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

SECTION 107. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed
to apply to this Indenture as so modified or to be excluded, as the case may be.

SECTION 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company and any Subsidiary Guarantor
shall bind their respective successors and assigns, whether so expressed or not.

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SECTION 110. Separability Clause.

     In case any provision in this Indenture, the Securities or the Subsidiary Guarantees shall be
invalid, illegal or unenforceable, the validity, legality and enforce ability of the remaining
provisions shall not in any way be affected or impaired thereby.

SECTION 111. Benefits of Indenture.

     Nothing in this Indenture, the Securities or the Subsidiary Guarantees, express or implied,
shall give to any Person, other than the parties hereto and their successors hereunder and the
Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

SECTION 112. Governing Law.

     This Indenture, the Securities and the Subsidiary Guarantees shall be governed by and
construed in accordance with the law of the State of New York.

SECTION 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, purchase date or Stated Maturity
of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Indenture or of the Securities (other than a provision of any Security
which specifically states that such provision shall apply in lieu of this Section)) payment of
interest or principal (and premium, if any) need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date, Redemption Date or purchase date, or at the
Stated Maturity.

SECTION 114. No Recourse Against Others.

     No director, officer, employee, incorporator, stockholder, member, partner or trustee of the
Company or any Subsidiary Guarantor, as such, shall have any liability for any obligations of the
Company or any Subsidiary Guarantor under the Securities, this Indenture or any Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. By accepting a Security, each Holder shall be deemed to have waived and released all
such liability. The waiver and release shall be a part of the consideration for the issue of the
Securities.

SECTION 115. Indenture May Be Executed in Counterparts.

     The parties may sign any number of copies of this Indenture, and each party hereto may sign
any number of separate copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. The exchange of copies of this Indenture and of
signature pages by facsimile or PDF transmission shall constitute effective execution and delivery
of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for
all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to
be their original signatures for all purposes.

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ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

     The Securities of each series and, if applicable, the notations of Subsidiary Guarantees to be
endorsed thereon shall be in substantially the form set forth in this Article, or in such other
form as shall be established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or Depositary therefor or as may, consistently
herewith, be determined by the officers executing such Securities or notations of Subsidiary
Guarantees, as the case may be, as evidenced by their execution thereof. If the form of Securities
of any series is established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of
the Company and delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such Securities.

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

SECTION 202. Form of Face of Security.

     [Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

Oasis Petroleum Inc.

			
	 	 	 
	No.__________
	 	$ ________

     Oasis Petroleum Inc., a corporation duly organized and existing under the laws of Delaware
(herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
____________________________, or registered assigns, the principal sum of
_____________________________ Dollars on _________________________ [if the Security is to bear
interest prior to Maturity, insert — , and to pay interest thereon from _____________ or from the
most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on ____________ and ____________ in each year, commencing _________, at the rate of
____% per annum, until the principal hereof is paid or made available for payment, provided that
any principal and premium, and any such installment of interest, which is overdue shall bear
interest at the rate of ____% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the _______ or _______ (whether or not a Business Day), as the

13

 

case may be, next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture].

     [If the Security is not to bear interest prior to Maturity, insert — The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal and any
overdue premium shall bear interest at the rate of ____% per annum (to the extent that the payment
of such interest shall be legally enforceable), from the dates such amounts are due until they are
paid or made available for payment. Interest on any overdue principal or premium shall be payable
on demand. Any such interest on overdue principal or premium which is not paid on demand shall
bear interest at the rate of ______% per annum (to the extent that the payment of such interest on
interest shall be legally enforceable), from the date of such demand until the amount so demanded
is paid or made available for payment. Interest on any overdue interest shall be payable on
demand.]

     Payment of the principal of (and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in ____________, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed [under its
corporate seal].

	 	 	 	 	 	 	 

	Dated:                    	 	OASIS PETROLEUM INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	[Attest:
	 	 	 	 	 	 

14

 

_____________________]

SECTION 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
_________, 20__ (herein called the “Indenture”, which term shall have the meaning assigned to it in
such instrument), among the Company, the Subsidiary Guarantors named therein and [____________], as
Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Subsidiary Guarantors,
the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series designated on the face
hereof [if applicable, insert — , limited in aggregate principal amount to $_______].

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, [if applicable, insert — (1) on ___________ in
any year commencing with the year ______ and ending with the year ______ through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)]
at any time [if applicable, insert — on or after __________, 20__], as a whole or in part, at the
election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [if applicable, insert — on or before _______________, ___%, and
if redeemed] during the 12-month period beginning _____________ of the years indicated,

	 	 	 	 	 	 	 
	Redemption	 	Redemption
	Year	 	Price	 	Year	 	Price
	 
	 	 
	 	 
	 	 

and thereafter at a Redemption Price equal to _____% of the principal amount, together in the
case of any such redemption [if applicable, insert — (whether through operation of the sinking
fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, (1) on ____________ in any year commencing with
the year ____ and ending with the year ____ through operation of the sinking fund for this series
at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — on or after ____________], as a whole or in part, at the election

15

 

of the Company, at the Redemption Prices for redemption otherwise than through operation of
the sinking fund (expressed as percentages of the principal amount) set forth in the table below:
If redeemed during the 12-month period beginning ____________ of the years indicated,

	 	 	 	 	 
	 	 	Redemption Price For Redemption	 	Redemption Price For Redemption
	 	 	Through Operation of the Sinking	 	Otherwise Than Through Operation
	Year	 	Fund	 	of the Sinking Fund
	 
	 	 
	 	 

and thereafter at a Redemption Price equal to _____% of the principal amount, together in the
case of any such redemption (whether through operation of the sinking fund or otherwise) with
accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant Record Dates referred to
on the face hereof, all as provided in the Indenture.]

     [If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
_____________, redeem any Securities of this series as contemplated by [if applicable, insert —
clause (2) of] the preceding paragraph as a part of, or in anticipation of, any refunding operation
by the application, directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of less than _____%
per annum.]

     [If applicable, insert — The sinking fund for this series provides for the redemption on
____________ in each year beginning with the year _______ and ending with the year ______ of [if
applicable, insert — not less than $_________ (“mandatory sinking fund”) and not more than] $
________ aggregate principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable, insert — mandatory]
sinking fund payments may be credited against subsequent [if applicable, insert — mandatory]
sinking fund payments otherwise required to be made [if applicable, insert — , in the inverse
order in which they become due].]

     [If the Security is subject to redemption of any kind, insert — In the event of redemption of
this Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

     [If the Security is subject to conversion, insert — Subject to the provisions of the
Indenture, the Holder has the right to convert the principal amount of this Security into fully
paid and nonassessable shares of Common Stock of the Company at the initial conversion price per
share of Common Stock of $_____ (or $_____ in principal amount of Securities for each such share of
Common Stock), or at the adjusted conversion price then in effect, if adjustment has been made as
provided in the Indenture, upon surrender of the Security to the Conversion Agent, together with a
fully executed notice in substantially the form attached hereto and, if required by the Indenture,
an amount equal to accrued interest payable on this Security.]

16

 

     [If applicable, insert — As provided in the Indenture and subject to certain limitations
therein set forth, the obligations of the Company under this Security are guaranteed pursuant to
the Indenture as indicated in the notation of Subsidiary Guarantee endorsed hereon. The Indenture
provides that a Subsidiary Guarantor shall be released from its Subsidiary Guarantee upon
compliance with certain conditions.]

