Document:

Exhibit
10.3

 

AGA MEDICAL HOLDINGS, INC.

2008 EQUITY INCENTIVE PLAN

 

1.             Purpose of the Plan

 

The purpose of the Plan is to aid the Company
and its Affiliates in recruiting and retaining key employees, directors,
independent contractors or consultants and to motivate such employees,
directors, independent contractors or consultants to exert their best efforts
on behalf of the Company and its Affiliates by providing incentives through the
granting of Awards.  The Company expects
that it will benefit from the added interest which such key employees,
directors, independent contractors or consultants will have in the welfare of
the Company as a result of their proprietary interest in the Company’s success.

 

2.             Definitions

 

The following capitalized terms used in the
Plan have the respective meanings set forth in this Section:

 

(a)           Affiliate:  Any corporation or other entity (including,
but not limited to, a partnership or a limited liability company), that is
affiliated with the Company through stock or equity ownership or otherwise, and
is designated as an Affiliate for purposes of this Plan by the Committee.

 

(b)           Annual Incentive Award: An Award
granted to an under the Plan that has a performance period (and/or time vesting
period) equal to or less than twelve (12) months in duration.

 

(c)           Award:  An Option, Stock Appreciation Right,
Performance Share, Performance Share Unit, Performance Unit, Cash-Based Award,
Other Stock-Based Award, or Annual Incentive Award granted pursuant to the
Plan.

 

(d)           Award Agreement: Either (1) a
written agreement entered into by the Company and a Participant setting forth
the terms and provisions applicable to an Award granted under this Plan, or (2) a
written or electronic statement issued by the Company to a Participant
describing the terms and provisions of such Award, including any amendment or
modification thereof. The Committee may provide for the use of electronic,
internet or other non-paper Award Agreements, and the use of electronic,
internet or other non-paper means for the acceptance thereof and actions
thereunder by a Participant.

 

(e)           Beneficial Owner:  A “beneficial owner”, as such term is defined
in Rule 13d-3 under the Exchange Act (or any successor rule thereto).

 

(f)            Board:  The Board of Directors of the Company.

 

(g)           Cash-Based Award: An Award,
denominated in cash, granted to a Participant as described in Section 9 of
this Plan.

 

(h)           Cause: Termination
by reason of: (1) any act of criminal or fraudulent misconduct taken by a
Participant in connection with the Participant’s responsibilities as an
employee or director of the Company which is intended to result in the
Participant’s personal enrichment,

 

 

(2) a Participant’s
conviction of a felony, (3) a material breach of a fiduciary duty owed by
a Participant to the Company or its stockholders, or (4) continued
material violations by a Participant of the Participant’s obligations to the
Company after the Participant has been given adequate written notice of such
noncompliance and the Participant has had a minimum of sixty (60) days to
cure such noncompliance.

 

(i)            Change in Control:  The occurrence of any of the following events
after the date of the Company’s Initial Public Offering:

 

(1)   the sale or disposition, in
one or a series of related transactions, of all or substantially all, of the
assets of the Company to any “person” or “group” (as such terms are defined in
Sections 13(d)(3) or 14(d)(2) of the Exchange Act) other than the
Permitted Holders;

 

(2)   any person or group, other
than the Permitted Holders, is or becomes the Beneficial Owner (except that a
person shall be deemed to have “beneficial ownership” of all Shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the voting stock of the Company (or any
entity which controls the Company), including by way of merger, consolidation,
tender or exchange offer or otherwise;

 

(3)   a reorganization,
recapitalization, merger or consolidation (a “Corporate Transaction”) involving
the Company, unless securities representing more than 50% of the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors of the Company or the corporation
resulting from such Corporate Transaction (or the parent of such corporation)
are held subsequent to such transaction by the person or persons who were the
Beneficial Owners of the outstanding voting securities entitled to vote generally
in the election of directors of the Company immediately prior to such Corporate
Transaction, in substantially the same proportions as their ownership
immediately prior to such Corporate Transaction; or

 

(4)   during any twelve-month
period, individuals who at the beginning of such period constituted the Board
(together with any new directors whose election 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 of the Company, 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 Board, then in office.

 

(j)            Code:  The Internal Revenue Code of 1986, as
amended, or any successor thereto.

 

(k)           Committee:  The Compensation Committee of the Board (or a
subcommittee thereof), or such other committee of the Board (including, without
limitation, the full Board) to which the Board has delegated power to act under
or pursuant to the provisions of the Plan.

 

(l)            Company:  AGA Medical Holdings, Inc., a Delaware
Corporation.

 

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(m)          Disability:  A Participant in the Plan shall be deemed to
have a “Disability” if the Participant: (1) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected by the Company, in its reasonable
determination, to result in death or can be expected by the Company, in its
reasonable determination, to last for a continuous period of not less than 12
months, or (2) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Company.

 

(n)           Effective Date:  The date the Board approves the Plan, or such
later date as is designated by the Board.

 

(o)           Employee: Any
individual designated as an employee of the Company, its Affiliates, and/or its
Subsidiaries on the payroll records thereof.

 

(p)           Employment:  The term “Employment” as used herein shall be
deemed to refer to (i) a Participant’s employment if the Participant is an
employee of the Company or any of its Affiliates, (ii) a Participant’s
services as a consultant or independent contractor, if the Participant is
consultant or independent contractor to the Company or its Affiliates and (iii) a
Participant’s services as an non-employee director, if the Participant is a
non-employee member of the Board.

 

(q)           Exchange Act:  The Securities Exchange Act of 1934, as
amended, or any successor thereto.

 

(r)            Fair Market Value:  On a given date, (1) if there should be
a public market for the Shares on such date and the shares are listed or
admitted on a national securities exchange, the closing price of the Shares as
reported on such date on the Composite Tape of the principal national
securities exchange on which such Shares are listed or admitted to trading, or,
if there should be a public market for the shares on such date but the Shares
are not listed or admitted on any national securities exchange, the arithmetic
mean of the per Share closing bid price and per Share closing asked price on
such date as quoted on the National Association of Securities Dealers Automated
Quotation System (or such market in which such prices are regularly quoted)
(the “NASDAQ”), or, if there should be a public market for the shares on such
date but no sale of Shares shall have been reported on the Composite Tape of
any national securities exchange or quoted on the NASDAQ on such date, then the
immediately preceding date on which sales of the Shares have been so reported
or quoted shall be used; provided that, in the event of an Initial
Public Offering, the Fair Market Value on the date of such Initial Public
Offering shall be the price at which the Initial Public Offering was made, and (2) if
there should not be a public market for the Shares on such date, the Fair
Market Value shall be the value established by the Committee in good faith.

 

(s)           Grant Date: The date on
which an Award is granted, as established by the Committee.

 

(t)            Initial Public Offering:  A registered initial public offering pursuant
to an effective registration statement filed under the U.S. Securities Act of
1933, as amended of (1) the Company, (2) a wholly owned subsidiary of
the Company, (3) any entity succeeding to substantially all of the
business operations of the Company or (4) any direct or indirect parent of

 

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the Company (which parent
may or may not beneficially own 100% of the equity interests of the Company).

 

(u)           Involuntary Termination: The
involuntary termination of a Participant’s employment with the Company’s
successor organization within the two-year period following a Change in Control
for reasons other than Cause. In addition, the Committee shall have the
authority to include within a Participant’s Award Agreement that “Involuntary
Termination” shall also include certain defined voluntary terminations related
to changes in the Participant’s role, position, pay, job conditions, or other
factors, within the two-period following the effective date of the Change in
Control, all upon such terms as are deemed appropriate by the Committee.

 

(v)           ISO:  An Option that is also an incentive stock
option granted pursuant to Section 6(d) of the Plan.

 

(w)          Option:  A stock option granted pursuant to Section 6
of the Plan.

 

(x)            Option Price:  The purchase price per Share of an Option, as
determined pursuant to Section 6(a) of the Plan.

 

(y)           Other Stock-Based Awards:  Awards granted pursuant to Section 9 of
the Plan.

 

(z)            Participant:  An employee, director, independent contractor
or consultant (including prospective employees, directors, independent
contractors or consultants) who is selected by the Committee to participate in
the Plan.

 

(aa)         Performance-Based Awards:  Awards granted under the Plan that are
intended to be compliant with the deductibility provisions of Section 162(m),
as described in Section 13 of this Plan.

 

(bb)         Performance Period: The period
over which the degree of attainment of performance objectives associated with
an Award is measured.

 

(cc)         Performance Share: A grant of a
stated number of Shares to a Participant under the Plan that is forfeitable by
the Participant until the attainment of specified performance goals, or until
otherwise determined by the Committee or in accordance with the Plan, subject
to such other contingencies as are deemed appropriate by the Committee.

 

(dd)         Performance Share Unit: A Participant’s
contractual right to receive a stated number of Shares or, if provided by the
Committee on or after the grant date, cash equal to the Fair Market Value of
such Shares, under the Plan at a specified time that is forfeitable by the
Participant until the attainment of specified performance goals, or until otherwise
determined by the Committee or in accordance with the Plan, subject to such
other contingencies as are deemed appropriate by the Committee.

 

(ee)         Performance Unit: A Participant’s
contractual right to receive a cash-denominated award, payable in cash or
Shares, under the Plan at a specified time that is forfeitable by the
Participant until the attainment of specified performance goals, or until
otherwise determined by the Committee or in accordance with the Plan, subject
to such other contingencies as are deemed appropriate by the Committee.

 

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(ff)           Permitted Holder means, as of
the date of determination, any and all of: (1) an employee benefit plan
(or trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power of its
voting equity securities or equity interest is owned, directly or indirectly,
by the Company; (2) WCAS; (3) Franck L. Gougeon; (4) any trust
or other entity created by Franck L. Gougeon, the principal beneficiaries of
which are Franck L. Gougeon and/or members of his family; (5) any spouse
of Franck L. Gougeon or any lineal descendants (whether natural or adopted) of
Franck L. Gougeon’s grandparents and their spouses; (6) any personal
representative of Franck L. Gougeon or any of the Persons referred to in (5) above
acting within that capacity; and (7) any Person which is directly or
indirectly controlled by any Person referred to in (3) through (6) above
or by any combination of them.

