Document:

EXHIBIT
4.1

 

 

 

CIMAREX ENERGY
CO.,

 

THE SUBSIDIARY GUARANTORS PARTIES 

HERETO,

 

AND

 

U.S. BANK NATIONAL
ASSOCIATION,

 

as Trustee

 

71/8% Senior Notes due 2017

 

 

INDENTURE

 

Dated as of May 1,
2007

 

CROSS-REFERENCE TABLE

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
    (a)(2)

  	
   

  	
  7.10

  
	
    (a)(3)

  	
   

  	
  N.A.

  
	
    (a)(4)

  	
   

  	
  N.A.

  
	
    (a)(5)

  	
   

  	
  7.10

  
	
    (b)

  	
   

  	
  7.8; 7.10

  
	
    (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
    (b)

  	
   

  	
  7.11

  
	
    (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.5

  
	
    (b)

  	
   

  	
  11.3

  
	
    (c)

  	
   

  	
  11.3

  
	
  313(a)

  	
   

  	
  7.6

  
	
    (b)(1)

  	
   

  	
  N.A.

  
	
    (b)(2)

  	
   

  	
  7.6

  
	
    (c)

  	
   

  	
  7.6

  
	
    (d)

  	
   

  	
  7.6

  
	
  314(a)

  	
   

  	
  3.2; 3.22

  
	
    (b)

  	
   

  	
  N.A.

  
	
    (c)(1)

  	
   

  	
  11.4

  
	
    (c)(2)

  	
   

  	
  11.4

  
	
    (c)(3)

  	
   

  	
  N.A.

  
	
    (d)

  	
   

  	
  N.A.

  
	
    (e)

  	
   

  	
  11.5

  
	
    (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.1

  
	
    (b)

  	
   

  	
  7.5

  
	
    (c)

  	
   

  	
  7.1

  
	
    (d)

  	
   

  	
  7.1

  
	
    (e)

  	
   

  	
  6.11

  
	
  316(a)(last sentence)

  	
   

  	
  11.6

  
	
    (a)(1)(A)

  	
   

  	
  6.5

  
	
    (a)(1)(B)

  	
   

  	
  6.4

  
	
    (a)(2)

  	
   

  	
  N.A.

  
	
    (b)

  	
   

  	
  6.7

  
	
    (c)

  	
   

  	
  9.4

  
	
  317(a)(1)

  	
   

  	
  6.8

  
	
    (a)(2)

  	
   

  	
  6.9

  
	
    (b)

  	
   

  	
  2.4

  
	
  318(a)

  	
   

  	
  11.1

  
	
    (b)

  	
   

  	
  N.A.

  
	
    (c)

  	
   

  	
  N.A.

  

 

N.A. means Not
Applicable.

 i
 

 

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

 ii

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I Definitions and Incorporation by Reference

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.1.   Definitions

  	
   

  	
  1

  
	
  SECTION
  1.2.   Incorporation by Reference of Trust Indenture Act

  	
   

  	
  37

  
	
  SECTION
  1.3.   Rules of Construction

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE II The Notes

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.1.   Form, Dating and Terms

  	
   

  	
  38

  
	
  SECTION
  2.2.   Execution and Authentication

  	
   

  	
  42

  
	
  SECTION
  2.3.   Registrar and Paying Agent

  	
   

  	
  43

  
	
  SECTION
  2.4.   Paying Agent To Hold Money in Trust

  	
   

  	
  43

  
	
  SECTION
  2.5.   Holder Lists

  	
   

  	
  44

  
	
  SECTION
  2.6.   Transfer and Exchange

  	
   

  	
  44

  
	
  SECTION
  2.7.   Mutilated, Destroyed, Lost or Wrongfully Taken Notes

  	
   

  	
  45

  
	
  SECTION
  2.8.   Outstanding Notes

  	
   

  	
  46

  
	
  SECTION
  2.9.   Temporary Notes

  	
   

  	
  46

  
	
  SECTION
  2.10.   Cancellation

  	
   

  	
  47

  
	
  SECTION
  2.11.   Payment of Interest; Defaulted Interest

  	
   

  	
  47

  
	
  SECTION
  2.12.   Computation of Interest

  	
   

  	
  48

  
	
  SECTION
  2.13.   CUSIP Numbers

  	
   

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE III Covenants

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.1.   Payment of Notes

  	
   

  	
  49

  
	
  SECTION
  3.2.   SEC Reports

  	
   

  	
  49

  
	
  SECTION
  3.3.   Limitation on Indebtedness

  	
   

  	
  50

  
	
  SECTION
  3.4.   Limitation on Restricted Payments

  	
   

  	
  54

  
	
  SECTION
  3.5.   Limitation on Liens

  	
   

  	
  60

  
	
  SECTION
  3.6.   Limitation on Sale/Leaseback Transactions

  	
   

  	
  60

  
	
  SECTION
  3.7.   Limitation on Restrictions on Distributions from Restricted
  Subsidiaries

  	
   

  	
  61

  
	
  SECTION
  3.8.   Limitation on Sales of Assets and Subsidiary Stock

  	
   

  	
  63

  
	
  SECTION
  3.9.   Limitation on Affiliate Transactions

  	
   

  	
  66

  
	
  SECTION
  3.10.   Change of Control

  	
   

  	
  68

  
	
  SECTION
  3.11.   Future Subsidiary Guarantors

  	
   

  	
  69

  
	
  SECTION
  3.12.   Limitation on Lines of Business

  	
   

  	
  70

  
	
  SECTION
  3.13.   Payments for Consent

  	
   

  	
  70

  

 

 i
 

 

	
  SECTION 3.14.  
  Limitation on the Sale of Capital Stock of Restricted Subsidiaries

  	
   

  	
  70

  
	
  SECTION
  3.15.   Effectiveness of Covenants

  	
   

  	
  71

  
	
  SECTION
  3.16.   Maintenance of Office or Agency

  	
   

  	
  72

  
	
  SECTION
  3.17.   Money for Note Payments to Be Held in Trust

  	
   

  	
  72

  
	
  SECTION
  3.18.   Corporate Existence

  	
   

  	
  73

  
	
  SECTION
  3.19.   Payment of Taxes and Other Claims

  	
   

  	
  74

  
	
  SECTION
  3.20.   Maintenance of Properties

  	
   

  	
  74

  
	
  SECTION
  3.21.   Compliance with Laws

  	
   

  	
  74

  
	
  SECTION
  3.22.   Compliance Certificate

  	
   

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV Successor Company and Successor
  Subsidiary Guarantor

  	
   

  	
  75

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.1.   Merger and Consolidation

  	
   

  	
  75

  
	
   

  	
   

  	
   

  
	
  ARTICLE V Redemption of Notes

  	
   

  	
  76

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.1.   Optional Redemption

  	
   

  	
  76

  
	
  SECTION
  5.2.   Applicability of Article

  	
   

  	
  77

  
	
  SECTION
  5.3.   Election to Redeem; Notice to Trustee

  	
   

  	
  77

  
	
  SECTION
  5.4.   Selection by Trustee of Notes to Be Redeemed

  	
   

  	
  77

  
	
  SECTION
  5.5.   Notice of Redemption

  	
   

  	
  77

  
	
  SECTION
  5.6.   Deposit of Redemption Price

  	
   

  	
  78

  
	
  SECTION
  5.7.   Notes Payable on Redemption Date

  	
   

  	
  79

  
	
  SECTION
  5.8.   Notes Redeemed in Part

  	
   

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI Defaults and Remedies

  	
   

  	
  79

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.1.   Events of Default

  	
   

  	
  79

  
	
  SECTION
  6.2.   Acceleration

  	
   

  	
  82

  
	
  SECTION
  6.3.   Other Remedies

  	
   

  	
  83

  
	
  SECTION
  6.4.   Waiver of Past Defaults

  	
   

  	
  83

  
	
  SECTION
  6.5.   Control by Majority

  	
   

  	
  83

  
	
  SECTION
  6.6.   Limitation on Suits

  	
   

  	
  83

  
	
  SECTION
  6.7.   Rights of Holders to Receive Payment

  	
   

  	
  84

  
	
  SECTION
  6.8.   Collection Suit by Trustee

  	
   

  	
  84

  
	
  SECTION
  6.9.   Trustee May File Proofs of Claim

  	
   

  	
  84

  
	
  SECTION
  6.10.   Priorities

  	
   

  	
  85

  
	
  SECTION
  6.11.   Undertaking for Costs

  	
   

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII Trustee

  	
   

  	
  85

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.1.   Duties of Trustee

  	
   

  	
  85

  

 

 ii
 

 

	
  SECTION 7.2.  
  Rights of Trustee

  	
   

  	
  86

  
	
  SECTION
  7.3.   Individual Rights of Trustee

  	
   

  	
  88

  
	
  SECTION
  7.4.   Trustee’s Disclaimer

  	
   

  	
  88

  
	
  SECTION
  7.5.   Notice of Defaults

  	
   

  	
  88

  
	
  SECTION
  7.6.   Reports by Trustee to Holders

  	
   

  	
  88

  
	
  SECTION
  7.7.   Compensation and Indemnity

  	
   

  	
  89

  
	
  SECTION
  7.8.   Replacement of Trustee

  	
   

  	
  89

  
	
  SECTION
  7.9.   Successor Trustee by Merger

  	
   

  	
  90

  
	
  SECTION
  7.10.   Eligibility; Disqualification

  	
   

  	
  91

  
	
  SECTION
  7.11.   Preferential Collection of Claims Against Company

  	
   

  	
  91

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII Discharge of Indenture; Defeasance

  	
   

  	
  91

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.1.   Satisfaction and Discharge of Indenture

  	
   

  	
  91

  
	
  SECTION
  8.2.   Discharge of Liability on Notes; Defeasance

  	
   

  	
  92

  
	
  SECTION
  8.3.   Application of Trust Money

  	
   

  	
  94

  
	
  SECTION
  8.4.   Repayment to Company

  	
   

  	
  94

  
	
  SECTION
  8.5.   Indemnity for U.S. Government Obligations

  	
   

  	
  94

  
	
  SECTION 8.6.  
  Reinstatement

  	
   

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX Amendments

  	
   

  	
  95

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.1.   Without Consent of Holders

  	
   

  	
  95

  
	
  SECTION
  9.2.   With Consent of Holders

  	
   

  	
  96

  
	
  SECTION
  9.3.   Compliance with Trust Indenture Act

  	
   

  	
  97

  
	
  SECTION
  9.4.   Revocation and Effect of Consents and Waivers

  	
   

  	
  97

  
	
  SECTION
  9.5.   Notation on or Exchange of Notes

  	
   

  	
  98

  
	
  SECTION
  9.6.   Trustee to Sign Amendments

  	
   

  	
  98

  
	
   

  	
   

  	
   

  
	
  ARTICLE X Subsidiary Guarantees

  	
   

  	
  98

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.1.   Guarantees

  	
   

  	
  98

  
	
  SECTION
  10.2.   Limitation on Liability; Termination, Release and Discharge

  	
   

  	
  100

  
	
  SECTION
  10.3.   Right of Contribution

  	
   

  	
  101

  
	
  SECTION
  10.4.   No Subrogation

  	
   

  	
  101

  
	
  SECTION
  10.5.   Execution and Delivery of Subsidiary Guarantee

  	
   

  	
  101

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI Miscellaneous

  	
   

  	
  102

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.1.   Trust Indenture Act Controls

  	
   

  	
  102

  
	
  SECTION
  11.2.   Notices

  	
   

  	
  102

  
	
  SECTION
  11.3.   Communication by Holders with other Holders

  	
   

  	
  103

  

 

 iii
 

 

	
  SECTION 11.4.  
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  103

  
	
  SECTION 11.5.  
  Statements Required in Certificate or Opinion

  	
   

  	
  103

  
	
  SECTION
  11.6.   When Notes Disregarded

  	
   

  	
  104

  
	
  SECTION
  11.7.   Rules by Trustee, Paying Agent and Registrar

  	
   

  	
  104

  
	
  SECTION
  11.8.   Legal Holidays

  	
   

  	
  104

  
	
  SECTION
  11.9.   Governing Law

  	
   

  	
  104

  
	
  SECTION
  11.10.   No Recourse Against Others

  	
   

  	
  104

  
	
  SECTION
  11.11.   Successors

  	
   

  	
  104

  
	
  SECTION
  11.12.   Multiple Originals

  	
   

  	
  104

  
	
  SECTION
  11.13.   Variable Provisions

  	
   

  	
  104

  
	
  SECTION
  11.14.   Table of Contents; Headings

  	
   

  	
  105

  

 

EXHIBITS

	
  EXHIBIT A

  	
   

  	
  Form of Global Note

  
	
  EXHIBIT B

  	
   

  	
  Form of Notation of Guarantee

  
	
  EXHIBIT C

  	
   

  	
  Form of Indenture Supplement to Add Subsidiary
  Guarantors

  

 

 iv

INDENTURE dated as of May 1, 2007 among Cimarex Energy
Co., a Delaware corporation (the “Company”), the Subsidiary Guarantors
(as defined herein) and U.S. Bank National Association, a national banking
association, as trustee (the “Trustee”).

The Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance of (i) $350,000,000 in
aggregate principal amount of the Company’s 71⁄8% Senior Notes due 2017,
issued on the Issue Date and registered under the Securities Act (the “Initial
Notes”), and the guarantee thereof by the Subsidiary Guarantors and, (ii)
if and when issued, an unlimited principal amount of additional 71⁄8%
Senior Notes due 2017 that may be offered from time to time subsequent to the
Issue Date in a registered offering of the Company (the “Additional Notes”
and together with the Initial Notes, the “Notes”) and the guarantee
thereof by certain of the Company’s Subsidiaries.

Each party agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the Holders:

ARTICLE I

Definitions and
Incorporation by Reference

SECTION 1.1.   Definitions.

“Acquired Indebtedness” means Indebtedness (1)
of a Person or any of its Subsidiaries existing at the time such Person becomes
a Restricted Subsidiary or (2) assumed in connection with the acquisition of
assets from such Person, in each case whether or not Incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary or such acquisition. 
Acquired Indebtedness shall be deemed to have been Incurred, with
respect to clause (1) of the preceding sentence, on the date such Person
becomes a Restricted Subsidiary and, with respect to clause (2) of the
preceding sentence, on the date of consummation of such acquisition of assets.

“Additional Assets” means:

(1)           any property, plant,
equipment or other asset (excluding current assets) to be used by the Company
or a Restricted Subsidiary in the Oil and Gas Business;

(2)           capital expenditures by
the Company or a Restricted Subsidiary in the Oil and Gas Business;

(3)           the Capital Stock of a
Person that becomes a Restricted Subsidiary as a result of the acquisition of
such Capital Stock by the Company or a Restricted Subsidiary; or

(4)           Capital Stock
constituting a minority interest in any Person that at such time is a
Restricted Subsidiary;

provided,
however, that, in the case of clauses (3) and (4), such
Restricted Subsidiary is primarily engaged in the Oil and Gas Business.

“Adjusted Consolidated Net Tangible Assets”
means (without duplication), as of the date of determination, the remainder of:

(a)   the sum of:

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

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

(B)           estimated
oil and gas reserves attributable to upward revisions of estimates of proved
oil and gas reserves since such year end due to exploration, development,
exploitation or other related activities, in each case calculated in accordance
with SEC guidelines (utilizing the prices for the fiscal quarter ending prior
to the date of determination,

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

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

(D)          estimated
oil and gas reserves attributable to downward revisions of estimates of proved
oil and gas reserves since such year end due to changes in geological
conditions or other factors which would, in accordance with standard industry
practice, cause such revisions, in each case calculated on a pre-tax basis and
substantially in accordance with SEC guidelines (utilizing the prices for the
fiscal quarter ending prior to the date of determination),

in each case as estimated
by the Company’s petroleum engineers or any independent petroleum engineers
engaged by the Company for that purpose;

(ii)           the
capitalized costs that are attributable to Oil and Gas Properties of the
Company and its Restricted Subsidiaries to which no proved oil and 

 2
 

gas reserves are attributable, based on the Company’s
books and records as of a date no earlier than the date of the Company’s latest
available annual or quarterly consolidated financial statements;

(iii)          the Net Working Capital on a date no earlier
than the date of the Company’s latest available annual or quarterly
consolidated financial statements; and

(iv)          the
greater of:

(A)          the
net book value of other tangible assets of the Company and its Restricted
Subsidiaries, as of a date no earlier than the date of the Company’s latest
available annual or quarterly consolidated financial statements, and

(B)           the
appraised value, as estimated by independent appraisers, of other tangible
assets of the Company and its Restricted Subsidiaries, as of a date no earlier
than the date of the Company’s latest available audited consolidated financial
statements (provided that, the
Company may rely on subclause (A) of this clause (iv) if no appraisal is
available or has been obtained); minus

(b)           the sum of:

(i)            any
amount included in (a)(i) through (a)(iv) above that is attributable to
Minority Interests;

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

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

(iv)          to
the extent included in (a)(i) above, the Company’s good faith estimate of
discounted future net revenues, calculated in accordance with SEC guidelines,
attributable to reserves subject to Dollar-Denominated Production Payments
which, based on the estimates of production and price assumptions included in
determining the discounted future net revenues specified in (a)(i) above, would
be necessary to fully satisfy the payment obligations of the Company and its
Restricted Subsidiaries with 

 3
 

respect to Dollar-Denominated Production Payments
(determined, if applicable, using the schedules specified with respect
thereto).

If the Company changes its method of accounting from
the full cost method of accounting to the successful efforts or a similar
method, “Adjusted Consolidated Net Tangible Assets” will continue to be
calculated as if the Company were still using the full cost method of
accounting.

“Affiliate” of any specified Person means any
other Person, directly or indirectly, controlling or controlled by or under
direct or indirect common control with such specified Person. For the purposes
of this definition, “control” when used with respect to any Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

“Asset Disposition” means any direct or
indirect sale, lease (other than an operating lease entered into in the
ordinary course of business), transfer, issuance or other disposition, or a
series of related sales, leases, transfers, issuances or dispositions that are
part of a common plan, of shares of Capital Stock of a Subsidiary (other than
directors’ qualifying shares), property or other assets (each referred to for
the purposes of this definition as a “disposition”)
by the Company or any of its Restricted Subsidiaries, including, without
limitation, any disposition by means of a merger, consolidation or similar
transaction.

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

(1)           a disposition of
property or other assets by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Restricted Subsidiary; provided that in the case of a sale by a
Restricted Subsidiary to another Restricted Subsidiary, the Company directly or
indirectly owns an equal or greater percentage of the Common Stock of the
transferee than of the transferor;

(2)           the disposition of cash
or Cash Equivalents in the ordinary course of business;

(3)           a disposition of
Hydrocarbons or mineral products inventory in the ordinary course of the Oil
and Gas Business;

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

(5)           transactions permitted
under Article IV;

 4
 

(6)           an issuance of Capital
Stock by a Restricted Subsidiary to the Company or to a Wholly Owned Subsidiary
or on a pro rata basis to the holders of the Capital Stock of such Restricted
Subsidiary immediately prior to such issuance;

(7)           for purposes of Section
3.8 only, the making of a Permitted Investment (other than a Permitted
Investment to the extent such transaction is made in exchange for cash or Cash
Equivalents to be received by the Company or its Restricted Subsidiaries) or a
disposition subject to Section 3.4;

(8)           an Asset Swap;

(9)           dispositions of
properties or assets with an aggregate fair market value not to exceed $5.0
million in any fiscal year of the Company;

(10)         the creation of a
Permitted Lien and dispositions in connection with Permitted Liens;

(11)         dispositions of
receivables in connection with the compromise, settlement or collection thereof
in the ordinary course of business or in bankruptcy or similar proceedings and
exclusive of factoring or similar arrangements;

(12)         any surrender or waiver
of contract rights or settlement, release or surrender of contract, tort or
other claims in the ordinary course of business;

(13)         the
issuance by a Restricted Subsidiary of Preferred Stock that is permitted by Section
3.3;

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

(15)         foreclosure on assets;

(16)         any Production Payments
and Reserve Sales, provided that
any such Production Payments and Reserve Sales, other than incentive
compensation programs on terms that are reasonably customary in the Oil and Gas
Business for geologists, geophysicists and other providers of technical
services to the Company or a Restricted Subsidiary, shall have been created,
Incurred, issued, assumed or Guaranteed in connection with the acquisition or
financing of, and within 60 days after the acquisition of, the property that is
subject thereto;

(17)         the disposition (whether
or not in the ordinary course of the Oil and Gas Business) of oil and/or gas
properties or direct or indirect interests in real property; provided, that at the time of such sale or
transfer such properties do not have associated with them any proved reserves
capable of being produced in material economic quantities;

 5
 

(18)         the sale or transfer
(whether or not in the ordinary course of the Oil and Gas Business) of oil
and/or gas properties or direct or indirect interests in real property;
provided, that at the time of such sale or transfer such properties do not have
associated with them any proved reserves capable of being produced in material
economic quantities;

(19)         the abandonment,
farm-out, exchange, lease or sublease of developed or undeveloped oil and/or
gas properties or interests therein in the ordinary course of business or in
exchange for oil and/or gas properties or interests therein owned or held by
another Person; and

(20)         the disposition of
Capital Stock in an Unrestricted Subsidiary.

“Asset Swap” means any trade or exchange by the
Company or any Restricted Subsidiary of oil and gas properties or other
properties or assets for oil and gas properties or other properties or assets
owned or held by another Person; provided
that the fair market value of the properties or assets traded or exchanged by
the Company or such Restricted Subsidiary (together with any cash) is
reasonably equivalent to the fair market value of the properties or assets
(together with any cash) to be received by the Company or such Restricted
Subsidiary, and provided further that any net cash received must be applied in
accordance with Section 3.8 of this Indenture.

“Attributable Indebtedness”
in respect of a Sale/Leaseback Transaction means, as at the time of determination,
the present value (discounted at the interest rate implicit in the transaction)
of the total obligations of the lessee for rental payments during the remaining
term of the lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended), determined in accordance with
GAAP; provided, however, that if
such Sale/Leaseback Transaction results in a Capitalized Lease Obligation, the
amount of Indebtedness represented thereby will be determined in accordance
with the definition of “Capitalized Lease Obligations.”

“Average Life” means, as of the date of
determination, with respect to any Indebtedness or Preferred Stock, the
quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment with
respect to such Preferred Stock multiplied by the amount of such payment by (2)
the sum of all such payments.

Bankruptcy Law” means Title 11
of the United States Code or any similar federal or state law for the relief of
debtors.

“Board of Directors” means, (i) as to any
Person that is a corporation, the board of directors of such Person or any duly
authorized committee thereof, (ii) as to any Person that is a partnership
(general or limited), the Board of Directors of a general partner of such
partnership or any duly authorized committee thereof, or (iii) with respect to
any other Person, the Person or group of Persons serving a similar function or
any duly authorized committee thereof;

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of a company to have been
duly adopted by the Board of Directors of such 

 6
 

company and to be in full force and effect on the date
of such certification, and delivered to the Trustee.

“Business Day” means each day that is not a
Saturday, Sunday or other day on which banking institutions in New York, New
York are authorized or required by law to close.

“Capital Stock” of any Person means any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) equity of such
Person, including, without limitation, any Preferred Stock and limited
liability company or partnership interests (whether general or limited) of such
Person, but excluding any debt securities (including, without limitation, the
Company’s Floating Rate Convertible Senior Notes due 2023) convertible into
such equity.

“Capitalized Lease Obligations” means an
obligation that is required to be classified and accounted for as a capitalized
lease for financial reporting purposes in accordance with GAAP, and the amount
of Indebtedness represented by such obligation will be the capitalized amount
of such obligation at the time any determination thereof is to be made as
determined in accordance with GAAP, and the Stated Maturity thereof will be the
date of the last payment of rent or any other amount due under such lease prior
to the first date such lease may be terminated without penalty.

“Cash Equivalents” means:

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

(2)           marketable general
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time
of acquisition, having a credit rating of at least “A” or the equivalent
thereof by either Standard & Poor’s or Moody’s (or, if both such rating
agencies cease publishing ratings of such investments, an equivalent rating
from a nationally recognized rating agency);

(3)           certificates of
deposit, time deposits, eurodollar time deposits, overnight bank deposits or
bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank the long term debt of
which is rated at the time of acquisition thereof at least “A” or the
equivalent thereof by Standard & Poor’s or Moody’s (or, if both such rating
agencies cease publishing ratings of such investments, an equivalent rating
from a nationally recognized rating agency), and having combined capital and
surplus in excess of $500 million;

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

 7
 

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

(6)           interests in any
investment company or money market fund which invests 95% or more of its assets
in instruments of the type specified in clauses (1) through (5) above; and

(7)           in the case of any
Foreign Subsidiary that is a Restricted Subsidiary, such local currencies held
by it from time to time in the ordinary course of business.

“Change of Control” means:

(1)           any “person” or “group”
of related persons (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5
under the Exchange Act, except that such person or group shall be deemed to
have “beneficial ownership” of all shares that any such person or group has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more than 35% of the total
voting power of the Voting Stock of the Company (or its successor by merger, consolidation
or purchase of all or substantially all of its assets) (for the purposes of
this clause, such person or group shall be deemed to beneficially own any
Voting Stock of the Company held by a parent entity, if such person or group “beneficially
owns” (as defined above), directly or indirectly, more than 35% of the voting
power of the Voting Stock of such parent entity); provided, however, that a person or group shall not be
deemed the beneficial owner of (a) any securities tendered pursuant to a tender
or exchange offer made by or on behalf of such person or group until such
tendered securities are accepted for purchase or exchange thereunder or (b) any
securities the beneficial ownership of which (i) arises solely as a result of a
revocable proxy delivered in response to a proxy or consent solicitation and
(ii) is not then reportable on Schedule 13D (or any successor schedule) under
the Exchange Act, if applicable; or

(2)           during any period of
two consecutive years, individuals who at the beginning of such period
constituted the Company’s Board of Directors (together with any new directors
whose election or appointment by such Board or whose nomination for election by
the shareholders of the Company was approved by a vote of a majority of the
directors then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Company’s Board
of Directors then in office; or

 8
 

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

(4)           the adoption by the
stockholders of the Company of a plan or proposal for the liquidation or
dissolution of the Company.

“Code” means the Internal Revenue Code of 1986,
as amended.

“Commodity Agreement” means any commodity
futures contract, commodity swap, commodity option, commodity forward sale or
other similar agreement or arrangement entered into by the Company or any
Restricted Subsidiary in respect of Hydrocarbons or other commodities used,
produced, processed or sold by such Person that are customary in the Oil and
Gas Business designed to protect the Company or any of its Restricted
Subsidiaries against fluctuations in the price of Hydrocarbons or other commodities.

“Common Stock” means with respect to any
Person, any and all shares, interests or other participations in, and other
equivalents (however designated and whether voting or nonvoting) of such Person’s
common stock whether or not outstanding on the Issue Date, and includes,
without limitation, all series and classes of such common stock.

“Consolidated Coverage Ratio” means as of any
date of determination, with respect to any Person, the ratio of (x) the
aggregate amount of Consolidated EBITDA of such Person for the period of the
most recent four consecutive fiscal quarters ending prior to the date of such
determination for which financial statements are in existence to (y)
Consolidated Interest Expense for such four fiscal quarters, provided, however,
that:

(1)           if the Company or any
Restricted Subsidiary:

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

 9
 

new Indebtedness as if such discharge had occurred on
the first day of such period; or

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

(2)           if since the beginning
of such period the Company or any Restricted Subsidiary will have made any
Asset Disposition or disposed of any company, division, operating unit,
segment, business, group of related assets or line of business or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is such an Asset Disposition:

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

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

(3)           if since the beginning
of such period the Company or any Restricted Subsidiary (by merger or
otherwise) will have made an Investment in any Restricted Subsidiary (or any
Person which becomes a Restricted Subsidiary or is merged with or into the
Company) or an acquisition of assets, including, without limitation, any
acquisition of assets occurring in connection with a transaction giving rise to
the need to calculate the Consolidated Coverage Ratio, which constitutes all or
substantially all of a company, division, operating unit, segment, business,
group of related assets or line of business, Consolidated EBITDA and

 10
 

Consolidated
Interest Expense for such period will be calculated after giving pro forma
effect thereto (including, without limitation, the Incurrence of any
Indebtedness) as if such Investment or acquisition occurred on the first day of
such period; and

(4)           if since the beginning
of such period any Person (that subsequently became a Restricted Subsidiary or
was merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) will have Incurred any Indebtedness or discharged any
Indebtedness, made any disposition or any Investment or acquisition of assets
that would have required an adjustment pursuant to clause (1), (2) or (3) above
if made by the Company or a Restricted Subsidiary during such period,
Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving pro forma effect thereto as if such transaction
occurred on the first day of such period.

For purposes of this definition, whenever pro forma
effect is to be given to any calculation under this definition, the pro forma
calculations will be determined in good faith by a responsible financial or
accounting officer of the Company (including, without limitation, pro forma
expense and cost reductions calculated on a basis consistent with Regulation S-X
under the Securities Act).  If any
Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest expense on such Indebtedness will be calculated as if the
rate in effect on the date of determination had been the applicable rate for
the entire period (taking into account any Interest Rate Agreement applicable
to such Indebtedness if such Interest Rate Agreement has a remaining term in
excess of 12 months).  If any Indebtedness
that is being given pro forma effect bears an interest rate at the option of
the Company, the interest rate shall be calculated by applying such optional
rate chosen by the Company.

“Consolidated EBITDA” for any period means,
without duplication, the Consolidated Net Income for such period, plus the
following to the extent deducted in calculating such Consolidated Net Income
or, in the case of clause (7), added in calculating such Consolidated Net
Income:

(1)           Consolidated Interest
Expense; plus

(2)           Consolidated Income
Taxes; plus

(3)           consolidated depletion
and depreciation expense; plus

(4)           consolidated
amortization expense or impairment charges recorded in connection with the
application of Financial Accounting Standard No. 142, Goodwill and Other Intangibles, and
Financial Accounting Standard No. 144, Accounting
for the Impairment or Disposal of Long Lived Assets; plus

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

 11
 

(6)           consolidated
exploration expense; less

(7)           non-cash items
increasing Consolidated Net Income of such Person for such period (excluding
any items which represent the reversal of any accrual of, or reserve for,
anticipated cash charges made in any prior period).

Notwithstanding the preceding sentence, clauses (2)
through (7) relating to amounts of a Restricted Subsidiary of a Person will be
added to or deducted from, as the case may be, Consolidated Net Income to
compute Consolidated EBITDA of such Person only to the extent (and in the same
proportion) that the net income (loss) of such Restricted Subsidiary was
included in calculating the Consolidated Net Income of such Person and, to the
extent the amounts set forth in clauses (2) through (7) relating to any
Non-Guarantor Restricted Subsidiary are in excess of those necessary to offset
a net loss of such Non-Guarantor Restricted Subsidiary or if such Non-Guarantor
Restricted Subsidiary has net income for such period included in Consolidated
Net Income, only if a corresponding amount would be permitted at the date of
determination to be dividended to the Company by such Non-Guarantor Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to that
Non-Guarantor Restricted Subsidiary or its stockholders.

“Consolidated Income Taxes” means, with respect
to any Person for any period, taxes imposed upon such Person or other payments
required by any governmental authority to be made by such Person which taxes or
other payments are calculated by reference to the income or profits of such
Person or such Person and its Restricted Subsidiaries (to the extent such
income or profits were included in computing Consolidated Net Income for such
period), regardless of whether such taxes or payments are required to be
remitted to any governmental authority.