     [If applicable, insert — The Indenture contains provisions for Defeasance at any time of [the
entire indebtedness of this Security] [or] [certain restrictive covenants and Events of Default
with respect to this Security] [, in each case] upon compliance with certain conditions set forth
in the Indenture.]

     [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

     [If the Security is an Original Issue Discount Security, insert — If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s obligations in respect
of the payment of the principal of and premium and interest, if any, on the Securities of this
series shall terminate.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee

17

 

reasonable security or indemnity, and the Trustee shall not have received from the Holders of
a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein [if
applicable, insert — or the right to convert this Security in accordance with its terms].

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed [insert if applicable — and to convert such Security in
accordance with its terms].

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $ ______ and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

SECTION 204. Form of Notation of Subsidiary Guarantee.

NOTATION OF SUBSIDIARY GUARANTEE

     Each of the Subsidiary Guarantors (which term includes any successor Person under the
Indenture) has fully, unconditionally and absolutely guaranteed to the extent set forth in the

18

 

Indenture and subject to the provisions in the Indenture, the due and punctual payment of the
principal of, and premium, if any, and interest on the Securities and all other amounts due and
payable under the Indenture and the Securities by the Company.

     The obligations of the Subsidiary Guarantors to the Holders of Securities and to the Trustee
pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article Thirteen
of the Indenture and reference is hereby made to the Indenture for the precise terms of the
Subsidiary Guarantee.

	 	 	 	 	 	 	 

	 	 	[Insert Names of Subsidiary Guarantors]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

SECTION 205. Form of Legend for Global Securities.

     Unless otherwise specified as contemplated by Section 301 for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

	 	 	THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME
OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

SECTION 206. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificates of authentication shall be in substantially the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	[____________],

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

SECTION 207. Form of Conversion Notice.

19

 

     Each convertible Security shall have attached thereto, or set forth on the reverse of the
Security, a notice of conversion in substantially the following form:

Conversion Notice

To: Oasis Petroleum Inc.

     The undersigned owner of this Security hereby: (i) irrevocably exercises the option to
convert this Security, or the portion hereof below designated, for shares of Common Stock of Oasis
Petroleum Inc. in accordance with the terms of the Indenture referred to in this Security and (ii)
directs that such shares of Common Stock deliverable upon the conversion, together with any check
in payment for fractional shares and any Security(ies) representing any unconverted principal
amount hereof, be issued and delivered to the registered holder hereof unless a different name has
been indicated below. If shares are to be delivered registered in the name of a Person other than
the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. Any
amount required to be paid by the undersigned on account of interest accompanies this Security.

	 	 	 	 	 

	Dated:                    
	 	 	 	 
	 

	 	 

Signature
	 	 

Fill in for registration of shares if to be delivered, and of Securities if to be issued, otherwise
than to and in the name of the registered holder.

	 	 	 	 	 

	 

	 	 

Social Security or other Taxpayer
	 	 
	 

	 	Identification Number	 	 

	 	 	 	 	 

	 	 	 
	(Name)	 	 
	 
	 	 	 	 
	 	 	 
	(Please print name and address)	 	 
	 
	 	 	 	 
	Principal amount to be converted: (if less than all)
	 
	 	 	 	 
	$
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Signature Guarantee*	 	 
	 
	 	 	 	 
	 	 	 

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature acceptable
to the Trustee).

20

 

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,

     (1) the title of the Securities of the series (which shall distinguish the Securities of the
series from Securities of any other series);

     (2) if the Securities of the series will not have the benefit of the Subsidiary Guarantees of
the Subsidiary Guarantors;

     (3) any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to
Section 303, are deemed never to have been authenticated and delivered hereunder);

     (4) the Person to whom any interest on a Security of the series shall be payable, if other
than the Person in whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest;

     (5) the date or dates on which the principal of any Securities of the series is payable;

     (6) the rate or rates at which any Securities of the series shall bear interest, if any, the
date or dates from which any such interest shall accrue, the Interest Payment Dates on which any
such interest shall be payable and the Regular Record Date for any such interest payable on any
Interest Payment Date;

     (7) the place or places where the principal of and any premium and interest on any Securities
of the series shall be payable;

     (8) the period or periods within which, the price or prices at which and the terms and
conditions upon which any Securities of the series may be redeemed, in whole or in part, at the
option of the Company and, if other than by a Board Resolution, the manner in which any election by
the Company to redeem the Securities shall be evidenced;

     (9) the obligation, if any, of the Company to redeem or purchase any Securities of the series
pursuant to any sinking fund or analogous provisions or at the option of the Holder thereof and the
period or periods within which, the price or prices at which and the terms and conditions

21

 

upon which any Securities of the series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation;

     (10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which any Securities of the series shall be issuable;

     (11) if the amount of principal of or any premium or interest on any Securities of the series
may be determined with reference to an index or pursuant to a formula, the manner in which such
amounts shall be determined;

     (12) if other than the currency of the United States of America, the currency, currencies or
currency units in which the principal of or any premium or interest on any Securities of the series
shall be payable and the manner of determining the equivalent thereof in the currency of the United
States of America for any purpose, including for purposes of the definition of “Outstanding” in
Section 101;

     (13) if the principal of or any premium or interest on any Securities of the series is to be
payable, at the election of the Company or the Holder thereof, in one or more currencies or
currency units other than that or those in which such Securities are stated to be payable, the
currency, currencies or currency units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the periods within which and the
terms and conditions upon which such election is to be made and the amount so payable (or the
manner in which such amount shall be determined);

     (14) if other than the entire principal amount thereof, the portion of the principal amount of
any Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

     (15) if the principal amount payable at the Stated Maturity of any Securities of the series
will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which
shall be deemed to be the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be due and payable upon
any Maturity other than the Stated Maturity or which shall be deemed to be Outstanding as of any
date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to
be the principal amount shall be determined);

     (16) if applicable, that the Securities of the series, in whole or any specified part, shall
be defeasible pursuant to Section 1502 or Section 1503 or both such Sections and, if other than by
a Board Resolution, the manner in which any election by the Company to defease such Securities
shall be evidenced;

     (17) if applicable, that any Securities of the series shall be issuable in whole or in part in
the form of one or more Global Securities and, in such case, the respective Depositories for such
Global Securities, the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in Section 205 and any circumstances in
addition to or in lieu of those set forth in clause (2) of the last paragraph of Section 305 in
which any such Global Security may be exchanged in whole or in part for Securities registered, and
any

22

 

transfer of such Global Security in whole or in part may be registered, in the name or names
of Persons other than the Depositary for such Global Security or a nominee thereof;

     (18) any addition to or change in the Events of Default which applies to any Securities of the
series and any change in the right of the Trustee or the requisite Holders of such Securities to
declare the principal amount thereof due and payable pursuant to Section 502;

     (19) any addition to or change in the covenants set forth in Article Ten which applies to
Securities of the series;

     (20) whether the Securities of the series will be convertible into Common Stock (or cash in
lieu thereof) and, if so, the terms and conditions upon which such conversion will be effected; and

     (21) any other terms of the series (which terms shall not be inconsistent with the provisions
of this Indenture, except as permitted by Section 901(5)).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

     The Securities of each series shall have the benefit of the Subsidiary Guarantees unless the
Company elects otherwise upon the establishment of a series pursuant to this Section 301.

SECTION 302. Denominations.