 

(gg)         Person:  A “person”, as such term is used for purposes
of Section 13(d) or 14(d) of the Exchange Act (or any successor
section thereto).

 

(hh)         Plan:  The AGA Medical Holdings, Inc. 2008
Equity Incentive Plan.

 

(ii)           Pre-Split Capitalization: The Company’s
capitalization immediately prior to the reverse Stock split scheduled to occur
prior to the Initial Public Offering.

 

(jj)           Section 162(m): Section 162(m) of
the Code, together with the Treasury Regulations promulgated thereunder, or any
successor provision thereto.

 

(kk)         Shares:  Shares of common stock, par value, $.01 per
share, of the Company.

 

(ll)           Stock Appreciation Right:  A stock appreciation right granted pursuant
to Section 7 of the Plan.

 

(mm)       Subsidiary:  A subsidiary corporation, as defined in Section 424(f) of
the Code (or any successor section thereto).

 

(nn)         WCAS. Welsh,
Carson, Anderson & Stowe IX, L.P., a Delaware limited partnership, and
any of its Affiliates.

 

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3.             Shares Subject to the Plan

 

Subject to Section 14,
the total number of Shares which may be issued under the Plan is 35,000,000,  inclusive of the remaining Shares
that have been authorized for issuance under the Company’s 2006 Equity
Incentive Plan,  but have not been granted as of
the Effective Date,  and the maximum number of
Shares for which ISOs may be granted is 6,000,000 (in addition to the
approximately 9,210,000 ISOs that have been granted under Company’s 2006 Equity
Incentive Plan and are outstanding on the Effective Date).  Additionally, Section 13 establishes the
maximum amounts of Shares and payout amounts associated with Performance-Based
Awards under this Plan.  The Shares may
consist, in whole or in part, of unissued Shares or treasury Shares.  For all purposes of this Plan, the Share
numbers referenced are based on the Company’s Pre-Split Capitalization. The
issuance of Shares or the payment of cash upon the exercise of an Award or in
consideration of the cancellation or termination of an Award shall reduce the
total number of Shares available under the Plan, as applicable.  Shares which are subject to Awards which
terminate or lapse without the payment of consideration may be granted again
under the Plan.

 

4.             Administration

 

The Plan shall be administered
by the Committee, which may delegate its duties and powers in whole or in part
to any subcommittee thereof consisting solely of at least two individuals who
are intended to qualify as “Non-Employee Directors” within the meaning of Rule 16b-3
under the Exchange Act (or any successor rule thereto) (to the extent
required to comply with Rule 16b-3), “independent directors” within the
meaning of the NASDAQ’s listed company rules (to the extent required under
such listed company rules) and, following the post-Initial Public Offering
period described in Section 1.162-27(f)(2) of the regulations
promulgated under the Code, “outside directors” within the meaning of Section 162(m) of
the Code (or any successor section thereto). 
Additionally, the Committee may delegate the authority to grant Awards
under the Plan to the Chief Executive Officer of the Company or a committee
designated by the Board; provided that such delegation and grants are
consistent with applicable law and guidelines established by the Board from
time to time.

 

Awards may, in the
discretion of the Committee, be made under the Plan in assumption of, or in
substitution for, outstanding awards previously granted by the Company or its
affiliates or a company acquired by the Company or with which the Company
combines; provided, however, that except as authorized under Section 14,
the terms of outstanding Awards may not be amended to reduce the exercise price
of outstanding Options or SARs or cancel Options or SARs in exchange for cash,
other Awards or Options or SARs with an exercise price that is less than the
exercise price of the original Options or SARs without stockholder
approval.  In the event the Company
acquires another company, or combines with another company in a merger or
consolidation, the shares of stock available to such other company under its
then-existing incentive plans may be added to the authorized Share pool under
this Plan, at the discretion of the Committee, to the extent permitted under
applicable law and in accordance with listed company rules and other
similar regulations.

 

The Committee is authorized
to interpret the Plan, to establish, amend and rescind any rules and
regulations relating to the Plan, and to make any other determinations that it
deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan in the manner
and to the extent 

 

6

 

the Committee deems necessary
or desirable.  Any decision of the
Committee in the interpretation and administration of the Plan, as described
herein, shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned (including, but not limited to,
Participants and their beneficiaries or successors).  The Committee shall have the full power and
authority to establish the terms and conditions of any Award consistent with
the provisions of the Plan and to waive any such terms and conditions at any
time (including, without limitation, accelerating or waiving any vesting
conditions).

 

The Committee shall require
payment of any amount it may determine to be necessary to withhold for federal,
state, local or other taxes as a result of the exercise, grant or vesting of an
Award.  Unless the Committee specifies
otherwise, the Participant may elect to pay a portion or all of such
withholding taxes by (a) delivery in Shares or (b) having Shares
withheld by the Company from any Shares that would have otherwise been received
by the Participant.

 

5.             Limitations

 

No Award may be granted
under the Plan after the tenth anniversary of the Effective Date, but Awards
theretofore granted may extend beyond that date.

 

6.             Terms and Conditions of Options

 

Options granted under the
Plan shall be, as determined by the Committee, non-qualified stock options or
ISOs for federal income tax purposes, as evidenced by the related Award
agreements, and shall be subject to the foregoing and the following terms and conditions
and to such other terms and conditions, not inconsistent therewith, as the
Committee shall determine:

 

(a)           Option Price.  The Option Price per Share shall be
determined by the Committee, but shall not be less than 100% of the Fair Market
Value of a Share on the date an Option is granted (other than in the case of
Options granted in substitution of previously granted awards in connection with
corporate transactions, as described in Section 4).

 

(b)           Exercisability.  Options granted under the Plan shall be
exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.

 

(c)           Exercise of Options.  Except as otherwise provided in the Plan or
in an Award agreement, an Option may be exercised for all, or from time to time
any part, of the Shares for which it is then exercisable.  The exercise date of an Option shall be the
later of the date a notice of exercise is received by the Company and, if
applicable, the date payment is received by the Company pursuant to clauses
(i), (ii), (iii) or (iv) in the following sentence.  The purchase price for the Shares as to which
an Option is exercised shall be paid to the Company as designated by the
Committee, pursuant to one or more of the following methods: (i) in cash
or its equivalent (e.g., by personal check), (ii) in Shares having a Fair
Market Value equal to the aggregate Option Price for the Shares being purchased
and satisfying such other requirements as may be imposed by the Committee; provided that
such Shares have been held by the Participant for no less than six months (or
such other period as established from time to time by the Committee in order to
avoid adverse accounting treatment applying U.S. generally accepted accounting
principles), (iii) partly in cash and partly in such Shares; (iv) if
there is a public market for the Shares at such time, through the delivery of
irrevocable instructions to a broker to sell Shares obtained upon the 

 

7

 

exercise of the Option and
to deliver promptly to the Company an amount out of the proceeds of such sale
equal to the aggregate Option Price for the Shares being purchased or (v) through
net settlement in Shares.  No Participant
shall have any rights to dividends or other rights of a stockholder with
respect to Shares subject to an Option until the Participant has given written
notice of exercise of the Option, paid in full for such Shares and, if
applicable, has satisfied any other conditions imposed by the Committee
pursuant to the Plan.

 

(d)           ISOs.  The Committee may grant Options under the
Plan that are intended to be ISOs.  Such
ISOs shall comply with the requirements of Section 422 of the Code (or any
successor section thereto).  No ISO may
be granted to any Participant who at the time of such grant, owns more than ten
percent of the total combined voting power of all classes of stock of the
Company or of any Subsidiary, unless (i) the Option Price for such ISO is
at least 110% of the Fair Market Value of a Share on the date the ISO is
granted and (ii) the date on which such ISO terminates is a date not later
than the day preceding the fifth anniversary of the date on which the ISO is
granted.  Any Participant who disposes of
Shares acquired upon the exercise of an ISO either (i) within two years
after the date of grant of such ISO or (ii) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such disposition
and of the amount realized upon such disposition.  All Options granted under the Plan are
intended to be nonqualified stock options, unless the applicable Award
agreement expressly states that the Option is intended to be an ISO.  If an Option is intended to be an ISO, and if
for any reason such Option (or portion thereof) shall not qualify as an ISO,
then, to the extent of such nonqualification, such Option (or portion thereof)
shall be regarded as a nonqualified stock option granted under the Plan; provided
that such Option (or portion thereof) otherwise complies with the Plan’s
requirements relating to nonqualified stock options.  In no event shall any member of the
Committee, the Company or any of its Affiliates (or their respective employees,
officers or directors) have any liability to any Participant (or any other
Person) due to the failure of an Option to qualify for any reason as an ISO.

 

(e)           Attestation.  Wherever in this Plan or any agreement
evidencing an Award a Participant is permitted to pay the exercise price of an
Option or taxes relating to the exercise of an Option by delivering Shares, the
Participant may, subject to procedures satisfactory to the Committee, satisfy
such delivery requirement by presenting proof of beneficial ownership of such
Shares, in which case the Company shall treat the Option as exercised without
further payment and/or shall withhold such number of Shares from the Shares
acquired by the exercise of the Option, as appropriate.

 

7.             Terms and Conditions of Stock
Appreciation Rights

 

(a)           Grants.  The Committee may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation
Right in connection with an Option, or a portion thereof.  A Stock Appreciation Right granted pursuant
to clause (ii) of the preceding sentence (A) may be granted at
the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of
Shares covered by an Option (or such lesser number of Shares as the Committee
may determine) and (C) shall be subject to the same terms and conditions
as such Option except for such additional limitations as are contemplated by
this Section 7 (or such additional limitations as may be included in an
Award agreement).