“Consolidated Interest Expense” means, for any
period, the total interest expense of the Company and its consolidated
Restricted Subsidiaries, whether paid or accrued, plus, to the extent not
included in such interest expense and without duplication:

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

(2)           amortization of debt
discount and debt issuance cost; provided,
however, that any amortization of bond premium will be credited to
reduce Consolidated Interest Expense unless, pursuant to GAAP, such
amortization of bond premium has otherwise reduced Consolidated Interest
Expense;

(3)           non-cash interest
expense;

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

 12
 

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

(6)           net costs pursuant to
Hedging Obligations (including amortization of fees) provided, however, that if Hedging Obligations result in net
benefits rather than net costs, such benefits shall be credited to reduce
Consolidated Interest Expense unless, pursuant to GAAP, such net benefits are
otherwise reflected in Consolidated Net Income;

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

(8)           the product of (a) all
dividends paid or payable, in cash, Cash Equivalents or Indebtedness or accrued
during such period on any series of Disqualified Stock of such Person or on
Preferred Stock of its Restricted Subsidiaries that are not Subsidiary
Guarantors payable to a party other than the Company or a Wholly Owned
Subsidiary, times (b) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state,
provincial and local statutory tax rate of such Person, expressed as a decimal,
in each case, on a consolidated basis and in accordance with GAAP;

(9)           Receivables Fees; and

(10)         the cash contributions to
any employee stock ownership plan or similar trust to the extent such
contributions are used by such plan or trust to pay interest or fees to any
Person (other than the Company and its Restricted Subsidiaries) in connection
with Indebtedness Incurred by such plan or trust.

For purposes of the foregoing, total interest expense
will be determined (i) after giving effect to any net payments made or received
by the Company and its Subsidiaries with respect to Interest Rate Agreements
and (ii) exclusive of amounts classified as other comprehensive income in the
balance sheet of the Company. 
Notwithstanding anything to the contrary contained herein, commissions,
discounts, yield and other fees and charges Incurred in connection with any
securitization transaction, factoring agreement or similar transaction pursuant
to which the Company or its Restricted Subsidiaries may sell, convey or
otherwise transfer any accounts receivable or related assets or interests
therein shall be included in Consolidated Interest Expense.

“Consolidated Net Income” means, for any
period, the net income (loss) of the Company and its consolidated Restricted
Subsidiaries determined in accordance with GAAP; provided, however, that there will not be included in such
Consolidated Net Income:

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

(a)           subject
to the limitations contained in clauses (3), (4) and (5) below, the Company’s
equity in the net income of any such Person for 

 13
 

such period will be included in such Consolidated Net
Income up to the aggregate amount of cash actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a dividend or
other distribution (subject, in the case of a dividend or other distribution to
a Non-Guarantor Restricted Subsidiary, to the limitations contained in clause
(2) below); and

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

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

(a)           subject
to the limitations contained in clauses (3), (4) and (5) below, the Company’s
equity in the net income of any such Non-Guarantor Restricted Subsidiary for
such period will be included in such Consolidated Net Income up to the
aggregate amount of cash that could have been distributed by such Non-Guarantor
Restricted Subsidiary during such period to the Company or another Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a
dividend to another Non-Guarantor Restricted Subsidiary, to the limitation
contained in this clause); and

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

(3)           any gain (loss)
realized upon the sale or other disposition of any property, plant or equipment
of the Company or its consolidated Restricted Subsidiaries (including, without
limitation, pursuant to any Sale/Leaseback Transaction) which is not sold or
otherwise disposed of in the ordinary course of business and any gain (loss)
realized upon the sale or other disposition of any Capital Stock of any Person;

(4)           any extraordinary gain
or loss;

(5)           any unrealized non-cash
gains or losses on charges in respect of Hedging Obligations (including those
resulting from the application of SFAS 133);

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

(7)           any asset (including
goodwill) impairment or writedown on or related to Oil and Gas Properties under
applicable GAAP or SEC guidelines.

 14
 

“Corporate Trust Office” means the principal
office of the Trustee at which at any time its corporate trust business shall
be administered, which office at the date hereof is located at 950 17th Street, 12th Floor, Denver,
Colorado 80202, Attention: Corporate Trust Services, or such other address as
the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Holders and the Company).

“Credit Facility” means, with respect to the
Company or any Restricted Subsidiary, one or more credit facilities (including,
without limitation, the Senior Secured Credit Agreement) or commercial paper
facilities providing for revolving credit loans, term loans, receivables
financing (including, without limitation, through the sale of receivables to
such lenders or to special purpose entities formed to borrow from such lenders
against such receivables), letters of credit or other debt obligations, in each
case, as amended, restated, modified, renewed, restructured, supplemented,
extended, substituted, refunded, replaced or refinanced in whole or in part
from time to time (and whether or not with the original administrative agent
and lenders or another administrative agent or agents or other lenders and
whether provided under the original Senior Secured Credit Agreement or any
other credit or other agreement or indenture). 
For the avoidance of doubt, the term “Credit Facility” does not include
the Company’s Floating Rate Convertible Senior Notes due 2023.

“Currency Agreement” means in respect of a
Person any foreign exchange contract, currency swap agreement, currency futures
contract, currency option contract or other similar agreement as to which such
Person is a party or a beneficiary.

“Custodian” means any receiver, trustee,
assignee, liquidator, custodian or similar official under any Bankruptcy Law.

“Default” means any event which is, or after
notice or passage of time or both would be, an Event of Default.

“Definitive Notes” means certificated
securities.

“Depositary” means The Depository Trust
Company, its nominees and their respective successors and assigns, or such
other depository institution hereinafter appointed by the Company.

“Designated Officer” means, with respect to any
Person, the Chief Executive Officer, President or Chief Financial Officer of
such Person.

“Disqualified Stock” means, with respect to any
Person, any Capital Stock of such Person which by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable, in
each case, at the option of the holder thereof) or upon the happening of any
event:

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

 15
 

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

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

in each case on or prior to the date that is 91 days
after the earlier of (a) the date of the Stated Maturity of the Notes or
(b) the first date after the Issue Date on which there are no Notes outstanding,
provided that only the portion of
Capital Stock which so matures or is mandatorily redeemable, is so convertible
or exchangeable or is so redeemable at the option of the holder thereof prior
to such date will be deemed to be Disqualified Stock; provided, further that any Capital Stock
that would constitute Disqualified Stock solely because the holders thereof
have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or asset disposition (each defined
substantially consistent with the corresponding definitions in this Indenture)
shall not constitute Disqualified Stock if the terms of such Capital Stock (and
all such securities into which it is convertible or for which it is ratable or
exchangeable) provide that the Company may not repurchase or redeem any such
Capital Stock (and all such securities into which it is convertible or for
which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with the provisions of this Indenture pursuant to Sections
3.8 and 3.10 of this Indenture and such repurchase or redemption
complies with Section 3.4 of this Indenture.

“Dollar-Denominated Production Payments” means
production payment obligations recorded as liabilities in accordance with GAAP,
together with all undertakings and obligations in connection therewith.

“Domestic Subsidiary” means any Restricted
Subsidiary that is organized under the laws of the United States of America or
any state thereof or the District of Columbia, other than any Restricted
Subsidiary that is a Foreign Subsidiary.

“Equity Offering” means a public offering for
cash by the Company of its Common Stock, or options, warrants or rights with
respect to its Common Stock, other than (x) public offerings with respect to
the Company’s Common Stock, or options, warrants or rights, registered on Form
S-4 or S-8, (y) an issuance to any Subsidiary or (z) any offering of Common
Stock issued in connection with a transaction that constitutes a Change of Control.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder.

“Fair Market Value” means the value that would
be paid by a willing buyer to an unaffiliated willing seller in a transaction
not involving distress or necessity of either party, determined in good faith
by the Board of Directors or management of the Company (unless otherwise
provided in this Indenture) as of the date of contractually agreeing to any
transaction that triggers the requirement to determine the Fair Market Value,
which determination will be conclusive for all purposes under this Indenture.

 16
 

 “Foreign
Subsidiary” means any Restricted Subsidiary of the Company that (a) is not
organized under the laws of the United States of America or any state thereof
or the District of Columbia, or (b) was organized under the laws of the United
States of America or any state thereof or the District of Columbia that has no
material assets other than Capital Stock of or other interests in one or more
foreign entities of the type described in clause (a) above and is not a
guarantor of Indebtedness under the Senior Secured Credit Agreement.

“GAAP” means generally accepted accounting
principles in the United States of America as in effect as of the date of this
Indenture, including those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession. All ratios and computations
based on GAAP contained in this Indenture will be computed in conformity with
GAAP, except that in the event the Company is acquired in a transaction that is
accounted for using purchase accounting, the effects of the application of
purchase accounting shall be disregarded in the calculation of such ratios and
other computations contained in this Indenture.

“Guarantee” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any Indebtedness
of any other Person of the type described in clauses (1) through (7), (9) and
(10) of the definition of “Indebtedness” and any obligation, direct or
indirect, contingent or otherwise, of such Person:

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

(2)           entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of
the payment thereof or to protect such obligee against loss in respect thereof
(in whole or in part); provided, however,
that the term “Guarantee” will not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb
has a corresponding meaning.

“Guarantor Pari Passu Indebtedness” means
Indebtedness of a Subsidiary Guarantor that ranks equally in right of payment
to such Subsidiary Guarantor’s Subsidiary Guarantee, except as a result of any
collateral arrangements in connection with such Indebtedness.

“Guarantor Subordinated Obligation” means, with
respect to a Subsidiary Guarantor, any Indebtedness of such Subsidiary
Guarantor (whether outstanding on the Issue Date or thereafter Incurred) which is
expressly subordinated in right of payment to the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee pursuant to a written
agreement.

 17
 

“Hedging Obligations” of any Person means the
obligations of such Person pursuant to any Interest Rate Agreement, Currency
Agreement or Commodity Agreement.

“Holder” means a Person in whose name a Note is
registered on the Registrar’s books.

“Hydrocarbons” means oil, gas, casinghead gas,
drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons,
gaseous hydrocarbons and all constituents, elements or compounds thereof and
all products, by-products, and all other substances (whether or not hydrocarbon
in nature) produced in connection therewith or refined, separated, settled or
derived therefrom or the processing thereof.

“Incur” means issue, create, assume, Guarantee,
incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing
at the time such person becomes a Restricted Subsidiary (whether by merger,
consolidation, acquisition or otherwise) will be deemed to be Incurred by such
Restricted Subsidiary at the time it becomes a Restricted Subsidiary; and the
terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

“Indebtedness” means, with respect to any
Person on any date of determination (without duplication):

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

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

(3)           the principal component
of all obligations of such Person in respect of letters of credit, bankers’
acceptances or other similar instruments (including reimbursement obligations
with respect thereto except to the extent such reimbursement obligation relates
to a trade payable and such obligation is satisfied within 30 days of
Incurrence and excluding obligations in respect of letters of credit securing obligations
(other than the Indebtedness described in clauses (1), (2), (4), (5), (7), (8)
or (9) of this definition) entered into in the ordinary course of business to
the extent such letters of credit are not drawn upon or, if and to the extent
drawn upon, to the extent such drawing is reimbursed within 10 days following
payment on the letter of credit);

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

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

 18

(6)           the principal component
or liquidation preference of all obligations of such Person with respect to the
redemption, repayment or other repurchase of any Disqualified Stock or, with
respect to any Subsidiary that is not a Subsidiary Guarantor, any Preferred
Stock (but excluding, in each case, any accrued dividends);

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

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

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

(10)         to the extent not
otherwise included in this definition, the amount of obligations outstanding
under the legal documents entered into as part of a securitization transaction
or series of transactions that would be characterized as principal if such
transaction were structured as a secured lending transaction rather than as a
purchase outstanding relating to a securitization transaction or series of transactions.

The amount of Indebtedness of any Person at any date
will be the outstanding balance at such date of all unconditional obligations
as described above and the maximum liability, upon the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at
such date.  Notwithstanding the
foregoing, money borrowed and set aside at the time of the Incurrence of any
Indebtedness in order to pre-fund the payment of interest on such Indebtedness
shall not be deemed to be “Indebtedness”, provided that such money is held to secure the payment of
such interest.

In addition, “Indebtedness” of any Person shall
include Indebtedness described in the preceding paragraph that would not appear
as a liability on the balance sheet of such Person if:

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

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

(3)           there is recourse, by
contract or operation of law, with respect to the payment of such Indebtedness
to property or assets of such Person or a Restricted 

 19
 

Subsidiary of such
Person; and then such Indebtedness shall be included in an amount not to
exceed:

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

(b)           if
less than the amount determined pursuant to clause (a) immediately above, the
actual amount of such Indebtedness that is recourse to such Person or a
Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a writing
and is for a determinable amount.

“Indenture” means this Indenture, as amended or
supplemented from time to time.

“Interest Rate Agreement” means, with respect
to any Person, any interest rate protection agreement, interest rate future
agreement, interest rate option agreement, interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
hedge agreement or other similar agreement or arrangement as to which such
Person is party or a beneficiary.

“Investment” means, with respect to any Person,
all investments by such Person in other Persons (including Affiliates) in the
form of any direct or indirect advance, loan (other than advances or extensions
of credit to customers in the ordinary course of business) or other extensions
of credit (including by way of Guarantee or similar arrangement, but excluding
any debt or extension of credit represented by a bank deposit other than a time
deposit) or capital contribution to (by means of any transfer of cash or other
property (valued at the fair market value thereof as of the date of transfer)
to others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, Indebtedness or other
similar instruments issued by, such other Person and all other items that are
or would be classified as investments on a balance sheet prepared in accordance
with GAAP; provided that none of
the following will be deemed to be an Investment:

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

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

(3)           an acquisition of
assets, Capital Stock or other securities by the Company or a Subsidiary for
consideration to the extent such consideration consists of Capital Stock of the
Company (other than Disqualified Stock).

For purposes of Section 3.4,

(1)           “Investment” will
include the portion (proportionate to the Company’s equity interest in a Restricted
Subsidiary to be designated as an Unrestricted Subsidiary) of the fair market
value of the net assets of such Restricted Subsidiary 

 20
 

at the time that
such Restricted Subsidiary is designated an Unrestricted Subsidiary, unless
such Restricted Subsidiary, at the time of such designation, has total assets
of $1,000 or less, in which case no Investment shall be deemed to occur as a
result of such designation; provided,
however, that upon a redesignation of such Subsidiary as a
Restricted Subsidiary, the Company will be deemed to continue to have a
permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive)
equal to (a) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (b) the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the fair market value of the net assets (as
conclusively determined by the Board of Directors of the Company in good faith)
of such Subsidiary at the time that such Subsidiary is so re-designated a
Restricted Subsidiary;

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

(3)           the amount of any
Investment shall not be adjusted for increases or decreases in value, or
write-ups, write-downs or write-offs with respect to such Investment.

“Investment Grade Rating” means a rating equal
to or higher than (1) Baa3 (or the equivalent) with a stable or better outlook
by Moody’s and (2) BBB- (or the equivalent) with a stable or better outlook by
Standard & Poor’s; or if either such entity ceases to rate Notes for
reasons outside of the Company’s control, the equivalent investment grade
rating from another nationally recognized statistical rating agency or
agencies, as the case may be, selected by the Company.

“Issue Date” means May 1, 2007.

“Lien” means any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind (including, without
limitation, any conditional sale or other title retention agreement or lease in
the nature thereof).

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

“Moody’s” means Moody’s Investors Service, Inc.
and its successors.

“Net Available Cash” from an Asset Disposition
means cash payments received by the Company or any Restricted Subsidiary of the
Company (including, without limitation, any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or
otherwise and net proceeds from the sale or other disposition of any securities
received as consideration, but only as and when received, but excluding any
other consideration received in the form of assumption by the acquiring Person
of Indebtedness or other obligations relating to the properties or assets that
are the subject of such Asset Disposition or received in any other non-cash
form) therefrom, in each case net of:

 21
 

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

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

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

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

(5)           any portion of the
purchase price from an Asset Disposition placed in escrow, whether as a reserve
for adjustment of the purchase price, for satisfaction of indemnities in
respect of such Asset Disposition or otherwise in connection with that Asset
Disposition; provided, however,
that upon the termination of that escrow, Net Available Cash will be increased
by any portion of funds in the escrow that are released to the Company or any
Restricted Subsidiary.

“Net Cash Proceeds,” with respect to any
issuance or sale of Capital Stock, means the cash proceeds of such issuance or
sale net of attorneys’ fees, accountants’ fees, underwriters’ or placement
agents’ fees, listing fees, discounts or commissions and brokerage, consultant
and other fees and charges actually Incurred in connection with such issuance
or sale and net of taxes paid or payable as a result of such issuance or sale
(after taking into account any available tax credit or deductions and any tax
sharing arrangements).

“Net Working Capital” means (a) all current
assets of the Company and its Restricted Subsidiaries except current assets
from Commodity Agreements, less (b) all current liabilities of the Company and
its Restricted Subsidiaries, except current liabilities included in
Indebtedness and any current liabilities from Commodity Agreements, in each
case as set forth in the consolidated financial statements of the Company
prepared in accordance with GAAP.

“Non-Guarantor Restricted Subsidiary” means any
Restricted Subsidiary that is not a Subsidiary Guarantor.

“Non-Recourse Debt” means Indebtedness of a
Person:

(1)           as to which neither the
Company nor any Restricted Subsidiary (a) provides any Guarantee or credit
support of any kind (including any undertaking, 

 22
 

guarantee, indemnity,
agreement or instrument that would constitute Indebtedness) or (b) is directly
or indirectly liable (as a guarantor or otherwise);

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

(3)           the explicit terms of
which provide there is no recourse against any of the assets of the Company or
its Restricted Subsidiaries.

“Note Register” means the register of Notes,
maintained by the Registrar, pursuant to Section 2.3.

“Notes Custodian” means the custodian with
respect to the Global Notes (as appointed by the Depositary), or any successor
Person thereto, and shall initially be the Trustee.

“Officer” means the
Chairman of the Board, the Chief Executive Officer, the President, the Chief
Financial Officer, any Vice President, the Treasurer or the Secretary of the
Company.  Officer of any Subsidiary
Guarantor has a correlative meaning.

“Officers’ Certificate” means a certificate
signed by two Officers or by an Officer and either an Assistant Treasurer or an
Assistant Secretary of the Company.

“Oil and Gas Business” means (a) the business
of acquiring, exploring, exploiting, developing, producing, operating, hedging,
swapping and disposing of interests in oil, gas, liquid natural gas and other
Hydrocarbon properties and assets, (b) the business of gathering, marketing,
treating, processing, storage, refining, selling, hedging, swapping and
transporting of any production from such interests, properties or assets (or
interests, properties or assets of others) and products produced in association
therewith, (c) any business or activity relating to, arising from, or
necessary, appropriate, incidental, ancillary or complementary to the
activities described in the foregoing clauses (a) and (b) of this definition.

“Oil and Gas Properties” means all properties,
including equity or other ownership interests therein, owned by such Person
which contain “proved oil and gas reserves” as defined in Rule 4-10 of
Regulation S-X of the Securities Act.

“Opinion of Counsel” means a written opinion
from legal counsel who is acceptable to the Trustee. The counsel may be an
employee of or counsel to the Company or the Trustee.

“Pari Passu Indebtedness” means Indebtedness
that ranks equally in right of payment to the Notes without regard to any
collateral arrangements in connection with such Indebtedness.

 23
 

“Permitted Business Investment” means any
Investment made in the ordinary course of the business of the Company or any
Restricted Subsidiary or that is of a nature that is or shall have become
customary in, the Oil and Gas Business including, without limitation,
investments or expenditures for exploiting, exploring for, acquiring,
developing, producing, processing, refining, gathering, marketing or
transporting Hydrocarbons through agreements, transactions, interests or
arrangements which permit one to share or transfer risks or costs, comply with
regulatory requirements regarding local ownership or satisfy other objectives
customarily achieved through the conduct of the Oil and Gas Business jointly
with third parties, including, without limitation:

(1)           ownership interests in
oil, gas or other Hydrocarbon or mineral properties and interests therein,
liquid natural gas facilities, drilling operations, processing facilities,
refineries, gathering systems, pipelines, storage facilities, related systems
or facilities, ancillary real property interests, and interests therein;

(2)           Investments in the form
of or pursuant to oil and/or gas leases, mineral leases, overriding royalty
agreements, net profits agreements, production payment agreements, royalty
trust agreements, incentive compensation programs on terms that are reasonably
customary in the Oil and Gas Business for geologists, geophysicists and other
providers of technical services to the Company or any Restricted Subsidiary,
operating agreements, farm-in agreements, farm-out agreements, division orders,
participation agreements, master limited partnership agreements, limited
liability company agreements, contracts for the sale, purchase, exchange,
transportation, gathering, processing, marketing or storage of Hydrocarbons,
communitizations, declarations, orders and agreements, production sales
contracts, gas balancing or deferred production agreements, injection,
repressuring and recycling agreements, salt water or other disposal agreements,
seismic or geophysical permits or agreements, development agreements, area of
mutual interest agreements, unitization agreements, pooling agreements, joint
bidding agreements, service contracts, joint venture agreements, partnership
agreements (whether general or limited), subscription agreements, stock
purchase agreements and other similar agreements (including for limited
liability companies) with third parties, working interest, royalty interests
and mineral leases, and other agreements which are customary in the Oil and Gas
Business;

(3)           Investments of
operating funds on behalf of co-owners of properties pursuant to operating
agreements; and

(4)           direct or indirect
ownership interests in drilling rigs and related equipment, including, without
limitation, transportation equipment.

“Permitted Investment” means an Investment by
the Company or any Restricted Subsidiary in or pursuant to:

(1)           the Company, a
Restricted Subsidiary or a Person which will, upon the making of such
Investment, become a Restricted Subsidiary; provided,
however, 

 24
 

that the primary
business of such Restricted Subsidiary is the Oil and Gas Business;

(2)           another Person if as a
result of such Investment such other Person is merged or consolidated with or
into, or transfers or conveys all or substantially all its assets to, the
Company or a Restricted Subsidiary; provided,
however, that such Person’s primary business is the Oil and Gas
Business;

(3)           cash and Cash
Equivalents;

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

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

(6)           relocation allowances
for, and loans or advances to, employees, officers or directors of the Company
or any Restricted Subsidiary in the ordinary course of business consistent with
past practices in an aggregate amount not in excess of $2.0 million with
respect to all loans or advances made since the Issue Date (without giving
effect to the forgiveness of any such loan);

(7)           Capital Stock,
obligations or securities received in settlement or compromise of debts created
in the ordinary course of business and owing to the Company or any Restricted
Subsidiary, in settlement or compromise of litigation, arbitration or other
disputes with Persons that are not Affiliates of the Company or any Restricted
Subsidiary, in satisfaction of judgments or arbitration awards, or pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of a debtor;

(8)           Investments made as a
result of the receipt of non-cash consideration from an Asset Disposition that
was made pursuant to and in compliance with Section 3.8 or from a
disposition of assets permitted under this Indenture and not constituting an
Asset Disposition;

(9)           any Person to the
extent such Investments consist of prepaid expenses, negotiable instruments
held for collection on behalf of the Company or any Restricted Subsidiary and
lease, utility and workers’ compensation, performance and other similar deposits
made in the ordinary course of business by the Company or any Restricted
Subsidiary;

(10)         Investments in existence
on the Issue Date or made pursuant to agreements or commitments in effect on
the Issue Date, and any amendment, 

 25
 

modification,
restatement, supplement, extension, renewal, refunding, replacement or
refinancing, in whole or in part thereof;

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

(12)         Investments by the
Company or any of its Restricted Subsidiaries, together with all other
Investments pursuant to this clause (12) outstanding on the date such
Investment is made, in an aggregate amount at the time of such Investment not
to exceed the greater of (i) $10.0 million, and (ii) 0.5% of Adjusted
Consolidated Net Tangible Assets (determined as of the date of the making of
any such Investment), outstanding at any one time (with the fair market value
of such Investment being measured at the time made and without giving effect to
subsequent changes in value);

(13)         Guarantees issued in
accordance with Section 3.3;

(14)         any Asset Swap; and

(15)         Investments in property,
plant and equipment used in the ordinary course of business of the Company or
any Restricted Subsidiary and Permitted Business Investments.

In order to be a Permitted Investment, an Investment
need not be permitted solely by one subsection of this definition but may be
permitted in part by one such subsection and in part by one or more other
subsections of this definition.

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

(1)           Liens securing
Indebtedness and other obligations under, and related Hedging Obligations and
Liens on property and assets of Restricted Subsidiaries securing Guarantees of
Indebtedness and other obligations of the Company under, any Credit Facility
permitted to be Incurred under this Indenture under the provisions described in
Section 3.3(b)(1);

(2)           pledges or deposits or
other security made or provided by such Person under workers’ compensation
laws, unemployment insurance laws or similar legislation, or good faith
deposits in connection with bids, tenders, contracts (other than for the
payment of Indebtedness) or leases to which such Person is a party, or deposits
to secure public, regulatory or statutory obligations of such Person or
deposits of cash or Cash Equivalents to secure performance, surety, appeal or
similar bonds to which such Person is a party, or deposits as security for
contested taxes or import or customs duties or for the payment of rent, or any
Lien securing letters of credit, bankers’ acceptances or completion guarantees
described in Section 3.3(b)(8), in each case Incurred in the ordinary
course of business;

 26
 

(3)           Liens imposed by law,
including, without limitation, carriers’, warehousemen’s, suppliers’, mechanics’,
materialmen’s, repairmen’s and similar Liens arising in the ordinary course of
business;

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

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

(6)           survey exceptions,
encumbrances, ground leases, easements or reservations of, or rights of others
for, licenses, rights of way, sewers, electric lines, telegraph and telephone
lines, gathering systems, pipelines and other similar purposes, or zoning,
building codes, surface leases or surface access agreements and other similar
rights in respect of surface operations, or other restrictions (including,
without limitation, minor defects or irregularities in title and similar
encumbrances) as to the use of real properties or liens incidental to the
conduct of the business of such Person or to the ownership of its properties
which do not in the aggregate materially impair the use of such properties in
the operation of the business of such Person or the value of such property for
the purpose of such business;

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

(8)           leases, licenses,
subleases and sublicenses of property and assets (including, without
limitation, real property, personal property and intellectual property rights)
which do not materially interfere with the ordinary conduct of the business of
the Company or any of its Restricted Subsidiaries;

(9)           judgment Liens; provided that any such judgment Lien (i)
has not and does not, together with other judgment Liens, give rise to an Event
of Default and (ii) is adequately bonded (or any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor) and
any appropriate legal proceedings which may have been duly initiated for the
review of such judgment have not been finally terminated or the period within
which such proceedings may be initiated has not expired;

(10)         Liens for the purpose of
securing Indebtedness represented by Capitalized Lease Obligations, mortgage
financings, purchase money obligations or other payments Incurred to finance
all or any part of the purchase price or cost of construction or improvement of
assets or property (other than Capital Stock or 

 27
 

other Investments)
acquired, constructed or improved in the ordinary course of business; provided that:

(a)           the
aggregate principal amount of Indebtedness secured by such Liens is otherwise
permitted to be Incurred under this Indenture and does not exceed the cost of
the assets or property so acquired, constructed or improved; and

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

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

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

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

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

(13)         Liens existing on the
Issue Date (other than Liens permitted under clause (1));

(14)         Liens on property, assets
or Capital Stock of a Person at the time such Person becomes a Restricted
Subsidiary; provided, however,
that such Liens are not created, Incurred or assumed in connection with, or in
contemplation of, such other Person becoming a Restricted Subsidiary; provided further, however, that any such
Lien may not extend to any other property or assets owned by the Company or any
Restricted Subsidiary;

(15)         Liens on property, assets
or Capital Stock of a Person at the time the Company or a Restricted Subsidiary
acquired the property, asset or Capital Stock, including any acquisition by
means of a merger or consolidation with or into the Company or any Restricted
Subsidiary; provided, however,
that such Liens are not created, Incurred or assumed in connection with, or in
contemplation of, such acquisition; provided
further, however, that such Liens may not extend to any other
property or asset owned by the Company or any Restricted Subsidiary;

 28
 

(16)         Liens securing Indebtedness
or other obligations of a Restricted Subsidiary owing to the Company or a
Wholly Owned Subsidiary;

(17)         Liens securing the Notes
and Subsidiary Guarantees;

(18)         Liens securing
Refinancing Indebtedness Incurred to refinance, refund, replace, amend, extend
or modify, as a whole or in part, Indebtedness that was previously so secured
pursuant to clauses (10), (13), (14), (15), (17) and (18) of this definition, provided that any such Lien is limited to
all or part of the same property or assets (plus improvements, accessions,
proceeds or dividends or distributions in respect thereof) that secured (or,
under the written arrangements under which the original Lien arose, could
secure) the Indebtedness being refinanced, refunded, replaced, amended, extended
or modified or is in respect of any Capital Stock, property or asset that is
the security for a Permitted Lien hereunder;

(19)         any interest or title of
a lessor under any Capitalized Lease Obligation or operating lease;

(20)         Liens under industrial
revenue, municipal or similar bonds;

(21)         Liens in respect of
Production Payments and Reserve Sales, which Liens shall be limited to the
property or interest that is the subject of such Production Payments and
Reserve Sales;

(22)         Liens arising under or in
connection with oil and/or gas leases, mineral leases, overriding royalty
agreements, net profits agreements, production payment agreements, royalty
trust agreements, incentive compensation programs on terms that are reasonably
customary in the Oil and Gas Business for geologists, geophysicists and other
providers of technical services to the Company or any Restricted Subsidiary,
farm-out agreements, farm-in agreements, division orders, participation
agreements, partnership agreements (general and limited), master limited
partnership agreements, limited liability company agreements, joint venture
agreements, contracts for the sale, purchase, exchange, transportation,
gathering, processing, marketing or storage of Hydrocarbons, unitizations,
communitizations, and pooling designations, declarations, orders and
agreements, development agreements, operating agreements, production sales
contracts, area of mutual interest agreements, gas balancing or deferred
production agreements, injection, repressuring and recycling agreements, salt
water or other disposal agreements, seismic or geophysical permits or
agreements, and other agreements which are customary in the Oil and Gas
Business; provided, however, in
all instances that such Liens are limited to the property or assets that are
the subject of the relevant agreement, program, designation, declaration, order
or contract;

(23)         Liens on pipelines or
pipeline facilities that arise by operation of law;

(24)         Liens on funds held in
trust for or on behalf of third parties;

 29
 

(25)         Liens in respect of
rights of netting, offset and setoff Incurred in the ordinary course of
business;

(26)         deposits, escrows or
pledges to secure obligations under purchase and sale agreements and Liens
arising under contracts for the sale, purchase or exchange of any Capital
Stock, property or asset pending the closing of such transaction;

(27)         Liens in respect of the
financing of insurance premiums and deposits as security for the payment of
insurance-related obligations (including, without limitation, in respect of
deductibles, self-insured retention amounts and premiums and adjustments
thereto);

(28)         conditional sale, title
retention, consignment or similar arrangements for the sale of goods or
services entered into in the ordinary course of business;

(29)         Liens on property of an
Unrestricted Subsidiary at the time that it is designated as a Restricted
Subsidiary pursuant to the definition of “Unrestricted Subsidiary;” provided that such Liens were not incurred
in connection with, or contemplation of, such designation;

(30)         encumbrances and
restrictions permitted to exist pursuant to Section 3.7; and

(31)         Liens securing
Indebtedness (other than Subordinated Obligations and Guarantor Subordinated
Obligations) in an aggregate principal amount at any time outstanding not to
exceed $15.0 million.