     The Securities of each series shall be issuable only in registered form without coupons and
only in such denominations as shall be specified as contemplated by Section 301. In the absence of
any such specified denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman of the Board of
Directors, its Vice Chairman of the Board of Directors, its President or one of its Vice
Presidents. If its corporate seal is reproduced thereon, then it shall be attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such

23

 

individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company and, if applicable, having
endorsed thereon the notations of Subsidiary Guarantees executed as provided in Section 1303 by the
Subsidiary Guarantors to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities. If the form or terms of the Securities of
the series have been established by or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled
to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of
Counsel stating,

     (1) if the form of such Securities has been established by or pursuant to Board Resolution as
permitted by Section 201, that such form has been established in conformity with the provisions of
this Indenture;

     (2) if the terms of such Securities have been established by or pursuant to Board Resolution
as permitted by Section 301, that such terms have been established in conformity with the
provisions of this Indenture; and

     (3) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company, and, if applicable, the notations
of Subsidiary Guarantees endorsed thereon will constitute valid and legally binding obligations of
the Subsidiary Guarantors, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles.

     If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be issued.

     Each Security shall be dated the date of its authentication.

     No Security or Subsidiary Guarantee shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for herein executed by the Trustee by manual

24

 

signature, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

SECTION 304. Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities and, if applicable, having
endorsed thereon the notations of Subsidiary Guarantees in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers
executing such Securities and, if applicable, notations of Subsidiary Guarantees may determine, as
evidenced by their execution of such Securities and notations of Subsidiary Guarantees.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of the same series, of any authorized denominations and of like tenor
and aggregate principal amount and, if applicable, having endorsed thereon Subsidiary Guarantees
executed by the Subsidiary Guarantors. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series and tenor.

SECTION 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of Securities as
herein provided.

     Upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute, if
applicable the Subsidiary Guarantors shall execute the notations of Subsidiary Guarantees endorsed
thereon and the Trustee shall authenticate and deliver, in the name of the designated

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transferee or transferees, one or more new Securities of the same series, of any authorized
denominations and of like tenor and aggregate principal amount.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, if applicable the Subsidiary Guarantors
shall execute the notations of Subsidiary Guarantees endorsed thereon and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or otherwise not involving any
transfer.

     If the Securities of any series (or of any series and specified tenor) are to be redeemed in
part, the Company shall not be required (A) to issue, register the transfer of or exchange any
Securities of that series (or of that series and specified tenor, as the case may be) during a
period beginning at the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103 and ending at the
close of business on the day of such mailing, or (B) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

     The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities:

     (1) Each Global Security authenticated under this Indenture shall be registered in the name of
the Depositary designated for such Global Security or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.

     (2) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a
clearing agency registered under the Exchange Act, and in either case the Company fails

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to appoint a successor Depositary within 90 days, (B) there shall have occurred and be
continuing an Event of Default with respect to such Global Security and the Depositary shall have
notified the Trustee of its decision to exchange such Global Security for Securities in
certificated form, (C) subject to the rules of the Depositary, the Company shall have elected to
terminate the book-entry system through the Depositary or (D) there shall exist such circumstances,
if any, in addition to or in lieu of the foregoing as have been specified for this purpose as
contemplated by Section 301.

     (3) Subject to clause (2) above, any exchange of a Global Security for other Securities may be
made in whole or in part, and all Securities issued in exchange for a Global Security or any
portion thereof shall be registered in such names as the Depositary for such Global Security shall
direct.

     (4) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this
Section, Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and delivered in the
form of, and shall be, a Global Security, unless such Security is registered in the name of a
Person other than the Depositary for such Global Security or a nominee thereof.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding, and, if
applicable the Subsidiary Guarantors shall execute the notation of Subsidiary Guarantee endorsed
thereon.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless from any loss that
any of them may suffer if a Security is replaced, then, in the absence of notice to the Company or
the Trustee that such Security has been acquired by a protected purchaser, the Company shall
execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding, and, if applicable the Subsidiary Guarantors
shall execute the notation of Subsidiary Guarantee endorsed thereon. In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and payable or is to be
converted, the Company in its discretion may, instead of issuing a new Security, pay or authorize
the conversion of such Security (without surrender thereof save in the case of a mutilated
Security).

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

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     Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement, payment or conversion of mutilated,
destroyed, lost or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

     Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such series and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given to each Holder of Securities of such series in the manner set forth in Section
106, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on such Special Record
Date and shall no longer be payable pursuant to the following clause (2).

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     (2) The Company may make payment of any Defaulted Interest on the Securities of any series in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
such Securities may be listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

SECTION 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors, or the
Trustee may treat the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium and (subject to
Section 307) any interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, any Subsidiary Guarantor, the Trustee nor any
agent of the Company, any Subsidiary Guarantor, or the Trustee shall be affected by notice to the
contrary.

SECTION 309. Cancellation.

     All Securities surrendered for payment, redemption, purchase, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of in
accordance with its standard procedures, unless as directed by a Company Order.

SECTION 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

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     This Indenture shall upon Company Request cease to be of further effect with respect to the
Securities of any series, and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

     (1) either

          (A) all Securities of such series theretofore authenticated and delivered (other than (i)
Securities of such series which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) Securities of such series for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in Section 1003) have been
delivered to the Trustee for cancellation; or

          (B) all such Securities of such series not theretofore delivered to the Trustee for
cancellation

               (i) have become due and payable, or

               (ii) will become due and payable at their Stated Maturity within one year, or

               (iii) are to be called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company,

and the Company or, if applicable, a Subsidiary Guarantor, in the case of (i), (ii) or (iii) above,
has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for
the purpose money in an amount sufficient, without consideration of any reinvestment of interest,
to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the
Trustee for cancellation, for principal and any premium and interest to the date of such deposit
(in the case of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

     (2) the Company or a Subsidiary Guarantor has paid or caused to be paid all other sums payable
hereunder by the Company and the Subsidiary Guarantors with respect to the Securities of such
series; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture with respect to the Securities of such series have
been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company with respect to the
Securities of such series under Sections 304, 305, 306, 1002 and 1003, any surviving rights of
conversion, the obligations of the Trustee to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this

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Section, the obligations of the Trustee under Section 402 and the last paragraph of Section
1003 shall survive.

SECTION 402. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and any premium and interest for whose payment
such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

     “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be 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):

     (1) default in the payment of any interest upon any Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days; or

     (2) default in the payment of the principal of or any premium on any Security of that series
at its Maturity; or

     (3) default in the deposit of any sinking fund payment, when and as due by the terms of a
Security of that series; or

     (4) default in the performance, or breach, of any covenant of the Company or, if the
Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of such
series, any Subsidiary Guarantor in Article Eight of this Indenture; or

     (5) default in the performance, or breach, of any covenant or warranty of the Company or, if
the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of such
series, any Subsidiary Guarantor in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 60 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of
that series a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or

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     (6) any Debt of the Company, any Significant Subsidiary or, if the Subsidiary Guarantors have
issued Subsidiary Guarantees with respect to the Securities of such series, any Subsidiary
Guarantor 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 Debt unpaid or accelerated
exceeds $20.0 million, or its foreign currency equivalent at the time; or

     (7) any judgment or decree for the payment of money in excess of $20.0 million or its foreign
currency equivalent at the time it is entered against the Company, any Significant Subsidiary or,
if the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of
such series, any Subsidiary Guarantor, 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; or

     (8) the entry by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company, any Significant Subsidiary or, if the Subsidiary Guarantors have
issued Subsidiary Guarantees with respect to the Securities of such series, any Subsidiary
Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company, any
Significant Subsidiary or any such Subsidiary Guarantor a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in
respect of the Company, any Significant Subsidiary or any such Subsidiary Guarantor under any
applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company, any Significant Subsidiary or any
such Subsidiary Guarantor or of any substantial part of its or their property, or ordering the
winding up or liquidation of its or their affairs, and the continuance of any such decree or order
for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive
days; or