 

8

 

(b)           Terms.  The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the Fair Market Value of a Share on the
date the Stock Appreciation Right is granted (other than in the case of Stock
Appreciation Rights granted in substitution of previously granted awards, as
described in Section 4); provided, however, that in the case
of a Stock Appreciation Right granted in conjunction with an Option, or a
portion thereof, the exercise price may not be less than the Option Price of
the related Option.  Each Stock
Appreciation Right granted independent of an Option shall entitle a Participant
upon exercise to an amount equal to (i) the excess of (A) the Fair
Market Value on the exercise date of one Share over (B) the exercise price
per Share, times (ii) the number of Shares covered by the Stock
Appreciation Right.  Each Stock
Appreciation Right granted in conjunction with an Option, or a portion thereof,
shall entitle a Participant to surrender to the Company the unexercised Option,
or any portion thereof, and to receive from the Company in exchange therefore
an amount equal to (i) the excess of (A) the Fair Market Value on the
exercise date of one Share over (B) the Option Price per Share, times (ii) the
number of Shares covered by the Option, or portion thereof, which is
surrendered.  Payment shall be made in
Shares or in cash, or partly in Shares and partly in cash (any such Shares
valued at such Fair Market Value), all as shall be determined by the
Committee.  Stock Appreciation Rights may
be exercised from time to time upon actual receipt by the Company of written
notice of exercise stating the number of Shares with respect to which the Stock
Appreciation Right is being exercised. 
The date a notice of exercise is received by the Company shall be the
exercise date.  No fractional Shares will
be issued in payment for Stock Appreciation Rights, but instead cash will be
paid for a fraction or, if the Committee should so determine, the number of
Shares will be rounded downward to the next whole Share.

 

(c)           Limitations.  The Committee may impose, in its discretion,
such conditions upon the exercisability of Stock Appreciation Rights as it may
deem fit, but in no event shall a Stock Appreciation Right be exercisable more
than ten years after the date it is granted.

 

8.             Performance Shares, Performance Share Units and
Performance Units

 

(a)           Grant of
Performance Shares, Performance Share Units and Performance Units. Subject to the
terms and provisions of this Plan, the Committee, at any time and from time to
time, may grant Performance Shares, Performance Share Units and/or Performance
Units under the Plan in such amounts and upon such terms as the Committee shall
determine.

 

(b)           Value of
Performance Shares, Performance Share Units and Performance Units. Each
Performance Share and each Performance Share Unit shall have an initial value
equal to the Fair Market Value of a Share on the Grant Date. Each Performance
Unit shall have an initial value that is established by the Committee at
the time of grant. The Committee shall set performance goals in its discretion
which, depending on the extent to which they are met, will determine the value
and/or number of Performance Shares, Performance Share Units and/or Performance
Units that will be paid out to the Participant.

 

(c)           Earning of
Performance Shares, Performance Share Units, and Performance Units. Subject to
the terms of this Plan, after the applicable Performance Period has ended,
the holder of Performance Shares, Performance Share Units and/or Performance
Units shall be entitled to receive payout on the value and number of
Performance Shares, Performance Share Units and/or Performance Units earned by
the Participant over the Performance Period, to be 

 

9

 

determined as a function of
the extent to which the corresponding performance goals have been
achieved.

 

(d)           Form and
Timing of Payment of Performance Shares, Performance Share Units, and Performance
Units. Payment of earned Performance Shares, Performance Share Units, and/or
Performance Units shall be as determined by the Committee and as evidenced in
the Award Agreement. Subject to the terms of this Plan, the
Committee, in its sole discretion, may pay earned Performance Shares,
Performance Share Units, and/or Performance Units in the form of cash or in
Shares (or in a combination thereof) equal to the value of the earned
Performance Shares, Performance Share Units, and/or Performance Units at the
close of the applicable Performance Period, but no later than the fifteenth (15th) day of the third month
after the year in which the Performance Period ended. Any Shares may be granted
subject to any restrictions deemed appropriate by the Committee. The
determination of the Committee with respect to the form of payout of such
Awards shall be set forth in the Award Agreement pertaining to the grant of the
Award.

 

9.             Cash-Based Awards and Other Stock-Based Awards

 

(a)           Grant of
Cash-Based Awards. Subject to the terms and provisions of
the Plan, the Committee, at any time and from time to time, may grant
Cash-Based Awards under the Plan in such amounts and upon such terms as the
Committee may determine.

 

(b)           Other
Stock-Based Awards. The Committee may grant other types of
equity-based or equity-related Awards not otherwise described by the terms of
this Plan (including the grant or offer for sale of unrestricted Shares) in
such amounts and subject to such terms and conditions, as the Committee shall
determine. Such Awards may be designed to comply with or take advantage of the
applicable local laws of jurisdictions other than the United States.

 

Without limiting the
generality of the foregoing,  the
Committee, in its sole discretion, may grant or sell Awards of Shares, Awards
of restricted Shares and Awards that are valued in whole or in part by
reference to, or are otherwise based on the Fair Market Value of, Shares (“Other
Stock-Based Awards”). Such Other Stock-Based Awards shall be in such form, and
dependent on such conditions, as the Committee shall determine, including,
without limitation, the right to receive, or vest with respect to, one or more
Shares (or the equivalent cash value of such Shares) upon the completion of a
specified period of service, the occurrence of an event and/or the attainment
of performance objectives.  Other
Stock-Based Awards may be granted alone or in addition to any other Awards
granted under the Plan.  Subject to the
provisions of the Plan, the Committee shall determine to whom and when Other
Stock-Based Awards will be made, the number of Shares to be awarded under (or
otherwise related to) such Other Stock-Based Awards; whether such Other
Stock-Based Awards shall be settled in cash, Shares or a combination of cash
and Shares; and all other terms and conditions of such Awards (including,
without limitation, the vesting provisions thereof and provisions ensuring that
all Shares so awarded and issued shall be fully paid and non-assessable).

 

(c)           Value of
Cash-Based and Other Stock-Based Awards. Each Cash-Based Award
shall specify a payment amount or payment range as determined by the Committee.
Each Other Stock-Based Award shall be expressed in terms of Shares or units
based on Shares, as determined by the Committee. The Committee may establish
performance goals in its discretion. If the Committee exercises its discretion
to establish performance goals, the number and/or value 

 

10

 

of Cash-Based Awards or
Other Stock-Based Awards that will be paid out to the Participant will depend
on the extent to which the performance goals are met.

 

10.           Annual
Incentive Awards

 

(a)           Duration of
Performance Periods. The performance periods and/or vesting periods
associated with Awards authorized under this Plan shall be determined at the
discretion of the Committee, and, subject to any specific guidelines in this
Plan to the contrary, may be greater or lesser than one (1) year in
length.

 

(b)           Authorization
to Grant Annual Incentives under Plan. Without limiting the
generality of the foregoing, the Committee may grant annual incentive award
opportunities under this Plan.

 

11.           Designated
Employee Annual Incentive Pool

 

(a)           Establishment
of Incentive Pool. The Committee may designate Employees who are eligible
to earn a monetary payment over any specified performance period based on a
percentage of an incentive pool that is determined by reference to the Company’s
Net Income, Operating Earnings, or other similar financial measure of
performance (as defined by the Committee in connection with the establishment
of an Annual Incentive Award opportunity).

 

(b)           Designated
Employees’ Share in Incentive Pool. If an incentive pool
opportunity is established, the Committee shall allocate an incentive pool
percentage to each designated Employee for each performance period associated
with the incentive pool opportunity. In no event may (1) the incentive
pool percentage for any one Employee exceed fifty percent (50%) of the total
pool and (2) the sum of the incentive pool percentages for all Employees
cannot exceed one hundred percent (100%) of the total pool.

 

(c)           Determination
of Designated Employees’ Portions. As soon as
possible after the determination of the incentive pool for a specified
performance period, the Committee shall calculate each designated Employee’s
allocated portion of the incentive pool based upon the percentage established
at the beginning of the applicable performance period. Each designated Employee’s
incentive award then shall be determined by the Committee based on the Employee’s
allocated portion of the incentive pool subject to adjustment in the sole
discretion of the Committee. In no event may the portion of the incentive pool
allocated to a designated Employee be increased in any way, including as a
result of the reduction of any other Employee’s allocated portion. The
Committee shall retain the discretion to adjust such Awards downward.

 

12.           Nonemployee
Director Awards

 

(a)           Generally. The Board or
Committee shall determine all Awards to directors of the Company who are not
also employees of the Company (“Nonemployee Directors”). The terms and
conditions of any grant to any such Nonemployee Director shall be set forth in
an Award Agreement.

 

(b)           Payment of Fees
in the Form of Awards. The Committee shall have
the authority to provide that Nonemployee Directors, pursuant to this Article 12
(Nonemployee Director 

 

11

 

Awards), may be permitted to
elect to receive, pursuant to the procedures established by the Board or the
Committee, all or any portion of their annual retainer, meeting fees or other
fees in Shares, Restricted Stock, Restricted Stock Units, or other Awards as
contemplated by this Plan in lieu of cash.

 

13.           Compliance
with Section 162(m)

 

(a)           Generally.
Notwithstanding anything to the contrary herein, certain Awards granted under
this Plan may be granted in a manner which is intended to qualify as “performance-based
compensation” for purposes of Section 162(m) of the Code (or any
successor section thereto) (“Performance-Based Awards”).  In the event the Committee grants
Performance-Based Awards, such awards shall be designed and awarded in a way
that is intended to comply with the requirements under Section 162(m);
provided, however, that the Committee shall have the authority to grant awards
under this Plan that are not Performance-Based Awards. Further, to the extent
consistent with the provisions of this Plan, the Committee shall have the
authority to amend, alter, administer, or otherwise revise awards that were
granted as compliant Performance-Based Awards in ways that result in the
failure to continue to comply with the provisions of Section 162(m).