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company, government or any
agency or political subdivision thereof or any other entity.

“Preferred Stock,” as applied to the Capital
Stock of any Person, means Capital Stock of any class or classes (however
designated) which is preferred as to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person.

“Production Payments and Reserve Sales” means
the grant or transfer by the Company or a Restricted Subsidiary to any Person
of a royalty, overriding royalty, revenue interest, net revenue interest, net
profits interest, reversionary interest, production payment (including, without
limitation, Volumetric Production Payments and Dollar-Denominated Production
Payments), partnership or other interest in oil and gas properties or the right
to receive all or a portion of the production or the proceeds from the sale of
production attributable to such properties where the holder of such interest
has recourse solely to such production or proceeds of production, subject to
the obligation of the grantor or transferor to operate and maintain, or cause
the subject interests to be operated and maintained in a reasonably prudent
manner or other customary standard or subject to the obligation of the grantor
or transferor to indemnify for environmental, title or other matters customary
in the Oil and Gas Business, including, without limitation, any such grants or
transfers pursuant to incentive compensation 

 30
 

programs on terms that are reasonably customary in the
Oil and Gas Business for geologists, geophysicists or other providers of
technical services to the Company or a Restricted Subsidiary.

“Rating Agencies” means Standard & Poor’s
and Moody’s or if Standard & Poor’s or Moody’s or both shall not make a
rating on the Notes publicly available, a nationally recognized statistical
rating agency or agencies, as the case may be, selected by the Company (as
evidenced by a resolution of the Board of Directors) which shall be substituted
for Standard & Poor’s or Moody’s or both, as the case may be.

“Receivable” means a right to receive payment
arising from a sale or lease of goods or the performance of services by a
Person pursuant to an arrangement with another Person pursuant to which such
other Person is obligated to pay for goods or services under terms that permit
the purchase of such goods and services on credit and shall include, in any
event, any items of property that would be classified as an “account,” “chattel
paper,” “payment intangible” or “instrument” under the Uniform Commercial Code
as in effect in the State of New York and any “supporting obligations” as so
defined.

“Receivables Fees” means any fees or interest
paid to purchasers or lenders providing the financing in connection with a securitization
transaction, factoring agreement or other similar agreement, including, without
limitation, any such amounts paid by discounting the face amount of Receivables
or participations therein transferred in connection with a securitization
transaction, factoring agreement or other similar arrangement, regardless of
whether any such transaction is structured as on-balance sheet or off-balance
sheet or through a Restricted Subsidiary or an Unrestricted Subsidiary.

“Refinancing Indebtedness” means Indebtedness
that is Incurred to refund, refinance, replace, exchange, renew, prepay,
purchase, redeem, retire, repay or extend (including, without limitation,
pursuant to any defeasance or discharge mechanism) (collectively, “refinance,” “refinances”
and “refinanced” shall each have a correlative meaning) any Indebtedness
existing on the date of this Indenture or Incurred in compliance with this
Indenture (including, without limitation, Indebtedness of the Company that
refinances Indebtedness of any Restricted Subsidiary and Indebtedness of any
Restricted Subsidiary that refinances Indebtedness of another Restricted
Subsidiary) including, without limitation, Indebtedness that refinances
Refinancing Indebtedness, provided, however,
that:

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

(2)           the Refinancing
Indebtedness has an Average Life at the time such Refinancing Indebtedness is
Incurred that is equal to or greater than the Average Life of the Indebtedness
being refinanced;

 31
 

(3)           such Refinancing
Indebtedness is Incurred in an aggregate principal amount (or if issued with
original issue discount, an aggregate issue price) that is equal to or less
than the sum of the aggregate principal amount (or if issued with original
issue discount, the aggregate accreted value) then outstanding or committed of
the Indebtedness being refinanced (plus, without duplication, any additional
Indebtedness Incurred to pay accrued interest and fees and expenses Incurred in
connection therewith, including, without limitation, any premium and defeasance
costs); and

(4)           if the Indebtedness
being refinanced is subordinated in right of payment to the Notes or the
Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in right of
payment to the Notes or the Subsidiary Guarantee on terms that, in the good
faith reasonable determination of the Company or the applicable Restricted
Subsidiary are at least as favorable to the holders as those contained in the
documentation governing the Indebtedness being refinanced.

“Responsible Officer” shall mean, when used
with respect to the Trustee, any officer within the corporate trust department
of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of
the Trustee who customarily performs functions similar to those performed by
the persons who at the time shall be such officers, respectively, or to whom
any corporate trust matter is referred because of such person’s knowledge of
and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

“Restricted Investment” means any Investment
other than a Permitted Investment.

“Restricted Subsidiary” means any Subsidiary of
the Company other than an Unrestricted Subsidiary.

“Sale/Leaseback Transaction” means an
arrangement relating to property now owned or hereafter acquired whereby the
Company or a Restricted Subsidiary transfers such property to a Person and the
Company or a Restricted Subsidiary leases it from such Person within 90 days
after the date of the transfer to such Person.

“SEC” means the United States Securities and
Exchange Commission.

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations of the SEC promulgated
thereunder.

“Senior Secured Credit Agreement” means the
Amended and Restated Credit Agreement dated as of June 13, 2005 among the
Company, the lenders from time to time party thereto, JPMorgan Chase Bank,
N.A., as an LC Issuer and as Administrative Agent, U.S. Bank National
Association and Bank of America, N.A., as Co-Syndication Agents, and Wells
Fargo Bank, N.A., as Documentation Agent, including, without limitation, any
related notes, guarantees, collateral documents, instruments and agreements
entered into in connection therewith, in each case, as the same may be amended,
restated, modified, renewed, restructured, supplemented, extended, substituted,
refunded, replaced or refinanced in whole or in part from time to time
(including, without limitation, increasing the amount loaned thereunder, provided  

 32
 

that such additional Indebtedness is Incurred in
accordance with Section 3.3, extending the maturity of any Indebtedness
Incurred thereunder or contemplated thereby or deleting, adding or substituting
one or more parties thereto (whether or not such added or substituted parties
are banks or other institutional lenders)); provided
that a Senior Secured Credit Agreement shall not (1) include Indebtedness
issued, created or Incurred pursuant to a registered offering of securities
under the Securities Act or a private placement of securities (including under
Rule 144A or Regulation S) pursuant to an exemption from the registration
requirements of the Securities Act or (2) relate to Indebtedness that does not
consist exclusively of Pari Passu Indebtedness or Guarantor Pari Passu
Indebtedness.

“Significant Subsidiary” means any Restricted
Subsidiary that would be a “Significant Subsidiary” of the Company within the
meaning of Rule 1-02 under Regulation S-X promulgated by the SEC.

“Standard & Poor’s” means Standard &
Poor’s, a division of the McGraw-Hill Companies, Inc.

“Stated Maturity” means, with respect to any
security or Indebtedness, the date specified in such security or Indebtedness
as the fixed date on which the payment of principal of such security or
Indebtedness is due and payable, including, without limitation, pursuant to any
mandatory redemption provision, but shall not include any contingent
obligations to repay, redeem or repurchase any such principal prior to the date
originally scheduled for the payment thereof.

“Subordinated Obligation” means any
Indebtedness of the Company (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinated or junior in right of payment to the
Notes pursuant to a written agreement.

“Subsidiary” of any Person means (a) any corporation,
association or other business entity (other than a partnership, joint venture,
limited liability company or similar entity) of which more than 50% of the
total ordinary voting power of shares of Capital Stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof (or persons performing similar functions) or (b)
any partnership, joint venture, limited liability company or similar entity of
which more than 50% of the capital accounts, distribution rights, total equity
and voting interests or general partnership interests of a general partnership
or general and limited partnership interests, taken together, of a limited
partnership, as applicable, is, in the case of clauses (a) and (b), at the time
owned or controlled, directly or indirectly, by (1) such Person, (2) such
Person and one or more Subsidiaries of such Person or (3) one or more
Subsidiaries of such Person. Unless otherwise specified herein, each reference
to a Subsidiary will refer to a Subsidiary of the Company.

“Subsidiary Guarantee” means, individually, any
Guarantee of payment of the Notes by a Subsidiary Guarantor pursuant to the
terms of this Indenture and any supplemental indenture thereto, and,
collectively, all such Guarantees.  Each
such Subsidiary Guarantee shall be executed and delivered pursuant to the terms
of this Indenture and any supplemental indenture (including pursuant to a
supplemental indenture substantially in the form of Exhibit C).

 33
 

“Subsidiary Guarantor” means each Restricted
Subsidiary (other than a Foreign Subsidiary) in existence on the Issue Date
that provides a Subsidiary Guarantee on the Issue Date and any other Restricted
Subsidiary (other than a Foreign Subsidiary) that provides a Subsidiary
Guarantee in accordance with this Indenture, provided
that upon release or discharge of any such Restricted Subsidiary from its
Subsidiary Guarantee in accordance with this Indenture, such Restricted
Subsidiary shall cease to be a Subsidiary Guarantor.

“TIA” or “Trust Indenture Act” means the
Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as in
effect from time to time.

“Trustee” means the party named as such in this
Indenture until a successor replaces it and, thereafter, means such successor.

“Uniform Commercial Code” means the New York
Uniform Commercial Code as in effect from time to time.

“Unrestricted Subsidiary” means:

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

(2)           any Subsidiary of an
Unrestricted Subsidiary.

The Board of Directors of the Company may designate
any Subsidiary of the Company (including, without limitation, any newly
acquired or newly formed Subsidiary or a Person becoming a Subsidiary through
merger or consolidation or Investment therein) to be an Unrestricted Subsidiary
only if on the date such Subsidiary is designated an Unrestricted Subsidiary:

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

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

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

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

(5)           such Subsidiary is a
Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation:

 34
 

(a)           to
subscribe for additional Capital Stock of such Person; or

(b)           to
maintain or preserve such Person’s financial condition or to cause such Person
to achieve any specified levels of operating results; and

(6)           on the date such
Subsidiary is designated an Unrestricted Subsidiary, such Subsidiary is not a party
to any agreement, contract, arrangement or understanding with the Company or
any Restricted Subsidiary with terms materially less favorable to the Company
or such Restricted Subsidiary, as the case may be, than those that could be
obtained in a comparable transaction at the time of such transaction in arm’s-length
dealings with a Person who is not an Affiliate of the Company.

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

The Board of Directors of the Company may designate
any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that immediately after giving
effect to such designation, no Default or Event of Default shall have occurred
and be continuing or would occur as a consequence thereof and the Company could
Incur at least $1.00 of additional Indebtedness pursuant to Section 3.3(a)
on a pro forma basis taking into account such designation.

“U.S. Government Obligations” means securities
that are (a) direct obligations of the United States of America for the timely
payment of which its full faith and credit is pledged or (b) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation of the United States of
America, which, in either case, are not callable or redeemable at the option of
the issuer thereof, and shall also include a depositary receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of
principal of or interest on any such U.S. Government Obligations held by such
custodian for the account of the holder of such depositary receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the U.S. Government Obligations or the specific payment
of principal of or interest on the U.S. Government Obligations evidenced by
such depositary receipt.

“Volumetric Production Payments” means
production payment obligations recorded as deferred revenue in accordance with
GAAP, together with all undertakings and obligations in connection therewith.

 35
 

“Voting Stock” of a Person means all classes of
Capital Stock of such Person then outstanding and normally entitled to vote in
the election of directors, managers or trustees, as applicable.

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

In addition to the terms defined above, the following
terms are defined in this Indenture where indicated below:

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Actual
  Knowledge”

  	
   

  	
  7.2(g)

  
	
  “Additional
  Notes”

  	
   

  	
  Recitals

  
	
  “Affiliate
  Transaction”

  	
   

  	
  3.9(a)

  
	
  “Agent Members”

  	
   

  	
  2.1(e)

  
	
  “Asset Disposition
  Offer”

  	
   

  	
  3.8(b)

  
	
  “Asset
  Disposition Offer Amount”

  	
   

  	
  3.8(c)

  
	
  “Asset
  Disposition Offer Period”

  	
   

  	
  3.8(c)

  
	
  “Asset
  Disposition Purchase Date”

  	
   

  	
  3.8(c)

  
	
  “Authenticating
  Agent”

  	
   

  	
  2.2

  
	
  “bankruptcy
  provisions

  	
   

  	
  6.1(7)

  
	
  “Change of
  Control Offer”

  	
   

  	
  3.10(b)

  
	
  “Change of
  Control Payment”

  	
   

  	
  3.10(b)

  
	
  “Change of
  Control Payment Date”

  	
   

  	
  3.10(b)

  
	
  “Company”

  	
   

  	
  Introductory

  paragraph

  
	
  “Company Order”

  	
   

  	
  2.2

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.2(a)

  
	
  “cross
  acceleration provision

  	
   

  	
  6.1(6)

  
	
  “Defaulted
  Interest”

  	
   

  	
  2.11

  
	
  “Event of
  Default”

  	
   

  	
  6.1

  
	
  “Excess
  Proceeds”

  	
   

  	
  3.8(b)

  
	
  “Global Note”

  	
   

  	
  2.1(b)

  
	
  “Initial Notes”

  	
   

  	
  Recitals

  
	
  “judgment
  default provision”

  	
   

  	
  6.1(9)

  
	
  “legal
  defeasance”

  	
   

  	
  8.2(a)

  
	
  “Legal Holiday”

  	
   

  	
  11.8

  
	
  “Notes”

  	
   

  	
  Recitals

  
	
  “Note Register”

  	
   

  	
  2.3

  
	
  “Obligations”

  	
   

  	
  10.1

  
	
  “Pari Passu
  Notes”

  	
   

  	
  3.8(b)

  
	
  “Paying Agent”

  	
   

  	
  2.3

  
	
  “payment
  default”

  	
   

  	
  6.1(6)

  
	
  “protected
  purchaser”

  	
   

  	
  2.7

  
	
  “Redemption
  Date”

  	
   

  	
  5.3

  

 

 36
 

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Registrar”

  	
   

  	
  2.3

  
	
  “Reinstatement
  Date”

  	
   

  	
  3.15(b)

  
	
  “Restricted
  Payment”

  	
   

  	
  3.4(a)

  
	
  “Special
  Interest Payment Date”

  	
   

  	
  2.11(a)

  
	
  “Special Record
  Date”

  	
   

  	
  2.11(a)

  
	
  “Successor
  Company”

  	
   

  	
  4.1(a)(i)

  
	
  “Suspended
  Covenants”

  	
   

  	
  3.15(a)

  
	
  “Suspension
  Period”

  	
   

  	
  3.15(b)

  
	
  “Trustee”

  	
   

  	
  Introductory

  Paragraph

  

 

SECTION 1.2.   Incorporation by Reference of Trust
Indenture Act.  This Indenture is
subject to the mandatory provisions of the TIA which are incorporated by
reference in and made a part of this Indenture. 
The following TIA terms have the following meanings:

“Commission” means the SEC.

“indenture notes” means the Notes.

“indenture security holder” means a Holder.

“indenture to be qualified” means this
Indenture.

“indenture trustee” or “institutional
trustee” means the Trustee.

“obligor” on notes means the Company and any
other obligor on the Notes.

All other TIA terms used in this Indenture that are
defined by the TIA, defined by the TIA reference to another statute or defined
by SEC rule have the meanings assigned to them by such definitions.

SECTION 1.3.   Rules of Construction.  Unless the context otherwise requires:

(1)  
a term has the meaning assigned to it;

(2)  
an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

(3)  
“or” is not exclusive;

(4)  
“including” means including without limitation;

(5)  
words in the singular include the plural and words in the plural include the
singular;

 37
 

(6)  
unsecured Indebtedness shall not be deemed to be subordinate or junior to
secured Indebtedness merely by virtue of its nature as unsecured Indebtedness;

(7)  
the principal amount of any noninterest bearing or other discount security at
any date shall be the principal amount thereof that would be shown on a balance
sheet of the issuer dated such date prepared in accordance with GAAP;

(8)  
the principal amount of any Preferred Stock shall be (i) the maximum
liquidation value of such Preferred Stock or (ii) the maximum mandatory
redemption or mandatory repurchase price with respect to such Preferred Stock,
whichever is greater;

(9)  
all references to the date the Notes were originally issued shall refer to the
Issue Date or the date any Additional Notes were originally issued, as the case
may be;

(10)  
references to sections of or rules under the Securities Act or the Exchange
Act, as the case may be, will be deemed to include substitute, replacement of
successor sections or rules adopted by the SEC from time to time;

(11)  
“$” and “U.S. dollars” each refer to United States dollars, or such other money
of the United States of America that at the time of payment is legal tender for
payment of public and private debts; and

(12)  
all references herein to particular Sections or Articles shall refer to this
Indenture unless otherwise so indicated.

ARTICLE
II

The
Notes

SECTION 2.1.   Form, Dating and Terms.  (a)  The aggregate principal amount
of Notes that may be authenticated and delivered under this Indenture is
unlimited.  The Initial Notes issued on
the date hereof will be in an aggregate principal amount of $350,000,000.  In addition, the Company may issue, from time
to time in accordance with the provisions of this Indenture, including, without
limitation, Section 3.3(a) hereof, Additional Notes.  Furthermore, Notes may be authenticated and
delivered upon registration or transfer, or in lieu of, other Notes pursuant to
Section 2.6, 2.7, 2.9 or 9.5 or in connection with
an Asset Disposition Offer pursuant to Section 3.8 or a Change of
Control Offer pursuant to Section 3.10.

The Notes shall be known and designated as “71⁄8%
Senior Notes due 2017” of the Company.

With respect to any Additional Notes, the Company
shall set forth in (a) a Board Resolution and (b)(i) an Officers’ Certificate
or (ii) one or more indentures supplemental hereto, the following information:

(i)  
the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

 38

(ii)  
the issue price and the issue date of such Additional Notes; and

(iii)  
that such Additional Notes are registered under the Securities Act and shall be
issued substantially in the form of Exhibit A hereto.

The Initial Notes and the Additional Notes shall be
considered collectively as a single class for all purposes of this
Indenture.  Holders of the Initial Notes
and the Additional Notes shall vote and consent together on all matters to
which such Holders are entitled to vote or consent as one class, and none of
the Holders of the Initial Notes or the Additional Notes shall have the right
to vote or consent as a separate class on any matter to which such Holders are
entitled to vote or consent.

(b)   The Initial Notes are being offered and sold by the
Company pursuant to an Underwriting Agreement, dated April 17, 2007, among the
Company, the Subsidiary Guarantors, J.P. Morgan Securities Inc., Lehman
Brothers Inc., Calyon Securities (USA) Inc., Deutsche Bank Securities Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Raymond James &
Associates, Inc. and UBS Securities LLC. 
Additional Notes offered after the date hereof may be offered and sold
by the Company from time to time pursuant to one or more purchase agreements in
accordance with applicable law.

Initial Notes and Additional Notes offered and sold
under this Indenture shall be issued in the form of one or more permanent
global Notes substantially in the form of Exhibit A (each, a “Global Note”),
which is hereby incorporated by reference and made a part of this Indenture,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided.  A Global Note may be
represented by more than one certificate, if so required by the Depositary’s
rules regarding the maximum principal amount to be represented by a single
certificate.  The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary or its
nominee, as hereinafter provided.

The principal of, premium, if any, and interest on the
Notes shall be payable at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City of New York, or at such
other office or agency of the Company as may be maintained for such purpose
pursuant to Section 2.3; provided,
however, that, at the option of the Company, each installment of
interest may be paid by (i) check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Note Register or (ii) wire
transfer to an account located in the United States maintained by the
payee.  Payments in respect of Notes
represented by a Global Note registered in the name of or held by the
Depositary or its nominee (including principal, premium, if any, and interest)
shall be made by wire transfer of immediately available funds to the accounts
specified by the Depositary.  Payments in
respect of Notes represented by Definitive Notes (including principal, premium,
if any, and interest) held by a Holder of at least $1,000,000 aggregate
principal amount of Notes represented by Definitive Notes shall be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept).

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Each Global Note shall be in the form of Exhibit A.  The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage, in addition to
those set forth on Exhibit A and in Section 2.1(d).  The Company shall approve the forms of the
Notes and any notation, endorsement or legend on them.  Any such notation, endorsement or legend
shall be furnished to the Trustee in writing. 
Each Note shall be dated the date of its authentication.  The terms of the Notes set forth in Exhibit
A are part of the terms of this Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to be bound by such terms.

(c)   Denominations. 
The Notes shall be issuable only in fully registered form, without
coupons, and only in denominations of $2,000 or integral multiples of $1,000 in
excess thereof.

(d)   Depositary Legend.  Each Global Note, whether or not an Initial
Note, shall bear the following legend on the face thereof:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

(e)   Book-Entry Provisions.  (i)  This Section 2.1(e)
shall apply only to Global Notes deposited with the Notes Custodian with
respect to such Notes (as appointed by the Depositary), or any successor Person
thereto, which shall initially be the Trustee.

(ii)   Each Global Note initially shall (x) be registered in
the name of the Depositary for such Global Note or the nominee of such
Depositary, (y) be delivered to the Notes Custodian for such Depositary and (z)
bear the legend set forth in Section 2.1(d).

(iii)   Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any
Global Note held on their behalf by the Depositary or by the Trustee as the
custodian of the Depositary or under such Global Note, and 

 40
 

the Depositary
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Note for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or impair, as between
the Depositary and its Agent Members, the operation of customary practices of
the Depositary governing the exercise of the rights of a Holder of a beneficial
interest in any Global Note.

(iv)   The registered Holder of a Global Note may grant
proxies and otherwise authorize any person, including Agent Members and persons
that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under this Indenture or the Notes.

(v)   In connection with any transfer of a portion of the
beneficial interest in a Global Note pursuant to subsection (f) of this Section
2.1 to beneficial owners who are required to hold Definitive Notes, the
Trustee shall reflect on its books and records the date and a decrease in the
principal amount of such Global Note in an amount equal to the principal amount
of the beneficial interest in the Global Note to be transferred, and the
Company shall execute, and the Trustee shall authenticate and deliver, one or
more Definitive Notes of like tenor and amount.

(vi)   In connection with the transfer of an entire Global
Note to beneficial owners pursuant to subsection (f) of this Section, such
Global Note shall be deemed to be surrendered to the Trustee for cancellation,
and the Company shall execute, and the Trustee shall authenticate and deliver,
to each beneficial owner identified by the Depositary in exchange for its
beneficial interest in such Global Note, an equal aggregate principal amount of
Definitive Notes of authorized denominations.

(vii)   Any Holder of a Global Note shall, by acceptance of
such Global Note, agree that transfers of beneficial interests in such Global
Note may be effected only through a book-entry system maintained by (a) the
Holder of such Global Note (or its agent) or (b) any Holder of a beneficial
interest in such Global Note, and that ownership of a beneficial interest in
such Global Note shall be required to be reflected in a book entry.

(f)   Definitive Notes.  Except as provided below, owners of
beneficial interests in Global Notes shall not be entitled to receive
Definitive Notes.  If required to do so
pursuant to any applicable law or regulation, beneficial owners may obtain
Definitive Notes in exchange for their beneficial interests in a Global Note
upon written request in accordance with the Depositary’s and the Registrar’s
procedures.  In addition, Definitive Notes
shall be delivered to all beneficial owners in exchange for their beneficial
interests in a Global Note if (i) the Depositary notifies the Company that
it is unwilling or unable to continue as depositary for such Global Note or the
Depositary ceases to be a clearing agency registered under the Exchange Act, at
a time when the Depositary is required to be so registered in order to act as
Depositary, and in each case a successor depositary is not appointed by the
Company within 90 days of such notice or, (ii) the Company executes
and delivers to the Trustee and Registrar an Officers’ Certificate stating that
such Global Note shall be so exchangeable or (iii) an Event of Default has
occurred and is continuing and the Registrar has received a request from the
Depositary to deliver 

 41
 

Definitive
Notes to all beneficial owners in exchange for their beneficial interests in a
Global Note.

(g)   In connection with the exchange of a portion of a
Definitive Note for a beneficial interest in a Global Note, the Trustee shall
cancel such Definitive Note, and the Company shall execute, and the Trustee
shall authenticate and deliver, to the transferring Holder a new Definitive
Note representing the principal amount not so transferred and the relevant
Global Note shall be increased by an adjustment made on the records of the
Trustee and the Depositary.

SECTION 2.2.   Execution and Authentication.  Two Officers shall sign the Notes for the
Company by manual or facsimile signature. 
If an Officer whose signature is on a Note no longer holds that office
at the time the Trustee authenticates the Note, the Note shall be valid
nevertheless.

A Note shall not be valid until an authorized
signatory of the Trustee manually authenticates the Note.  The signature of the Trustee on a Note shall
be conclusive evidence that such Note has been duly and validly authenticated
and issued under this Indenture.  A Note
shall be dated the date of its authentication.

At any time and from time to time after the execution
and delivery of this Indenture, the Trustee shall authenticate and make
available for delivery: (1) Initial Notes for original issue on the Issue Date
in an aggregate principal amount of $350,000,000 and (2) subject to the terms
of this Indenture, Additional Notes for original issue in an unlimited
principal amount, in each case upon a written order of the Company signed by
two Officers or by an Officer and an Assistant Secretary of the Company (the “Company
Order”).  Such Company Order shall
specify the amount of the Notes to be authenticated and the date on which the
original issue of Notes is to be authenticated and whether the Notes are to be
Initial Notes or Additional Notes.

The Trustee may (at the expense of the Company)
appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Company to authenticate the Notes. 
Unless limited by the terms of such appointment, any such Authenticating
Agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.

In case the Company, pursuant to Article IV
shall be consolidated or merged with or into any other Person or shall convey,
transfer, lease or otherwise dispose of its properties and assets substantially
as an entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have
been merged, or the Person which shall have received a conveyance, transfer,
lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article IV, any of the
Notes authenticated or delivered prior to such consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the
request of the successor Person, be exchanged for other Notes executed in the
name of the successor Person with such changes in phraseology and form as may
be appropriate, but otherwise in substance of like tenor as the Notes
surrendered for such exchange and of like principal amount; and the 

 42
 

Trustee, upon Company Order of the successor Person,
shall authenticate and deliver Notes as specified in such order for the purpose
of such exchange.  If Notes shall at any
time be authenticated and delivered in any new name of a successor Person
pursuant to this Section 2.2 in exchange or substitution for or upon
registration of transfer of any Notes, such successor Person, at the option of
the Holders but without expense to them, shall provide for the exchange of all
Notes at the time outstanding for Notes authenticated and delivered in such new
name.

SECTION 2.3.   Registrar and Paying Agent.  The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for
exchange (the “Registrar”) and an office or agency where Notes may be
presented for payment (the “Paying Agent”).  The Company shall cause each of the Registrar
and the Paying Agent to maintain an office or agency in the Borough of
Manhattan, The City of New York. 
The Registrar shall keep a register of the Notes and of their transfer
and exchange (the “Note Register”). 
The Company may have one registrar and one or more additional paying
agents.  The term “Paying Agent” includes
any additional paying agent.

The Company shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this Indenture,
which shall incorporate the terms of the TIA. 
The agreement shall implement the provisions of this Indenture that
relate to such agent.  The Company shall
notify the Trustee in writing of the name and address of each such agent.  If the Company fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.7.  The Company or any of its Wholly Owned
Subsidiaries that is a Domestic Subsidiary may act as Paying Agent or
Registrar.

The Company initially appoints the Trustee as Notes
Custodian, Registrar and Paying Agent for the Notes.  The Company may remove any Notes Custodian,
Registrar or Paying Agent upon written notice to such Notes Custodian,
Registrar or Paying Agent and to the Trustee; provided,
however, that no such removal shall become effective until (i)
acceptance of any appointment by a successor as evidenced by an appropriate
agreement entered into by the Company and such successor Notes Custodian,
Registrar or Paying Agent, as the case may be, and delivered to the Trustee or
(ii) notification to the Trustee that the Trustee shall serve as Notes
Custodian, Registrar or Paying Agent until the appointment of a successor in
accordance with clause (i) above.  The
Notes Custodian, Registrar or Paying Agent may resign at any time upon written
notice to the Company and the Trustee.

SECTION 2.4.   Paying Agent To
Hold Money in Trust.  By no later
than 10:00 a.m. (New York City time) on the date on which any principal of
(premium, if any) or interest on any Note is due and payable, the Company shall
irrevocably deposit with the Trustee or the Paying Agent a sum sufficient in
immediately available funds to pay such principal (premium, if any) or interest
when due.  The Company shall require each
Paying Agent (other than the Trustee) to agree in writing that such Paying
Agent shall hold in trust for the benefit of the Holders or the Trustee all
money held by such Paying Agent for the payment of principal of or interest on
the Notes and shall notify the Trustee in writing of any default by the Company
or any Subsidiary Guarantor in making any such payment.  If the Company or a Subsidiary acts as Paying
Agent, it shall segregate the money held by it as Paying Agent and hold it as a
separate trust fund.  The Company at any
time may require a Paying Agent (other than the Trustee) to pay 

 43
 

all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent.  Upon
complying with this Section, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money delivered to the
Trustee.  Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Notes.

SECTION 2.5.   Holder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders and shall otherwise comply with TIA
§ 312(a).  If the Trustee is not the
Registrar or to the extent otherwise required under the TIA, the Company, on
its own behalf and on behalf of each Subsidiary Guarantor, shall furnish to the
Trustee, in writing at least seven Business Days before each interest payment
date and at such other times as the Trustee may request in writing within 15
days, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders and the Company shall otherwise
comply with TIA § 312(a).

SECTION 2.6.   Transfer and
Exchange.

(a)   The Registrar shall retain
copies of all letters, notices and other written communications received pursuant
to Section 2.1 or this Section 2.6 in accordance with its
records retention policy.  The Company
shall have the right to inspect and make copies of all such letters, notices or
other written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.

(b)   Obligations with Respect
to Transfers and Exchanges of Notes.

(i)   To permit registrations of transfers and exchanges, the
Company shall, subject to the other terms and conditions of this Article II,
execute and the Trustee shall authenticate Definitive Notes and Global Notes at
the Registrar’s request.

(ii)   No service charge will be imposed by the Company, the
Trustee or the Registrar for any registration of transfer or exchange, but the
Company or the Registrar may require payment of a sum sufficient to cover any
transfer tax, assessments, or similar governmental charge payable in connection
therewith (other than any such transfer taxes, assessments or similar
governmental charges payable upon exchange or transfer pursuant to Sections
3.8, 3.10 or 9.5).

(iii)   The Company shall not be required to transfer or
exchange, and the Registrar shall not be required to register the transfer of
or exchange of, any Note (1) for a period beginning 15 Business Days before the
mailing of a notice of a redemption of Notes to the Holders and ending at the
close of business on the day of such mailing or (2) selected for
redemption.

(iv)   Prior to the due presentation for registration of
transfer of any Note, the Company, the Trustee, the Paying Agent or the
Registrar may deem and treat the Person in whose name a Note is registered as
the absolute owner of such Note for the purpose of receiving payment of
principal of (premium, if any) and interest on such Note and for all other
purposes whatsoever, whether or not such Note is overdue, and none of the 

 44
 

Company, the
Trustee, the Paying Agent or the Registrar shall be affected by notice to the
contrary.

(v)   All Notes issued upon any transfer or exchange pursuant
to the terms of this Indenture shall evidence the same debt and shall be
entitled to the same benefits under this Indenture as the Notes surrendered
upon such transfer or exchange.