     (9) the commencement by the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of such series, any
Subsidiary Guarantor of a voluntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it or them to the entry of a decree or
order for relief in respect of the Company, any Significant Subsidiary or any such Subsidiary
Guarantor in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it or them, or the filing by it or them of a petition or
answer or consent seeking reorganization or relief under any applicable Federal or State law, or
the consent by it or them to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company, any Significant Subsidiary or any such Subsidiary Guarantor or of any
substantial part of its or their property, or the making by it or them of an assignment for the
benefit of creditors, or the admission by it or them in writing of its or their inability to pay
its or their debts generally as they become due, or the taking of corporate action by the Company,
any Significant Subsidiary or any such Subsidiary Guarantor in furtherance of any such action; or

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     (10) in the event the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to
the Securities of such series, the Subsidiary Guarantee of any Subsidiary Guarantor is held by a
final non-appealable order or judgment of a court of competent jurisdiction to be unenforceable or
invalid or ceases for any reason to be in full force and effect (other than in accordance with the
terms of this Indenture) or any Subsidiary Guarantor or any Person acting on behalf of any
Subsidiary Guarantor denies or disaffirms such Subsidiary Guarantor’s obligations under its
Subsidiary Guarantee (other than by reason of a release of such Subsidiary Guarantor from its
Subsidiary Guarantee in accordance with the terms of this Indenture); or

     (11) any other Event of Default provided with respect to Securities of that series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default with respect to the Company specified
in Section 501(8) or 501(9)) with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities of that series may declare the principal amount
of all the Securities of that series (or, if any Securities of that series are Original Issue
Discount Securities, such portion of the principal amount of such Securities as may be specified by
the terms thereof) to be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount), together with any accrued and unpaid interest thereon, shall become immediately due and
payable. If an Event of Default with respect to the Company specified in Section 501(8) or 501 (9)
with respect to Securities of any series at the time Outstanding occurs, the principal amount of
all the Securities of that series (or, if any Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be specified by the
terms thereof), together with any accrued and unpaid interest thereon, shall automatically, and
without any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

     (1) the Company or, if applicable, any Subsidiary Guarantor has paid or deposited with the
Trustee a sum sufficient to pay

          (A) all overdue interest on all Securities of that series,

          (B) the principal of (and premium, if any, on) any Securities of that series which have become
due otherwise than by such declaration of acceleration and any interest thereon at the rate or
rates prescribed therefor in such Securities,

          (C) to the extent that payment of such interest is lawful, interest upon overdue interest at
the rate or rates prescribed therefor in such Securities, and

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          (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and

     (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which has become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

SECTION 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company, any Subsidiary Guarantor or any
other obligor upon the Securities, or the property or creditors of the Company, any Subsidiary
Guarantor or any other obligor upon the Securities, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such 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

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compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or any Subsidiary Guarantee or the rights of any
Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding; provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities or any Subsidiary
Guarantee may be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Holders of the Securities in respect of which such judgment has been recovered.

SECTION 506. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 607;

     SECOND: To the payment of the amounts then due and unpaid for principal of and any premium
and interest on the Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium and interest, respectively; and

     THIRD: The balance, if any, to the Company or to such other Person as a court of competent
jurisdiction shall direct.

SECTION 507. Limitation on Suits.

     No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless

     (1) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities of that series;

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     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities of that
series shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of security or
indemnity has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities
of that series;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 307) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption or offer by the Company to purchase the
Securities pursuant to the terms of this Indenture, on the Redemption Date or purchase date, as
applicable) and, if applicable, to convert such Security in accordance with its terms, and to
institute suit for the enforcement of any such right, and such rights shall not be impaired without
the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Subsidiary Guarantors, the Trustee and the
Holders shall be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

SECTION 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any

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other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

SECTION 512. Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

     (1) such direction shall not be in conflict with any rule of law or with this Indenture, and

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

SECTION 513. Waiver of Past Defaults.

     The Holders of a majority in principal amount of the Outstanding Securities of any series may
on behalf of the Holders of all the Securities of such series waive any past default hereunder with
respect to such series and its consequences, except a default

     (1) in the payment of the principal of or any premium or interest on any Security of such
series (including any Security which is required to have been purchased by the Company pursuant to
an offer to purchase by the Company made pursuant to the terms of this Indenture), or

     (2) in respect of a covenant or provision hereof which under Article Nine cannot be modified
or amended without the consent of the Holder of each Outstanding Security of such series.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

SECTION 514. Undertaking for Costs.

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     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, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an assessment in any
suit instituted by the Company or any Subsidiary Guarantor.

SECTION 515. Waiver of Usury, Stay or Extension Laws.

     Each of the Company and the Subsidiary Guarantors covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any usury, 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 each of the Company and the Subsidiary Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that
it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as expressly set forth in this
Indenture and as provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, 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.

SECTION 602. Notice of Defaults.

     If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 501(5) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

SECTION 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

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     (1) the Trustee may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

     (2) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution;

     (3) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate;

     (4) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction;

     (6) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and

     (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder.

SECTION 604. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities and the notations of Subsidiary
Guarantees, except the Trustee’s certificates of authentication, shall be taken as the statements
of the Company or the Subsidiary Guarantors, as the case may be, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities or the
Subsidiary Guarantees. Neither the Trustee nor any Authenticating Agent shall be accountable for
the use or application by the Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

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     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or any Subsidiary Guarantor, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with the Company and any Subsidiary Guarantor with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

SECTION 606. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company or any Subsidiary Guarantor,
as the case may be.

SECTION 607. Compensation and Reimbursement.

     The Company and each Subsidiary Guarantor jointly and severally agree

     (1) to pay to the Trustee from time to time reasonable compensation for all services rendered
by it hereunder (which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense, disbursement or
advance as may be attributable to its negligence or bad faith; and

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or
expense incurred without negligence or bad faith on its part, arising out of or in connection with
the acceptance or administration of the trust or trusts hereunder, including the costs and expenses
of defending itself against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder.

SECTION 608. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting interest
by virtue of being a trustee under this Indenture with respect to Securities of more than one
series.

SECTION 609. Corporate Trustee Required; Eligibility.

     There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one or more other
series. Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act

40

 

as such, and has a combined capital and surplus of at least $50,000,000. If any such Person
publishes reports of condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee with respect to the Securities of any series shall cease
to be eligible in accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

     The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     The Trustee may be removed at any time with respect to the Securities of any series by Act of
the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

     If at any time:

     (1) the Trustee shall fail to comply with Section 608 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

     (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign after
written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (B) subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more

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series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or
Trustees with respect to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 611. If, within
one year after such resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such series delivered to
the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of Section 611,
become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

     The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

SECTION 611. Acceptance of Appointment by Successor.

     In case of the appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company,
the Subsidiary Guarantors and to the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or
the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of
the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

     In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the Subsidiary Guarantors, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to
the

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Securities of that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

     Upon request of any such successor Trustee, the Company and the Subsidiary Guarantors shall
execute any and all instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be.

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such Person
shall be otherwise qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto. As soon as practicable, the
successor Trustee shall mail a notice of its succession to the Company and the Holders of the
Securities then Outstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to
such authenticating Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Securities.

SECTION 613. Preferential Collection of Claims Against Company and Subsidiary Guarantors.