 

(b)           Performance
Metrics. The performance goals associated with Performance-Based Awards
intended to comply with Section 162(m), which must be objective, shall be
based upon one or more of the following criteria:  (i) consolidated earnings before or after taxes
(including earnings before interest, taxes, depreciation and amortization); (ii) net
income; (iii) operating income; (iv) earnings per Share; (v) book
value per Share; (vi) return on shareholders’ equity; (vii) expense
management; (viii) return on investment; (ix) improvements in capital
structure; (x) profitability of an identifiable business unit or product;
(xi) maintenance or improvement of profit margins; (xii) stock price; (xiii)
market share; (xiv) revenues or sales; (xv) costs; (xvi) cash flow; (xvii)
working capital; (xviii) return on assets; (xix) total shareholder return; and
(xx) operational benchmarks of performance, such as product approvals,
successful clinical trial outcomes, successful consummation of business
transactions, and other measures of operating success.  The foregoing criteria may relate to the
Company, one or more of its Affiliates or one or more of its or their divisions
or units, or any combination of the foregoing, and may be applied on an
absolute basis and/or be relative to one or more peer group companies or
indices, or any combination thereof, all as the Committee shall determine.  In addition, to the degree consistent with Section 162(m),
the performance goals may be calculated without regard to extraordinary items.

 

(c)           Limits on
Performance-Based Awards. The maximum amount of a Performance-Based
Award intended to comply with Section 162(m) during a calendar year
shall be: (x) with respect to Performance-Based Awards that are
denominated in Shares, 1,200,000  Shares
and (y) with respect to Performance-Based Awards that are not denominated
in Shares, $3,000,000.  The Committee
shall determine whether, with respect to a performance period, the applicable
performance goals have been met with respect to a given Participant and, if
they have, shall so certify and ascertain the amount of the applicable Performance-Based
Award.  No Performance-Based Awards will
be paid for such performance period until such certification is made by the
Committee.  The amount of the
Performance-Based Award actually paid to a given Participant may be less than
the amount determined by the applicable performance goal formula, at the
discretion of the Committee.  The amount
of the Performance-Based Award determined by the Committee for a performance
period shall be paid to the Participant at such time as 

 

12

 

determined by the Committee
in its sole discretion after the end of such performance period; provided,
however, that a Participant may, if and to the extent permitted by the
Committee and consistent with the provisions of Section 162(m), elect to
defer payment of a Performance-Based Award.

 

14.           Adjustments
Upon Certain Events

 

Notwithstanding any other
provisions in the Plan to the contrary, the following provisions shall apply to
all Awards granted under the Plan:

 

(a)           Generally.  In the event of any change in the outstanding
Shares after the Effective Date by reason of any Share dividend or split,
reorganization, recapitalization, merger, consolidation, spin-off, combination,
combination or transaction or exchange of Shares or other corporate exchange,
or any distribution to shareholders of Shares other than regular cash dividends
or any transaction similar to the foregoing, the Committee shall, in such
manner as it may deem equitable in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the
Plan, adjust or substitute (subject to Section 18) (1) the number or
kind of Shares or other securities issued or reserved for issuance pursuant to
the Plan or pursuant to outstanding Awards, (2) the maximum number of
Shares for which Options or Stock Appreciation Rights may be granted during a
calendar year to any Participant, (3) the maximum amount of a
Performance-Based Award that may be granted during a calendar year to any
Participant, (4) the Option Price or exercise price of any Stock
Appreciation Right and/or (v) any other affected terms of such Awards.

 

(b)           Change in
Control.  In the event of a Change in
Control after the Effective Date, the Committee shall have full authority to
either make adjustments to outstanding Awards, as deemed appropriate by the
Committee (in its full discretion), or refrain from making any
Change-in-Control-related adjustments. Any such adjustments may be made by the
Committee on a per-Participant basis, a per-Award basis, and/or may be applied
individually or collectively to Awards on a uniform or a differentiated basis.

 

Notwithstanding
the foregoing, the Committee shall have the authority to do any one or more of
the following in connection with a Change in Control:  (1) accelerate the vesting of, or waive
any restrictions with respect to, any outstanding Award then held by a
Participant which is unexercisable or subject to lapse restrictions; (2) provide
for the issuance of substitute Awards upon such terms as shall be established
by the Committee in its sole discretion; and/or (3) have any existing
Award remain outstanding after the Change in Control in accordance with its
pre-Change-in-Control terms.  In
addition, in the event of a Change in Control after the Effective Date, the
Committee may, in its sole discretion, cancel any portion of an Award
outstanding as of such Change in Control in exchange for the payment to the
Participant for fair value (as determined in the sole discretion of the Committee).

 

Notwithstanding
any other provision of this Plan, in the event that Awards that were
outstanding upon a Change in Control remain outstanding following the Change in
Control (either in the form they existed prior to the Change in Control or in
the form of an award that is substituted for the pre-Change in Control Award)
during the two-year period following the effective date of the Change in
Control, and if a Participant holding such continuing awards suffers an
Involuntary Termination during such two-year period, then such awards shall
become 

 

13

 

fully
vested and settled as determined by the Committee (as comprised prior to the
Change in Control).

 

15.           No
Right to Employment or Awards

 

The granting of an Award
under the Plan shall impose no obligation on the Company or any Affiliate to
continue the Employment of a Participant and shall not lessen or affect the
Company’s or Affiliate’s right to terminate the Employment of such
Participant.  No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation
for uniformity of treatment of Participants, or holders or beneficiaries of
Awards.  The terms and conditions of
Awards and the Committee’s determinations and interpretations with respect
thereto need not be the same with respect to each Participant (whether or not
such Participants are similarly situated).

 

16.           Successors
and Assigns

 

The Plan shall be binding on
all successors and assigns of the Company and a Participant, including without
limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors.

 

17.           Nontransferability
of Awards

 

Unless otherwise determined
by the Committee, an Award shall not be transferable or assignable by the
Participant otherwise than by will or by the laws of descent and
distribution.  An Award exercisable after
the death of a Participant may be exercised by the legatees, personal
representatives or distributees of the Participant.

 

18.           Amendments
or Termination

 

The Board may amend, alter
or discontinue the Plan, but no amendment, alteration or discontinuation shall
be made, (a) without the approval of the shareholders of the Company, if
such action would (except as is provided in Sections 4 and 14 of the
Plan), increase the total number of Shares reserved for the purposes of the
Plan or change the maximum number of Shares for which Awards may be granted to
any Participant or (b) without the consent of a Participant, if such
action would materially diminish any of the rights of the Participant under any
Award theretofore granted to such Participant under the Plan; provided, however,
that the Committee may amend the Plan in such manner as it deems necessary to
permit the granting of Awards meeting the requirements of the Code or other
applicable laws (including, without limitation, to avoid adverse tax
consequences to the Company or to Participants).

 

Without limiting the
generality of the foregoing, to the extent applicable, notwithstanding anything
herein to the contrary, this Plan and Awards issued hereunder shall be
interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretative guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued after the Effective Date. 
Notwithstanding any provision of the Plan to the contrary, in the event
that the Committee determines that any amounts payable hereunder will be
taxable to a Participant under Section 409A of the Code and related
Department of Treasury guidance prior to payment to such Participant of such
amount, the 

 

14

 

Company  may (a) adopt such amendments to the
Plan and Awards and appropriate policies and procedures, including amendments
and policies with retroactive effect, that the Committee determines necessary
or appropriate to preserve the intended tax treatment of the benefits provided
by the Plan and Awards hereunder and/or (b) take such other actions as the
Committee determines necessary or appropriate to avoid the imposition of an
additional tax under Section  409A of the Code.

 

19.           International
Participants

 

With respect to Participants
who reside or work outside the United States of America, the Committee may, in
its sole discretion, amend the terms of the Plan or Awards with respect to such
Participants in order to conform such terms with the requirements of local law,
to obtain more favorable tax or other treatment for a Participant, the Company
or an Affiliate, or, subject to the provisions of this Plan, conform such
Awards more closely to normative pay and incentive practices and conventions in
the region.

 

20.           Choice
of Law

 

The Plan shall be governed
by and construed in accordance with the laws of the State of Delaware without
regard to conflicts of laws.

 

21.           Effectiveness
of the Plan

 

The Plan shall be effective
as of the Effective Date, subject to the approval of the shareholders of the
Company.

 

22.           Section 409A

 

Notwithstanding other
provisions of the Plan or any Award agreements thereunder, no Award shall be
granted, deferred, accelerated, extended, paid out or modified under this Plan
in a manner that would result in the imposition of an additional tax under Section 409A
of the Code upon a Participant.  In the
event that it is reasonably determined by the Committee that, as a result of Section 409A
of the Code, payments in respect of any Award under the Plan may not be made at
the time contemplated by the terms of the Plan or the relevant Award agreement,
as the case may be, without causing the Participant holding such Award to be
subject to taxation under Section 409A of the Code, the Company will make
such payment on the first day that would not result in the Participant
incurring any tax liability under Section 409A of the Code.  Additionally, if at the time of a Participant’s termination of
Employment with the Company such Participant is a “specified employee” as
defined in Section 409A of the Code and the deferral of the commencement
of any payments or benefits otherwise payable hereunder as a result of such
termination of Employment is necessary in order to prevent any accelerated or
additional tax under Section 409A of the Code, then the Company will defer
the commencement of the payment of any such payments or benefits hereunder
(without any reduction in such payments or benefits ultimately paid or provided
to the Participant) until the date that is six months following the Participant’s
termination of Employment with the Company (or the earliest date as is
permitted under Section 409A of the Code).  The Company shall use commercially reasonable efforts
to implement the provisions of this Section 22 in good faith; provided
that neither the Company, nor the Committee, nor any of the Company’s
employees, directors or representatives shall have any liability to
Participants with respect to this Section 22.