(c)   No Obligation of the
Trustee.  (i)  The Trustee
shall have no responsibility or obligation to any beneficial owner of a Global
Note, a member of, or a participant in, the Depositary or other Person with
respect to the accuracy of the records of the Depositary or its nominee or of
any participant or member thereof, with respect to any ownership interest in
the Notes or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than the Depositary) of any notice or
the payment of any amount or delivery of any Notes (or other security or
property) under or with respect to such Notes. 
All notices and communications to be given to the Holders and all
payments to be made to Holders in respect of the Notes shall be given or made
only to or upon the order of the registered Holders (which shall be the
Depositary or its nominee in the case of a Global Note).  The rights of beneficial owners in any Global
Note shall be exercised only through the Depositary subject to the applicable
rules and procedures of the Depositary. 
The Trustee may rely and shall be fully protected in relying upon
information furnished by the Depositary with respect to its members,
participants and any beneficial owners.

(ii)   The Trustee shall have no
obligation or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Note (including any
transfers between or among Depositary participants, members or beneficial
owners in any Global Note) other than, if the Trustee has received prior notice
of a transfer, to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly
required by, the terms of this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

SECTION 2.7.   Mutilated,
Destroyed, Lost or Wrongfully Taken Notes. 
Subject to the other provisions of this Section 2.7, if a mutilated Note
is surrendered to the Registrar or if the Holder of a Note claims that the Note
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee, upon Company Order, shall authenticate a replacement Note.  The Company shall not be required to issue,
and the Trustee shall not be required to authenticate, a replacement Note
unless (a) the Holder satisfies the requirements of Section 8-405 of the
Uniform Commercial Code, such that the Holder (i) notifies the Company and the
Trustee within a reasonable time after such Holder has notice of such loss,
destruction or wrongful taking and the Registrar has not registered a transfer
prior to receiving such notification, (ii) makes such request to the Company
prior to the Company having notice that the Note has been acquired by a
protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a “protected purchaser”) and (iii) satisfies any other reasonable requirements
of the Company and the Trustee, and (b) such Holder furnishes an indemnity bond
sufficient in the judgment of the Company and the Trustee to protect the
Company, the Trustee, the Paying Agent and the Registrar from any loss which
any of them may suffer if a Note is replaced. 
If the Holder satisfies the foregoing requirements, in the absence of
notice to the Company, any 

 45
 

Subsidiary Guarantor or the Trustee that such Note has been acquired by
a protected purchaser, the Company shall execute and upon Company Order the
Trustee shall authenticate and deliver, in exchange for any such mutilated Note
or in lieu of any such destroyed, lost or wrongfully taken Note, a new Note of
like tenor and principal amount, bearing a number not contemporaneously
outstanding.

In case any such mutilated, destroyed, lost or
wrongfully taken Note has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Note, pay such Note
through the Paying Agent upon receiving an indemnity bond sufficient in the
judgment of the Company and the Trustee.

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

Every new Note issued pursuant to this Section in lieu
of any mutilated, destroyed, lost or wrongfully taken Note shall constitute an
original additional contractual obligation of the Company, any Subsidiary
Guarantor and any other obligor upon the Notes, whether or not the mutilated,
destroyed, lost or wrongfully taken Note shall be at any time enforceable by
anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Notes 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 or payment of mutilated, destroyed, lost or wrongfully taken
Notes.

SECTION 2.8.   Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those paid
pursuant to Section 2.7, those delivered to it for cancellation and those
described in this Section as not outstanding. 
A Note does not cease to be outstanding in the event the Company or an
Affiliate of the Company holds the Note except that the Company or an Affiliate
of the Company shall not obtain voting rights with respect to such Note.

If a Note is replaced pursuant to Section 2.7,
it ceases to be outstanding unless the Trustee and the Company receive proof
satisfactory to them that the replaced Note is held by a bona fide purchaser.

If the Paying Agent holds in trust (or, if the Company
or a Wholly Owned Subsidiary that is a Domestic Subsidiary is the Paying Agent,
such Person has segregated and holds in trust as provided in Section 2.4), in
accordance with this Indenture, on a maturity date money sufficient to pay all
principal and interest payable on that date with respect to the Notes maturing
and the Paying Agent is not prohibited from paying such money to the Holders on
that date pursuant to the terms of this Indenture, then on and after that date
such Notes cease to be outstanding and interest on them ceases to accrue.

SECTION 2.9.   Temporary Notes.  In the event that Definitive Notes are to be
issued under the terms of this Indenture, until such Definitive Notes are ready
for delivery, the 

 46
 

Company may prepare and the Trustee shall authenticate temporary
Notes.  Temporary Notes shall be
substantially in the form of Definitive Notes but may have variations that the
Company considers appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate Definitive Notes.  After the preparation of Definitive Notes,
the temporary Notes shall be exchangeable for Definitive Notes upon surrender
of the temporary Notes at any office or agency maintained by the Company for
that purpose and such exchange shall be without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Notes, the Company shall execute, and the Trustee shall
authenticate and make available for delivery in exchange therefor, one or more Definitive
Notes representing an equal principal amount of Notes.  Until so exchanged, the Holder of temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as a Holder of Definitive Notes.

SECTION 2.10.   Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel and
return to the Company all Notes surrendered for registration of transfer,
exchange, payment or cancellation.  The
Company may not issue new Notes to replace Notes it has paid in full or
delivered to the Trustee for cancellation.

At such time as all beneficial interests in a Global
Note have either been exchanged for Definitive Notes, transferred in exchange
for an interest in another Global Note, redeemed, repurchased or canceled, such
Global Note shall be returned by the Depositary to the Trustee for cancellation
or retained and canceled by the Trustee. At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for
Definitive Notes, transferred in exchange for an interest in another Global
Note, redeemed, repurchased or canceled, the principal amount of Notes
represented by such Global Note shall be reduced and an adjustment shall be
made on the Global Note and on the books and records of the Trustee (if it is
then the Notes Custodian for such Global Note) or the Notes Custodian with
respect to such Global Note, by the Trustee or the Notes Custodian, to reflect
such reduction.

SECTION 2.11.   Payment of
Interest; Defaulted Interest. 
Interest on any Note which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the Person in whose
name such Note (or one or more predecessor Notes) is registered at the close of
business on the regular record date for such interest payment date at the
office or agency of the Company maintained for such purpose pursuant to Section 2.3.  The regular record date shall be the 15th day
of the month prior to an interest payment date.

Any interest on any Note which is payable, but is not
paid when the same becomes due and payable and such nonpayment continues for a
period of 30 days shall forthwith cease to be payable to the Holder on the
regular record date by virtue of having been such Holder, and such defaulted
interest and (to the extent lawful) interest on such defaulted interest at the
rate borne by the Notes (such defaulted interest and interest thereon herein
collectively called “Defaulted Interest”) shall be paid by the Company,
at its election in each case, as provided in clause (a) or (b) below:

(a) The Company
may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective predecessor Notes) are registered 

 47
 

at the close of business
on a Special Record Date (as defined below) for the payment of such Defaulted
Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date (not less than 30 days after such notice) of the proposed payment
(the “Special Interest Payment Date”), and at the same time the 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 record date (the “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 Special Interest Payment Date and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the 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 and Special Interest Payment Date therefor to be given in
the manner provided for in Section 11.2, not less than 10 days prior to
such Special Record Date.  Notice of the
proposed payment of such Defaulted Interest and the Special Record Date and
Special Interest Payment Date therefor having been so given, such Defaulted
Interest shall be paid on the Special Interest Payment Date to the Persons in
whose names the Notes (or their respective predecessor Notes) are registered at
the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (b).

(b)The Company may
make payment through the Paying Agent of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes 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 Note delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Note shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Note.

SECTION 2.12.   Computation of
Interest.  Interest on the Notes
shall be computed on the basis of a 360-day year comprised of twelve 30-day
months.

SECTION 2.13.   CUSIP Numbers.  The Company in issuing the Notes may use “CUSIP”
numbers (if then generally in use).  The
Trustee shall not be responsible for the use of CUSIP numbers. Neither the
Company nor the Trustee makes any representation as to the correctness of CUSIP
numbers as printed on any Note or notice to Holders and reliance may be placed
only on the other identification numbers printed on the Notes, and any
redemption or exchange shall not be affected by any defect in or omission of
such CUSIP numbers.  The Company shall
promptly notify the Trustee in writing of any change in the CUSIP numbers.

 48
 

ARTICLE
III

Covenants

SECTION 3.1.   Payment of Notes.  The Company shall promptly pay the principal
of and interest on the Notes on the dates and in the manner provided in the
Notes and in this Indenture.  Principal
and interest shall be considered paid on the date due if on such date the
Trustee or the Paying Agent holds in accordance with this Indenture money
sufficient to pay all principal and interest then due and the Trustee or the
Paying Agent, as the case may be, is not prohibited from paying such money to
the Holders on that date pursuant to the terms of this Indenture.

The Company shall pay interest on overdue principal at
the rate specified therefor in the Notes, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

Notwithstanding anything to the contrary contained in
this Indenture, the Company or the Paying Agent may, to the extent it is
required to do so by law, deduct or withhold income or other similar taxes
imposed by the United States of America from principal or interest payments
hereunder.

SECTION 3.2.   SEC Reports.  Notwithstanding that the Company may not be
subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, to the extent permitted by the Exchange Act, the Company will file with
the SEC, and make available to the Trustee and the registered Holders, the
annual reports and the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) that are specified in Sections 13 and 15(d) of the Exchange Act with
respect to U.S. issuers within the time periods specified therein or in the
relevant forms.  In the event that the
Company is not permitted to file such reports, documents and information with
the SEC pursuant to the Exchange Act, the Company will nevertheless make
available such Exchange Act information to the Trustee and the Holders as if
the Company were subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act within the time periods specified therein or in the
relevant forms.  The Company shall also
comply with the other provisions of TIA § 314(a).

If the Company has
designated any of its Subsidiaries as Unrestricted Subsidiaries and the
aggregate amount of net assets of all such Unrestricted Subsidiaries exceeds
the greater of $10.0 million and 0.5% of Adjusted Consolidated Net Tangible
Assets determined as of the filing date of any quarterly or annual report
required by the immediately preceding paragraph, then the quarterly and annual
financial information required by the immediately preceding paragraph shall
include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes to the financial statements and in Management’s
Discussion and Analysis of Results of Operations and Financial Condition, of
the financial condition and results of operations of the Company and its
Restricted Subsidiaries.

The Company and the
Subsidiary Guarantors will make available to Holders and to prospective
investors, upon the request of such Holders, the information required to be 

 49
 

delivered pursuant to
Rule 144A(d)(4) under the Securities Act at any time the Notes are not freely
transferable under the Securities Act.

For purposes of this Section
3.2, the Company and the Subsidiary Guarantors will be deemed to have
furnished the reports to the Trustee and the Holders as required by this Section
3.2 if they have filed such reports with the SEC via the SEC’s Electronic
Data Gathering, Analysis and Retrieval System and such reports are publicly
available.

In the event that any
direct or indirect parent company of the Company becomes a guarantor of the
Notes, the Company may satisfy its obligations under this Section 3.2 by
furnishing financial information relating to such parent; provided that (a) such financial
statements are accompanied by consolidating financial information for such
parent, the Company, the Subsidiary Guarantors and the Subsidiaries of the
Company that are not Subsidiary Guarantors in the manner prescribed by the SEC
and (b) such parent is not engaged in any business in any material respect
other than incidental to its ownership, directly or indirectly, of the Capital
Stock of the Company.

SECTION 3.3.   Limitation on
Indebtedness.  (a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
Incur any Indebtedness (including, without limitation, Acquired Indebtedness); provided, however, that any of the Company
and the Subsidiary Guarantors may Incur Indebtedness if on the date thereof:

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

(2)           no Default or Event
of Default will have occurred or be continuing or would occur as a consequence
of Incurring the Indebtedness or transactions relating to such Incurrence.

(b)           Clause (a) of this Section
3.3 will not prohibit the Incurrence of the following Indebtedness:

(1)           Indebtedness of any
of the Company and the Subsidiary Guarantors at any time outstanding pursuant
to a Credit Facility in an aggregate principal amount up to the greater of (a)
$1.0 billion and (b) 30% of Adjusted Consolidated Net Tangible Assets
determined as of the date of the Incurrence of such Indebtedness;

(2)           Guarantees by
(a) any of the Company and the Subsidiary Guarantors of Indebtedness
Incurred by the Company or any Subsidiary Guarantor in accordance with the
provisions of this Indenture; provided
that in the event such Indebtedness that is being Guaranteed is a Subordinated
Obligation or a Guarantor Subordinated Obligation, then the related Guarantee
shall be subordinated in right of payment to the Notes or the Subsidiary
Guarantee, as the case may be, and (b) Non-Guarantor Restricted
Subsidiaries of Indebtedness Incurred by Non-Guarantor Restricted Subsidiaries
in accordance with the provisions of this Indenture;

 50
 

(3)           Indebtedness of the
Company owing to and held by any Restricted Subsidiary or Indebtedness of a
Restricted Subsidiary owing to and held by the Company or any other Restricted
Subsidiary; provided, however,

(a)                  if the Company is the obligor on such
Indebtedness and such Indebtedness is owing to and held by a Restricted
Subsidiary that is not a Subsidiary Guarantor, such Indebtedness is expressly
subordinated to the prior payment in full in cash of all obligations with
respect to the Notes;

(b)                 if a Subsidiary Guarantor is the obligor
on such Indebtedness and the Company or a Subsidiary Guarantor is not the
obligee, such Indebtedness is subordinated in right of payment to the
Subsidiary Guarantees of such Subsidiary Guarantor; and

(c)                  (i) any subsequent issuance or transfer
of Capital Stock or any other event which results in any such Indebtedness
being beneficially held by a Person other than the Company or a Restricted
Subsidiary of the Company; and (ii) any sale or other transfer of any such
Indebtedness to a Person other than the Company or a Restricted Subsidiary of
the Company; shall be deemed, in each case, to constitute an Incurrence of such
Indebtedness by the Company or such Subsidiary, as the case may be;

(4)                  Indebtedness represented by (a) the
Notes issued on the Issue Date and the Subsidiary Guarantees, (b) any
Indebtedness (other than the Indebtedness described in clauses (1), (2), (3),
(9) and (10) of this Section 3.3(b)) outstanding on the Issue Date and (c) any
Refinancing Indebtedness Incurred in respect of any Indebtedness described in
this clause (4) or clause (5) of this Section 3.3(b) or Incurred pursuant to Section
3.3(a);

(5)                  Indebtedness of a Restricted Subsidiary
Incurred and outstanding on the date on which such Restricted Subsidiary was
acquired by, or merged into, the Company or any Restricted Subsidiary (other
than Indebtedness Incurred (a) to provide all or any portion of the funds
utilized to consummate the transaction or series of related transactions
pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or
was otherwise acquired by the Company or (b) otherwise in connection with, or
in contemplation of, such acquisition); provided,
however, that at the time such Restricted Subsidiary is acquired by
the Company, the Company would have been able to Incur $1.00 of additional
Indebtedness pursuant to Section 3.3(a) after giving effect to the
Incurrence of such Indebtedness pursuant to this clause (5);

(6)                  Indebtedness under Hedging Obligations
that are Incurred in the ordinary course of business (a) for the purpose of
fixing or hedging interest rate risk with respect to any Indebtedness Incurred
in accordance with this Indenture; (b) for the purpose of fixing or hedging
currency exchange rate risk with respect to any currency exchanges; or (c) for
the purpose of fixing or hedging commodity price risk with respect to any
commodities;

 51
 

(7)                  the Incurrence by any of the Company
and the Restricted Subsidiaries of Indebtedness represented by Capitalized
Lease Obligations, mortgage financings, purchase money obligations or other
payments, in each case Incurred to finance all or any part of the purchase
price or cost of acquisition, construction, improvement or development of
assets or property (other than Capital Stock or other Investments) acquired,
constructed, improved or developed in the ordinary course of business of the
Company or such Restricted Subsidiary, and Attributable Indebtedness, in an
aggregate principal amount, including all Refinancing Indebtedness Incurred to
refund, defease, renew, extend, refinance or replace any Indebtedness Incurred
pursuant to this clause (7), not to exceed $20.0 million at any time
outstanding;

(8)                  Indebtedness Incurred in respect of
workers’ compensation claims, self-insurance obligations, bid, performance,
surety, appeal and similar bonds, bankers’ acceptances, completion guarantees,
and similar instruments provided by the Company or a Restricted Subsidiary in
the ordinary course of business;

(9)                  Indebtedness arising from agreements of
any of the Company and the Restricted Subsidiaries providing for
indemnification, adjustment of purchase price or similar obligations, earn-outs
or similar obligations, in each case, Incurred or assumed in connection with
the disposition of any business, properties or assets of the Company or any
Restricted Subsidiary or Capital Stock of a Restricted Subsidiary, provided that the maximum aggregate
liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds actually received by the Company and its Restricted Subsidiaries in
connection with such disposition;

(10)                Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business, provided, however,
that such Indebtedness is extinguished within five Business Days of Incurrence;

(11)                Indebtedness
relating to Hydrocarbon balancing positions arising in the ordinary course of
business;

(12)               Indebtedness of any
of the Company and the Restricted Subsidiaries to the extent the net proceeds
thereof are promptly (a) used to redeem all of the Notes or (b) deposited to
defease or satisfy the Notes as described in Section 8.1 or Section 8.2;
and

(13)                in addition to the
items referred to in clauses (1) through (12) above, Indebtedness of any of the
Company and the Restricted Subsidiaries in an aggregate outstanding principal
amount (or accreted value, as the case may be) which, when taken together with
the principal amount of all other Indebtedness Incurred pursuant to this clause
(13) and then outstanding, will not exceed $50.0 million at any time outstanding.

(c)           The Company will not
Incur any Indebtedness pursuant to Section 3.3(b) if the proceeds
thereof are used, directly or indirectly, to refinance any Subordinated
Obligations of the 

 52
 

Company unless such Indebtedness will be
subordinated to the Notes to at least the same extent as such Subordinated
Obligations.  No Subsidiary Guarantor
will Incur any Indebtedness pursuant to Section 3.3(b) if the proceeds
thereof are used, directly or indirectly, to refinance any Guarantor
Subordinated Obligations of such Subsidiary Guarantor unless such Indebtedness
will be subordinated to the obligations of such Subsidiary Guarantor under its
Subsidiary Guarantee to at least the same extent as such Guarantor Subordinated
Obligations.  No Restricted Subsidiary (other
than a Subsidiary Guarantor) may Incur any Indebtedness if the proceeds are
used to refinance Indebtedness of the Company or a Subsidiary Guarantor.

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

(1)  subject to clause (2) below, in
the event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in Sections 3.3(a) and 3.3(b), the Company,
in its sole discretion, will classify or reclassify such item of Indebtedness
in any manner that complies with this Section 3.3 and only be required
to include the amount and type of such Indebtedness in one of such clauses or
paragraphs;

(2)  all Indebtedness outstanding on
the Issue Date under the Senior Secured Credit Agreement shall be deemed
Incurred under clause (1) of Section 3.3(b) and not Section 3.3(a)
or clause (4) of Section 3.3(b);

(3)  Guarantees of, or obligations in
respect of letters of credit relating to, Indebtedness which is otherwise
included in the determination of a particular amount of Indebtedness shall not
be included;

(4)  if obligations in respect of
letters of credit are Incurred pursuant to a Credit Facility and are being treated
as Incurred pursuant to clause (1) of Section 3.3(b) and the letters of
credit relate to other Indebtedness, then such other Indebtedness shall not be
included;

(5)  the principal amount of any
Disqualified Stock of the Company or a Restricted Subsidiary, or Preferred
Stock of a Restricted Subsidiary that is not a Subsidiary Guarantor, will be
equal to the greater of the maximum mandatory redemption or repurchase price
(not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;

(6)  Indebtedness permitted by this Section
3.3 need not be permitted solely by reference to one provision permitting
such Indebtedness but may be permitted in part by one such provision and in
part by one or more other provisions of this Section 3.3 permitting such
Indebtedness;

(7)  the principal amount of any
Indebtedness outstanding in connection with a securitization transaction or
series of transactions is the amount of obligations outstanding under the legal
documents entered into as part of such transaction that would be characterized
as principal if such transaction were structured as a secured lending
transaction rather than as a purchase relating to such transaction; and

 53
 

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

(e)           Accrual of interest,
accrual of dividends, the accretion of accreted value, the payment of interest
in the form of additional Indebtedness and the payment of dividends in the form
of additional shares of Preferred Stock or Disqualified Stock will not be
deemed to be an Incurrence of Indebtedness for purposes of this Section 3.3.  The amount of any Indebtedness outstanding as
of any date shall be (i) the accreted value thereof in the case of any
Indebtedness issued with original issue discount and (ii) the principal
amount or liquidation preference thereof, together with any interest thereon
that is more than 30 days past due, in the case of any other Indebtedness.

(f)            In addition, the
Company will not permit any of its Unrestricted Subsidiaries to Incur any
Indebtedness or issue any shares of Disqualified Stock, other than Non-Recourse
Debt. If at any time an Unrestricted Subsidiary becomes a Restricted
Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be Incurred
by a Restricted Subsidiary as of such date (and, if such Indebtedness is not
permitted to be Incurred as of such date under this Section 3.3, the
Company shall be in Default of this Section 3.3).

(g)           For purposes of
determining compliance with any U.S. dollar-denominated restriction on the
Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
Incurred, in the case of term Indebtedness, or first committed, in the case of
revolving credit Indebtedness; provided
that if such Indebtedness is Incurred to refinance other Indebtedness
denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar-dominated restriction to be exceeded if calculated at
the relevant currency exchange rate in effect on the date of such refinancing,
such U.S. dollar-dominated restriction shall be deemed not to have been
exceeded so long as the principal amount of such refinancing Indebtedness does
not exceed the principal amount of such Indebtedness being refinanced, plus,
without duplication, any additional Indebtedness Incurred to pay interest or
premiums required by the instruments governing the Indebtedness being
refinanced and fees and expenses Incurred in connection therewith.  Notwithstanding any other provision of this Section
3.3, the maximum amount of Indebtedness that the Company may Incur pursuant
to this Section 3.3 shall not be deemed to be exceeded solely as a
result of fluctuations in the exchange rate of currencies.  The principal amount of any Indebtedness
Incurred to refinance other Indebtedness, if Incurred in a different currency
from the Indebtedness being refinanced, shall be calculated based on the
currency exchange rate applicable to the currencies in which such Refinancing
Indebtedness is denominated that is in effect on the date of such refinancing.

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

(1)  declare or pay any dividend or
make any distribution (whether made in cash, securities or other property) on
or in respect of its Capital Stock (including, without 

 54
 

limitation, any
payment thereof in connection with any merger or consolidation involving the
Company or any of its Restricted Subsidiaries) except:

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

(b)           dividends or
distributions payable to the Company or another Restricted Subsidiary (and if
such Restricted Subsidiary is not a Wholly Owned Subsidiary, to its other
holders of the applicable class or classes of Capital Stock on a pro rata
basis);

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

(3)  purchase, repurchase, redeem,
defease or otherwise acquire or retire for value, prior to scheduled maturity,
scheduled repayment or scheduled sinking fund payment, any Subordinated
Obligations or Guarantor Subordinated Obligations (other than (a) Indebtedness
of the Company owing to and held by any Subsidiary Guarantor or Indebtedness of
a Subsidiary Guarantor owing to and held by the Company or any other Subsidiary
Guarantor permitted pursuant to Section 3.3(b)(3) or (b) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations or Guarantor Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of purchase,
repurchase, redemption, defeasance or other acquisition or retirement); or

(4)  make any Restricted Investment
in any Person;

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

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

(II)           the Company is not
able to Incur $1.00 of additional Indebtedness pursuant to Section 3.3(a)
after giving effect, on a pro forma basis, to such Restricted Payment; or

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

 55

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

(ii)           100% of the aggregate Net Cash
Proceeds, or the fair market value of property other than cash, received by the
Company from the issue or sale of its Capital Stock (other than Disqualified
Stock) or other capital contributions subsequent to the Issue Date (other than
Net Cash Proceeds or property received from an issuance or sale of such Capital
Stock to a Subsidiary of the Company or an employee stock ownership plan,
option plan or similar trust to the extent such sale to an employee stock
ownership plan, option plan or similar trust is financed by loans from or
Guaranteed by the Company or any Restricted Subsidiary unless such loans have
been repaid with cash on or prior to the date of determination) excluding in
any event Net Cash Proceeds received by the Company from the issue and sale of
its Capital Stock or capital contributions to the extent applied to redeem
Notes in compliance with the provisions set forth under Section 5.1;

(iii)          the amount by which Indebtedness of
the Company or its Restricted Subsidiaries is reduced on the Company’s
consolidated balance sheet upon the conversion or exchange (other than by a
Subsidiary of the Company) subsequent to the Issue Date of any Indebtedness of
the Company or its Restricted Subsidiaries convertible or exchangeable for
Capital Stock (other than Disqualified Stock) of the Company (less the amount
of any cash, or the fair market value of any other property, distributed by the
Company upon such conversion or exchange);

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

(A)          repurchases, repayments
or redemptions of such Restricted Investments by such Person, proceeds realized
upon the sale of such Restricted Investment to an unaffiliated purchaser,
repayments of loans or advances or other transfers of cash or assets
(including, without limitation, by way of dividend or distribution) by such
Person to the Company or any Restricted Subsidiary (other than for
reimbursement of tax payments); or

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

 56
 

made by the Company or any Restricted
Subsidiary in such Unrestricted Subsidiary,

which
amount in each case under this clause (iv) was included in the calculation of
the amount of Restricted Payments; provided,
however,  that no amount will
be included under this clause (iv) to the extent it is already included in
Consolidated Net Income; and

(v)           any amount that previously qualified
as a Restricted Payment on account of any Guarantee entered into by the Company
or any Restricted Subsidiary; provided,
that the obligation arising under such Guarantee no longer exists (and
excluding any amount actually paid by the Company or any Restricted Subsidiary
to satisfy its obligations under such Guarantee); and

(b)   The provisions of Section
3.4(a) will not prohibit:

(1)       any Restricted Payment
(other than a Restricted Payment described in clause (1) of the definition of “Restricted
Payment”) made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Capital Stock of the Company (other than Disqualified Stock
and other than Capital Stock issued or sold to a Subsidiary or an employee
stock ownership plan or similar trust to the extent such sale to an employee
stock ownership plan or similar trust is financed by loans from or Guaranteed
by the Company or any Restricted Subsidiary unless such loans have been repaid
with cash on or prior to the date of determination); provided, however, that the amount of such Restricted
Payments will be excluded in subsequent calculations of the amount of
Restricted Payments; provided, further,
that the Net Cash Proceeds or property other than cash received from such sale
of Capital Stock to the extent such proceeds are used to make such Restricted
Payments will be excluded from Section 3.4(a)(III)(ii);

(2)       any principal payment on,
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Subsidiary Guarantor made by exchange for, or out of the
proceeds of the substantially concurrent sale of, Subordinated Obligations of
the Company or any principal payment on, purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Guarantor Subordinated
Obligations made by exchange for or out of the proceeds of the substantially
concurrent sale of Guarantor Subordinated Obligations that, in each case, is
permitted to be Incurred pursuant to Section 3.3 and that in each case
constitutes Refinancing Indebtedness; provided,
however, that the amount of such Restricted Payments will be
excluded in subsequent calculations of the amount of Restricted Payments;

(3)       any principal payment on,
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Disqualified Stock of the Company or a Restricted Subsidiary made by
exchange for or out of the proceeds of the substantially concurrent sale of
Disqualified Stock of the Company or such Restricted Subsidiary, as the case
may be, that, in each case, is permitted to be Incurred pursuant to Section
3.3 and 

 57
 

that in each case constitutes Refinancing Indebtedness; provided, however, that the amount of such
Restricted Payments will be excluded in subsequent calculations of the amount
of Restricted Payments;

(4)       so long as no Default or
Event of Default has occurred and is continuing, any purchase or redemption of
Subordinated Obligations or Guarantor Subordinated Obligations of a Subsidiary
Guarantor from Net Available Cash to the extent permitted under Section 3.8;
provided, however, that the
amount of such Restricted Payments will be excluded in subsequent calculations
of the amount of Restricted Payments;

(5)       dividends paid within 60
days after the date of declaration if at such date of declaration such dividend
would have complied with this provision; provided,
however, that the amount of such Restricted Payments will be
included in subsequent calculations of the amount of Restricted Payments;

(6)       so long as no Default or
Event of Default has occurred and is continuing,

(a)           the purchase,
redemption or other acquisition, cancellation or retirement for value of
Capital Stock, or options, warrants or other rights to purchase or acquire
Capital Stock of the Company or any Restricted Subsidiary or any direct or
indirect parent of the Company held by any existing or former officers,
directors, employees, management or consultants of the Company or any
Subsidiary of the Company or their assigns, estates or heirs, in each case in
connection with the repurchase provisions under employee stock option or stock
purchase agreements or other agreements to compensate officers, directors,
employees, management or consultants; provided
that such Capital Stock, or options, warrants or other rights to purchase or
acquire Capital Stock, were received for services related to, or for the
benefit of, the Company and its Restricted Subsidiaries; and provided further that such redemptions or
repurchases pursuant to this clause will not exceed $2.0 million in the
aggregate during any calendar year (with unused amounts in any calendar year
being carried over to the succeeding calendar years) and $5.0 million in the
aggregate for all such redemptions and repurchases, plus the amount of any
capital contributions to the Company as a result of sales of Capital Stock, or
options, warrants or other rights to purchase or acquire Capital Stock, of the
Company or any direct or indirect parent of the Company to such persons, plus
the cash proceeds of key man life insurance policies received by the Company
and its Restricted Subsidiaries after the Issue Date (provided, however, that the Net Cash
Proceeds from such sale of Capital Stock to the extent such proceeds are used
to make such Restricted Payments will be excluded from Section
3.4(a)(III)(ii), and provided,
further, however, that the amount of such
Restricted Payments will be excluded in subsequent calculations of the amount
of Restricted Payments); and

(b)           loans or advances to
employees, officers, directors, management or consultants of the Company or any
Subsidiary of the Company the proceeds of which are used to purchase Capital
Stock of the Company, in an aggregate amount not in excess of $2.0 million with
respect to all loans or advances made 

 58
 

since the Issue Date (without giving effect to the forgiveness
of any such loan); provided, however, that the amount of such
Restricted Payments will be included in subsequent calculations of the amount
of Restricted Payments;

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

(8)       repurchases of Capital
Stock deemed to occur upon the exercise of stock options, warrants or other
convertible securities if such Capital Stock represents a portion of the
exercise price thereof; provided, however,
that the amount of such Restricted Payments will be excluded in subsequent
calculations of the amount of Restricted Payments;

(9)       the purchase, repurchase,
redemption, defeasance or other acquisition or retirement for value of any
Subordinated Obligation or Guarantor Subordinated Obligation (a) at a purchase
price not greater than 101% of the principal amount of such Subordinated
Obligation or Guarantor Subordinated Obligation in the event of a Change of
Control in accordance with provisions similar to Section 3.10 or (b) at
a purchase price not greater than 100% of the principal amount thereof in
accordance with provisions similar to Section 3.8; provided that, prior to or simultaneously
with such purchase, repurchase, redemption, defeasance or other acquisition or
retirement, the Company has made the Change of Control Offer or Asset
Disposition Offer, as applicable, as provided in such covenant with respect to
the Notes and has completed the repurchase or redemption of all Notes validly
tendered for payment in connection with such Change of Control Offer or Asset
Disposition Offer; provided, however,
that the amount of such Restricted Payments will be excluded in subsequent
calculations of the amount of Restricted Payments;

(10)     so long as no Default or
Event of Default has occurred and is continuing, the payment of dividends on
the Company’s Common Stock of an amount per annum not to exceed $0.20 per share
(but in no event in excess of $20.0 million in the aggregate during any
calendar year pursuant to this clause (10)); provided,
however, that the amount of such Restricted Payments will be
included in subsequent calculations of Restricted Payments;

(11)     the payment of cash in lieu
of fractional shares of Capital Stock in connection with any transaction that
is not prohibited by this Indenture (including, without limitation, in
connection with the conversion of convertible Indebtedness into Capital Stock);
provided, however, that such
Restricted Payments will be excluded in subsequent calculations of the amount
of Restricted Payments;

(12)     payments to dissenting
stockholders not to exceed $5.0 million in the aggregate after the Issue Date
(x) pursuant to applicable law or (y) in connection with 

 59
 

the settlement or other satisfaction of claims made pursuant to or in
connection with a consolidation, merger or transfer of assets in connection
with a transaction that is not prohibited by this Indenture; provided, however,
that such Restricted Payments will be included in subsequent calculations of
the amount of Restricted Payments;

(13)     so long as no Default or
Event of Default has occurred and is continuing, any redemption of share
purchase rights at a redemption price not to exceed $0.01 per right; provided, however, that such Restricted
Payment will be included in subsequent calculations of the amount of Restricted
Payments;

(14)     so long as no Default or
Event of Default has occurred and is continuing, the purchase, redemption or
other acquisition, cancellation or retirement for value of Capital Stock, or
options, warrants or other rights to purchase or acquire Capital Stock, of the
Company pursuant to a stock repurchase program authorized by the Board of
Directors of the Company for an aggregate amount not to exceed
$200.0 million after the Issue Date; provided,
however, that such Restricted Payments will be included in
subsequent calculations of the amount of Restricted Payments; and

(15)     Restricted Payments in an
amount not to exceed $25.0 million; provided,
however, that the amount of such
Restricted Payments will be included in subsequent calculations of the amount
of Restricted Payments.