     If and when the Trustee shall be or become a creditor of the Company, any Subsidiary Guarantor
or any other obligor upon the Securities, the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Company, such Subsidiary
Guarantor or any such other obligor.

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SECTION 614. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer, conversion
or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a Person organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section.

     Any Person into which an Authenticating Agent may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent,
provided such Person shall be otherwise eligible under this Section, without the execution or
filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 106 to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

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     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

	 	 	This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	[______________],

As Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee with respect to the
Securities of each series:

     (1) not more than 10 days after each record date with respect to the payment of interest, if
any, a list, in such form as the Trustee may reasonably require, of the names and addresses of the
Holders of Securities of such series as of such record date, and

     (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

     The Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as

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Security Registrar. The Trustee may destroy any list furnished to it as provided in Section
701 upon receipt of a new list so furnished. The rights of Holders to communicate with other
Holders with respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the Trust Indenture
Act.

     Every Holder of Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company, the Subsidiary Guarantors nor the Trustee nor any agent of any of
them shall be held accountable by reason of any disclosure of information as to names and addresses
of Holders made pursuant to the Trust Indenture Act.

SECTION 703. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are listed on any stock
exchange.

SECTION 704. Reports by Company and Subsidiary Guarantors.

     The Company and each of the Subsidiary Guarantors shall file with the Trustee and the
Commission, and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall
be filed with the Trustee within 15 days after the same is filed with the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not, in a single transaction or a series of related transactions,
consolidate with or merge into any other Person or permit any other Person to consolidate with or
merge into the Company or, directly or indirectly, transfer, convey, sell, lease or otherwise
dispose of all or substantially all of its assets, unless:

     (1) in a transaction in which the Company does not survive or in which the Company transfers,
conveys, sells, leases or otherwise disposes of all or substantially all of its assets, the
successor entity (for purposes of this Article Eight, a “Successor Company”) shall be a
corporation, partnership, trust or other entity organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia, and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and any premium

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and interest on all the Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;

     (2) immediately before and after giving pro forma effect to such transaction and treating any
indebtedness which becomes an obligation of the Company or any Subsidiary as a result of such
transaction as having been incurred by the Company or such Subsidiary at the time of such
transaction, no Event of Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing;

     (3) if, as a result of any such consolidation or merger or such transfer, conveyance, sale,
lease or other disposition, properties or assets of the Company would become subject to a mortgage,
pledge, lien, security interest or other encumbrance which would not be permitted by this
Indenture, the Company or the Successor Company, as the case may be, shall take such steps as shall
be necessary effectively to secure the Securities equally and ratably with (or prior to) all
indebtedness secured thereby;

     (4) any other conditions provided pursuant to Section 301 with respect to the Securities of a
series are satisfied; and

     (5) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, transfer, conveyance, sale, lease or other
disposition and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with this Article and that all conditions precedent herein provided
for relating to such transaction have been complied with.

SECTION 802. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

     Except in a transaction resulting in the release of a Subsidiary Guarantor in accordance with
the terms of this Indenture, each Subsidiary Guarantor shall not, and the Company shall not permit
any Subsidiary Guarantor to, in a single or a series of related transactions, consolidate or merge
with or into any Person (other than the Company or another Subsidiary Guarantor) or permit any
Person (other than another Subsidiary Guarantor) to consolidate or merge with or into such
Subsidiary Guarantor or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose
of all or substantially all of its assets unless, in each case:

     (1) in a transaction in which such Subsidiary Guarantor does not survive or in which all or
substantially all of the assets of such Subsidiary Guarantor are transferred, conveyed, sold,
leased or otherwise disposed of, the successor entity (the “Successor Subsidiary Guarantor”) shall
be a corporation, partnership, trust or other entity organized and validly existing under the laws
of the United States of America, any State thereof or the District of Columbia, and shall expressly
assume by an indenture supplemental hereto executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of all obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee and this Indenture and the performance of every covenant
of this Indenture on the part of such Subsidiary Guarantor to be performed or observed; and

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     (2) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, transfer, conveyance, sale, lease or other
disposition and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture, comply with this Article and that all conditions precedent herein provided
for relating to such transaction have been complied with.

SECTION 803. Successor Substituted.

     (a) Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any transfer, conveyance, sale, lease or other disposition of all or substantially all of
the assets of the Company in accordance with Section 801, the Successor Company shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company herein, and
thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

     (b) Upon any consolidation of a Subsidiary Guarantor with, or merger of such Subsidiary
Guarantor into, any other Person or any transfer, conveyance, sale, lease or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor in accordance with Section 802,
the Successor Subsidiary Guarantor shall succeed to, and be substituted for, and may exercise every
right and power of, such Subsidiary Guarantor under this Indenture with the same effect as if such
successor Person had been named as a Subsidiary Guarantor herein, and thereafter, except in the
case of a lease, the predecessor Person shall be relieved of all obligations and covenants under
this Indenture and its Subsidiary Guarantee.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, the
Subsidiary Guarantors, when authorized by their respective Board Resolutions, and the Trustee, at
any time and from time to time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

     (1) to evidence the succession of another Person to the Company or any Subsidiary Guarantor
and the assumption by any such successor of the covenants of the Company or any Subsidiary
Guarantor herein and in the Securities or Subsidiary Guarantees, as the case may be; or

     (2) to add to the covenants of the Company or the Subsidiary Guarantors for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be for the benefit of less
than all series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the Company or
the Subsidiary Guarantors; or

     (3) to add any additional Events of Default for the benefit of the Holders of all or any
series of Securities (and if such additional Events of Default are to be for the benefit of less
than

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all series of Securities, stating that such additional Events of Default are expressly being
included solely for the benefit of such series); or

     (4) to add to or change any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form; or

     (5) to add to, change or eliminate any of the provisions of this Indenture in respect of one
or more series of Securities, provided that any such addition, change or elimination (A) shall
neither (i) apply to any Security of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of
any such Security with respect to such provision or (B) shall become effective only when there is
no such Security Outstanding; or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series as permitted by Sections 201
and 301; or

     (8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of Section 611; or

     (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein; or

     (10) to make any other provisions with respect to matters or questions arising under this
Indenture, provided that such action pursuant to this clause (10) shall not adversely affect the
interests of the Holders of Securities of any series in any material respect; or

     (11) to add new Subsidiary Guarantors.

SECTION 902. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by Act of said Holders delivered
to the Company, the Subsidiary Guarantors and the Trustee, the Company, when authorized by a Board
Resolution, the Subsidiary Guarantors, when authorized by their respective Board Resolutions and
the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Security affected thereby:

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     (1) change the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate of interest thereon
or any premium payable upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security or any other Security which would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any Place of
Payment where, or the coin or currency in which, any Security or any premium or interest thereon is
payable, or impair the right to institute suit for the enforcement of (a) any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date
or in the case of an offer to purchase Securities which has been made pursuant to a covenant
contained in this Indenture, on or after the applicable purchase date) or (b) any conversion right
with respect to any Security, or modify the provisions of this Indenture with respect to the
conversion of the Securities, in a manner adverse to the Holders, or release any Subsidiary
Guarantee other than as provided in this Indenture; or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this Indenture; or

     (3) modify any of the provisions of this Section, Section 513 or Section 1009, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause shall not be deemed to require the consent of any
Holder with respect to changes in the references to “the Trustee” and concomitant changes in this
Section and Section 1009, or the deletion of this proviso, in accordance with the requirements of
Sections 611 and 901(8); or

     (4) following the making of an offer to purchase Securities from any Holder which has been
made pursuant to a covenant contained in this Indenture, modify the provisions of this Indenture
with respect to such offer to purchase in a manner adverse to such Holder.