 

15Exhibit 4.6

 

CIMAREX ENERGY CO.,

DEBT SECURITIES INDENTURE

 

Dated as of
              
    , 20    

 

U.S. Bank National Association,

 

as

 

Trustee

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  Section 1.2

  	
   

  	
  Other Definitions

  	
   

  	
  11

  
	
  Section 1.3

  	
   

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  12

  
	
  Section 1.4

  	
   

  	
  Rules of Construction

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2 THE SECURITIES

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Issuable in Series

  	
   

  	
  13

  
	
  Section 2.2

  	
   

  	
  Establishment of Terms of Series of Securities

  	
   

  	
  13

  
	
  Section 2.3

  	
   

  	
  Execution and Authentication

  	
   

  	
  16

  
	
  Section 2.4

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  17

  
	
  Section 2.5

  	
   

  	
  Paying Agent to Hold Money in Trust

  	
   

  	
  18

  
	
  Section 2.6

  	
   

  	
  Securityholder Lists

  	
   

  	
  19

  
	
  Section 2.7

  	
   

  	
  Exchange and Registration of Transfer

  	
   

  	
  19

  
	
  Section 2.8

  	
   

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
   

  	
  20

  
	
  Section 2.9

  	
   

  	
  Outstanding Securities

  	
   

  	
  21

  
	
  Section 2.10

  	
   

  	
  Treasury Securities

  	
   

  	
  22

  
	
  Section 2.11

  	
   

  	
  Temporary Securities

  	
   

  	
  22

  
	
  Section 2.12

  	
   

  	
  Cancellation

  	
   

  	
  23

  
	
  Section 2.13

  	
   

  	
  Payment of Interest; Interest Rights Preserved

  	
   

  	
  23

  
	
  Section 2.14

  	
   

  	
  Registered Global Securities

  	
   

  	
  24

  
	
  Section 2.15

  	
   

  	
  Computation of Interest

  	
   

  	
  25

  
	
  Section 2.16

  	
   

  	
  CUSIP and ISIN Numbers

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3 REDEMPTION

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Notice to Trustee

  	
   

  	
  26

  
	
  Section 3.2

  	
   

  	
  Selection of Securities to be Redeemed

  	
   

  	
  26

  
	
  Section 3.3

  	
   

  	
  Notice of Redemption

  	
   

  	
  26

  
	
  Section 3.4

  	
   

  	
  Effect of Notice of Redemption

  	
   

  	
  27

  
	
  Section 3.5

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  27

  
	
  Section 3.6

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4 COVENANTS

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Payment of Principal, Premium and Interest

  	
   

  	
  28

  
	
  Section 4.2

  	
   

  	
  SEC Reports

  	
   

  	
  28

  
	
  Section 4.3

  	
   

  	
  Compliance Certificate

  	
   

  	
  28

  
	
  Section 4.4

  	
   

  	
  Compliance with Laws

  	
   

  	
  28

  
	
  Section 4.5

  	
   

  	
  Corporate Existence

  	
   

  	
  29

  
	
  Section 4.6

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  29

  
	
  Section 4.7

  	
   

  	
  Money For Securities Payments to be Held in Trust

  	
   

  	
  29

  
	
  Section 4.8

  	
   

  	
  Waiver of Certain Covenants

  	
   

  	
  31

  
						

 

i

 

	
  ARTICLE 5 SUCCESSORS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Merger and Consolidation

  	
   

  	
  31

  
	
  Section 5.2

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6 DEFAULTS AND REMEDIES

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Events of Default

  	
   

  	
  32

  
	
  Section 6.2

  	
   

  	
  Acceleration of Maturity; Rescission and Annulment

  	
   

  	
  34

  
	
  Section 6.3

  	
   

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee

  	
   

  	
  36

  
	
  Section 6.4

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  37

  
	
  Section 6.5

  	
   

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
   

  	
  37

  
	
  Section 6.6

  	
   

  	
  Application of Money Collected

  	
   

  	
  37

  
	
  Section 6.7

  	
   

  	
  Limitation on Suits

  	
   

  	
  38

  
	
  Section 6.8

  	
   

  	
  Unconditional Right of Holders to Receive Principal and
  Interest

  	
   

  	
  38

  
	
  Section 6.9

  	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
  39

  
	
  Section 6.10

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  39

  
	
  Section 6.11

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  39

  
	
  Section 6.12

  	
   

  	
  Control by Majority

  	
   

  	
  39

  
	
  Section 6.13

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  40

  
	
  Section 6.14

  	
   

  	
  Undertaking for Costs

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7 TRUSTEE

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Duties of Trustee

  	
   

  	
  40

  
	
  Section 7.2

  	
   

  	
  Rights of Trustee

  	
   

  	
  42

  
	
  Section 7.3

  	
   

  	
  Individual Rights of Trustee

  	
   

  	
  43

  
	
  Section 7.4

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  43

  
	
  Section 7.5

  	
   

  	
  Notice of Defaults

  	
   

  	
  43

  
	
  Section 7.6

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  44

  
	
  Section 7.7

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  44

  
	
  Section 7.8

  	
   

  	
  Replacement of Trustee

  	
   

  	
  45

  
	
  Section 7.9

  	
   

  	
  Successor Trustee by Merger, etc.

  	
   

  	
  46

  
	
  Section 7.10

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  46

  
	
  Section 7.11

  	
   

  	
  Preferential Collection of Claims Against Company

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8 SATISFACTION AND DISCHARGE; DEFEASANCE

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
  47

  
	
  Section 8.2

  	
   

  	
  Application of Trust Funds; Indemnification

  	
   

  	
  48

  
	
  Section 8.3

  	
   

  	
  Legal Defeasance of Securities of any Series

  	
   

  	
  48

  
	
  Section 8.4

  	
   

  	
  Covenant Defeasance

  	
   

  	
  50

  
	
  Section 8.5

  	
   

  	
  Repayment to Company

  	
   

  	
  51

  
	
  Section 8.6

  	
   

  	
  Effect of Subordination Provisions

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9 AMENDMENTS AND WAIVERS

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
   

  	
  Without Consent of Holders

  	
   

  	
  52

  
	
  Section 9.2

  	
   

  	
  With Consent of Holders

  	
   

  	
  53

  
	
  Section 9.3

  	
   

  	
  Limitations

  	
   

  	
  54

  
	
  Section 9.4

  	
   

  	
  Compliance with Trust Indenture Act

  	
   

  	
  55

  
	
  Section 9.5

  	
   

  	
  Revocation and Effect of Consents

  	
   

  	
  55

  
						

 

ii

 

	
  Section 9.6

  	
   

  	
  Notation on or Exchange of Securities

  	
   

  	
  55

  
	
  Section 9.7

  	
   

  	
  Trustee Protected

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10 SUBORDINATION OF SECURITIES

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
   

  	
  Agreement to Subordinate

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11 MISCELLANEOUS

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  56

  
	
  Section 11.2

  	
   

  	
  Notices

  	
   

  	
  56

  
	
  Section 11.3

  	
   

  	
  Communication by Holders with Other Holders

  	
   

  	
  57

  
	
  Section 11.4

  	
   

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  57

  
	
  Section 11.5

  	
   

  	
  Statements Required in Certificate or Opinion

  	
   

  	
  58

  
	
  Section 11.6

  	
   

  	
  Rules by Trustee and Agents

  	
   

  	
  58

  
	
  Section 11.7

  	
   

  	
  Legal Holidays

  	
   

  	
  58

  
	
  Section 11.8

  	
   

  	
  No Recourse Against Others

  	
   

  	
  58

  
	
  Section 11.9

  	
   

  	
  Counterparts

  	
   

  	
  59

  
	
  Section 11.10

  	
   

  	
  Governing Laws; Waiver of Jury Trial

  	
   

  	
  59

  
	
  Section 11.11

  	
   

  	
  No Adverse Interpretation of Other Agreements

  	
   

  	
  59

  
	
  Section 11.12

  	
   

  	
  Successors

  	
   

  	
  59

  
	
  Section 11.13

  	
   

  	
  Severability

  	
   

  	
  59

  
	
  Section 11.14

  	
   

  	
  Table of Contents, Headings, Etc.

  	
   

  	
  59

  
	
  Section 11.15

  	
   

  	
  Securities in a Foreign Currency or in ECU

  	
   

  	
  59

  
	
  Section 11.16

  	
   

  	
  Judgment Currency

  	
   

  	
  60

  
	
  Section 11.17

  	
   

  	
  Acts of Holders

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12 SINKING FUNDS

  	
   

  	
  62

  
	
   

  	
   

  	
   

  
	
  Section 12.1

  	
   

  	
  Applicability of Article

  	
   

  	
  62

  
	
  Section 12.2

  	
   

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
   

  	
  62

  
	
  Section 12.3

  	
   

  	
  Redemption of Securities
  for Sinking Fund

  	
   

  	
  63

  
						

 

iii

 

CIMAREX ENERGY CO.

 

Reconciliation and tie between Trust
Indenture Act of 1939 and Indenture, dated as of
[            ].

 

	
  §
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.10

  
	
  §
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  Not
  Applicable

  
	
  §
  312(a)

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
  11.3

  
	
  (c)

  	
   

  	
  11.3

  
	
  §
  313(a)

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
  7.6

  
	
  (c)

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
  7.6

  
	
  §
  314(a)

  	
   

  	
  4.2,
  4.3

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  11.4

  
	
  (c)(2)

  	
   

  	
  11.4

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
  11.5

  
	
  (f)

  	
   

  	
  Not
  Applicable

  
	
  §
  315(a)

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
  6.14

  
	
  §
  316(a)

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
  6.12

  
	
  (a)(1)(B)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.8

  
	
  §
  317(a)(1)

  	
   

  	
  6.3

  
	
  (a)(2)

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
  2.5

  
	
  §
  318(a)

  	
   

  	
  11.1

  

 

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

 

1

 

Indenture dated as of
[            ,
20    ], between Cimarex Energy Co., a Delaware corporation
(the “Company”), and U.S. Bank National Association (the “Trustee”).