The amount of all Restricted Payments (other than
cash) shall be the fair market value on the date of such Restricted Payment of
the asset(s) or securities proposed to be paid, transferred or issued by the
Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment.

SECTION 3.5.   Limitation on Liens.  The Company will not, and will not permit any
of its Restricted Subsidiaries to, directly or indirectly, create, Incur or
suffer to exist any Lien (other than Permitted Liens) upon any of its property
or assets (including, without limitation, Capital Stock of Subsidiaries),
whether owned on the Issue Date or acquired after that date, which Lien is
securing any Indebtedness, unless contemporaneously with the Incurrence of such
Liens effective provision is made to secure the Indebtedness due under this
Indenture and the Notes or, in respect of Liens on any Restricted Subsidiary’s
property or assets, any Subsidiary Guarantee of such Restricted Subsidiary,
equally and ratably with (or senior in priority to in the case of Liens with
respect to Subordinated Obligations or Guarantor Subordinated Obligations, as
the case may be) the Indebtedness secured by such Lien for so long as such
Indebtedness is so secured.

SECTION 3.6.   Limitation on Sale/Leaseback Transactions.  The Company will not, and will not permit any
of its Restricted Subsidiaries to, enter into any Sale/Leaseback Transaction unless:

(1)           the Company or such
Restricted Subsidiary, as the case may be, receives consideration at the time
of such Sale/Leaseback Transaction at least equal to the fair market value (as
conclusively determined by the Board of Directors of the Company or such
Restricted Subsidiary) of the property subject to such transaction;

 60
 

(2)           the Company or such
Restricted Subsidiary could have Incurred Indebtedness at the time of such
Sale/Leaseback Transaction in an amount equal to the Attributable Indebtedness
in respect of such Sale/Leaseback Transaction pursuant to Section 3.3;
and

(3)           the Sale/Leaseback
Transaction is treated as an Asset Disposition and all of the conditions of
this Indenture described under Section 3.8 (including the provisions
concerning the application of Net Available Cash) are satisfied with respect to
such Sale/Leaseback Transaction, treating all of the consideration received in
such Sale/Leaseback Transaction as Net Available Cash for purposes of Section
3.8.

SECTION 3.7.   Limitation on Restrictions on Distributions
from Restricted Subsidiaries. 
(a)   The Company will not, and will not permit any Restricted
Subsidiary to, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or consensual restriction on the ability of any
Restricted Subsidiary to:

(1)           pay dividends or
make any other distributions on its Capital Stock or pay any Indebtedness or
other obligations owed to the Company or any Restricted Subsidiary (it being
understood that the priority of any Preferred Stock in receiving dividends or
liquidating distributions prior to dividends or liquidating distributions being
paid on Common Stock and any subordination of such Indebtedness or other
obligations shall be deemed not to be an encumbrance or restriction on the
ability to pay dividends or make any other distributions on Capital Stock);

(2)           make any loans or
advances to the Company or any Restricted Subsidiary (it being understood that
the subordination of loans or advances made to the Company or any Restricted
Subsidiary to other Indebtedness Incurred by the Company or any Restricted
Subsidiary shall be deemed not to be an encumbrance or restriction on the
ability to make loans or advances); or

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

(b)           The provisions of Section 3.7(a) will
not prohibit:

(1)           any encumbrance or
restriction pursuant to an agreement or instrument in effect at or entered into
on the Issue Date, including, without limitation, this Indenture, the Notes,
the Subsidiary Guarantees, and the Senior Secured Credit Agreement (and related
documentation);

(2)           any encumbrance or
restriction with respect to a Restricted Subsidiary pursuant to any agreement
or instrument that is in existence at the time such Person becomes a Restricted
Subsidiary (and not Incurred in connection with, or in contemplation of, such
Person becoming a Restricted Subsidiary); provided,
that any such encumbrance or restriction shall not extend to any assets or
property of the Company or any other Restricted Subsidiary other than the
assets and property so acquired and that, in the case of Indebtedness, was
permitted to be Incurred pursuant to this Indenture;

 61
 

(3)           any encumbrance or
restriction pursuant to any agreement or instrument governing any Acquired
Indebtedness or other agreement or instrument of any Person or related to
property, assets or Capital Stock of a Person acquired by or merged into or
consolidated with the Company or any Restricted Subsidiary; provided, that such encumbrance or
restriction (i) was not entered into in contemplation of the acquisition,
merger or consolidation transaction, and (ii) shall not extend to any assets or
property of the Company or any other Restricted Subsidiary other than the
assets and property so acquired and that, in the case of Indebtedness, was
permitted to be Incurred pursuant to this Indenture;

(4)           any encumbrance or
restriction with respect to a Restricted Subsidiary pursuant to an agreement
effecting a refunding, replacement or refinancing of Indebtedness Incurred pursuant
to an agreement referred to in any of clauses (1), (2) or (3) of this Section
3.7(b) or this clause (4) or contained in any amendment, restatement,
modification, renewal, restructuring, supplement, extension, substitution,
refunding, replacement or refinancing of an agreement referred to in any of
such clauses; provided, however,
that, in the good faith reasonable determination of the Company, the
encumbrances and restrictions with respect to such Restricted Subsidiary
contained in any such agreement are no less favorable in any material respect,
taken as a whole, to the Holders than the encumbrances and restrictions
contained in such agreements referred to in clauses (1), (2) or (3) of this Section
3.7(b) on the Issue Date or the date such Restricted Subsidiary became a
Restricted Subsidiary or was merged into a Restricted Subsidiary, whichever is
applicable;

(5)           in the case of Section
3.7(a)(3), any encumbrance or restriction:

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

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

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

(6)           (i) purchase money
obligations for property acquired in the ordinary course of business and (ii)
Capitalized Lease Obligations permitted under this Indenture, in each case,
that impose encumbrances or restrictions of the nature described in Section
3.7(a)(3) on the property so acquired;

(7)           any encumbrance or
restriction with respect to a Restricted Subsidiary (or any of its property or
assets) imposed pursuant to an agreement entered into for the direct 

 62
 

or indirect sale or other disposition of the Capital Stock,
property or assets of such Restricted Subsidiary (or the property or assets
that are subject to such encumbrance or restriction) pending the closing of
such sale or disposition;

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

(9)           deposit arrangements
or net worth provisions in leases and other agreements entered into by the
Company or any Restricted Subsidiary in the ordinary course of business;

(10)         in the case of Section
3.7(a)(3), any encumbrance or restriction that is a Lien otherwise
permitted to be Incurred pursuant to Section 3.5;

(11)         any encumbrance or
restriction in respect of a Sale/Leaseback Transaction permitted under Section
3.6; and

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

SECTION 3.8.   Limitation on Sales of Assets and
Subsidiary Stock.  (a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any Asset Disposition unless:

(1)           the Company or such
Restricted Subsidiary, as the case may be, receives consideration at least
equal to the Fair Market Value, including as to the value of all non-cash
consideration, as determined in good faith by the Company, of the shares and
assets subject to such Asset Disposition;

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

(3)           an amount equal to
100% of the Net Available Cash from such Asset Disposition is applied by the
Company or any one or more Restricted Subsidiaries:

(i)            to the extent the
Company or any Restricted Subsidiary, as the case may be, elects (or is
required by the terms of any Indebtedness), to prepay, repay or purchase
Indebtedness of the Company (other than any Disqualified Stock or Subordinated
Obligations) or Indebtedness of a Wholly Owned Subsidiary (other than any
Disqualified Stock or Guarantor Subordinated Obligations of a Wholly Owned
Subsidiary that is a Subsidiary Guarantor) (in each case other than
Indebtedness owed to the Company or an Affiliate of the Company) within 365
days from the later of the date of such Asset Disposition and the receipt of
such Net Available Cash; provided, however,
that, in connection with any prepayment, repayment or purchase of Indebtedness
pursuant to this clause (a), the Company or such Restricted Subsidiary will
retire such Indebtedness and will cause the related commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid,
repaid or purchased; and

 63
 

(ii)           to the extent the
Company or any Restricted Subsidiary elects, to invest in Additional Assets
within 365 days from the later of the date of such Asset Disposition and the
receipt of such Net Available Cash;

provided that the Company
and its Restricted Subsidiaries may make any combination of prepayment,
repayment, purchase or investment permitted by clause (i) or clause (ii) above
and, pending the final application of any such Net Available Cash in accordance
with clause (i) or clause (ii) above or pursuant to an Asset Disposition Offer
described below, the Company and its Restricted Subsidiaries may temporarily
reduce Indebtedness or otherwise invest such Net Available Cash in any manner
not prohibited by this Indenture.

(b)           Any Net Available Cash
from Asset Dispositions that are not applied or invested as provided in Section
3.8(a) will be deemed to constitute “Excess Proceeds.”  Within 30 days following the 365th day after an Asset Disposition, if the
aggregate amount of Excess Proceeds exceeds $25.0 million, the Company will be
required to make an offer (“Asset Disposition Offer”) to all Holders and
to the extent required by the terms of other Pari Passu Indebtedness, to all
holders of other Pari Passu Indebtedness outstanding with similar provisions
requiring the Company to make an offer to purchase such Pari Passu Indebtedness
with the proceeds from any Asset Disposition (“Pari Passu Notes”), to
purchase the maximum principal amount of Notes and any such Pari Passu Notes to
which the Asset Disposition Offer applies that may be purchased out of the
Excess Proceeds, at an offer price in cash in an amount equal to 100% of the
principal amount of the Notes and Pari Passu Notes plus accrued and unpaid
interest to the date of purchase, in accordance with the procedures set forth
in this Indenture or the agreements governing the Pari Passu Notes, as
applicable, in each case in denominations of $2,000 and integral multiples of
$1,000 in excess thereof. To the extent that the aggregate amount of Notes and
Pari Passu Notes so validly tendered and not properly withdrawn pursuant to an
Asset Disposition Offer is less than the Excess Proceeds, the Company may use
any remaining Excess Proceeds for general corporate or other purposes, subject
to other covenants contained in this Indenture. 
If the aggregate principal amount of Notes surrendered by Holders
thereof and other Pari Passu Notes surrendered by holders or lenders,
collectively, exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes and Pari Passu Notes to be purchased on a pro rata basis on the basis
of the aggregate principal amount of tendered Notes and Pari Passu Notes.  Upon completion of such Asset Disposition
Offer, the amount of Excess Proceeds shall be reset at zero.

(c)           The Asset Disposition
Offer will remain open for a period of 20 Business Days following its
commencement, except to the extent that a longer period is required by
applicable law (the “Asset Disposition Offer Period”).  No later than five Business Days after the
termination of the Asset Disposition Offer Period (the “Asset Disposition
Purchase Date”), the Company will purchase the principal amount of Notes
and Pari Passu Notes required to be purchased pursuant to this Section 3.8
(the “Asset Disposition Offer Amount”) or, if less than the Asset
Disposition Offer Amount has been so validly tendered, all Notes and Pari Passu
Notes validly tendered in response to the Asset Disposition Offer.

(d)           If the Asset
Disposition Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest will
be paid to the 

 64
 

Person in whose name a Note is registered at
the close of business on such record date, and no additional interest will be
payable to Holders who tender Notes pursuant to the Asset Disposition Offer.

(e)           On or before the Asset Disposition Purchase
Date, the Company will, to the extent lawful, accept for payment, on a pro rata
basis to the extent necessary, the Asset Disposition Offer Amount of Notes and
Pari Passu Notes or portions of Notes and Pari Passu Notes so validly tendered
and not properly withdrawn pursuant to the Asset Disposition Offer, or if less
than the Asset Disposition Offer Amount has been validly tendered and not
properly withdrawn, all Notes and Pari Passu Notes so validly tendered and not
properly withdrawn, in each case in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. 
The Company will deliver to the Trustee an Officers’ Certificate stating
that such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.8 and, in addition, the
Company will deliver all certificates and notes required, if any, by the
agreements governing the Pari Passu Notes. 
The Company or the Paying Agent, as the case may be, will promptly (but
in any case not later than five Business Days after termination of the Asset
Disposition Offer Period) mail or deliver to each tendering Holder or holder or
lender of Pari Passu Notes, as the case may be, an amount equal to the purchase
price of the Notes or Pari Passu Notes so validly tendered and not properly
withdrawn by such holder or lender, as the case may be, and accepted by the
Company for purchase, and the Company will promptly issue a new Note, and the
Trustee, upon delivery of an Officers’ Certificate from the Company, will
authenticate and mail or deliver such new Note to such holder, in a principal
amount equal to any unpurchased portion of the Note surrendered; provided that each such new Note will be
in a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof.  In addition, the Company will
take any and all other actions required by the agreements governing the Pari
Passu Notes in connection with the Asset Disposition Offer.  Any Note not so accepted will be promptly
mailed or delivered by the Company to the holder thereof.  The Company will publicly announce the
results of the Asset Disposition Offer on or before the Asset Disposition
Purchase Date.

(f)            For the purposes of
this Section 3.8, the following shall be deemed to be cash: (1) the
assumption by the transferee of Indebtedness (other than Subordinated
Obligations or Disqualified Stock) of the Company or Indebtedness of a Wholly
Owned Subsidiary (other than Guarantor Subordinated Obligations or Disqualified
Stock of any Wholly Owned Subsidiary that is a Subsidiary Guarantor) and the
release of the Company or such Restricted Subsidiary from all liability on such
Indebtedness in connection with such Asset Disposition (in which case the
Company will, without further action, be deemed to have applied such deemed
cash to Indebtedness in accordance with Section 3.8(a)(3)(i)); and (2)
securities, notes or other obligations received by the Company or any
Restricted Subsidiary from the transferee that, within 180 days of receipt
thereof, are converted, sold or exchanged by the Company or such Restricted
Subsidiary into or for cash.

(g)           The Company will
comply, to the extent applicable, with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 3.8.  To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 3.8,
the Company will 

 65
 

comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations under
this Indenture by virtue of any conflict.

SECTION 3.9.   Limitation on
Affiliate Transactions. 
(a)   The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into any transaction
(including, without limitation, the purchase, sale, lease or exchange of any
property or the rendering of any service) with any Affiliate of the Company (an
“Affiliate Transaction”) unless:

(1)           the terms of such
Affiliate Transaction are not materially less favorable to the Company or such
Restricted Subsidiary, as the case may be, than those that could be obtained in
a comparable transaction at the time of such transaction in arm’s-length
dealings with a Person who is not such an Affiliate;

(2)           in the event such
Affiliate Transaction involves an aggregate consideration to the Affiliate of
the Company with a value in excess of $10.0 million, the terms of such
transaction have been approved by a majority of the members of the Board of
Directors of the Company and by a majority of the members of such Board having
no personal stake in such transaction, if any (and such majority or majorities,
as the case may be, determines that such Affiliate Transaction satisfies the
criteria in Section 3.9(a)(1)); and

(3)           in the event such
Affiliate Transaction involves an aggregate consideration to the Affiliate of
the Company with a value in excess of $25.0 million, the Company has received a
written opinion from an independent investment banking, engineering,
consulting, accounting or appraisal firm of nationally recognized standing, or
other recognized firm or expert that in the judgment of the Board of Directors
of the Company is independent and qualified to render such opinion, either (i)
that such Affiliate Transaction is fair, from a financial point of view, to the
Company or the applicable Restricted Subsidiary, as the case may be, or (ii)
that the terms of such Affiliate Transaction are not materially less favorable
to the Company or the applicable Restricted Subsidiary, as the case may be,
than those that might reasonably have been obtained in a comparable transaction
at such time on an arm’s length basis from a Person that is not an Affiliate.

(b)           The provisions of Section
3.9(a) will not apply to:

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

(2)           any issuance of
securities, or other payments, awards or grants in cash, securities or
otherwise pursuant to, or the funding of, employment agreements and other
compensation arrangements, options to purchase Capital Stock of the Company,
restricted stock plans, long-term incentive plans, stock appreciation rights
plans, participation plans or other employee benefits plans and/or insurance
and indemnification arrangements approved by the Board of Directors of the
Company or the applicable Restricted Subsidiary provided to or 

 66
 

for the benefit of directors, officers, employees, managers or
consultants who are Affiliates of the Company;

(3)           loans or advances to
employees, officers, directors, managers and consultants who are Affiliates of
the Company in the ordinary course of business of the Company or any Restricted
Subsidiary, in an aggregate principal amount not in excess of $2.0 million with
respect to all loans or advances made since the Issue Date (without giving
effect to the forgiveness of any such loan);

(4)           any transaction
between the Company and a Restricted Subsidiary or between Restricted
Subsidiaries and Guarantees issued by the Company or a Restricted Subsidiary
for the benefit of the Company or a Restricted Subsidiary, as the case may be,
in accordance with Section 3.3;

(5)           any transaction with
a joint venture, partnership, limited liability company or other entity that
would constitute an Affiliate Transaction solely because the Company or a
Restricted Subsidiary owns an equity interest in such joint venture,
partnership, limited liability company or other entity;

(6)           the payment of
reasonable and customary fees paid to, and indemnity provided on behalf of,
directors of the Company or any Restricted Subsidiary;

(7)           the existence of,
and the performance of obligations of the Company or any of its Restricted
Subsidiaries under the terms of, any agreement to which the Company or any of
its Restricted Subsidiaries is a party as of or on the Issue Date, as these
agreements may be amended, modified, supplemented, extended or renewed from
time to time; provided, however,
that any future amendment, modification, supplement, extension or renewal
entered into after the Issue Date will be permitted to the extent that its
terms are not more disadvantageous to the Holders than the terms of the
agreements in effect on the Issue Date;

(8)           transactions with
customers, clients, suppliers or purchasers or sellers of goods or services
that are Affiliates of the Company, in each case in the ordinary course of the
business of the Company and its Restricted Subsidiaries and otherwise in
compliance with the terms of this Indenture; provided
that in the good faith reasonable determination of the Company, such
transactions are on terms that are not materially less favorable, taken as a
whole, to the Company or the relevant Restricted Subsidiary, as the case may
be, than those that would have been obtained in a comparable transaction at
such time by the Company or such Restricted Subsidiary from a Person that is
not an Affiliate;

(9)           any issuance or sale
of Capital Stock or debt securities made to an Affiliate of the Company on the
same terms as are being made to the non-Affiliate investors in any public or
private issuance or sale of such Capital Stock or debt 

 67
 

securities; provided, that
any such issuance or sale complies with the requirements of Section
3.9(a)(1); and

(10)         any issuance or sale
of Capital Stock (other than Disqualified Stock) to Affiliates of the Company
and the granting of registration and other customary rights in connection
therewith.

SECTION 3.10.   Change of
Control.  (a)  If a Change
of Control occurs, unless the Company has exercised its right to redeem all of
the Notes as described under Section 5.1, each Holder will have the
right to require the Company to repurchase all or any part (equal to $2,000 or
an integral multiple of $1,000 in excess thereof) of such Holder’s Notes at a
purchase price in cash equal to 101% of the principal amount of such Notes plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date).

(b)           Within 30 days
following any Change of Control, unless the Company has exercised its right to redeem
all of the Notes as described under Section 5.1, or at the Company’s
option, prior to such Change of Control but after it is publicly announced, the
Company will mail a notice (the “Change of Control Offer”) to each
Holder, with a copy to the Trustee, stating:

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

(2)   the repurchase date (which shall be no earlier than 30
days nor later than 60 days from the date such notice is mailed, or such later
date as is necessary to comply with the requirements under the Exchange Act)
(the “Change of Control Payment Date”); provided that the Change of Control Payment Date may not
occur prior to the Change of Control; and

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

(c)           On the Change of
Control Payment Date, the Company will, to the extent lawful:

(1)   accept for payment all Notes or portions of Notes (of
$2,000 or an integral multiple of $1,000 in excess thereof) properly tendered
and not withdrawn pursuant to the Change of Control Offer;

(2)   deposit, to the extent not previously deposited for
such purpose, with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes so tendered; and

(3)   deliver or cause to be delivered to the Trustee the
Notes, to the extent not previously delivered for such purpose, so accepted and
an Officers’ Certificate stating the 

 68
 

aggregate
principal amount of Notes or portions of Notes being purchased by the Company.

(d)           The Paying Agent will
promptly mail to each Holder so tendered the Change of Control Payment for such
Notes, and the Trustee will promptly authenticate and mail or deliver (or cause
to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be
in a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof.  The Paying Agent will deliver
the Change of Control Payment for such Notes in global form registered in the
name of or held by The Depository Trust Company or its nominee in immediately
available funds to The Depository Trust Company or its nominee, as the case may
be, as the registered Holder of such global Note.

(e)           If the Change of
Control Payment Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest, if any,
will be paid to the Person in whose name a Note is registered at the close of
business on such record date, and no additional interest will be payable to Holders
who tender pursuant to the Change of Control Offer.

(f)            The Change of Control
provisions described in this Section 3.10 will be applicable whether or
not any other provisions of this Indenture are applicable.

(g)           The Company will not be
required to make a Change of Control Offer upon a Change of Control if a third
party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.

(h)           The Company will
comply, to the extent applicable, with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 3.10. To the extent
that the provisions of any securities laws or regulations conflict with
provisions of this Indenture, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations described in this Indenture by virtue of the conflict.

SECTION 3.11.   Future
Subsidiary Guarantors. 
(a)    The Company will
cause each Restricted Subsidiary (other than a Foreign Subsidiary) that
Guarantees, on the Issue Date or any time thereafter, Indebtedness of the
Company under the Senior Secured Credit Agreement to execute and deliver to the
Trustee a supplemental indenture pursuant to which such Restricted Subsidiary will
unconditionally Guarantee, on a joint and several basis, the full and prompt
payment of the principal of, premium, if any, and interest in respect of the
Notes on a senior unsecured basis and all other obligations under this
Indenture on an unsecured basis. Notwithstanding the foregoing, in the event
(1) a Subsidiary Guarantor is released and discharged in full from all of its
obligations under its Guarantees of (i) the Senior Secured Credit Agreement and
(ii) all other Indebtedness of the Company and its Restricted Subsidiaries and
(2) such Subsidiary Guarantor has not Incurred any Indebtedness in reliance on
its status as a Subsidiary Guarantor under Section 3.3 or such
Subsidiary Guarantor’s obligations under such 

 69
 

Indebtedness are satisfied in full and discharged or are otherwise
permitted to be Incurred by a Restricted Subsidiary (other than a Subsidiary
Guarantor) under Section 3.3(b), then the Subsidiary Guarantee of such
Subsidiary Guarantor shall be automatically and unconditionally released or
discharged.

(b)           The obligations of each
Subsidiary Guarantor will be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor (including, without limitation, any Guarantees under the Senior
Secured Credit Agreement) and after giving effect to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Subsidiary
Guarantee or pursuant to its contribution obligations under this Indenture,
result in the obligations of such Subsidiary Guarantor under its Subsidiary
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
federal or state law.

(c)           Each Subsidiary
Guarantee shall also be released in accordance with the provisions of Section
10.2.

SECTION 3.12.   Limitation on
Lines of Business.  The Company will
not, and will not permit any Restricted Subsidiary to, engage in any material
business other than the Oil and Gas Business.

SECTION 3.13.   Payments for
Consent.  Neither the Company nor any
of its Restricted Subsidiaries will, directly or indirectly, pay or cause to be
paid any consideration, whether by way of interest, fees or otherwise, to any
Holder for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid or is paid to all Holders that consent,
waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or amendment.

SECTION 3.14.   Limitation on
the Sale of Capital Stock of Restricted Subsidiaries.  (a)    The Company will not, and will not permit any
Restricted Subsidiary to, transfer, convey, sell, lease or otherwise dispose of
any Voting Stock of any Restricted Subsidiary or, with respect to a Restricted
Subsidiary, to issue any of the Voting Stock of a Restricted Subsidiary (other
than, if necessary, shares of its Voting Stock constituting directors’
qualifying shares) to any Person except:

(1)           to the Company or a
Wholly Owned Subsidiary; or

(2)           in compliance with Section
3.8 and immediately after giving effect to such issuance or sale, such
Restricted Subsidiary would continue to be a Restricted Subsidiary.

(b)           Notwithstanding Section
3.14(a), the Company and its Restricted Subsidiaries may sell all the
Voting Stock of a Restricted Subsidiary as long as the Company or its
Restricted Subsidiaries comply with the terms of Section 3.8 (it being
understood that only such portion of the Net Available Cash, if any, as is
required to be applied on the date of such transaction in accordance with the
terms of this Indenture needs to be applied in accordance therewith at such
time).

 70
 

SECTION 3.15.   Effectiveness of
Covenants.   (a)    Following the first Business Day on which:

(1)           the
Notes have an Investment Grade Rating from both of the Rating Agencies; and

(2)           no
Default has occurred and is continuing under this Indenture,

the Company and its Restricted Subsidiaries will not
be subject to Sections 3.3, 3.4, 3.7, 3.8, 3.9,
3.12, 3.14 and 4.1(a)(3), (collectively, the “Suspended
Covenants”).

(b)           If
at any time the Notes’ credit rating is downgraded from an Investment Grade
Rating by any Rating Agency or a Default or Event of Default occurs and is
continuing, then the Suspended Covenants will thereafter be reinstated as if
such covenants had never been suspended (the “Reinstatement Date”) and
thereafter be applicable pursuant to the terms of this Indenture (including in
connection with performing any calculation or assessment to determine
compliance with the terms of this Indenture), unless and until the Notes
subsequently attain an Investment Grade Rating (in which event the Suspended
Covenants shall no longer be in effect for such time that the Notes maintain an
Investment Grade Rating and no Default or Event of Default has occurred and is
continuing); provided, however,
that no Default, Event of Default or breach of any kind shall be deemed to exist
under this Indenture, the Notes or the Subsidiary Guarantees with respect to
the Suspended Covenants based on, and none of the Company or any of its
Subsidiaries shall bear any liability for, any actions taken or events
occurring after the Notes attain an Investment Grade Rating and before any
reinstatement of such Suspended Covenants as provided above, or any actions
taken at any time pursuant to any contractual obligation arising prior to such
reinstatement, regardless of whether such actions or events would have been
permitted if the applicable Suspended Covenants remained in effect during such
period.  The period of time between the
date of suspension of the covenants and the Reinstatement Date is referred to
as the “Suspension Period.”

(c)           On
the Reinstatement Date, all Indebtedness Incurred during the Suspension Period
will be classified to have been Incurred pursuant to Section 3.3(a) or
one of the clauses set forth in Section 3.3(b) (to the extent such
Indebtedness would be permitted to be Incurred thereunder as of the
Reinstatement Date and after giving effect to Indebtedness Incurred prior to
the Suspension Period and outstanding on the Reinstatement Date).  To the extent such Indebtedness would not be
so permitted to be Incurred pursuant to Section 3.3, such Indebtedness
will be deemed to have been outstanding on the Issue Date, so that it is
classified as permitted under Section 3.3(b)(4)(b).  Calculations made after the Reinstatement
Date of the amount available to be made as Restricted Payments pursuant to Section
3.4 will be made as though Section 3.4 had been in effect since the
Issue Date and throughout the Suspension Period. Accordingly, Restricted
Payments made during the Suspension Period will reduce the amount available to
be made as Restricted Payments pursuant to Section 3.4(a).

(d)           During
any period when the Suspended Covenants are suspended, the Board of Directors
of the Company may not designate any of the Company’s Subsidiaries as
Unrestricted Subsidiaries pursuant to this Indenture.

 71
 

SECTION 3.16.   Maintenance of
Office or Agency.  The Company shall
maintain in The City of New York, an office or agency where the Notes may
be presented or surrendered for payment, where, if applicable, the Notes may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Notes and this Indenture may
be served.  The office of the Trustee, at
100 Wall Street, Suite 1600, New York, NY 10005, shall be such office or agency
of the Company for such purposes, unless the Company shall designate and
maintain some other office or agency for one or more of such purposes.  The Company shall give prompt written notice
to the Trustee of any change in the location of any 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
the Company 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 (in or outside of The City of New York)
where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind any such designation; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in the Borough of Manhattan, The
City of New York for such purposes.  The
Company shall give prompt written notice to the Trustee of any such designation
or rescission and any change in the location of any such other office or
agency.

SECTION 3.17.   Money for Note
Payments to Be Held in Trust.  If the
Company shall at any time act as its own Paying Agent, it shall, on or before
each due date of the principal of (or premium, if any) or interest on any of
the Notes, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and shall promptly notify the Trustee
in writing of its action or failure to so act.

Whenever the Company shall have one or more Paying
Agents for the Notes, it shall, on or before each due date of the principal of
(or premium, if any) or interest on any Notes, deposit with any Paying Agent a
sum in same day funds (or New York Clearing House funds (or such other funds as
may be acceptable to the Paying Agent) if such deposit is made prior to the
date on which such deposit is required to be made) that shall be available to
the Trustee by 10:00 a.m. New York City time on such due date sufficient to pay
the principal (and premium, if any) or interest so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such Paying Agent is the Trustee) the Company
shall promptly notify the Trustee in writing of such action or any failure to
so act.

The Company shall cause each Paying Agent (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
3.17, that such Paying Agent shall:

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(a)           hold all sums held by
it for the payment of the principal of (and premium, if any) or interest on
Notes in trust for the benefit of the Persons entitled thereto until such sums
shall be paid to such Persons or otherwise disposed of as herein provided;

(b)           give the Trustee prompt
written notice of any default by the Company (or any other obligor upon the
Notes) in the making of any payment of principal (and premium, if any) or
interest; and

(c)           at any time during the
continuance of any such default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

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 sums.