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

     After a supplemental indenture under this Section 902 requiring the consent of the Holders of
any series of Debt Securities is approved, the Company shall mail to Holders of that series of Debt
Securities a notice briefly describing any amendment or supplement hereto effected by such
supplemental indenture. The failure to give such notice to any such Holders, or

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any defect therein, shall not impair or affect the validity of any amendment or supplement
hereto effected by such supplemental indenture with respect to other Holders.

SECTION 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

SECTION 905. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.

SECTION 906. Reference in Securities to Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company, if applicable the notations of Subsidiary Guarantees may be endorsed thereon and such
new Securities may be authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture. Principal, premium, if
any, and interest shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 11:00 A.M., New York City time, on the due date money
deposited with it in immediately available funds and designated for and sufficient to pay all
principal, premium, if any, and interest then due.

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SECTION 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment or, if
applicable, for conversion, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company or any Subsidiary
Guarantor in respect of the Securities of that series or any Subsidiary Guarantee and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and each of the Company and the Subsidiary Guarantors
hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

     If the Company or any Subsidiary Guarantor shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the principal of or any
premium or interest on any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to 11:00 A.M., New York City time, on each due date of the principal of or any premium
or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay
such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to
act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company, the Subsidiary Guarantors, if applicable, or any other
obligor upon the Securities of that series in the making of any payment in respect of

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the Securities of that series, upon the written request of the Trustee, forthwith pay to the
Trustee all sums held in trust by such Paying Agent for payment in respect of the Securities of
that series.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be repaid to the
Company.

SECTION 1004. Statement by Officers as to Default.

     (a) The Company and the Subsidiary Guarantors will deliver to the Trustee, within 90 days
after the end of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers thereof the Company or any
Subsidiary Guarantor, as the case may be, is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company or any Subsidiary Guarantor shall be
in default, specifying all such defaults and the nature and status thereof of which they may have
knowledge.

     (b) The Company shall, so long as any series of Securities is Outstanding, deliver to the
Trustee, as soon as possible and in any event within five days after the Company becomes aware of
the occurrence of an Event of Default or an event which, with notice or the lapse of time or both,
would constitute an Event of Default, an Officers’ Certificate setting forth the details of such
Event of Default or default, and the action which the Company proposes to take with respect
thereto.

SECTION 1005. Existence.

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     Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect the existence, rights (charter and statutory) and
franchises of the Company; provided, however, that the Company shall not be required to preserve
any such right or franchise if it shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.

SECTION 1006. Maintenance of Properties.

     The Company will cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair and working order
(reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the operation or maintenance
of any of such properties if such discontinuance is, in the judgment of the Company, desirable in
the conduct of its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

SECTION 1007. Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a
lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.

SECTION 1008. Maintenance of Insurance.

     The Company shall, and shall cause its Subsidiaries to, keep at all times all of their
properties which are of an insurable nature insured against loss or damage with insurers believed
by the Company to be responsible to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties in accordance with good
business practice.

SECTION 1009. Waiver of Certain Covenants.

     Except as otherwise specified as contemplated by Section 301 for Securities of such series,
the Company and the Subsidiary Guarantors may, with respect to the Securities of any series, omit
in any particular instance to comply with any term, provision or condition set forth in any of
Sections 1005 through 1008 or in any covenant provided pursuant to Section 301(21), 901(2) or
901(7) for the benefit of the Holders of such series if before the time for such compliance the
Holders of at least a majority in principal amount of the Outstanding Securities of such series
shall, by Act of such Holders, either waive such compliance in such instance or

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generally waive compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in full force and effect.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for such Securities) in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities. In case of any
redemption at the election of the Company of less than all the Securities of any series (including
any such redemption affecting only a single Security), the Company shall, at least five Business
Days prior to giving notice of such redemption (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such
restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, (i) in compliance
with the requirements of the principal national securities exchange on which such Securities are
listed, if such Securities are listed on any national securities exchange, and (ii) if such
Securities are not so listed, on a pro rata basis, by lot or by such other method as the Trustee
shall deem fair and appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security of such series, provided that the unredeemed portion of the
principal amount of any Security shall be in an authorized denomination (which shall not be less
than the minimum authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series and specified tenor not previously called for redemption
in accordance with the preceding sentence.

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     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption as aforesaid and, in case of any Securities selected for partial redemption as
aforesaid, the principal amount thereof to be redeemed.

     The provisions of the two preceding paragraphs shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in whole or in part. In
the case of any such redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If any Security selected for partial redemption is surrendered for
conversion after such selection, the converted portion of such Security shall be deemed (so far as
may be) to be the portion selected for redemption. Upon any redemption of less than all the
Securities of a series, for purposes of selection for redemption the Company and the Trustee may
treat as Outstanding Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a notice of redemption, and need not treat as Outstanding any Security
authenticated and delivered during such period in exchange for the unconverted portion of any
Security converted in part during such period.

SECTION 1104. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register; provided, however, notice of redemption may be
given more than 60 days prior to the Redemption Date if the notice is issued in connection with a
satisfaction and discharge pursuant to Article Four.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price, if then determinable and otherwise the method of its determination,

     (3) if less than all the Outstanding Securities of any series consisting of more than a single
Security are to be redeemed, the identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be redeemed and, if less than
all the Outstanding Securities of any series consisting of a single Security are to be redeemed,
the principal amount of the particular Security to be redeemed,

     (4) that on the Redemption Date the Redemption Price will become due and payable upon each
such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date,

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     (5) the place or places where each such Security is to be surrendered for payment of the
Redemption Price,

     (6) that the redemption is for a sinking fund, if such is the case; and

     (7) if applicable, the conversion price then in effect and the date on which the right to
convert such Securities will expire.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and shall be irrevocable. If any Security called for redemption is converted pursuant
hereto, any money deposited with the Trustee or any Paying Agent or so segregated and held in trust
for the redemption of such Security shall be paid to the Company upon delivery of a Company Request
to the Trustee or such Paying Agent, or, if then held by the Company, shall be discharged from such
trust.

SECTION 1105. Deposit of Redemption Price.

     Prior to 11:00 A.M., New York City time, on any Redemption Date, the Company shall 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 as provided in Section 1003) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Securities which are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301, installments of interest whose
Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section 307.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

SECTION 1107. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall

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execute, if applicable the Subsidiary Guarantors shall execute the notations of Subsidiary
Guarantees endorsed thereon, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same series and of like tenor,
of any authorized denomination as requested by such Holder, in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so surrendered.

ARTICLE TWELVE

[INTENTIONALLY OMITTED]

ARTICLE THIRTEEN

SUBSIDIARY GUARANTEES

SECTION 1301. Applicability of Article.

     Unless the Company elects to issue any series of Securities without the benefit of the
Subsidiary Guarantees, which election shall be evidenced in or pursuant to the Board Resolution or
supplemental indenture establishing such series of Securities pursuant to Section 301, the
provisions of this Article shall be applicable to each series of Securities except as otherwise
specified in or pursuant to the Board Resolution or supplemental indenture establishing such series
pursuant to Section 301.

SECTION 1302. Subsidiary Guarantees.