 

Each party agrees as follows for the benefit
of the other party and for the equal and ratable benefit of the Holders of the
Securities or of Series thereof issued under this Indenture.

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1             Definitions.

 

“Additional Amounts” means any additional
amounts which are required hereby or by any Security, under circumstances
specified herein or therein, to be paid by the Company in respect of certain
taxes imposed on Holders specified therein and which are owing to such Holders.

 

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

 

“Agent” means any Registrar, Paying Agent,
co-agent, co-registrar or Service Agent.

 

“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.”

 

“Authorized Newspaper” means a newspaper in
an official language of the country of publication customarily published at
least once a day for at least five days in each calendar week and of general
circulation in the place in connection with which the term is used. If it shall
be impractical in the opinion of the Trustee to make any publication of any
notice required hereby in an Authorized Newspaper, any publication or other
notice in lieu thereof that is made or given by the Trustee shall constitute a
sufficient publication of such notice.

 

“Bearer” means anyone in possession from time
to time of a Bearer Security.

 

“Bearer Global Security” or “Bearer Global
Securities” means a Bearer Security or Securities, as the case may be, in the
form established pursuant to Section 2.2 evidencing all or part of a Series of
Bearer Securities, deposited with a common depositary for Euroclear Bank S.A./N.V.,
as operator of the Euroclear System and/or Clearstream Banking, société
anonyme, Luxembourg.

 

2

 

“Bearer Security” means any Security,
including any interest coupon appertaining thereto, that does not provide for
the identification of the Holder thereof.

 

“Board of Directors” means the Board of
Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company
to have been adopted by the Board of Directors or pursuant to authorization by
the Board of Directors and to be in full force and effect on the date of such
certification and delivered to the Trustee.

 

“Business Day” means, unless otherwise
provided by Board Resolution, Officers’ Certificate or supplemental indenture
hereto for a particular Series, each day which is not a Legal Holiday.

 

“Capital Stock” of any Person means any and
all shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) equity of such
Person, including any Preferred Stock 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.

 

“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.

 

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

 

“Company Order” means a written order signed
in the name of the Company by two Officers, one of whom must be the Company’s
Chief Executive Officer, President, or Chief Financial Officer.

 

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

 

3

 

“Corporate Trust Office” means the office of
the Trustee at which at any particular time its corporate trust business with
respect to this Indenture or a Series of Securities shall be principally
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).

 

“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.

 

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

 

“Depositary” means, with respect to the
Securities of any Series issuable or issued in whole or in part in the
form of one or more Securities in global form, the Person designated as
Depositary for such Series by the Company, which Depositary shall be a
clearing agency registered under the Exchange Act; and if at any time there is
more than one such Person, “Depositary” as used with respect to the Securities
of any Series shall mean the Depositary with respect to the Securities of
such Series.

 

“Discount Security” means any Security that
provides for an amount less than the stated principal amount thereof to be due
and payable upon declaration of acceleration of the Maturity thereof pursuant
to Section 6.2.

 

“Dollars” means the currency of the United
States of America.

 

“ECU” means the European Currency Unit as
determined by the Commission of the European Union.

 

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

 

“Foreign Currency” means any currency or
currency unit issued by a government other than the government of the United
States of America.

 

“Foreign Government Obligations” means with
respect to Securities of any Series that are denominated in a Foreign
Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith
and credit is pledged or (ii) obligations of a Person controlled or
supervised by or acting as an agency or instrumentality of such government the
timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.

 

“GAAP” means generally accepted accounting
principles in the United States of America as in effect as of the time of
determination when and for the period as to which such accounting principles
are to be applied, including those set forth in the opinions and pronouncements
of the 

 

4

 

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.

 

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

 

“Holder” or “Securityholder” means a Person
in whose name a Security is registered in the Register or the holder of a
Bearer Security.

 

“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):

 

5

 

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;

 

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 

 

6

 

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 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
originally executed and as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument
and any such supplemental indenture, the provisions of the Trust Indenture Act
that are deemed to be a part of and govern this instrument and any such
supplemental indenture, respectively. 
The term “Indenture” shall also include the terms of particular series
of Securities established as contemplated by Section 2.1.

 

“interest”, with respect to any Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

 

7

 

“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.

 

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

 

“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 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.

 

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

 

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

 

“Place of Payment”, when used with respect to
the Securities of any Series, means the place or places specified in accordance
with Section 2.2 where the principal of and any premium and interest on
the Securities of that Series are payable, or if not so specified, in
accordance with Section 4.6.

 

“Preferred Stock”, as applied to the Capital
Stock of any Person, means Capital Stock of any class or classes (however
designated) that 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.

 

“principal” of a Security means the principal
of the Security plus, when appropriate, the premium, if any, on, and any Additional
Amounts in respect of, the Security.

 

8

 

“Registered Global Security” or “Registered
Global Securities” means a Security or Securities, as the case may be, in the
form established pursuant to Section 2.2 evidencing all or part of a Series of
Securities, issued to the Depositary for such Series or its nominee, and
registered in the name of such Depositary or nominee.

 

“Registered Securities” means any Security
registered on the Register of the Company.

 

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

 

“Securities” means the debentures, notes or
other debt instruments of the Company of any Series authenticated and
delivered under this Indenture.

 

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

 

“Senior Indebtedness” means the principal of,
premium, if any, unpaid interest, and all fees and other amounts payable in
connection with the following, whether outstanding on the date hereof or
thereafter created, incurred, assumed or guaranteed, on (x) the
Indebtedness of the Company, for money borrowed other than (a) any
Indebtedness of the Company which when incurred and without respect to any
election under Section 1111(b) of the Federal Bankruptcy Code, was
without recourse to the Company, (b) any Indebtedness of the Company to
any of its Subsidiaries, (c) Indebtedness to any employee of the Company, (d) any
liability for taxes and (e) Trade Payables, unless the instrument creating
or evidencing the same or pursuant to which the same is outstanding provides
that such Indebtedness is not senior or prior in right of payment to the
Securities, (y) all obligations of the Company under interest rate,
currency and commodity swaps, caps, floors, collars, hedge arrangements,
forward contracts or similar agreements or arrangements and (z) renewals,
extensions, modifications and refundings of any such Indebtedness. This
definition may be modified or superseded by a supplemental indenture.

 

“Senior Securities” means Securities other
than Subordinated Securities.

 

“Series” or “Series of Securities” means
each series of debentures, notes or other debt instruments of the Company
created pursuant to Sections 2.1 and 2.2.

 

“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.

 

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

 

9

 

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 Securities” means Securities
that by the terms established pursuant to Section 2.2.9 are subordinated
in right of payment to Senior Indebtedness of the Company.

 

“Subordination Provisions”, when used with
respect to the Subordinated Securities of any Series, shall have the meaning
established pursuant to Section 2.2.9 with respect to the Subordinated
Securities of such Series.

 

“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 Guarantor” means any Restricted
Subsidiary defined as such in a definition contained in an amendment or
supplemental indenture hereto, as applicable, pursuant to the applicable
provisions of this Indenture.

 

“TIA” means the Trust Indenture Act of 1939
(15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
extent required by any such amendment, the Trust Indenture Act of 1939 as so
amended.

 

“Trade Payables” means accounts payable or
any other Indebtedness or monetary obligations to trade creditors created or
assumed by the Company or any Subsidiary of the Company in the ordinary course
of business in connection with the receipt of materials or services.

 

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

 

“Trustee” means the Person named as the “Trustee”
in the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable 

 

10

 

provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is
then a Trustee hereunder, and if at any time there is more than one such
Person, “Trustee” as used with respect to the Securities of any Series shall
mean the Trustee with respect to Securities of that Series.

 

“Unrestricted Subsidiary” means any
Subsidiary of the Company defined as such in a definition contained in an amendment
or supplemental indenture hereto, as applicable, pursuant to the applicable
provisions of this Indenture.

 

“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.

 

“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.

 

Section 1.2             Other Definitions.

 

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  	
   

  
	
  “Custodian”

  	
   

  	
  6.1

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.1

  	
   

  
	
  “Journal”

  	
   

  	
  11.15

  	
   

  
	
  “Judgment Currency”

  	
   

  	
  11.16

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  11.7

  	
   

  
	
  “mandatory sinking fund payment”

  	
   

  	
  12.1

  	
   

  
	
  “Market Exchange Rate”

  	
   

  	
  11.15

  	
   

  
	
  “New York Banking Day”

  	
   

  	
  11.16

  	
   

  
	
  “optional sinking fund payment”

  	
   

  	
  12.1

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.4

  	
   

  
	
  “Register”

  	
   

  	
  2.4

  	
   

  
	
  “Registrar”

  	
   

  	
  2.4

  	
   

  
	
  “Required Currency”

  	
   

  	
  11.16

  	
   

  
	
  “Service Agent”

  	
   

  	
  2.4

  	
   

  

 

11

 

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  	
   

  
	
  “successor person”

  	
   

  	
  5.1

  	
   

  

 

Section 1.3             Incorporation by Reference of
Trust Indenture Act.

 

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture. The following TIA terms used in this
Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a
Securityholder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the indenture securities means
the Company and any successor obligor upon the Securities.

 

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

 

Section 1.4             Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

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

 

(c)           “or” is not exclusive;

 

(d)           words in the singular include the plural, and in the
plural include the singular;

 

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

 

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

 

12

 

ARTICLE 2

THE SECURITIES

 

Section 2.1             Issuable in Series.