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 premium, if any) or interest on any Note and remaining unclaimed for two
years after such principal, premium or interest has become due and payable
shall be paid, without liability for interest earned thereon, to the Company on
Company Order, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Note 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 to the
Company, may at the expense of the Company cause to be published once, in a
leading daily newspaper (if practicable, The
Wall Street Journal (Eastern Edition)) printed in the English
language and of general circulation in New York City, 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 nor shall it be later than
two years after such principal (or premium, if any) or interest shall have
become due and payable, subject to any applicable abandoned property law, any
unclaimed balance of such money then remaining shall be repaid to the Company.  The Company shall pay all publication costs
incurred by the Trustee pursuant to its duties under this Section 3.17.

SECTION 3.18.   Corporate
Existence.  Subject to Article IV,
the Company shall do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and that of each
Restricted Subsidiary and the corporate rights (charter and statutory) licenses
and franchises of the Company and each Restricted Subsidiary; provided, however, that the Company shall
not be required to preserve any such existence (except the Company), right,
license or franchise if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and each of its Restricted Subsidiaries, taken as a
whole, and that the loss thereof is not, and shall not be, disadvantageous in
any material respect to the Holders.

 73
 

SECTION 3.19.   Payment of Taxes
and Other Claims.  The Company shall
pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (i) all material taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary and (ii) all
lawful claims for labor, materials and supplies, which, if unpaid, might by law
become a material liability or lien upon the property of the Company or any
Restricted 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 and for which appropriate reserves, if necessary (in the good faith
judgment of management of the Company) are being maintained in accordance with
GAAP.

SECTION 3.20.   Maintenance of
Properties.  The Company shall cause
all material properties owned by the Company or any Restricted  Subsidiary or used or held for use in the
conduct of its business or the business of any Restricted Subsidiary to be
maintained and kept in normal condition, repair and working order and shall
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 conducted
at all times; provided, however,
that nothing in this Section shall prevent the Company or any of its Restricted
Subsidiaries from discontinuing the 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 Restricted Subsidiary and not
adverse in any material respect to the Holders.

SECTION 3.21.   Compliance with
Laws.  The Company shall comply, and
shall cause each of its Restricted Subsidiaries to comply, with all applicable
statutes, rules, regulations, orders and restrictions of the United States of
America, all states and municipalities thereof, and of any governmental
regulatory authority of any thereof, in respect of the conduct of their
respective businesses and the ownership of their respective properties, except
for such noncompliances as would not in the aggregate have a material adverse
effect on the financial condition or results of operations of the Company and
its Restricted Subsidiaries, taken as a whole.

SECTION 3.22.   Compliance
Certificate.  The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company a certificate executed by the Company’s principal executive officer,
principal accounting officer or principal financial officer stating that in the
course of the performance by the signer of his or her duties as such officer he
or she would normally have knowledge of any Default or Event of Default and
whether or not the signer knows of any Default or Event of Default that
occurred during such period.  If he or
she does, the certificate shall describe the Default or Event of Default, its
status and what action the Company is taking or proposes to take with respect
thereto.  The Company also shall comply
with TIA § 314(a)(4).  An Officers’
Certificate shall also notify the Trustee should the then current fiscal year
be changed to end on any date other than on December 31.

 74
 

ARTICLE
IV

Successor
Company and Successor Subsidiary Guarantor

SECTION 4.1.   Merger and
Consolidation(a).  The Company will
not consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, unless:

(1)  
the resulting, surviving or transferee Person (the “Successor Company”)
will be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any
State of the United States or the District of Columbia and the Successor
Company (if not the Company) will expressly assume, by supplemental indenture,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Company under the Notes and this Indenture; provided, that if the Successor Company is not a
corporation, a corporate Wholly Owned Subsidiary that is a Restricted
Subsidiary organized under the laws of the United States of America, any State
thereof or the District of Columbia shall become a co-issuer of the Notes;

(2)  
immediately after giving effect to such transaction (and treating any
Indebtedness not previously an obligation of the Company or any of its
Restricted Subsidiaries that becomes an obligation of the Successor Company or
any Subsidiary of the Successor Company as a result of such transaction as
having been Incurred by the Successor Company or such Subsidiary at the time of
such transaction), no Default or Event of Default shall have occurred and be
continuing;

(3)  
immediately after giving effect to such transaction, the Successor Company
would be able to Incur at least $1.00 of additional Indebtedness pursuant to Section
3.3(a);

(4)  
each Subsidiary Guarantor (unless it is the other party to the transactions
above, in which case clause (1) shall apply) shall have by supplemental
indenture confirmed that its Subsidiary Guarantee shall apply to such Person’s
obligations in respect of this Indenture and the Notes; and

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

(b)   For purposes of this Article
IV, the sale, lease, conveyance, assignment, transfer, or other disposition
of all or substantially all of the properties and assets of one or more
Subsidiaries of the Company, which properties and assets, if held by the
Company instead of such Subsidiaries, would constitute all or substantially all
of the properties and assets of the Company on a consolidated basis, shall be
deemed to be the transfer of all or substantially all of the properties and
assets of the Company.

 75

(c)   The predecessor Company will
be released from its obligations under this Indenture and the Successor Company
will succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture, but, in the case of a lease of all or
substantially all its assets, the predecessor Company will not be released from
the obligation to pay the principal of and interest on the Notes.

(d)   Notwithstanding Section
4.1(a)(2) and (3), (1) any Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to the Company and
(2) the Company may merge with an Affiliate incorporated or organized solely
for the purpose of reincorporating or reorganizing the Company in another
jurisdiction to realize tax benefits; provided
that, in the case of a Restricted Subsidiary that merges into the
Company, the Company will not be required to comply with Section 4.1(a)(5).

(e)   In addition, the Company will
not permit any Subsidiary Guarantor to consolidate with or merge with or into
any Person (other than the Company or another Subsidiary Guarantor) and will
not permit the conveyance, transfer or lease of all or substantially all of the
assets of any Subsidiary Guarantor (other than to the Company or another
Subsidiary Guarantor) unless:

(1)    (a) if such
entity remains a Subsidiary Guarantor, the resulting, surviving or transferee
Person will be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any
State of the United States or the District of Columbia and shall have by
supplemental indenture confirmed that its Subsidiary Guarantee shall apply to
such Person’s obligations in respect of this Indenture and the Notes; (b) immediately
after giving effect to such transaction (and treating any Indebtedness not
previously an obligation of the Company or any of its Subsidiaries that becomes
an obligation of the resulting, surviving or transferee Person or any
Restricted Subsidiary as a result of such transaction as having been Incurred
by such Person or such Restricted Subsidiary at the time of such transaction),
no Default of Event of Default shall have occurred and be continuing; and (c)
the Company will have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such supplemental indenture (if any) comply with this Indenture; and

(2)    if applicable,
the transaction is made in compliance with Section 3.8 (it being
understood that only such portion of the Net Available Cash, if any, as is
required to be applied on the date of such transaction in accordance with the
terms of this Indenture needs to be applied in accordance therewith at such
time), Section 3.14 and this Article IV.

ARTICLE
V

Redemption
of Notes

SECTION 5.1.   Optional Redemption.  The Notes may be redeemed, as a whole or from
time to time in part, subject to the conditions and at the redemption prices
specified in 

 76
 

paragraph 5 of the form of Notes set forth in Exhibit
A hereto, which is hereby incorporated by reference and made a part of this
Indenture, together with accrued and unpaid interest to the Redemption Date (as
defined below).

SECTION 5.2.   Applicability of Article.  Redemption of Notes at the election of the
Company or otherwise, as permitted or required by any provision of this
Indenture, shall be made in accordance with such provision and this Article.

SECTION 5.3.   Election to Redeem; Notice
to Trustee.  The election of the
Company to redeem any Notes pursuant to Section 5.1 shall be evidenced
by a Board Resolution.  In case of any
redemption at the election of the Company, the Company shall, upon not later
than the earlier of the date that is 45 days prior to the redemption date (the “Redemption
Date”) fixed by the Company or 15 days prior to the date on which notice
is given to the Holders (except as provided in Section 5.5 or unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Notes to be redeemed and
shall deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Notes to be redeemed pursuant to Section 5.4.  Any such notice may be cancelled at any time
prior to notice of such redemption being mailed to any Holder and shall thereby
be void and of no effect.

SECTION 5.4.   Selection by Trustee of
Notes to Be Redeemed.  If less than
all the Notes are to be redeemed at any time pursuant to an optional redemption,
the particular Notes to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the outstanding Notes not
previously called for redemption, in compliance with the requirements of the
principal national securities exchange, if any, on which such Notes are listed,
or, if such Notes are not so listed, on a pro
rata basis, by lot or by such
other method as the Trustee in its sole discretion shall deem fair and
appropriate (and in such manner as complies with applicable legal
requirements), and which may provide for the selection for redemption of
portions of the principal of the Notes (equal to $2,000 or in an integral
multiple of $1,000 in excess thereof); provided,
however, no Notes of $2,000 in principal amount or less shall be
redeemed in part.  If any Note is to be
redeemed in part only, the notice of redemption relating to such Note will
state the portion of the principal amount thereof to be redeemed.

The Trustee shall promptly notify the Company in writing
of the Notes selected for redemption and, in the case of any Notes selected for
partial redemption, the method it has chosen for the selection of Notes and the
principal amount thereof to be redeemed.

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Notes shall
relate, in the case of any Note redeemed or to be redeemed only in part, to the
portion of the principal amount of such Note which has been or is to be
redeemed.

SECTION 5.5.   Notice of Redemption.  Notice of redemption shall be given in the
manner provided for in Section 11.2 not less than 30 nor more than
60 days prior to the Redemption Date, to each Holder of Notes to be
redeemed.  At the Company’s request, the
Trustee shall give notice of redemption in the Company’s name and at the
Company’s expense; provided, however,
that the Company shall deliver to the Trustee, at least 45 days (or such 

 77
 

shorter period of time as shall be satisfactory to the
Trustee) prior to the Redemption Date, an Officers’ Certificate requesting that
the Trustee give such notice at the Company’s expense and setting forth the
information to be stated in such notice as provided in the following items.

All notices of redemption shall state:

(i)   the Redemption Date,

(ii)   the redemption price and the
amount of accrued interest to the Redemption Date payable as provided in
Section 5.7, if any,

(iii)   if less than all
outstanding Notes are to be redeemed, the method for selecting the Notes to be
redeemed, as well as the aggregate principal amount of Notes to be redeemed and
the aggregate principal amount of Notes to be outstanding after such partial
redemption,

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

(v)   that on the Redemption Date
the redemption price (and accrued interest, if any, to the Redemption Date
payable as provided in Section 5.7) shall become due and payable upon each
such Note, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Notes called for
redemption (or the portion thereof to be redeemed) shall cease to accrue on and
after said date,

(vi)   the place or places where
such Notes are to be surrendered for payment of the redemption price and accrued
interest, if any,

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

(viii)   that Notes called for
redemption must be surrendered to the Paying Agent to collect the redemption
price,

(ix)     the CUSIP number, that no representation is
made as to the accuracy or correctness of the CUSIP number, if any, listed in
such notice or printed on the Notes, and any redemption shall not be affected
by any defect in such CUSIP numbers, and

(x)   the paragraph of the Notes
pursuant to which the Notes are to be redeemed.

SECTION 5.6.   Deposit of Redemption
Price. Prior to 10:00 a.m., New York City time, on any Redemption Date, the
Company shall deposit with the Paying Agent (or, if the Company or a Wholly
Owned Subsidiary that is a Domestic Subsidiary is a Paying Agent, shall
segregate and hold in trust as provided in Section 2.4) an amount of
money sufficient to pay the redemption price of, and accrued interest on, all
the Notes which are to be redeemed on that date other than Notes or portions of
Notes called for redemption that are beneficially owned by the Company and have
been delivered by the Company to the Trustee for cancellation.

 78
 

SECTION 5.7.   Notes Payable on
Redemption Date.  Notice of
redemption having been given as aforesaid, the Notes or portions of Notes so to
be redeemed shall, on the Redemption Date, become due and payable at the
redemption price therein specified (together with accrued interest, if any, to
the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the redemption price and accrued interest) such Notes
shall cease to bear interest.  Upon
surrender of any such Note for redemption in accordance with said notice, such
Note shall be paid by the Company at the redemption price, together with accrued
interest, if any, to the Redemption Date (subject to the rights of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date).

If any Note called for redemption shall not be so paid
upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate borne by
the Notes.

SECTION 5.8.   Notes Redeemed in Part.  Any
Note which is to be redeemed only in part (pursuant to the provisions of this
Article) shall be surrendered at the office or agency of the Company maintained
for such purpose pursuant to Section 3.16 (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 such Holder’s attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Note at the expense of the
Company, a new Note or Notes, of any authorized denomination as requested by
such Holder, in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Note so surrendered, provided, that each such new Note will be
issued in denominations of $2,000 or an integral multiple of $1,000 in excess
thereof.

ARTICLE
VI

Defaults
and Remedies

SECTION 6.1.   Events of Default.  Each of the following is an “Event of
Default”:

(1)           default in any payment
of interest on any Note when due, continued for 30 days;

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

(3)           failure by the Company
or any Subsidiary Guarantor to comply with its obligations under Article IV;

(4)           failure by the Company
to comply for 30 days after notice with any of its obligations pursuant to Sections
3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9,
3.10, 3.11, 3.12, 3.13 and 3.14 (in each
case, other than a failure to purchase Notes which shall constitute an Event of
Default under clause (2) above;

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(5)           failure by the Company
to comply for 60 days after notice with its other agreements contained in this
Indenture (other than a failure to comply with Section 3.2) or a failure
by the Company to comply for 90 days after notice with its agreements pursuant
to Section 3.2;

(6)           default under any
mortgage, indenture or instrument under which there is issued or by which there
is secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Company or any of its Restricted Subsidiaries), other than Indebtedness
owed to the Company or a Restricted Subsidiary, whether such Indebtedness or
Guarantee now exists, or is created after the Issue Date, which default:

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

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

and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such outstanding
Indebtedness under which there is an outstanding uncured payment default or the
maturity of which has been and remains so accelerated, aggregates $15.0 million
or more;

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

(A)          commences a voluntary
case or voluntary proceeding;

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

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

(D)          makes a general
assignment of substantially all of its property for the benefit of its
creditors;

(E)           transmits its written
or oral consent to or acquiescence in the institution of a bankruptcy proceeding
or other collective proceeding for relief by or against its creditors
generally;

(F)           takes any corporate
action to authorize or effect any of the foregoing; or

(G)           takes any comparable
action under any foreign laws relating to insolvency;

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together, the “bankruptcy provisions”);

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

(A)          is for relief in an
involuntary case against the Company or any Significant Subsidiary or a group
of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary, pursuant to or within
the meaning of the Bankruptcy Law;

(B)           appoints a Custodian for
all or substantially all of the property of the Company or any Significant
Subsidiary or a group of Restricted Subsidiaries that, taken together (as of
the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary, pursuant to
or within the meaning of the Bankruptcy Law;

(C)           orders the winding up
or liquidation of the Company or any Significant Subsidiary or a group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary, pursuant to or within
the meaning of the Bankruptcy Law; and

(D)          in each case, the order,
decree or relief remains unstayed or not dismissed and in effect for 60 days
following the entry, issuance or effective date thereof;

(9)           failure by the Company or any Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary to pay
final judgments aggregating in excess of $15.0 million (net of any amounts that
a reputable and creditworthy insurance company has acknowledged liability for
in writing), which judgments are not paid, discharged or stayed for a period of
60 days after such judgment becomes final and no longer subject to appeal (the “judgment
default provision”); or

(10)         any Subsidiary Guarantee of a Significant
Subsidiary or group of Restricted Subsidiaries that, taken together as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries, would constitute a Significant Subsidiary ceases to be
in full force and effect (except as contemplated by the terms of this
Indenture) or is declared null and void in a judicial proceeding, or any
Subsidiary Guarantor that is a Significant Subsidiary or group of Subsidiary
Guarantors that, taken together as of the latest audited consolidated financial
statements of the Company and its Restricted Subsidiaries, would constitute a
Significant Subsidiary denies or disaffirms its obligations under this
Indenture or its Subsidiary Guarantee.

However, a default under clauses (4) and (5) of this Section
6.1 shall not constitute an Event of Default until the Trustee or the
Holders of 25% in principal amount of the outstanding Notes notify the Company
in writing of the default and the Company does not cure such default within the
time specified in clauses (4) and (5) of this Section 6.1 after receipt
of 

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such notice. 
Such notice must specify the Default, demand that it be remedied and
state that such notice is a “Notice of Default.”

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

The Company shall deliver to the Trustee, promptly,
but in no event later than 30 days after, a senior officer of the Company
becomes aware of any events which would constitute an Event of Default under
clauses (3), (4), (5), (6), (7), (8), (9) or (10) of this Section 6.1 in
the form of an Officers’ Certificate, which Officers’ Certificate shall set
forth in reasonable detail the status of such Event of Default and what action
the Company is taking or proposing to take in respect thereof.

SECTION 6.2.   Acceleration.  If an Event of Default (other than an Event
of Default described in clauses (7) and (8) of Section 6.1) has occurred
and is continuing, the Trustee by written notice to the Company, or the Holders
of at least 25% in principal amount of the outstanding Notes by written notice
to the Company and the Trustee, may, and the Trustee at the request of such
Holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest, if any, on all the Notes to be due and payable.  Such notice must specify the Event of Default
and state that such notice is a “Notice of Acceleration.”  Upon such a declaration, such principal,
premium and accrued and unpaid interest will be due and payable immediately.

In the event of a declaration of acceleration of the
Notes because an Event of Default described in clause (6) of Section 6.1
has occurred and is continuing, the declaration of acceleration of the Notes
shall be automatically annulled if the default triggering such Event of Default
pursuant to clause (6) of Section 6.1 shall be remedied or cured by the
Company or a Restricted Subsidiary or waived by the holders of the relevant
Indebtedness within 20 days after the written notice of declaration of
acceleration of the Notes with respect thereto is received by the Company and
if (1) the annulment of the acceleration of the Notes would not conflict with
any judgment or decree of a court of competent jurisdiction and (2) all
existing Events of Default, except nonpayment of principal, premium or interest
on the Notes that became due solely because of the acceleration of the Notes,
have been cured or waived.

If an Event of Default described in clauses (7) or (8)
of Section 6.1 occurs and is continuing, the principal of, premium, if
any, and accrued and unpaid interest on all the Notes will become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holders.

At any time after a declaration of acceleration, but
before a judgment or decree for the payment of the money due has been obtained
by the Trustee, the Holders of a majority in principal amount of the
outstanding Notes by notice to the Trustee and the Company (including, without
limitation, waivers and consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes) may rescind and annul such
declaration of acceleration and its consequences; provided, that (i) rescission would not conflict with any
judgment or decree of a 

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court of competent jurisdiction and (ii) all existing
Events of Default, other than nonpayment of the principal of, premium, if any,
and interest on the Notes that have become due solely by such declaration of
acceleration, have been cured or waived.

SECTION 6.3.   Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of (or premium, if any) or
interest on the Notes or to enforce the performance of any provision of the Notes
or this Indenture.

The Trustee may maintain a proceeding even if it does
not possess any of the Notes or does not produce any of them in the
proceeding.  A delay or omission by the
Trustee or any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. 
Except as otherwise provided in Section 2.7 with respect to the
replacement of mutilated, destroyed, lost or wrongfully taken Notes, no remedy
is exclusive of any other remedy.  All
available remedies are cumulative to the extent permitted by law.

SECTION 6.4.   Waiver of Past Defaults.  The Holders of a majority in principal amount
of the outstanding Notes by notice to the Trustee may waive (including, without
limitation, waivers and consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes) an existing or past Default or Event
of Default and its consequences except (i) a Default or Event of Default in the
payment of the principal of, premium or interest on, a Note or (ii) a Default
or Event of Default in respect of a provision that under Section 9.2  cannot be amended without the consent of
each Holder affected.  When a Default or
Event of Default is waived, it is deemed cured, but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any right
consequent thereto.

SECTION 6.5.   Control by Majority.  The Holders of a majority in principal amount
of the outstanding Notes may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or of exercising any
trust or power conferred on the Trustee. 
However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Sections 7.1 and 7.2,
that the Trustee determines is unduly prejudicial to the rights of other
Holders or would involve the Trustee in personal liability; provided, however, that the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent
with such direction.  Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification satisfactory
to it in its sole discretion against all losses and expenses caused by taking
or not taking such action.

SECTION 6.6.   Limitation on Suits.  Subject to Section 7.1, if an Event of
Default occurs and is continuing, the Trustee will be under no obligation to
exercise any of the rights or powers under this Indenture at the request or
direction of any of the Holders unless such Holders have offered to the Trustee
reasonable indemnity or security against any loss, liability or expense.  Except to enforce the right to receive
payment of principal, premium, if any, or interest when due, no Holder may
pursue any remedy with respect to this Indenture or the Notes unless:

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

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

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

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

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

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

SECTION 6.7.   Rights of Holders to
Receive Payment.  Notwithstanding any
other provision of this Indenture (including, without limitation, Section 6.6),
the right of any Holder to receive payment of principal of, premium, if any, or
interest on the Notes held by such Holder, on or after the respective due dates
expressed in the Notes, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

SECTION 6.8.   Collection Suit by Trustee.  If an Event of Default specified in
clauses (1) or (2) of Section 6.1 occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount then due and owing (together
with interest on any unpaid interest to the extent lawful) and the amounts
provided for in Section 7.7.

SECTION 6.9.   Trustee May File Proofs of
Claim.  The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Company, its Subsidiaries or its or their respective creditors
or properties and, unless prohibited by law or applicable regulations, may be
entitled and empowered to participate as a member of any official committee of
creditors appointed in such matter and may vote on behalf of the Holders in any
election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it, its agents and its counsel
pursuant to Section 7.7 and any other amounts due the Trustee
hereunder.  Nothing herein contained
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 Notes 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.

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SECTION 6.10.   Priorities.  If the Trustee collects any money or property
pursuant to this Article VI, it shall pay out the money or property
in the following order:

First:               to the Trustee for amounts due under Section
7.7;

Second:          to Holders for amounts due and unpaid on the
Notes for principal of, premium, if any, and interest on the Notes, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal, premium, if any, and interest,
respectively; and

Third:             to the Company.

The Trustee may, upon prior written notice to the
Company, fix a record date and payment date for any payment to Holders pursuant
to this Section.  At least 15 days before
such record date, the Company shall mail to each Holder and the Trustee a
notice that states the record date, the payment date and amount to be paid.

SECTION 6.11.   Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees and expenses, against any party litigant
in the suit, having due regard to the merits and good faith of the claims or
defenses made by the party litigant. 
This Section does not apply to a suit by the Trustee, a suit by the
Company, a suit by a Holder pursuant to Section 6.7 or a suit by
Holders of more than 10% in outstanding principal amount of the Notes.

ARTICLE
VII

Trustee

SECTION 7.1.   Duties of Trustee.  (a)  If an Event of Default has
occurred and is continuing, the Trustee shall exercise the rights and powers vested
in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent Person would exercise or use under the circumstances in
the conduct of such Person’s own affairs; provided
that if an Event of Default occurs and is continuing, the Trustee shall be
under no obligation to exercise any of the rights or powers under this
Indenture at the request or direction of any of the Holders unless such Holders
have offered the Trustee indemnity or security satisfactory to the Trustee against
loss, liability or expense.

(b)           Except during the
continuance of an Event of Default:

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

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

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

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

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

(3)           the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5 or Section 6.6.

(d)           The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the
Company.

(e)           Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

(f)            No provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any
liability in the performance of any of its duties hereunder or in the exercise
of any of its rights or powers, if it shall have reasonable grounds to believe
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

(g)           Every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

(h)           The Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders unless such Holders shall have
offered to the Trustee security or indemnity satisfactory to it against the
costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities
that might be incurred by it in compliance with such request or direction.

SECTION 7.2.   Rights of Trustee.  (a)  The Trustee may conclusively
rely and shall be protected in acting or refraining from acting upon any paper
or document believed by it to be genuine and to have been signed or presented
by the proper Person or Persons.  The
Trustee need not investigate any fact or matter stated in the document.

 86
 

(b)           Before the Trustee acts or refrains from
acting, it may require an Officers’ Certificate or an Opinion of Counsel or
both.  The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on the
Officers’ Certificate or Opinion of Counsel.

(c)           The Trustee may act through its attorneys
and agents and shall not be responsible for the misconduct or negligence of any
attorney or agent appointed with due care.

(d)           The Trustee shall not be liable for any
action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers; provided,
however, that the Trustee’s
conduct does not constitute willful misconduct or negligence.

(e)           The Trustee may consult with counsel of its
selection, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

(f)            The Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, notice, request, direction, consent, order,
bond or other paper or document; but the Trustee 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 and its
Subsidiaries at reasonable times and in a reasonable manner, upon reasonable
prior written notice to the Company, personally or by agent or attorney at the
sole cost of the Company and shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation.

(g)           The Trustee shall not be deemed to have
knowledge of any Default or Event of Default except (i) during any period it is
serving as Registrar and Paying Agent for the Notes, any Event of Default
occurring pursuant to Sections 6.1(1) and 6.1(2), or (ii) any
Default or Event of Default of which a Responsible Officer shall have received
written notification or obtained “actual knowledge.”  “Actual knowledge” shall mean the actual fact
or statement of knowing by a Responsible Officer without independent
investigation with respect thereto.

(h)           Delivery of the reports, information and
documents to the Trustee pursuant to Section 3.2 is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

(i)            In no event shall the Trustee be
responsible or liable for special, indirect, or consequential loss or damage of
any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action.

(j)            The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be 

 87
 

enforceable by, the Trustee in each of its capacities hereunder, and
each agent, custodian and other Person employed to act hereunder.

(k)           The Trustee may request that the Company
deliver an Officers’ Certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant
to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as
so authorized in any such certificate previously delivered and not superseded.

SECTION 7.3.   Individual Rights of
Trustee.  The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Company or its Affiliates with the same rights it
would have if it were not Trustee.  Any
Paying Agent, Registrar or co-paying agent may do the same with like
rights.  However, the Trustee must comply
with Sections 7.10 and 7.11. 
In addition, the Trustee shall be permitted to engage in transactions
with the Company; provided, however,
that if the Trustee acquires any conflicting interest the Trustee must (i)
eliminate such conflict within 90 days of acquiring such conflicting interest,
(ii) apply to the SEC for permission to continue acting as Trustee or (iii)
resign.

SECTION 7.4.   Trustee’s Disclaimer.  The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, it shall not be accountable for the Company’s use of the Notes or the
proceeds from the Notes, and it shall not be responsible for any statement of
the Company in this Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication or for the use or application of any funds received by any
Paying Agent other than the Trustee.

SECTION 7.5.   Notice of Defaults.  If a Default or Event of Default occurs and
is continuing and if a Responsible Officer has actual knowledge thereof, the
Trustee shall mail to each Holder notice of the Default or Event of Default
within 90 days after the Responsible Officer obtains actual knowledge of a
Default or Event of Default.  Except in
the case of a Default or Event of Default in payment of principal of, premium
(if any), or interest on any Note (including payments pursuant to the required
repurchase provisions of such Note, if any), the Trustee may withhold the
notice if and so long as its board of directors, a committee of its board of
directors or a committee of its Responsible Officers or a Responsible Officer
in good faith determines that withholding notice is in the interests of
Holders.

SECTION 7.6.   Reports by Trustee to
Holders.  As promptly as practicable
after each January 15 beginning with the January 15 following the date of this
Indenture, and in any event prior to February 15 in each year, the Trustee
shall mail to each Holder a brief report dated as of such January 15 that
complies with TIA § 313(a), if and to the extent such report may be
required by the TIA.  The Trustee also
shall comply with TIA § 313(b).  The
Trustee shall also transmit by mail all reports required by TIA § 313(c).

A copy of each report at the time of its mailing to
Holders shall be filed with the SEC and each stock exchange (if any) on which the
Notes are listed.  The Company agrees to
notify promptly the Trustee in writing whenever the Notes become listed on any
stock exchange and of any delisting thereof.

 88
 

SECTION 7.7.   Compensation and Indemnity.  The Company and the Subsidiary Guarantors, jointly
and severally, shall pay to the Trustee from time to time such compensation for
its services as the parties shall agree in writing from time to time.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company and the Subsidiary Guarantors,
jointly and severally, shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses, disbursements and advances incurred or made
by it, including, but not limited to, costs of collection, costs of preparing
and reviewing reports, certificates and other documents, costs of preparation
and mailing of notices to Holders and reasonable costs of counsel retained by
the Trustee in connection with the delivery of an Opinion of Counsel or
otherwise, in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts.  The
Company and the Subsidiary Guarantors, jointly and severally, shall indemnify
the Trustee, and each of its officers, directors, counsel and agents, against
any and all loss, liability or expense (including, but not limited to,
reasonable attorneys’ fees and expenses) incurred by it in connection with the
acceptance or administration of this trust and the performance of its duties
hereunder, including the costs and expenses of enforcing this Indenture
(including this Section 7.7) and the Notes and of defending itself
against any claims (whether asserted by any Holder, the Company or
otherwise).  The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder.  The Company shall defend the claim and the
Trustee may have separate counsel and the Company shall pay the fees and
expenses of such counsel.  The Company
and the Subsidiary Guarantors need not reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee or any other
indemnified Person through the Trustee’s or such indemnified Person’s own
willful misconduct, negligence or bad faith, subject to the exceptions
contained in Section 7.1(c) hereof.

To secure the Company’s and the Subsidiary Guarantors’
payment obligations in this Section, the Trustee shall have a lien prior to the
Notes on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Notes.  The Trustee’s right to receive
payment of any amounts due under this Section 7.7 shall not be
subordinate to any other liability or indebtedness of the Company or the
Subsidiary Guarantors.

The Company’s payment obligations pursuant to this
Section and any lien arising hereunder shall survive the discharge of this
Indenture and the resignation or removal of the Trustee.  When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.1(7) or (8), the
expenses are intended to constitute expenses of administration under any
Bankruptcy Law.

SECTION 7.8.   Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a
majority in principal amount of the Notes may remove the Trustee by so
notifying the Company and the Trustee in writing.  The Company shall remove the Trustee if:

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

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(2)           the Trustee is adjudged
bankrupt or insolvent;

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

(4)           the Trustee otherwise
becomes incapable of acting.

A resignation or removal of the Trustee and the
appointment of a Successor Trustee shall become effective only upon the
Successor Trustee’s acceptance of appointment as provided in this Section
7.8.  If the Trustee resigns or is
removed by the Company or by the Holders of a majority in principal amount of
the Notes, or if a vacancy exists in the office of Trustee for any reason (the
Trustee in such event being referred to herein as the retiring Trustee), the
Company shall, by a Board Resolution, promptly appoint a successor Trustee.

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, provided that
all sums owing to the Trustee hereunder have been paid and subject to the lien
provided for in Section 7.7.

If a successor Trustee does not take office within 60
days after the retiring Trustee resigns or is removed, the retiring Trustee or
the Holders of 10% in principal amount of the Notes may petition, at the
expense of the Company, any court of competent jurisdiction for the appointment
of a successor Trustee.