     Subject to Section 1301, each Subsidiary Guarantor hereby, jointly and severally, fully and
unconditionally guarantees to each Holder of a Security authenticated and delivered by the Trustee,
the due and punctual payment of the principal of (and premium, if any) and interest on such
Security when and as the same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, offer to purchase or otherwise, in accordance with the terms of
such Security and of this Indenture, and each Subsidiary Guarantor similarly guarantees to the
Trustee the payment of all amounts owing to the Trustee in accordance with the terms of this
Indenture. In case of the failure of the Company punctually to make any such payment, each
Subsidiary Guarantor hereby, jointly and severally, agrees to cause such payment to be made
punctually when and as the same shall become due and payable, whether at the Stated Maturity or by
acceleration, call for redemption, offer to purchase or otherwise, and as if such payment were made
by the Company.

     Each of the Subsidiary Guarantors hereby jointly and severally agrees that its obligations
hereunder shall be absolute, unconditional, irrespective of, and shall be unaffected by, the
validity, regularity or enforceability of such Security or this Indenture, the absence of any
action to enforce the same or any release, amendment, waiver or indulgence granted to the Company
or any other guarantor or any consent to departure from any requirement of any other guarantee of
all or any of the Securities of such series or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor; provided, however,
that, notwithstanding the foregoing, no such release, amendment, waiver or indulgence shall,
without the consent of such Subsidiary Guarantor, increase the principal amount of such

58

 

Security, or increase the interest rate thereon, or alter the Stated Maturity thereof. Each
of the Subsidiary Guarantors hereby waives the benefits of diligence, presentment, demand for
payment, any requirement that the Trustee or any of the Holders protect, secure, perfect or insure
any security interest in or other lien on any property subject thereto or exhaust any right or take
any action against the Company or any other Person or any collateral, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest or notice with respect to such Security or the indebtedness evidenced
thereby and all demands whatsoever, and covenants that this Subsidiary Guarantee will not be
discharged in respect of such Security except by complete performance of the obligations contained
in such Security and in such Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after
the occurrence and during the continuance of an Event of Default, the Trustee or any of the Holders
are prevented by applicable law from exercising their respective rights to accelerate the maturity
of the Securities of a series, to collect interest on the Securities of a series, or to enforce or
exercise any other right or remedy with respect to the Securities of a series, such Subsidiary
Guarantor agrees to pay to the Trustee for the account of the Holders, upon demand therefor, the
amount that would otherwise have been due and payable had such rights and remedies been permitted
to be exercised by the Trustee or any of the Holders.

     Each Subsidiary Guarantor shall be subrogated to all rights of the Holders of the Securities
upon which its Subsidiary Guarantee is endorsed against the Company in respect of any amounts paid
by such Subsidiary Guarantor on account of such Security pursuant to the provisions of its
Subsidiary Guarantee or this Indenture; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

     Each Subsidiary Guarantor that makes or is required to make any payment in respect of its
Subsidiary Guarantee shall be entitled to seek contribution from the other Subsidiary Guarantors to
the extent permitted by applicable law; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or receive any payments arising out of, or based upon, such right of
contribution until the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

     Each Subsidiary Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Company for liquidation or reorganization, should
the Company become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment and performance of the Securities of a series, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any Holder of the
Securities, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though
such payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, the Securities shall, to the fullest extent permitted
by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

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SECTION 1303. Execution and Delivery of Notations of Subsidiary Guarantees.

     To further evidence the Subsidiary Guarantee set forth in Section 1302, each of the Subsidiary
Guarantors hereby agrees that a notation relating to such Subsidiary Guarantee, substantially in
the form set forth in Section 204, shall be endorsed on each Security entitled to the benefits of
the Subsidiary Guarantee authenticated and delivered by the Trustee and executed by either manual
or facsimile signature of an officer of such Subsidiary Guarantor, or in the case of a Subsidiary
Guarantor that is a limited partnership, an officer of the general partner of each Subsidiary
Guarantor. Each of the Subsidiary Guarantors hereby agrees that the Subsidiary Guarantee set forth
in Section 1302 shall remain in full force and effect notwithstanding any failure to endorse on
each Security a notation relating to the Subsidiary Guarantee. If any officer of the Subsidiary
Guarantor, or in the case of a Subsidiary Guarantor that is a limited partnership, any officer of
the general partner of the Subsidiary Guarantor, whose signature is on this Indenture or a Security
no longer holds that office at the time the Trustee authenticates such Security or at any time
thereafter, the Subsidiary Guarantee of such Security shall be valid nevertheless. The delivery of
any Security by the Trustee, after the authentication thereof hereunder, shall constitute due
delivery of the Subsidiary Guarantee set forth in this Indenture on behalf of the Subsidiary
Guarantors.

SECTION 1304. Release of Subsidiary Guarantors.

     Unless otherwise specified pursuant to Section 301 with respect to a series of Securities,
each Subsidiary Guarantee will remain in effect with respect to the respective Subsidiary Guarantor
until the entire principal of, premium, if any, and interest on the Securities to which such
Subsidiary Guarantee relates shall have been paid in full or otherwise satisfied and discharged in
accordance with the provisions of such Securities and this Indenture and all amounts owing to the
Trustee hereunder have been paid; provided, however, that if (i) such Subsidiary Guarantor ceases
to be a Subsidiary in compliance with the applicable provisions of this Indenture, (ii) either
Defeasance or Covenant Defeasance occurs with respect to such Securities pursuant to Article
Fifteen or (iii) all or substantially all of the assets of such Subsidiary Guarantor or all of the
Capital Stock of such Subsidiary Guarantor is sold (including by sale, merger, consolidation or
otherwise) by the Company or any Subsidiary in a transaction complying with the requirements of
this Indenture, then, in each case of (i), (ii) or (iii), upon delivery by the Company of an
Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent herein
provided for relating to the release of such Subsidiary Guarantor from its obligations under its
Subsidiary Guarantee and this Article Thirteen have been complied with, such Subsidiary Guarantor
shall be released and discharged of its obligations under its Subsidiary Guarantee and under this
Article Thirteen without any action on the part of the Trustee or any Holder, and the Trustee shall
execute any documents reasonably required in order to acknowledge the release of such Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee endorsed on the Securities of such
series and under this Article Thirteen.

SECTION 1305. Additional Subsidiary Guarantors.

     Unless otherwise specified pursuant to Section 301 with respect to a series of Securities, the
Company will cause any domestic Wholly Owned Subsidiary of the Company that becomes a Subsidiary
after the date the Securities of a series are first issued hereunder to become a

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Subsidiary Guarantor as soon as practicable after such Subsidiary becomes a Subsidiary. The
Company shall cause any such Wholly Owned Subsidiary to become a Subsidiary Guarantor with respect
to the Securities by executing and delivering to the Trustee (a) a supplemental indenture, in form
and substance satisfactory to the Trustee, which subjects such Person to the provisions (including
the representations and warranties) of this Indenture as a Subsidiary Guarantor and (b) an Opinion
of Counsel to the effect that such supplemental indenture has been duly authorized and executed by
such Person and such supplemental indenture and such Person’s obligations under its Subsidiary
Guarantee and this Indenture constitute the legal, valid, binding and enforceable obligations of
such Person (subject to such customary exceptions concerning creditors’ rights and equitable
principles as may be acceptable to the Trustee in its discretion).

SECTION 1306. Limitation on Liability.

     Any term or provision of this Indenture to the contrary notwithstanding, the maximum amount of
the Subsidiary Guarantee of any Subsidiary Guarantor shall not exceed the maximum amount that can
be hereby guaranteed by such Subsidiary Guarantor without rendering such Subsidiary Guarantee
voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar
laws affecting the rights of creditors generally.