 

The aggregate principal amount of Securities
that may be authenticated and delivered under this Indenture is unlimited. The
Securities may be issued in one or more Series. All Securities of a Series shall
be substantially identical except as to denomination and except as may be set
forth in a Board Resolution, a supplemental indenture or an Officers’
Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to
be issued from time to time, the Board Resolution, Officers’ Certificate or
supplemental indenture may provide for the method by which specified terms
(such as interest rate, maturity date, record date or date from which interest
shall accrue) are to be determined. Securities may differ between Series in
respect of any matters, provided that all Series of Securities shall be
equally and ratably entitled to the benefits of the Indenture.

 

Section 2.2             Establishment of Terms of Series of
Securities.

 

At or prior to the issuance of any Securities
within a Series, the following shall be established (as to the Series generally,
in the case of Subsection 2.2.1 and either as to such Securities within the Series or
as to the Series generally in the case of Subsections 2.2.2 through 2.2.27)
by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate
pursuant to authority granted under a Board Resolution, subject to Section 2.3:

 

2.2.1                the title and designation of the Securities of the
Series, which shall distinguish the Securities of the Series from the
Securities of all other Series, and which may be part of a Series of
Securities previously issued;

 

2.2.2                any limit upon the aggregate principal amount of the
Securities of the Series that may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of, other
Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or
9.6 and except for Securities which, pursuant to Section 2.3, are deemed
never to have been authenticated and delivered hereunder);

 

2.2.3                if other than Dollars, the Foreign Currency or
Foreign Currencies in which the Securities of the Series shall be
denominated;

 

2.2.4                the date or dates on which the principal of the
Securities of the Series shall be payable or the method of determination
thereof;

 

2.2.5                the rate or rates (which may be fixed or variable) at
which the Securities of the Series shall bear interest, if any, the date
or dates from which such interest shall accrue, the date or dates on which such
interest shall be payable, the terms and conditions of any deferral of interest
and the additional interest, if any, thereon, the right, if any, of the Company
to extend the interest payment periods and the duration of the extensions and
(in the case of Registered Securities) the date or dates on which a record
shall be taken for the determination of 

 

13

 

Holders to whom interest is payable or the
method by which such rate or rates or date or dates shall be determined;

 

2.2.6                the place or places where, and the manner in which,
the principal of and any interest on the Securities of the Series shall be
payable;

 

2.2.7                the right, if any, of the Company to redeem
Securities, in whole or in part, at its option and the period or periods within
which, or the date or dates on which, the price or prices at which and the
terms and conditions upon which the Securities of the Series may be so
redeemed, pursuant to any sinking fund or otherwise;

 

2.2.8                the obligation, if any, of the Company to redeem,
purchase or repay the Securities of the Series pursuant to any mandatory
redemption, sinking fund or analogous provisions or at the option of a Holder
thereof and the price or prices at which and the period or periods within which
or the date or dates on which, and any terms and conditions upon which the
Securities of the Series shall be redeemed, purchased or repaid, in whole
or in part, pursuant to such obligation;

 

2.2.9                if the Securities of the Series shall be
Subordinated Securities, the terms pursuant to which the Securities of the Series shall
be made subordinate in right of payment to Senior Indebtedness and the
definition of the Senior Indebtedness with respect to the Securities of the Series (in
the absence of an express statement to the effect that the Securities of the Series are
subordinate in right of payment to all the Senior Indebtedness, the Securities
of the Series shall not be subordinate to Senior Indebtedness and shall
not constitute Subordinated Securities); and, in the event that the Securities
of the Series are Subordinated Securities, such Board Resolution, Officers’
Certificate or supplemental indenture, as the case may be, establishing the
terms of the Securities of the Series shall expressly state which articles,
sections or other provisions thereof constitute the “Subordination Provisions”
with respect to the Securities of the Series;

 

2.2.10              if other than denominations of
$1,000 and any integral multiple thereof in the case of Registered Securities,
or $1,000 and $5,000 in the case of Bearer Securities, the denominations in
which the Securities of the Series shall be issuable;

 

2.2.11              the percentage of the principal
amount at which the Securities of the Series shall be issued, and, if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of
acceleration of the Maturity thereof and the terms and conditions of any
acceleration;

 

2.2.12              if other than the coin, currency or
currencies in which the Securities of the Series are denominated, the
coin, currency or currencies in which payment of the principal of or interest
on the Securities of the Series shall be payable, including composite
currencies or currency units;

 

2.2.13              if the principal of or interest on
the Securities of the Series is to be payable, at the election of the
Company or a Holder thereof, in a coin or currency other than that in which the
Securities of the Series are denominated, the period or periods within
which, and the terms and conditions upon which, such election may be made;

 

14

 

2.2.14              if the amount of payments of
principal of or interest on the Securities of the Series may be determined
with reference to an index or formula (including an index or formula based on a
coin, currency, composite currency or currency unit other than that in which
the Securities of the Series are denominated), the manner in which such
amounts shall be determined;

 

2.2.15              whether the Securities of the Series shall
be issuable as Registered Securities (and if so, whether such Securities shall
be issuable as Registered Global Securities) or Bearer Securities, with or
without interest coupons appertaining thereto (and if, so whether such
Securities will be issuable as Bearer Global Securities), or any combination of
the foregoing, any restrictions applicable to the offer, sale or delivery of
Bearer Securities or the payment of interest thereon and the terms upon which
Bearer Securities of any Series may be exchanged for Registered Securities
of such Series and vice versa, the form of legend or legends which shall
be borne by any Registered Global Securities in addition to or in lieu of those
set forth in Section 2.14.3;

 

2.2.16              whether and under what
circumstances the Company shall pay additional amounts on the Securities of the
Series held by a person who is not a United States of America person in
respect of any tax, assessment or governmental charge withheld or deducted and,
if so, whether the Company shall have the option to redeem the Securities of
the Series rather than pay such additional amounts;

 

2.2.17              if the Securities of the Series shall
be issuable in definitive form (whether upon original issue or upon exchange of
a temporary Security of the Series) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, the form and terms of
such certificates, documents or conditions;

 

2.2.18              any trustees, depositaries,
authenticating or paying agents, transfer agents or registrars of any other
agents with respect to the Securities of the Series;

 

2.2.19              any deletion from, modification of
or addition to the Events of Default, the right of the Trustee or the requisite
Holders of the Securities of the Series to declare the principal amount
thereof or interest accrued thereon due and payable pursuant to Section 6.2,
or;

 

2.2.20              change in or addition to the
covenants with respect to the Securities of the Series set forth in Article 5;

 

2.2.21              if the Securities of the Series shall
be convertible into or exchangeable for any other security or property of the
Company, including securities of another Person held by the Company or its
Affiliates and, if so, the terms thereof, including conversion or exchange prices
or rate and adjustments thereto;

 

2.2.22              the price or prices at which the
Securities of the Series shall be issued;

 

2.2.23              any provisions for remarketing;

 

2.2.24              the terms applicable to any
Securities issued at a discount from their stated principal amount;

 

15

 

2.2.25              if applicable, that the Securities
of the Series in whole or in part may be defeasible pursuant to Section 8.3
or 8.4 or both.

 

2.2.26              the CUSIP, ISIN or other
identification number, if any; and

 

2.2.27              any other terms of the Securities
of the Series (which shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 9.1(k).

 

All Securities of any one Series need
not be issued at the same time and may be issued from time to time, consistent
with the terms of this Indenture, if so provided by or pursuant to the Board
Resolution, supplemental indenture or Officers’ Certificate referred to above,
and the authorized principal amount of any Series may not be increased to
provide for issuances of additional Securities of such Series, unless otherwise
provided in such Board Resolution, supplemental indenture or Officers’
Certificate.

 

The Securities of each
Series shall be in substantially such form as shall be established by or
pursuant to a Board Resolution, supplemental indenture hereto, or Officers’
Certificate pursuant to authority granted under a Board Resolution, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the Officers executing such Securities, as evidenced by their
execution thereof.

 

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

 

Section 2.3             Execution and Authentication.

 

Two Officers shall execute the Securities for
the Company by manual or facsimile signature.

 

If an Officer whose signature is on a
Security no longer holds that office at the time the Security is authenticated
or at the date of the Security, the Security shall be valid nevertheless so
long as such individual was an Officer at the time of execution of the
Security.

 

A Security shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent
appointed by the Trustee. The signature of the Trustee on a Security shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

 

The Trustee or any such authenticating agent
shall at any time, and from time to time, authenticate Securities for original
issue in the principal amount provided in the Board Resolution, supplemental
indenture hereto or Officers’ Certificate, upon receipt by the Trustee or any
such authenticating agent of a Company Order. 
Such Company Order may authorize authentication and delivery pursuant to
oral or electronic instructions from the Company or its duly authorized agent
or agents, which oral instructions shall be promptly confirmed electronically
or in writing. Each Security shall be dated the date of its authentication
unless otherwise provided by a Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate.

 

The aggregate principal amount of the
Securities of any Series outstanding at any time shall not exceed any
limit upon the maximum principal amount for such Series set forth in the
Board Resolution, supplemental indenture hereto or Officers’ Certificate
delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

16

 

Prior to the issuance of the
Securities of any Series, the Trustee shall have received and (subject to Section 7.2)
shall be fully protected in relying on: (a) the Board Resolution,
supplemental indenture hereto or Officers’ Certificate establishing the form of
the Securities of that Series or of Securities within that Series and
the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers’ Certificate complying with Section 11.4, and
(c) an Opinion of Counsel complying with Section 11.4.

 

Notwithstanding the provisions
of Section 2.2 and of the preceding paragraph, if all Securities of a Series are
not to be originally issued at one time, it shall not be necessary to deliver
the Officers’ Certificate otherwise required pursuant to Section 2.2 or
the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the authentication of each Security of such Series if
such documents are delivered at or prior to the authentication upon original
issuance of the first Security of such Series to be issued.