If the Trustee fails to comply with Section 7.10,
unless the Trustee’s duty to resign is stayed as provided in TIA § 310(b),
any Holder who satisfies the requirements of TIA § 310(b) may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

Notwithstanding the replacement of the Trustee
pursuant to this Section 7.8, the Company’s obligations under Section
7.7 shall continue for the benefit of the retiring Trustee.

SECTION 7.9.   Successor Trustee by
Merger.  If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation, banking association
or other entity, the resulting, surviving or transferee entity without any
further act shall be the successor Trustee.

In case at the time such successor or successors by
merger, conversion or consolidation to the Trustee shall succeed to the trusts
created by this Indenture, any of the Notes shall have been authenticated but
not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Trustee may authenticate such Notes either
in the name of any predecessor hereunder or in the name of the successor to the
Trustee; and in all such cases such certificates shall have the full force
which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Trustee shall have.

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SECTION 7.10.   Eligibility;
Disqualification.  The Trustee shall
at all times satisfy the requirements of TIA § 310(a).  The Trustee shall have a combined capital and
surplus of at least $150 million as set forth in its most recent filed annual
report of condition.  The Trustee shall
comply with TIA § 310(b).

SECTION 7.11.   Preferential Collection
of Claims Against Company.  If and
when the Trustee shall be or become a creditor of the Company, the Trustee
shall comply with TIA § 311(a), excluding any creditor relationship listed
in TIA § 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated.

ARTICLE
VIII

Discharge
of Indenture; Defeasance

SECTION 8.1.   Satisfaction and Discharge
of Indenture.  This Indenture shall
upon Company Order cease to be of further effect (except as to any surviving
rights of registration of transfer or exchange of Notes herein expressly
provided for), 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
Notes theretofore authenticated and delivered (other than (i) Notes which have
been mutilated, destroyed, lost or wrongfully taken and which have been
replaced or paid as provided in Section 2.7 and (ii) Notes for which 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 3.17) have been delivered to the Trustee for
cancellation; or

(B)           all such Notes 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 of the date of deposit, 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, in the case of (i), (ii) or (iii)
above, has deposited or caused to be deposited with the Trustee as trust funds
in trust for such purpose money in an amount sufficient to pay and discharge
the entire indebtedness on such Notes 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 Notes which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

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(2)           the
Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 7.7, the
obligations of the Trustee or the Company to any Authenticating Agent under
Section 2.2 and, if money shall have been deposited with the Trustee pursuant
to subclause (B) of Clause (1) of this Section, the obligations of the Trustee
under Section 8.3 and the last paragraph of Section 3.17 shall survive such
satisfaction and discharge.

SECTION 8.2.   Discharge of Liability on
Notes; Defeasance.  (a)  
Subject to Section 8.2(b), the Company at any time may terminate (i) all
its obligations under the Notes and the Indenture and all obligations of the
Subsidiary Guarantors under the Subsidiary Guarantees and the Indenture (“legal defeasance”), and after giving
effect to such legal defeasance, any omission to comply with such obligations
shall no longer constitute a Default or Event of Default or (ii) its
obligations under clause (3) of Section 4.1(a) and Sections 3.2,  3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10,
3.11, 3.12, 3.13,  3.14, 3.15 or 3.19
and the Company may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply with such covenants
shall no longer constitute a Default or an Event of Default under clauses (3),
(4) and (5) of Section 6.1, and the events specified in clauses (6), (7)
(but only with respect to a Significant Subsidiary or group of Restricted
Subsidiaries that would constitute a Significant Subsidiary), (8) and (9) of Section
6.1 shall no longer constitute an Event of Default (clause (ii) being
referred to as the “Covenant Defeasance”),
but except as specified above, the remainder of the Indenture and the Notes
shall be unaffected thereby.  The Company
may exercise its legal defeasance option notwithstanding its prior exercise of
its Covenant Defeasance option.

If the Company exercises its legal defeasance option,
payment of the Notes may not be accelerated because of an Event of Default with
respect to the Notes, and the Subsidiary Guarantees in effect at such time
shall terminate.  If the Company exercises
its Covenant Defeasance option, payment of the Notes may not be accelerated
because of an Event of Default specified in clauses (4) or (5) of Section
6.1 (as such clauses relate to Sections 3.2,  3.3, 3.4,
3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13,  3.14, 3.15 or 3.19), or in
clauses (6), (7) (but only with respect to a Significant Subsidiary or group of
Restricted Subsidiaries that would constitute a Significant Subsidiary), (8)
and (9) of Section 6.1 or because of the failure of the Company to
comply with clause (3) of Section 4.1(a).

Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the
discharge of those obligations that the Company terminates.

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(b)   The Company may
exercise its legal defeasance option or its Covenant Defeasance option only if:

(i)   the Company irrevocably deposits in trust with the
Trustee for the benefit of the Holders money in U.S. dollars or U.S. Government
Obligations or a combination thereof for the payment of principal, premium, if
any, and interest on the Notes to maturity or redemption, as the case may be;

(ii)   the Company delivers to the Trustee a certificate from
a nationally recognized firm of independent accountants expressing their
opinion (or if nationally recognized independent accounting firms no longer
routinely express such opinions, a certificate from the chief financial officer
of the Company expressing his or her opinion) that the payments of principal
and interest when due and without reinvestment on the deposited U.S. Government
Obligations plus any deposited money without investment shall provide cash at
such times and in such amounts as shall be sufficient to pay principal,
premium, if any, and interest when due on all the Notes to maturity or
redemption, as the case may be;

(iii)   no Default or Event of Default shall have occurred
and be continuing on the date of such deposit (other than Defaults and Events
of Default arising out of the incurrence of Indebtedness used to fund such
deposit) or, with respect to the Company under clause (7) of Section 6.1,
on the 123rd day after such date of deposit;

(iv)   such legal defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a Default under, the
Indenture or any other material agreement or instrument to which the Company or
any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound;

(v)   the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) to the
effect that, assuming no intervening bankruptcy of the Company between the date
of deposit and the 123rd day following the deposit and that no Holder of the
Notes is an insider of the Company within the meaning of the Bankruptcy Law,
after the 123rd day following the deposit, the trust funds shall not be subject
to the effect of any applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ right generally;

(vi)   the Company delivers to the Trustee an Opinion of Counsel
(subject to customary assumptions and exclusions) to the effect that the trust
resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;

(vii)   in the case of legal defeasance, the Company shall
have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) in the United States stating that (i) the Company
has received from, or there has been published by, the Internal Revenue Service
a ruling, or (ii) since the date of this Indenture there has been a change in
the applicable Federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders shall not

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recognize income,
gain or loss for Federal income tax purposes as a result of such defeasance and
shall be subject to Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such legal defeasance had
not occurred;

(viii)   in the case of Covenant Defeasance, the Company
shall have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) in the United States to the effect that the Holders
shall not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit and Covenant Defeasance and shall be subject to Federal
income tax on the same amount, in the same manner and at the same times as
would have been the case if such deposit and Covenant Defeasance had not
occurred; and

(ix)   the Company delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, together stating that all conditions
precedent to the defeasance and discharge of the Notes and the Indenture as
contemplated by this Article VIII have been complied with.

(c)           Notwithstanding the
provisions of Sections 8.2(a) and (b), the Company’s obligations
in Sections 2.3, 2.4, 2.5, 2.6, 7.1, 7.2,
7.7, 7.8, 8.4, 8.5 and 8.6 shall survive
until the Notes have been paid in full. 
Thereafter, the Company’s and the Subsidiary Guarantors’ obligations in Sections
7.7, 8.4 and 8.5 shall survive.

SECTION 8.3.   Application of Trust Money.  Subject to Section 8.6, the Trustee
shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to this Article VIII.  It
shall apply the deposited money and the money from U.S. Government Obligations
through the Paying Agent and in accordance with the Notes and this Indenture to
the payment of principal of premium, if any, and interest on the Notes.

SECTION 8.4.   Repayment to Company.  Anything herein to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Order any money or U.S. Government Obligations held by it as
provided in this Article VIII 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 legal defeasance
or covenant defeasance, as applicable, provided
that the Trustee shall not be required to liquidate any U.S. Government
Obligations in order to comply with the provisions of this Section 8.4.

Subject to any applicable abandoned property law, the
Trustee and the Paying Agent shall pay to the Company upon written request any
money held by them for the payment of principal of, premium, if any, or
interest on the Notes that remains unclaimed for two years, and, thereafter,
Holders entitled to such money must look to the Company for payment as general
creditors.

SECTION 8.5.   Indemnity for U.S.
Government Obligations.  The Company
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or 

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assessed against deposited U.S. Government Obligations
or the principal and interest received on such U.S. Government Obligations.

SECTION 8.6.   Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article
VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company under
this Indenture and the Notes shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as
the Trustee or Paying Agent is permitted to apply all such money or U.S.
Government Obligations in accordance with this Article VIII; provided, however, that, if the Company
has made any payment of interest on or principal of any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

ARTICLE
IX

Amendments

SECTION 9.1.   Without Consent of Holders.  The Company, the Subsidiary Guarantors and
the Trustee may amend or supplement this Indenture, the Notes and the
Subsidiary Guarantees without notice to or consent of any Holder to:

(1)           cure any ambiguity,
omission, defect or inconsistency;

(2)           provide for the
assumption by a successor of the obligations of the Company or any Subsidiary
Guarantor under this Indenture;

(3)           provide for
uncertificated Notes in addition to or in place of certificated Notes (provided that the uncertificated Notes are issued in
registered form for purposes of Section 163(f) of the Code, or in a manner
such that the uncertificated Notes are described in Section 163(f)(2)(B)
of the Code);

(4)           add Guarantees with
respect to the Notes;

(5)           release a Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee or this Indenture
in accordance with the applicable provisions of this Indenture;

(6)           secure the Notes;

(7)           add to the covenants of
the Company, any Subsidiary Guarantor or other obligor under this Indenture,
the Notes or Subsidiary Guarantees, as the case may be, for the benefit of the
Holders or surrender any right or power conferred upon the Company, any
Subsidiary Guarantor or other such obligor;

(8)           make any change that
does not adversely affect the legal or contractual rights of any Holder under
this Indenture, the Notes or the Subsidiary Guarantees;

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(9)           comply with any
requirement of the SEC in connection with the qualification of this Indenture
under the TIA;

(10)         provide for the
appointment of a successor Trustee; provided that
the successor Trustee is otherwise qualified and eligible to act as such under
the terms of this Indenture;

(11)         provide for the issuance
of Additional Notes under this Indenture in accordance with the limitations
described in this Indenture;

(12)         to comply with the rules
of any applicable securities depositary; or

(13)         conform the text of this
Indenture, the Notes or the Subsidiary Guarantees to any provision of the
section of the Registration Statement on Form S-3 (File No. 333-142016) of the
Company, filed with the SEC on April 11, 2007, entitled “Description of notes,”
or the related Registration Statement on Form S-3 (File No. 333-142168) of the
Company, filed with the SEC on April 17, 2007.

After an amendment or
supplement under this Section 9.1 becomes effective, the Company will
mail to Holders a notice briefly describing such amendment or supplement.  The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an
amendment or supplement under this Section 9.1.

SECTION 9.2.   With Consent of Holders.  The Company, the Subsidiary Guarantors and
the Trustee may amend or supplement this Indenture, the Subsidiary Guarantee or
the Notes without notice to any Holder but with the written consent of the
Holders of at least a majority in principal amount of the Notes then outstanding
(including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes).  Any Default or Event of Default (subject to Section
6.4) or compliance with any provision of this Indenture, a Subsidiary
Guarantee or the Notes may be waived with the written consent of the Holders of
a majority in principal amount of the Notes then outstanding (including,
without limitation, waivers and consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes).  However, without the consent of each Holder
of an outstanding Note affected, no amendment, supplement or waiver may:

(1)   reduce the percentage in principal amount of Notes
outstanding whose Holders must consent to an amendment;

(2)   reduce the stated rate of or extend the stated time for
payment of interest on any Note;

(3)   reduce the principal of or extend the Stated Maturity
of any Note;

(4)   reduce the premium payable upon the redemption or
repurchase of any Note or change the time at which any Note may be redeemed or
repurchased as described under Section 3.8, Section 3.10 or Article
V or any similar provision, whether through an amendment or waiver of Section
3.8, Section 3.10 or Article V, related definitions or otherwise
(except for amendments to the definition of “Change of Control”);

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

(6)   impair the right of any Holder to receive payment of
principal, premium, if any, and interest on such Holder’s Notes on or after the
due dates therefor or to institute suit for the enforcement of any payment on
or with respect to such Holder’s Notes;

(7)   make any change to the provisions of this Section
9.2 or in the waiver provisions of this Indenture; or

(8)   modify the Subsidiary Guarantees in any manner adverse
to the Holders.

It shall not be necessary for the consent of the
Holders under this Section 9.2 to approve the particular form of any
proposed amendment or supplement, but it shall be sufficient if such consent
approves the substance thereof.  A
consent to any amendment, supplement or waiver under this Indenture by any
Holder given in connection with a tender of such Holder’s Notes will not be
rendered invalid by such tender.

After an amendment or supplement under this Section
9.2 becomes effective, the Company shall mail to Holders a notice briefly
describing such amendment or supplement. 
The failure to give such notice to all Holders, or any defect therein,
shall not impair or affect the validity of an amendment under this Section
9.2.

SECTION 9.3.   Compliance with Trust
Indenture Act.  Every amendment or
supplement to this Indenture, a Subsidiary Guarantee or the Notes shall comply
with the TIA as then in effect.

SECTION 9.4.   Revocation and Effect of
Consents and Waivers.  A consent to
an amendment, supplement or a waiver by a Holder of a Note shall bind the
Holder and every subsequent Holder of that Note or portion of the Note that
evidences the same debt as the consenting Holder’s Note, even if notation of
the consent or waiver is not made on the Note. 
Any such Holder or subsequent Holder may revoke the consent or waiver as
to such Holder’s Note or portion of the Note if the Trustee receives the notice
of revocation before the date the amendment, supplement or waiver becomes
effective or otherwise in accordance with any related solicitation
documents.  After an amendment,
supplement or waiver becomes effective, it shall bind every Holder unless it makes
a change described in any of clauses (1) through (10) of Section 9.2,
in which case the amendment, supplement, waiver or other action shall bind each
Holder who has consented to it and every subsequent Holder that evidences the
same debt as the consenting Holder’s Notes. 
An amendment, supplement or waiver shall become effective upon receipt
by the Trustee or the Company of the requisite number of written consents, if
any, under Section 9.1 or 9.2 as applicable.

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture.  If a
record date is fixed, then notwithstanding the immediately preceding paragraph,
those Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to give such consent or to
revoke any consent previously given or to take any such action, whether or not 

 97
 

such Persons continue to be Holders after such record
date.  No such consent shall be valid or
effective more than 120 days after such record date.

SECTION 9.5.   Notation on or Exchange of
Notes.  If an amendment, supplement
or waiver changes the terms of a Note, the Trustee may require the Holder of
the Note to deliver it to the Trustee. 
The Trustee may place an appropriate notation on the Note regarding the
changed terms and return it to the Holder. 
Alternatively, if the Company or the Trustee so determine, the Company
in exchange for the Note shall issue and the Trustee shall authenticate a new
Note that reflects the changed terms. 
Failure to make the appropriate notation or to issue a new Note shall
not affect the validity of such amendment, supplement or waiver.

SECTION 9.6.   Trustee to Sign Amendments.  The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article IX if the
amendment, supplement or waiver does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
If it does, the Trustee may but need not sign it.  In signing any amendment, supplement or
waiver the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Sections 7.1 and
7.2) shall be fully protected in relying upon an Officers’ Certificate
and an Opinion of Counsel stating that such amendment, supplement or waiver is
authorized or permitted by this Indenture and that such amendment, supplement
or waiver is the legal, valid and binding obligation of the Company and any
Subsidiary Guarantors, enforceable against them in accordance with its terms,
subject to customary exceptions, and complies with the provisions hereof
(including Section 9.3).

ARTICLE
X

Subsidiary
Guarantees

SECTION 10.1.   Guarantees.  The Subsidiary Guarantors hereby, jointly and
severally, unconditionally guarantee on a senior unsecured basis and as primary
obligor and not merely as surety to each Holder and the Trustee the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the Notes
and all other obligations and liabilities of the Company under this Indenture
(including without limitation interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Company or any Subsidiary Guarantor whether
or not a claim for post-filing or post-petition interest is allowed in such
proceeding) (all the foregoing being hereinafter collectively called the “Obligations”).  The Obligations of Subsidiary Guarantors
under the Subsidiary Guarantees shall rank equally in right of payment with
other Indebtedness of such Subsidiary Guarantor, except to the extent such
other Indebtedness is expressly subordinate to the obligations arising under
the Subsidiary Guarantee.  Each
Subsidiary Guarantor further agrees (to the extent permitted by law) that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from it, and that it shall remain bound under this Article X
notwithstanding any extension or renewal of any Obligation.

Each Subsidiary Guarantor waives presentation to,
demand of payment from and protest to the Company of any of the Obligations and
also waives notice of protest for 

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nonpayment. 
Each Subsidiary Guarantor waives notice of any default under the Notes
or the Obligations.  The obligations of
each Subsidiary Guarantor hereunder shall not be affected by (a) the failure of
any Holder to assert any claim or demand or to enforce any right or remedy
against the Company or any other person under this Indenture, the Notes or any
other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Notes or any other agreement; (d) the release
of any security held by any Holder or the Trustee for the Obligations or any of
them; (e) the failure of any Holder to exercise any right or remedy against any
other Subsidiary Guarantor; or (f) any change in the ownership of the Company.

Each Subsidiary Guarantor further agrees that its
Guarantee herein constitutes a Guarantee of payment when due (and not a
Guarantee of collection) and waives any right to require that any resort be had
by any Holder to any security held for payment of the Obligations.

The obligations of each Subsidiary Guarantor hereunder
shall not be subject to any reduction, limitation, impairment or termination
for any reason (other than payment of the Obligations in full), including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of
the Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Subsidiary
Guarantor herein shall not be discharged or impaired or otherwise affected by
the failure of any Holder to assert any claim or demand or to enforce any
remedy under this Indenture, the Notes or any other agreement, by any waiver or
modification of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or thing
or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of any Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of
law or equity.

Each Subsidiary Guarantor agrees that its Guarantee
herein shall remain in full force and effect until payment in full of all the
Obligations or such Subsidiary Guarantor is released from its Guarantee upon
the merger or the sale of all the Capital Stock or assets of the Subsidiary
Guarantor in compliance with Section 10.2 or otherwise in accordance
with the terms of this Indenture.  Each
Subsidiary Guarantor further agrees that its Guarantee herein shall continue to
be effective or be reinstated, as the case may be, if at any time payment, or
any part thereof, of principal of or interest on any of the Obligations is
rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Company or otherwise.

In furtherance of the foregoing and not in limitation
of any other right which any Holder has at law or in equity against any
Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay
any of the Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, the Subsidiary
Guarantors hereby jointly and severally promise to and shall, upon receipt of
written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to
the Holders an amount equal to the sum of (i) the unpaid amount of such
Obligations then due and owing and (ii) accrued and unpaid interest on such
Obligations then due and owing (but only to the extent not prohibited by law).

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Each Subsidiary Guarantor further agrees that, as
between such Subsidiary Guarantor, on the one hand, and the Holders, on the
other hand, (x) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in this Indenture for the purposes of its Guarantee
herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Obligations guaranteed hereby and (y) in
the event of any such declaration of acceleration of such Obligations, such
Obligations (whether or not due and payable) shall forthwith become due and
payable by the Subsidiary Guarantor for the purposes of this Guarantee.

Each Subsidiary Guarantor also agrees to pay any and
all reasonable costs and expenses (including reasonable attorneys’ fees) incurred
by the Trustee or the Holders in enforcing any rights under this Section
10.1.

SECTION 10.2.   Limitation on Liability;
Termination, Release and Discharge.

(a)           The
obligations of each Subsidiary Guarantor hereunder shall be limited to the
maximum amount as shall, after giving effect to all other contingent and fixed
liabilities of such Subsidiary Guarantor (including, without limitation, any
guarantees under the Senior Secured Credit Agreement) and after giving effect
to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary
Guarantor under its Subsidiary Guarantee or pursuant to its contribution
obligations under this Indenture, result in the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law and not otherwise
being void or voidable under any similar laws affecting the rights of creditors
generally.

(b)           In
the event a Subsidiary Guarantor is sold or disposed of (whether by merger,
consolidation, the sale of its Capital Stock or the sale of all or
substantially all of its assets (other than by lease) and whether or not the
Subsidiary Guarantor is the surviving corporation in such transaction) to a
Person which is not the Company or a Restricted Subsidiary of the Company
(other than a Receivables Entity) after giving effect to the sale or other
disposition, such Subsidiary Guarantor shall be released from its obligations
under this Indenture and its Subsidiary Guarantee if: (1) the sale or other
disposition is in compliance with this Indenture, including Section 3.8
(it being understood that only such portion of the Net Available Cash as is
required to be applied on or before the date of such release in accordance with
the terms of this Indenture needs to be applied in accordance therewith at such
time), Section 3.14 and Article IV; and (2) all the obligations
of such Subsidiary Guarantor under all Credit Facilities and any other
agreements evidencing any other Indebtedness of the Company or any Restricted
Subsidiary (after giving effect to the sale or other disposition) terminate
upon consummation of such transaction.

(c)           Each
Subsidiary Guarantor shall be deemed released and discharged in full from all
its obligations under this Indenture and its Subsidiary Guarantee and such
Subsidiary Guarantee shall terminate upon the legal defeasance of the Notes
pursuant to the provisions of Article VIII hereof.

 100
 

(d)           A
Subsidiary Guarantor shall be deemed released and discharged in full from all
of its obligations under this Indenture and its Subsidiary Guarantee and such
Subsidiary Guarantee shall terminate if (1) (a) such Subsidiary Guarantor is
released from its Guarantees of, and all pledges and security interests granted
in connection with, the Senior Secured Credit Agreement and all other
Indebtedness of the Company and its other Restricted Subsidiary and (b) such
Subsidiary Guarantor has not Incurred any Indebtedness in reliance on its
status as a Subsidiary Guarantor under Section 3.3 or such Subsidiary Guarantor’s
obligations under such Indebtedness are satisfied in full and discharged or are
otherwise permitted to be Incurred by a Restricted Subsidiary (other than a Subsidiary
Guarantor) under Section 3.3(b) or (2) the Company designates such Subsidiary
Guarantor as an Unrestricted Subsidiary and such designation complies with the
applicable provisions of this Indenture or (3) in connection with any legal
defeasance of the Notes or upon satisfaction and discharge of this Indenture,
each in accordance with the terms of this Indenture.

SECTION 10.3.   Right of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that any Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made on the obligations under the Subsidiary
Guarantees, such Subsidiary Guarantor shall be entitled to seek and receive
contribution from and against the Company or any other Subsidiary Guarantor who
has not paid its proportionate share of such payment.  The provisions of this Section 10.3
shall in no respect limit the obligations and liabilities of each Subsidiary
Guarantor to the Trustee and the Holders, and each Subsidiary Guarantor shall
remain liable to the Trustee and the Holders for the full amount guaranteed by
such Subsidiary Guarantor hereunder.

SECTION 10.4.   No Subrogation.  Notwithstanding any payment or payments made
by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be
entitled to be subrogated to any of the rights of the Trustee or any Holder
against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Obligations, nor shall any Subsidiary Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any
other Subsidiary Guarantor in respect of payments made by such Subsidiary
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by
the Company on account of the Obligations are paid in full.  If any amount shall be paid to any Subsidiary
Guarantor on account of such subrogation rights at any time when all of the
Obligations shall not have been paid in full, such amount shall be held by such
Subsidiary Guarantor in trust for the Trustee and the Holders, segregated from
other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by
such Subsidiary Guarantor, be turned over to the Trustee in the exact form
received by such Subsidiary Guarantor (duly indorsed by such Subsidiary
Guarantor to the Trustee, if required), to be applied against the Obligations.

SECTION 10.5.   Execution and Delivery of
Subsidiary Guarantee.  To evidence
its Subsidiary Guarantee set forth in Section 10.1, each Subsidiary
Guarantor hereby agrees that a notation of such Subsidiary Guarantee
substantially in the form included in Exhibit B shall be endorsed by an Officer
of such Subsidiary Guarantor on each Note authenticated and delivered by the
Trustee and that this Indenture shall be executed on behalf of such Subsidiary
Guarantor by an Officer.

 101
 

Each Subsidiary Guarantor hereby agrees that its
Subsidiary Guarantee set forth in Section 10.1 shall remain in full
force and effect notwithstanding any failure to endorse on each Note a notation
of such Subsidiary Guarantee.

If an Officer whose signature is on this Indenture or
on the Subsidiary Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee shall be valid nevertheless.

The delivery of any Note 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.

ARTICLE
XI

Miscellaneous

SECTION 11.1.   Trust Indenture Act
Controls.  If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the provision required by
the TIA shall control.

SECTION 11.2.   Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

if to the Company:

Cimarex Energy Co.

1700 Lincoln Street, Suite 1800

Denver, Colorado 80203

Attention:  Paul Korus

Facsimile No.: (303) 295-3494

if to the Trustee:

U.S. Bank National
Association

950 17th Street, 12th Floor

Denver, Colorado 80202

Attention: Corporate Trust Services

Facsimile No.: (303) 585-6865

The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

Any notice or communication mailed to a Holder shall
be mailed to the Holder at the Holder’s address as it appears on the Note
Register and shall be sufficiently given if so mailed within the time
prescribed.

 102
 

Failure to mail a notice or communication to a Holder
or any defect in it shall not affect its sufficiency with respect to other
Holders.  If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the
addressee receives it.

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 11.3.   Communication by Holders
with other Holders.  Holders may
communicate pursuant to TIA § 312(b) with other Holders with respect to
their rights under this Indenture or the Notes. 
The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

SECTION 11.4.   Certificate and Opinion
as to Conditions Precedent.  Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, except upon the initial issuance of
Notes hereunder, the Company shall furnish to the Trustee:

(1)   an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of the signers,
all conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with; and

(2)   an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such counsel, all
such conditions precedent have been complied with.

SECTION 11.5.   Statements Required in
Certificate or Opinion.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

(1)   a statement that the individual making such certificate
or opinion has read such covenant or condition;

(2)   a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

(3)   a statement that, in the opinion of such individual, he
has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 103
 

(4)   a statement as to whether or not, in the opinion of
such individual, such covenant or condition has been complied with.

In giving such Opinion of Counsel, counsel may rely as
to factual matters on an Officers’ Certificate or on certificates of public
officials.

SECTION 11.6.   When Notes Disregarded.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company or by any of its Affiliates (except that,
for the purpose of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which a
Responsible Officer of the Trustee actually knows are so owned) shall be so
disregarded.  Also, subject to the
foregoing, only Notes outstanding at the time shall be considered in any such
determination.

SECTION 11.7.   Rules by Trustee, Paying
Agent and Registrar.  The Trustee may
make reasonable rules for action by, or a meeting of, Holders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

SECTION 11.8.   Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required
to be closed in New York City.  If a
payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.  If a regular record
date is a Legal Holiday, the record date shall not be affected.

SECTION 11.9.   Governing Law.  This Indenture, the Subsidiary Guarantees and
the Notes shall be governed by, and construed in accordance with, the laws of
the State of New York.

SECTION 11.10.   No Recourse Against
Others.  No director, officer,
employee, manager, member, partner, incorporator or stockholder 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 Notes, this
Indenture or the Subsidiary Guarantees or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  By accepting a Note, each Holder waives and
releases all such liability.  The waiver
and release shall be part of the consideration for the issuance of the Notes.

SECTION 11.11.   Successors.  All agreements of the Company in this
Indenture and the Notes shall bind their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

SECTION 11.12.   Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

SECTION 11.13.   Variable Provisions.  The Company initially appoints the Trustee as
Paying Agent and Registrar and custodian with respect to any Global Notes.

 104
 

SECTION 11.14.   Table of Contents;
Headings.  The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

[Remainder of page left intentionally blank.]

 105

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

	
  

  	
   

  	
  CIMAREX ENERGY CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BROCK GAS SYSTEMS & EQUIPMENT,

  
	
   

  	
   

  	
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CIMAREX CALIFORNIA PIPELINE LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Cimarex Energy Co.,

  
	
   

  	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CIMAREX ENERGY CO. OF COLORADO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  

 

 

	
  

  	
  CIMAREX TEXAS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Cimarex Energy Co.,

  
	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
    Name: Paul Korus

  
	
   

  	
   

  	
   

  	
    Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CIMAREX TEXAS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Cimarex Energy Co.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
    Name: Paul Korus

  
	
   

  	
   

  	
   

  	
    Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLUMBUS ENERGY CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLUMBUS ENERGY L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Columbus Energy Corp.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
  Name: Paul Korus

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLUMBUS GAS SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  

 

 

	
  

  	
  COLUMBUS TEXAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONMAG ENERGY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HUNTER GAS GATHERING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEY PRODUCTION COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEY PRODUCTION TEXAS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Key Production Company, Inc.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
  Name: Paul Korus

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  

 

 

	
  

  	
   

  	
  KEY TEXAS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Key Production Company, Inc.,

  
	
   

  	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MAGNUM HUNTER PRODUCTION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OKLAHOMA GAS PROCESSING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PEC (DELAWARE), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PINTAIL ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  

 

 

	
  

  	
   

  	
  PRIZE ENERGY RESOURCES, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Prize Operating Company,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PRIZE OPERATING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRAPMAR PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Paul Korus

  
	
   

  	
   

  	
   

  	
   Name: Paul Korus

  
	
   

  	
   

  	
   

  	
   Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TRUSTEE:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ S. Dodson

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Seth Dodson

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Vice President

  
							

 

EXHIBIT A

FORM OF FACE OF GLOBAL NOTE

[Depositary Legend, if applicable]

 A-1
 

 

	
  No.
  [         ]

  	
   

  	
  Principal Amount
  $[                      ],

  
	
   

  	
   

  	
  as revised by the
  Schedule of Increases

  
	
   

  	
   

  	
  and Decreases in the
  Global Note attached hereto

  

 

CUSIP NO.                        

CIMAREX ENERGY CO.

71/8%
Senior Note due 2017

Cimarex Energy Co., a Delaware corporation, promises
to pay to Cede & Co., or registered assigns, the principal sum of [                                      ]
Dollars, as revised by the Schedule of Increases and Decreases in the Global
Note attached hereto, on May [   ], 2017.

Interest Payment Dates: [   ]
and [   ], commencing [                        ]
[  ], 20[  ].

Record Dates: [   ] and [   ].

Additional provisions of this Note are set forth on
the other side of this Note.

	
   

  	
  CIMAREX ENERGY CO.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  	
   

  	
   

  
	
  AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [TRUSTEE’S NAME],

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  as Trustee, certifies that this is one of

  	
   

  	
   

  
	
  the Notes referred to in the Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  
					

 

 A-2
 

FORM OF REVERSE SIDE OF GLOBAL NOTE

71/8%
Senior Note due 2017

1.             Interest

Cimarex Energy Co., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the “Company”), promises to pay interest on
the principal amount of this Note at the rate per annum shown above.

The Company shall pay interest semiannually on [   ] and [  
] of each year.  Interest on the
Notes shall accrue from the most recent date to which interest has been paid on
the Notes or, if no interest has been paid, from [   ], 2007. 
The Company shall pay interest on overdue principal or premium, if any
(plus interest on overdue installments of interest to the extent lawful), at
the rate borne by the Notes to the extent lawful.  Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months.