ARTICLE FOURTEEN

[INTENTIONALLY OMITTED]

ARTICLE FIFTEEN

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1501. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1502 or Section 1503 applied
to any Securities or any series of Securities, as the case may be, designated pursuant to Section
301 as being defeasible pursuant to such Section 1502 or 1503, in accordance with any applicable
requirements provided pursuant to Section 301 and upon compliance with the conditions set forth
below in this Article. Any such election shall be evidenced in or pursuant to a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities.

SECTION 1502. Defeasance and Discharge.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations, and each Subsidiary Guarantor shall be deemed to have been
discharged from its obligations with respect to its Subsidiary Guarantee of such Securities, as
provided in this Section on and after the date the conditions set forth in Section 1504 are
satisfied (herein called “Defeasance”). For this purpose, such Defeasance means that the Company
shall be deemed to have paid and discharged the entire indebtedness represented by such Securities
and to have satisfied all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the

61

 

Company, shall execute proper instruments acknowledging the same), subject to the following
which shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders
of such Securities to receive, solely from the trust fund described in Section 1504 and as more
fully set forth in such Section, payments in respect of the principal of and any premium and
interest on such Securities when payments are due, or, if applicable, to convert such Securities in
accordance with their terms, (2) the Company’s and each Subsidiary Guarantor’s obligations with
respect to such Securities under Sections 304, 305, 306, 1002 and 1003, and, if applicable, their
obligations with respect to the conversion of such Securities, (3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and (4) this Article. Subject to compliance with
this Article, the Company may exercise its option (if any) to have this Section applied to any
Securities notwithstanding the prior exercise of its option (if any) to have Section 1503 applied
to such Securities.

SECTION 1503. Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, (1) the Company shall be released from
its obligations under Section 801(3), Sections 1005 through 1008, inclusive, and any covenants
provided pursuant to Section 301(21), 901(2) or 901(7) for the benefit of the Holders of such
Securities, and (2) the occurrence of any event specified in Sections 501(5) (with respect to any
of Section 801(3), Sections 1006 through 1008, inclusive, and any such covenants provided pursuant
to Section 301(21), 901(2) or 901(7)), 501(6), 501(7)), 501(10) and 501(11) shall be deemed not to
be or result in an Event of Default and (3) the provisions of Article Thirteen shall cease to be
effective, in each case with respect to such Securities and Subsidiary Guarantees as provided in
this Section on and after the date the conditions set forth in Section 1504 are satisfied (herein
called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect
to such Securities, the Company and the Subsidiary Guarantors, as applicable, may omit to comply
with and shall have no liability in respect of any term, condition or limitation set forth in any
such specified Section (to the extent so specified in the case of Section 501(5)) or Article
Thirteen, whether directly or indirectly by reason of any reference elsewhere herein to any such
Section or Article or by reason of any reference in any such Section or Article to any other
provision herein or in any other document, but the remainder of this Indenture and such Securities
shall be unaffected thereby.

SECTION 1504. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1502 or Section 1503 to
any Securities or any series of Securities, as the case may be:

     (1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee which satisfies the requirements contemplated by Section 609 and agrees to
comply with the provisions of this Article applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefits of the Holders of such Securities, (A) money in an amount, or (B) U.S.
Government Obligations which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than one day before the due date of
any payment, money in an amount, or (C) a combination thereof, in each case sufficient,

62

 

in the opinion of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be
applied by the Trustee (or any such other qualifying trustee) to pay and discharge, the principal
of and any premium and interest on such Securities on the respective Stated Maturities, in
accordance with the terms of this Indenture and such Securities. As used herein, “U.S. Government
Obligation” means (x) any security which is (i) a direct obligation of the United States of America
for the payment of which the full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States of America, which, in either case (i) or
(ii), is not callable or redeemable at the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with
respect to any U.S. Government Obligation which is specified in clause (x) above and held by such
bank for the account of the holder of such depositary receipt, or with respect to any specific
payment of principal of or interest on any U.S. Government Obligation which is so specified and
held, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from any amount received
by the custodian in respect of the U.S. Government Obligation or the specific payment of principal
or interest evidenced by such depositary receipt.

     (2) In the event of an election to have Section 1502 apply to any Securities or any series of
Securities, as the case may be, 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 instrument, there has been a change
in the applicable Federal income tax law, in either case (A) or (B) to the effect that, and based
thereon such opinion shall confirm that, the Holders of such Securities will not recognize gain or
loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to be
effected with respect to such Securities and will be subject to Federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit and
Defeasance were not to occur.

     (3) In the event of an election to have Section 1503 apply to any Securities or any series of
Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of such Securities will not recognize gain or loss for
Federal income tax purposes as a result of the deposit and Covenant Defeasance to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit and Covenant Defeasance were
not to occur.

     (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the effect
that neither such Securities nor any other Securities of the same series, if then listed on any
securities exchange, will be delisted as a result of such deposit.

     (5) No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such Securities shall have occurred and be continuing at the time of such
deposit or, with regard to any such event specified in Sections 501(7) and (8), at any time

63

 

on or prior to the 121st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until after such 121st day).

     (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).

     (7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company or any
Subsidiary is a party or by which it is bound.

     (8) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that
such deposit shall not cause either the Trustee or the trust so created to be subject to the
Investment Company Act of 1940.

     (9) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.

SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1506, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1504 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders
of such Securities, of all sums due and to become due thereon in respect of principal and any
premium and interest, but money so held in trust need not be segregated from other funds except to
the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 1504 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Securities.

     Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or U.S. Government Obligations held by
it as provided in Section 1504 with respect to any Securities which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

SECTION 1506. Reinstatement.

64

 

     If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article with respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1502 or 1503 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article with respect to such Securities, until such time as the Trustee
or Paying Agent is permitted to apply all money held in trust pursuant to Section 1505 with respect
to such Securities in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security following such
reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in trust.

ARTICLE SIXTEEN

SINKING FUNDS

SECTION 1601. Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of any series except as otherwise specified as contemplated by Section 301 for such
Securities.

     The minimum amount of any sinking fund payment provided for by the terms of any Securities is
herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of such Securities is herein referred to as an “optional sinking
fund payment.” If provided for by the terms of any Securities, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 1602. Each sinking fund payment shall
be applied to the redemption of Securities as provided for by the terms of such Securities.

SECTION 1602. Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been (x)
converted or (y) redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made pursuant to the terms of
such Securities as and to the extent provided for by the terms of such Securities; provided,
however, that the Securities to be so credited have not been previously so credited. The
Securities to be so credited shall be received and credited for such purpose by the Trustee at the
Redemption Price, as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

SECTION 1603. Redemption of Securities for Sinking Fund.

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     Not less than 35 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for such Securities pursuant to the terms of such Securities, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities pursuant to Section 1602 and will also
deliver to the Trustee any Securities to be so delivered. Not less than 32 days prior to each such
sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107. This instrument may be executed
in any number of counterparts, each of which so executed shall be deemed to be an original, but all
such counterparts shall together constitute but one and the same instrument.

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as
of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	ISSUER:	 	 
	 
	 	 	 	 	 	 
	 	 	OASIS PETROLEUM INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	[INSERT SUBSIDIARY GUARANTORS]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	TRUSTEE:	 	 
	 
	 	 	 	 	 	 
	 	 	[                    ],	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Page to Senior Indenture]

 

 

SCHEDULE I

SUBSIDIARY GUARANTORS

	 	 	 
	SUBSIDIARY	 	STATE OF ORGANIZATION
	 

	 	 

[Insert Subsidiary Guarantors]

Schedule I-1

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