2.             Method of Payment

By no later than 10:00 a.m. (New York City time) on
the date on which any principal of (premium, if any) or interest on any Note is
due and payable, the Company shall irrevocably deposit with the Trustee or the
Paying Agent money sufficient to pay such principal, premium, if any, or
interest.  The Company shall pay interest
(except Defaulted Interest) to the Persons who are registered Holders at the
close of business on the [   ] and [   ] next preceding the interest payment date
even if Notes are cancelled or repurchased after the record date and on or
before the interest payment date. 
Holders must surrender Notes to a Paying Agent to collect principal
payments.  The Company shall pay
principal, premium, if any, and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  Payments in respect of Notes
represented by a Global Note (including principal, premium, if any, and
interest) shall be made by the transfer of immediately available funds to the
accounts specified by the Depositary. 
The Company shall make all payments in respect of a Definitive Note
(including principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof as such address shall appear on the
in the Registrar’s books; provided,
however, that payments on the
Notes represented by Definitive Notes may also be made, in the case of a Holder
of at least $1,000,000 aggregate principal amount of Notes represented by
Definitive Notes, by wire transfer to a U.S. dollar account maintained by the
payee with a bank in the United States if such Holder elects payment by wire
transfer by giving written notice to the Trustee or the Paying Agent to such
effect designating such account no later than 15 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept).

3.             Paying Agent and
Registrar

Initially, [   ], the trustee under the
Indenture (“Trustee”), shall act as Paying Agent and Registrar.  The Company may appoint and change any Paying
Agent or Registrar without notice to any Holder.  The Company or any Wholly Owned Subsidiary
that is a Domestic Subsidiary may act as Paying Agent or Registrar.

 A-3
 

4.             Indenture

The Company issued the Notes under an Indenture dated
as of May 1, 2007 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, the “Indenture”), among the Company, the
Subsidiary Guarantors and the Trustee. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) as in effect from time to time (the “Act”).  Capitalized terms used herein and not defined
herein have the meanings ascribed thereto in the Indenture.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Act for a statement of those
terms.  In the event of any inconsistency
between the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

The Notes are general unsecured, senior obligations of
the Company.  The aggregate principal
amount of Notes which may be authenticated and delivered under the Indenture is
unlimited.  This Note is one of the 71/8% Senior Notes due 2017 referred to in
the Indenture.  The Notes include (i)
$350,000,000 aggregate principal amount of the Company’s 71/8%
Senior Notes due 2017 issued under the Indenture on May 1, 2007 and registered
under the Securities Act (the “Initial Notes”), and (ii) if and when issued, an
unlimited principal amount of additional 71/8%
Senior Notes due 2017 that may be issued from time to time, under the
Indenture, subsequent to May 1, 2007 in a registered offering of the Company
(the “Additional Notes” and together with the Initial Notes, the “Notes”).  The Initial Notes and Additional Notes are
treated as a single class of securities under the Indenture.  The Indenture imposes, among other things,
certain limitations on the Incurrence of Indebtedness by the Company and its
Subsidiaries, the payment of dividends and other distributions on the Capital
Stock of the Company and its Subsidiaries, the purchase or redemption of
Capital Stock of the Company and Capital Stock of such Subsidiaries, certain purchases
or redemptions of Subordinated Obligations, the sale or transfer of assets and
Capital Stock of Subsidiaries, certain Sale/Leaseback Transactions involving
the Company or any Restricted Subsidiary, the incurrence of certain Liens,
transactions with Affiliates, mergers and consolidations, payments for consent,
the business activities and investments of the Company and its Subsidiaries and
the sale of Capital Stock of Restricted Subsidiaries, provided,
however, certain of such limitations shall no longer be in effect if
the Notes attain an Investment Grade Rating from both Rating Agencies.  In addition, the Indenture limits the ability
of the Company and its Subsidiaries to enter into agreements that restrict distributions
and dividends from Subsidiaries and requires the Company to make available SEC
information to the Holders as well as requiring certain Restricted Subsidiaries
to guarantee the obligations under the Notes and the Indenture.

5.             Redemption

Except as described
below, the Notes are not redeemable until [  
], 2012.  On and after [   ], 2012, the Company may redeem all or, from
time to time, a part of the Notes upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as a percentage of
principal amount) plus accrued and unpaid interest on the Notes, if any, to the
applicable Redemption Date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the twelve-month period beginning on [   ] of the years indicated below:

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  Year

  	
   

  	
  Percentage

  	
   

  
	
  2012

  	
   

  	
  [   ]

  	
  %

  
	
  2013

  	
   

  	
  [   ]

  	
  %

  
	
  2014

  	
   

  	
  [   ]

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Prior to [   ], 2010,
the Company may on any one or more occasions redeem up to 35% of the original
principal amount of the Notes (including the original principal amount of any
Additional Notes) with the Net Cash Proceeds of one or more Equity Offerings at
a redemption price of [   ]% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided that:

(1)           at least 65% of the
original principal amount of the Notes (including the original principal amount
of any Additional Notes) remains outstanding immediately after each such
redemption; and

(2)           the redemption
occurs within 60 days after the closing of such Equity Offering.

If the optional
Redemption Date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, shall
be paid to the Person in whose name the Note is registered at the close of
business, on such record date, and no additional interest shall be payable to
Holders whose Notes shall be subject to redemption by the Company.

In the case of any
partial redemption, selection of the Notes for redemption will be made by the
Trustee in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not
listed, then on a pro rata basis, by lot or by such other method as the Trustee
in its sole discretion will deem to be fair and appropriate, although no Note
of $2,000 in original principal amount or less will be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption relating to such Note will state the portion of the
principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion thereof
will be issued in the name of the Holder thereof upon cancellation of the
original Note.

In addition, at any time prior to [   ],
2012, the Notes may be redeemed, in whole but not in part, at the option of the
Company upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Holder at its registered address, at a redemption
price equal to 100% of the principal amount of the Notes redeemed plus the
Applicable Premium plus accrued and unpaid interest, if any, to the Redemption
Date (subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

“Applicable Premium” means, with respect to a Note on
any date of redemption prior to [   ], 2012, the greater of
(1) [   ]% of the principal amount of such Note and
(2) the 

 A-5
 

excess of (a) the present value at such time of
(i) the redemption price of such Note on [   ], 2012 (such
redemption price being described under the first paragraph of this Section 5)
plus (ii) all required interest payments due on such Note through [   ],
2012 (but excluding accrued and unpaid interest to the Redemption Date),
computed using a discount rate equal to the Treasury Rate plus [   ] basis points, over (b) the
then-outstanding principal amount of such Note.

“Treasury Rate” means the
yield to maturity at the time of computation of United States Treasury
securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly
available at least two business days prior to the Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source of
similar market data)) most nearly equal to the period from the Redemption Date
to [   ], 2012; provided, however, that if the period from the
Redemption Date to [   ], 2012 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average
yields of United States Treasury securities for which such yields are given,
except that if the period from the Redemption Date to [   ],
2012 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

The Company is not required to make mandatory
redemption payments or sinking fund payments with respect to the Notes.

The Company and its Subsidiaries and Affiliates may at
any time and from time to time acquire Notes through tender offers, open market
purchases, negotiated transactions or otherwise, in accordance with applicable
securities laws, so long as such acquisition does not otherwise violate the
terms of the Indenture.

6.             Put Provisions

If a Change of Control occurs, unless the Company has
exercised its right to redeem all of the Notes as described under Section 5
herein and subject to the terms of the Indenture, each Holder will have the
right to require the Company to repurchase all or any part (equal to $2,000 or
an integral multiple of $1,000 in excess thereof) of such Holder’s Notes at a
purchase price in cash equal to 101% of the principal amount of such Notes plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date) as provided in, and subject to the terms
of, the Indenture.  The Company shall be
required to make an Asset Disposition Offer in certain circumstances described
in the Indenture.

7.             Denominations;
Transfer; Exchange

The Notes are in registered form without coupons in
denominations of principal amount of $2,000 or an integral multiple of $1,000
in excess thereof.  A Holder may transfer
or exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Note (1) for a period beginning 15 Business Days before the
mailing of a 

 A-6
 

notice of a redemption of Notes to the Holders and
ending at the close of business on the day of such mailing or (2) selected for
redemption.

8.             Persons Deemed
Owners

The registered Holder of this Note may be treated as
the owner of it for all purposes.

9.             Unclaimed Money

If money for the payment of the principal of or
premium, if any, or interest remains unclaimed for two years, the Trustee or
Paying Agent shall pay the money back to the Company at its written request
unless an abandoned property law designates another person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee or the Paying
Agent for payment.

10.           Defeasance

Subject to certain conditions set forth in the
Indenture, the Company at any time may terminate some or all of its obligations
under the Notes and the Indenture if the Company deposits with the Trustee
money or U.S. Government Obligations for the payment of principal, premium, if
any, and interest on the Notes to maturity.

11.           Amendment, Waiver

Subject to certain exceptions set forth in the
Indenture, (i) the Indenture, the Subsidiary Guarantees, and the Notes may be
amended with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Notes) and (ii) subject to certain exceptions, any Default or Event
of Default (other than with respect to nonpayment) or noncompliance with any provision
may be waived with the written consent of the Holders of a majority in
principal amount of the then outstanding Notes (including, without limitation,
waivers and consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes).  Subject
to certain exceptions set forth in the Indenture, without the consent of any
Holder, the Company, the Subsidiary Guarantors and the Trustee may amend or
supplement the Indenture or the Notes to cure any ambiguity, omission, defect
or inconsistency, to comply with Article IV or Article X of
the Indenture in respect of the assumption by a successor of the obligations of
the Company or any Subsidiary Guarantor under the Indenture, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to add
Guarantees with respect to the Notes or release a Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee upon its designation as an
Unrestricted Subsidiary or otherwise in accordance with the Indenture, to
secure the Notes, to add to the covenants of the Company, any Subsidiary
Guarantor or other obligor under the Indenture, this Note or the Subsidiary
Guarantees for the benefit of the Holders or that would surrender any right or
power conferred upon the Company, any Subsidiary Guarantor or any other obligor
or that does not adversely affect the legal rights under the Indenture of any
such Holder, to comply with any requirement of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA, to provide for the
appointment of a successor trustee, to provide for the issuance of 

 A-7
 

Additional Notes in accordance with the Indenture, to
comply with the rules of any applicable securities depositary or to conform the
text of the Indenture, the Notes or the Subsidiary Guarantees to any provisions
of the section in the Registration Statement on Form S-3 (File No. 333-[   ])
of the Company, filed with the SEC on [   ], 2007, entitled “Description
of notes,” or the related Registration Statement on Form S-3 (File No. 333-[    ])
of the Company, filed with the SEC on [   ], 2007.

12.           Defaults and
Remedies

Under the Indenture, Events of Default include (each
of which are more specifically described in the Indenture) (i) default for
30 days in payment of interest when due on the Notes; (ii) default in
payment of principal or premium, if any, on the Notes at Stated Maturity, upon
required repurchase or upon optional redemption pursuant to paragraph 5
hereof, upon declaration or otherwise; (iii) the failure by the Company or
any Subsidiary Guarantor to comply with its obligations under Article IV
of the Indenture; (iv) failure by the Company to comply for 30 days
after written notice with any of their obligations under the covenants described
under Sections 3.3 through 3.14 of the Indenture; (v)  (a)the failure
by the Company to comply for 60 days after written notice with their other
agreements contained in the Indenture or under the Notes (other than those
referred to in (i), (ii), (iii) or (iv) above or in (v)(b) below), or (b) a
failure by the Company to comply for 90 days after notice with Section 3.2 of
the Indenture; (vi) default under any mortgage, indenture or instrument under
which there is issued or by which there is secured or evidenced any Indebtedness
for money borrowed by the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted
Subsidiary, whether such Indebtedness or guarantee now exists, or is created
after the date of the Indenture, which default (a) is caused by a failure
to pay principal of, or interest or premium, if any, on such Indebtedness prior
to the expiration of the grace period provided in such Indebtedness (“payment
default”) or (b) results in the acceleration of such Indebtedness
prior to its maturity (the “cross acceleration provision”) and, in each
case, the principal amount of any such outstanding Indebtedness, together with
the principal amount of any other such Indebtedness under which there is an
outstanding uncured payment of default, a payment default or the maturity of
which has been and remains so accelerated, aggregates $15.0 million or more;
(vii) certain events of bankruptcy, insolvency or reorganization of the
Company or a Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary (the “bankruptcy provisions”); (viii) failure by the
Company or any Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $15.0 million (net
of any amounts that a reputable and creditworthy insurance company has
acknowledged liability for in writing), which judgments are not paid,
discharged, waived or stayed for a period of 60 days after such judgment
becomes final and no longer subject to appeal (the “judgment default
provision”); or (ix) any Subsidiary Guarantee of a Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary ceases to
be in full force and effect (except as contemplated by the terms of the
Indenture) or is declared null and void in a judicial proceeding or any
Subsidiary 

 A-8
 

Guarantor that is a Significant Subsidiary or group of
Subsidiary Guarantors that, taken together (as of the last audited consolidated
financial statements for the Company and its Restricted Subsidiaries), denies
or disaffirms its obligations under the Indenture or its Subsidiary
Guarantee.  However, a default under
clauses (iv) and (v) will not constitute an Event of Default until
the Trustee or the Holders of at least 25% in principal amount of the
outstanding Notes notify the Company of the default and the Company does not
cure such default within the time specified in clauses (iv) and (v) hereof
after receipt of such notice.

If an Event of Default (other than an Event of Default
described in (vii) hereof) occurs and is continuing, the Trustee by notice to
the Company or the Holders of at least 25% in principal amount of the
outstanding Notes may declare all the Notes to be due and payable immediately.  If an Event of Default described in (vii)
hereof occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Notes will become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holders.  Subject to certain conditions
contained in the Indenture, if the Notes are accelerated as a result of an
Event of Default described in (vi) above, the declaration of acceleration shall
be automatically annulled if the default triggering such Event of Default is
remedied, cured or waived within 20 days after written notice of acceleration
is received by the Company and the other conditions to such annulment are
satisfied.

Holders may not enforce the Indenture or the Notes except
as provided in the Indenture.  The
Trustee may refuse to enforce the Indenture or the Notes unless it receives
indemnity or security satisfactory to it. 
Subject to certain limitations, Holders of a majority in principal
amount of the Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders notice of any continuing Default or Event of Default (except a Default
or Event of Default in payment of principal, premium, if any, or interest) if
it determines that withholding notice is in their interest.

13.           Trustee Dealings
with the Company

Subject to certain limitations set forth in the
Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
and collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

14.           No Recourse Against
Others

A director, officer,
employee, manager, member, partner, incorporator or stockholder, as such, of
the Company or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company of any Subsidiary Guarantor under the Notes, the
Indenture or the Subsidiary Guarantees or for any claim based on, in respect of
or by reason of such obligations or their creation.  By accepting a Note, each Holder waives and
releases all such liability.  The waiver
and release are part of the consideration for the issue of the Notes.

 A-9
 

15.           Authentication

This Note shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Note.

16.           Abbreviations

Customary abbreviations may be used in the name of a
Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants
by the entirety), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors
Act).

17.           CUSIP Numbers

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures the Company has caused
CUSIP numbers to be printed on the Notes. 
No representation is made as to the accuracy of such numbers as printed
on the Notes and reliance may be placed only on the other identification
numbers placed thereon.

18.           Defined Terms

As used in this Note, terms defined in the Indenture
are used herein as therein defined.

19.           Governing Law

This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

The Company shall furnish to any Holder upon written
request and without charge to the Holder a copy of the Indenture, which has in
it the text of this Note in larger type. 
Requests may be made to:

Cimarex Energy Co.

1700 Lincoln Street, Suite 1800

Denver, Colorado  80203

Attention:  Corporate Secretary

Facsimile No.:  (303) [   ]

 A-10
 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and
transfer this Note to

	
  

  	
   

  	
   

  
	
   

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

  	
   

  
	
   

  
	
   

  
	
  

  	
   

  	
   

  
	
   

  	
  (Insert assignee’s soc. sec. or tax I.D. No.)

  	
   

  
	
   

  
	
  and irrevocably appoint ___________agent to transfer
  this Note on the books of the Company. The agent may substitute another to
  act for him.

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee: 

  	
   

  
	
   

  	
  (Signature must
  be guaranteed)

  
	
   

  	
   

  
	
   

  
	
   

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

  
											

 

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

 A-11
 

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The following
increases or decreases in this Global Note have been made:

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Note

  	
   

  	
  Principal Amount

  of this Global

  Note following

  such decrease or

  increase

  	
   

  	
  Signature of

  authorized

  signatory of

  Trustee or Notes

  Custodian

  	
   

  
	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  
	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  
	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  	
       

  	
   

  

 

 A-12
 

OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by
the Company pursuant to Section 3.8 or 3.10 of the Indenture,
check the box:

o

If you want to elect to
have only part of this Note purchased by the Company pursuant to Section 3.8
or 3.10 of the Indenture, state the amount in principal amount (must be
denominations of $2,000 or an integral multiple of $1,000 in excess thereof): $          .

	
  Date: 

  	
   

  	
   

  	
   

  	
  Your Signature: 

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the other side
  of the

  
	
   

  	
   

  	
  Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee: 

  	
   

  	
   

  
	
   

  	
  (Signature must
  be guaranteed)

  	
   

  
								

 

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

 A-13

EXHIBIT B

FORM
OF NOTATION OF GUARANTEE

For value received, each Subsidiary Guarantor (which
term includes any successor Person under the Indenture) has, jointly and
severally, unconditionally guaranteed, to the extent set forth in the Indenture
and subject to the provisions in the Indenture dated as of May 1, 2007 (the “Indenture”)
among Cimarex Energy Co., the Subsidiary Guarantors listed on the signature
pages thereto and [   ], as trustee (the “Trustee”),
(a) the full and punctual payment when due, whether at maturity, by
acceleration, by redemption or otherwise, of the principal of, premium, if any,
and interest on the Notes and all other obligations and liabilities of the
Company to the Holders or the Trustee under the Indenture (including without limitation
interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceedings, relating to
the Company or any Subsidiary Guarantor whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding).  The obligations of the Subsidiary Guarantors
to the Holders and to the Trustee pursuant to the Subsidiary Guarantee and the
Indenture are expressly set forth in Article X of the Indenture and
reference is hereby made to the Indenture for the precise terms of the
Subsidiary Guarantee, which terms are incorporated herein by reference.

	
  

  	
  [Guarantor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 B-1

EXHIBIT C

FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY
GUARANTORS TO GUARANTEE NOTES

This Supplemental Indenture and Subsidiary Guarantee,
dated as of [             
   ], 20    (this “Supplemental Indenture”
or “Guarantee”), among [name of
future Subsidiary Guarantor] (the “New Subsidiary Guarantor”),
Cimarex Energy Co. (together with its successors and assigns, the “Company”),
each other existing Subsidiary Guarantor under the Indenture referred to below
(the “Existing Subsidiary Guarantors”), and [   ], as Trustee under the Indenture referred
to below.

W I T N E S S E T H:

WHEREAS, the Company, the Existing Subsidiary
Guarantors and the Trustee have heretofore executed and delivered an Indenture,
dated as of May 1, 2007 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the issuance of an unlimited
aggregate principal amount of 71⁄8% Senior Notes due 2017 of the Company
(the “Notes”);

WHEREAS, Section 3.11 of the Indenture provides
that the Company is required to cause each Restricted Subsidiary (other than a
Foreign Subsidiary) created or acquired by the Company or one or more of its
Restricted Subsidiaries that Guarantees the payment of any Indebtedness of the
Company under the Senior Secured Credit Agreement to execute and deliver to the
Trustee a Supplemental Indenture and Subsidiary Guarantee pursuant to which
such Subsidiary Guarantor shall unconditionally Guarantee, on a joint and
several basis, the full and prompt payment of the principal of, premium, if any
and interest on the Notes on a senior unsecured basis and all other obligations
under the Indenture on an unsecured basis; and

WHEREAS, pursuant to Section 9.1 of the
Indenture, the Trustee, the Company and the Existing Subsidiary Guarantors are
authorized to execute and deliver this Supplemental Indenture to amend the
Indenture to provide for the Subsidiary Guarantee by the New Subsidiary
Guarantor, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the New Subsidiary Guarantor, the Existing Subsidiary Guarantors,
the Company and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders as follows:

ARTICLE I

Definitions

SECTION 1.1  Defined
Terms.  As used in this Supplemental
Indenture, terms defined in the Indenture or in the preamble or recital hereto
are used herein as therein defined, except that the term “Holders” in
this Guarantee shall refer to the term “Holders” as defined in 

 C-1
 

the Indenture and the Trustee acting on behalf or for
the benefit of such Holders.  The words “herein,”
“hereof” and “hereby” and other words of similar import used in this
Supplemental Indenture refer to this Supplemental Indenture as a whole and not
to any particular section hereof.

ARTICLE II

Agreement to be Bound;
Guarantee

SECTION 2.1  Agreement
to be Bound.  The New Subsidiary
Guarantor hereby becomes a party to the Indenture as a Subsidiary Guarantor and
as such shall have all of the rights and be subject to all of the obligations
and agreements of a Subsidiary Guarantor under the Indenture.  The New Subsidiary Guarantor agrees to be
bound by all of the provisions of the Indenture applicable to a Subsidiary
Guarantor and to perform all of the obligations and agreements of a Subsidiary
Guarantor under the Indenture.

SECTION 2.2  Guarantee.  The New Subsidiary Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely
as a surety, jointly and severally with each other Subsidiary Guarantor, to
each Holder and the Trustee, the full and punctual payment when due, whether at
maturity, by acceleration, by redemption or otherwise, of the Obligations
pursuant to Article X of the Indenture.

ARTICLE III

Miscellaneous

SECTION 3.1   Notices.  All notices and other communications to the
New Subsidiary Guarantor shall be given as provided in the Indenture to the New
Subsidiary Guarantor, at its address set forth below, with a copy to the
Company as provided in the Indenture for notices to the Company.

[Name of future Subsidiary Guarantor]

[                                 ]

[                                 ]

[Attention:                                ]

[Facsimile No.: (     )     -          ]

SECTION 3.2   Parties.  Nothing expressed or mentioned herein is
intended or shall be construed to give any Person, firm or corporation, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture or the Indenture or any
provision herein or therein contained.

SECTION 3.3   Governing Law.  This Supplemental Indenture shall be governed
by, and construed in accordance with, the laws of the State of New York.

 C-2
 

SECTION 3.4   Severability Clause.  In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent
of such invalidity, illegality or unenforceability.

SECTION 3.5   Ratification of Indenture; Supplemental
Indentures Part of Indenture.  Except
as expressly amended hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in
full force and effect.  This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every Holder
heretofore or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or
warranty as to the validity or sufficiency of this Supplemental Indenture.

SECTION 3.6   Counterparts.  The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

SECTION 3.7   Headings.  The headings of the Articles and the sections
in this Guarantee are for convenience of reference only and shall not be deemed
to alter or affect the meaning or interpretation of any provisions hereof.

 C-3
 

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

	
   

  	
  [NEW SUBSIDIARY GUARANTOR],

  
	
   

  	
  as a Subsidiary
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [   ], as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CIMAREX ENERGY
  CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING SUBSIDIARY GUARANTORS],

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 C-4Exhibit
10.1

EXECUTIVE
EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (“Agreement”), dated as of April 26, 2007, is made by and between
MFIC CORPORATION, a Delaware corporation (the “Company”), and ROBERT P. BRUNO,
an adult individual (the “Executive”). 
The Company and the Executive are sometimes referred to herein
individually as a “Party” and collectively as the “Parties.”

WHEREAS, the Executive
is currently employed as the Company’s President, Chief Operating Officer; and

WHEREAS, the
Company and the Executive desire to clarify the terms of the Executive’s
employment as set forth herein.

NOW THEREFORE, in
consideration of the mutual covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties do hereby agree as follows:

1.             Duties.  The Company shall employ the Executive as its
President, Chief Operating Officer and the Executive shall have the customary
duties, responsibilities and authority normally associated with each of those
positions, consistent with past practices, and such additional duties as the
Company’s board of directors (the “Board”) may, from time to time, assign to
the Executive of the type normally assigned to a senior executive.

2.             Term.  The Company shall employ Executive in as its
President, Chief Operating Officer and until at least June 30, 2008 (the “Target
Date”).  Following the Target Date, the
Company shall continue to employ the Executive as an “at will” employee and may
terminate the Executive’s employment for any reason or no reason.

3.             Salary and
Benefits.  The Company shall continue
to provide the Executive with the salary and other benefits currently provided,
with such increases to the same as the Board may, from time to time,
grant.  The Company shall not reduce the Executive’s
salary or benefits at any time prior to the Target Date, provided, however,
that non-monetary benefits may be reduced from time to time so long as such
changes effect all of the Company’s senior management on an equal basis.

4.             Termination and
Severance.

a.             In the event that on
or before the Target Date (i) the Company shall terminate the Executive’s
employment with the Company  for Cause
(as defined below), (ii) the Executive shall voluntarily terminate his
employment with the Company for a reason other than Good Reason (as defined
below), or (iii) the Executive shall die or become Permanently Disabled (as
defined below), the Company shall be under no obligation to provide the Executive
with any compensation or severance package except for salary and benefits
accrued prior to termination and as otherwise required by applicable law.

b.             In the event that the
Company shall terminate the Executive’s employment with the Company on or
before the Target Date without Cause or the Executive shall voluntarily
terminate his employment with the Company for Good Reason, the Executive shall
be entitled to receive, in addition to those benefits required by applicable
law, an amount equal to (i) the value of his base salary through and including
the Target Date plus (ii) an amount equal to six (6) months of his base salary,
at the rate in effect on the date the Executive’s employment was terminated,
but not less than the amount set forth in Section 3 above ((i) and (ii)
together defined as the “Severance Payment”). 
The Severance Payment will be payable to the Executive in equal amounts
over the period between the date the Executive’s employment is terminated and
December 31, 2008, in accordance with the Company’s standard payroll practices
then in effect.  The Company shall
provide the Executive (and his spouse, if applicable) with medical and dental insurance
coverage, on substantially the same level as that provided on the date the
Executive’s employment with the Company was terminated, through and including
December 31, 2008, provided, however, that the Executive will be responsible
for the same applicable co-payments as when employed.  The Company will continue to provide the
Executive with pre-existing life insurance coverage for his benefit from the
date the Executive’s employment with the Company was terminated through and
including December 31, 2008.

c.             Upon written notice
given by the Executive to the Company at least thirty (30) days prior to the
Target Date, the Executive shall be entitled to terminate his employment with
the Company, effective as of the Target Date, and, upon such termination, be
entitled to receive, in addition to those benefits required by applicable law,
an amount equal to six (6) months of his base salary, at the rate in effect on
the Target Date (the “Termination Payment”). 
The Termination Payment will be payable to the Executive in equal
amounts over the period between the Target Date and December 31, 2008, in
accordance with the Company’s standard payroll practices then in effect.  The Company shall provide the Executive (and
his spouse, if applicable) with medical and dental insurance coverage, on
substantially the same level as that provided on the Target Date, through and
including December 31, 2008, provided, however, that the Executive will be
responsible for the same applicable co-payments as when employed.  The Company will continue to provide the
Executive with pre-existing life insurance coverage for his benefit from the
Target Date through and including December 31, 2008.

d.             In the event that the
Executive does not exercise his right to receive the Termination Payment in
accordance with subsection (c) above and continues his employment with the
Company after the Target Date, the Executive will nonetheless be entitled to
receive an amount equal to the Termination Payment if the Company terminates
his employment after the Target Date without Cause.

5.             Definitions.

a.             “Cause” shall mean
(i) the willful failure or refusal by the Executive to perform his duties
hereunder (other than any such failure resulting from the Executive becoming
Permanently Disabled); (ii) the Executive’s willful material breach of this
Agreement or any material policy of the Company or its subsidiaries applicable
to him that has been disclosed to him which, if capable of cure, has not been
cured within ten (10) business days after written notice of such breach
delivered to the Executive by the Company; (iii) the Executive’s willful
misconduct, or conduct reasonably deemed by the Board to be grossly negligent,
with respect to 

 2
 

the performance of his
duties that is materially injurious to the Company, its subsidiaries,
stockholders, employees or customers, monetarily or otherwise, which, if
capable of cure, has not been cured within ten (10) business days following
written notice of such violation delivered to the Executive by the Company; or
(iv) the conviction of the Executive, or plea of guilty or nolo
contendere, with respect to (A) any felony, (B) any act of fraud,
theft, or financial dishonesty with respect to the Company or any of its
subsidiaries or their respective stockholders, or (C) any other crime involving
dishonesty, disloyalty or fraud with respect to not less than $5,000.  Notwithstanding the foregoing, the Executive’s
Employment hereunder shall not be deemed to be terminated for Cause except by
action of the Board, acting in good faith.

b.             “Good Reason” shall
mean the occurrence of any of the following events, unless such event occurs
with the Executive’s express prior written consent: (A) any change to the
Executive’s duties that are materially inconsistent with the Executive’s
position, duties or responsibilities hereunder, unless such change is cured
within ten (10) business days after written notice thereof to the Company from
the Executive; (B) any material breach of this Agreement by the Company (or any
successor or assignee of the Company), unless such breach is cured within ten
(10) business days after receiving written notice of the breach from the
Executive; or (C) the principal offices of the Company are relocated, or the
Executive is required to perform his services from, outside the Boston
metropolitan area.

c.             “Permanently Disabled”
shall mean the expiration of a continuous period of 120 days during which the Executive
is unable to perform his assigned duties due to physical or mental incapacity,
as reasonably determined by the Board in good faith after consulting with such
medical advisers as the Board shall see fit.

6.             Survival.  The obligation of the Company to make the
Severance Payment or the Termination Payment shall survive the termination of
this Agreement, the termination of the Executive’s employment with the Company,
a change in control of the Company, the sale or other disposition of
substantially all of the assets of the Company (including a statutory merger
where the Company is not the surviving party) and the passage of the Target
Date on the terms stated herein.

7.             Severability.  Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

8.             Complete Agreement.  This Agreement embodies the complete
agreement and understanding among the Parties and supersedes and preempts any
prior understandings, agreements or representations by or between the Parties,
written or oral, which may have related to the subject matter hereof.

 3
 

9.             Counterparts.  This Agreement may be executed in separate
counterparts, including via facsimile, each of which is deemed to be an
original and all of which taken together constitute one and the same agreement.

10.           Successors and
Assigns.  This Agreement is intended
to bind and inure to the benefit of and be enforceable by the Executive, the
Company and their respective heirs, successors and assigns, except that the Executive
may not assign his rights or delegate his obligations hereunder without the
prior written consent of the Company.

11.           Choice of Law.  This Agreement will be governed by the
internal law, and not the laws of conflicts that would give effect to the laws
of another jurisdiction, of the Commonwealth of Massachusetts.

12.           Amendment and Waiver.  The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and the Executive,
and no course of conduct or failure or delay in enforcing the provisions of
this Agreement shall affect the validity, binding effect or enforceability of
this Agreement.

[Signature page follows.]

 4
 

IN WITNESS
WHEREOF, the undersigned have caused this Agreement to be executed as of the
date first above written.

	
   

  	
  COMPANY:

  	
   

  
	
   

  	
  MFIC CORPORATION

  	
   

  
	
   

  	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James N. Little

  	
   

  
	
   

  	
  Name:   James N. Little

  
	
   

  	
  Title:  Acting
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert P. Bruno

  	
   

  
	
   

  	
  Robert P. Bruno

  
						

 

 5

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