 

The Trustee may (at the expense
of the Company) appoint an authenticating agent reasonably acceptable to the
Company to authenticate the Securities. Any such appointment shall be evidenced
by an instrument signed by a Trust Officer, a copy of which shall be furnished
to the Company. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Securities whenever the Trustee may do
so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent.

 

No Security shall be entitled
to any benefit under this Indenture or be valid or obligatory for any purpose
unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual
signature, and such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and
delivered hereunder.  Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 2.12,
for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

 

Section 2.4             Registrar and Paying Agent.

 

The Company shall maintain, with
respect to the Securities of each Series, at the place or places specified with
respect to such Series pursuant to Section 2.2, an office or agency
where the Securities of such Series may be presented or surrendered for
payment (“Paying Agent”), where the Securities of such Series may be
surrendered for registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Indenture may be served (“Service Agent”). The Registrar
shall keep a register with respect to the Registered Securities of each Series (the
“Register”) and to their transfer and exchange. The Company shall give prompt
written notice to the Trustee of the name and address, and any change in the
name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying
Agent or Service Agent or shall fail to furnish the Trustee with the name and
address thereof, such presentations, surrenders, notices and demands may be
made or served at the 

 

17

 

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 co-registrars, additional paying agents or
additional service agents and may from time to time rescind such designations; provided, however, that no such designation
or rescission shall in any manner relieve the Company of its obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.2 for the Securities of any Series for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the name or address of any
such co-registrar, additional paying agent or additional service agent. The
term “Registrar” includes any co-registrar; the term “Paying Agent” includes
any additional paying agent; and the term “Service Agent” includes any
additional service agent.

 

The Company hereby appoints the
Trustee the initial Registrar, Paying Agent and Service Agent for each Series unless
another Registrar, Paying Agent or Service Agent, as the case may be, is
appointed prior to the time the Securities of that Series are first
issued. The Company or any of its domestically organized Subsidiaries may act
as Paying Agent, Registrar or Service Agent.

 

The rights, privileges,
protections, immunities and benefits given to the Trustee under this Indenture
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each Agent acting hereunder.

 

The Company shall enter into an
appropriate agency agreement with any Registrar, Paying Agent or Service 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 of the name and address of any
such agent.

 

The Company may remove any
Registrar, Paying Agent or Service for any Series of Securities upon
written notice to such Registrar, Paying Agent or Service Agent and to the
Trustee; provided, however, that
no such removal shall become effective until (1) acceptance of an
appointment by a successor as evidenced by an appropriate agreement entered
into by the Company and such successor Registrar, Paying Agent or Service
Agent, as the case may be, and delivered to the Trustee or (2) notification
to the Trustee that the Trustee shall serve as Registrar or Paying Agent until
the appointment of a successor in accordance with clause (1) above. The
Registrar, Paying Agent or Service Agent may resign at any time upon written
notice; provided, however, that
the Trustee may resign as Paying Agent, Registrar or Service Agent only if the
Trustee also resigns as Trustee in accordance with Section 7.8.

 

Section 2.5             Paying Agent to Hold Money in
Trust.

 

Prior to each due date of the
principal (premium, if any) and interest on any Series of Securities, the
Company shall deposit with the Paying Agent (or if the Company or a Subsidiary
is acting as Paying Agent, segregate and hold in trust for the benefit of the
Persons entitled thereto) a sum sufficient to pay such principal (premium, if
any) and interest when so becoming 

 

18

 

due. The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money
held by the Paying Agent for the payment of principal of or interest on the Series of
Securities, and shall notify the Trustee of any default by the Company in
making any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary) shall have no further liability for the money. If the
Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of Securityholders of any Series of
Securities all money held by it as Paying Agent.

 

Section 2.6             Securityholder Lists.

 

The Trustee shall preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Securityholders of each Series of
Securities and shall otherwise comply with TIA § 312(a). If the Trustee is
not the Registrar, the Company shall furnish, or cause the Registrar to
furnish, to the Trustee at least five Business Day before each interest payment
date, but in any event not less frequently than semi-annually, and at such
other times as the Trustee may request in writing a list, in such form and as
of such date as the Trustee may reasonably require, of the names and addresses
of Securityholders of the Securities of each Series.  The Trustee may destroy any list furnished to
it as provided in this Section 2.6 upon receipt of a new list so
furnished.

 

Section 2.7             Exchange and Registration of
Transfer.

 

The Company shall cause to be
kept at the Corporate Trust Office the Register in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities of a Series and of transfers of Securities of
such Series. The Register shall be in written form or in any form capable of
being converted into written form within a reasonably prompt period of time.

 

Upon surrender for registration
of transfer of any Security of a Series to the Registrar or any
co-registrar for such Series, and satisfaction of the requirements for such
transfer set forth in this Section 2.7, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same Series, of
any authorized denominations and of like tenor and aggregate principal amount
and bearing such restrictive legends as may be required by this Indenture.

 

Securities of a Series may
be exchanged for other Securities of the same Series, of any authorized
denominations and of like tenor and aggregate principal amount, upon surrender
of the Securities to be exchanged at any office or agency of the Registrar or
any co-registrar for such Series. Whenever any Securities of a Series are
so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities of the same Series that the
Holder making the exchange is entitled to receive bearing registration numbers
not contemporaneously outstanding.

 

19

 

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

 

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

 

No service charge shall be made
to any holder for any registration of, transfer or exchange of Securities, but
the Company or the Registrar may require payment by the holder of a sum
sufficient to cover any tax, assessment or other governmental charge that may
be imposed in connection with any registration of transfer or exchange of such
Securities (other than any such transfer tax or similar governmental charge payable
upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the
Trustee nor any Registrar shall be required to exchange, issue or register a
transfer of (a) Securities of any Series for a period of 15 Business
Days next preceding the date of mailing of a notice of redemption of Securities
of that Series selected for redemption, or (b) Securities of any Series or
portions thereof called for redemption, except for the unredeemed portion of
any Securities of that Series being redeemed in part.

 

Section 2.8             Mutilated, Destroyed, Lost and
Stolen Securities.

 

If any mutilated Security is
surrendered to the Registrar, the Company shall execute, and the Trustee shall
authenticate and deliver, in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

If there shall be delivered to
the Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or wrongful taking of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a protected purchaser as
defined in Section 8-303 of the Uniform Commercial Code (a “protected
purchaser”), the Company shall execute, and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

 

In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay, or authorize the payment of (without surrender thereof except in the case
of a mutilated Security), such Security.

 

Upon the issuance of any new
Security under this Section 2.8, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be 

 

20

 

imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee and any agent of the Company or the Trustee) connected therewith.

 

Every new Security of any
series issued pursuant to this Section 2.8 in lieu of any destroyed, lost
or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all
other Securities of that series duly issued hereunder.

 

The provisions of this Section 2.8
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 stolen Securities.

 

Section 2.9             Outstanding Securities.

 

The Securities outstanding at
any time are all the Securities authenticated and delivered by the Trustee
under this Indenture, except for those canceled by it, those delivered to it
for cancellation, those as to which all of the conditions set forth in Section 8.3
are satisfied and those described in this Section 2.9 as not outstanding.
A Security does not cease to be outstanding because the Company, a Subsidiary
of the Company or an Affiliate of the Company holds the Security [except that
the Company, Subsidiary or Affiliate of the Company shall not obtain voting
rights].

 

If a Security is replaced
pursuant to Section 2.8, it ceases to be outstanding unless the Trustee
and the Company receive proof satisfactory to them that the replaced Security
is held by a protected purchaser.

 

If the Paying Agent (other than
the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity
of Securities of a Series money sufficient to pay such Securities (or
portions thereof) payable on that date, and the Paying Agent is not prohibited
from paying such money to the Securityholders of such Series on that date
pursuant to the terms of the Indenture, then on and after that date such
Securities of the Series (or portions thereof) cease to be outstanding and
interest on them ceases to accrue.

 

In determining whether the
Holders of the requisite principal amount of outstanding Securities have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder, the principal amount of a Discount Security that shall be deemed to
be outstanding for such purposes shall be the amount of the principal thereof
that would be due and payable as of the date of such determination upon a
declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

(b)           if, as of such date, the principal
amount payable at the Stated Maturity of a Security is not determinable, the
principal amount of such Security, which shall be deemed to be outstanding,
shall be the amount as specified or determined as contemplated by Section 2.2;
and (c) the principal amount of a Security denominated in one or more
foreign currencies or currency units, which shall be deemed to be outstanding,
shall be the Dollar equivalent, determined as of such date in the manner
provided as contemplated in Section 2.2, of the principal amount of such 

 

21

 

Security (or, in the case of a Security described in clause (a) or
(b) above, of the amount determined as provided in such clause).

 

Section 2.10           Treasury
Securities.

 

In determining whether the
Holders of the required principal amount of Securities of a Series have
concurred in any direction, waiver or consent, Securities of a Series owned
by the Company, any other obligor upon the Securities or an Affiliate of the
Company or such other obligor shall be disregarded and deemed not to be
outstanding, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent only
Securities of a Series that the Trustee knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or any other obligor on the Securities. In case of a
dispute as to such right, the advice of counsel shall be full protection in
respect of any decision made by the Trustee in accordance with such advice. The
Trustee may, but shall not be obligated to, make a written request that the
Company furnish to the Trustee promptly an Officers’ Certificate listing and
identifying all Securities, if any, known by the Company to be owned or held by
or for the account of any of the above-described persons; and, subject to
Sections 7.1 and 7.2, the Trustee shall be entitled to accept such Officers’
Certificate as conclusive evidence of the facts therein set forth and of the
fact that all Securities not listed therein are outstanding for the purpose of
any such determination.

 

Section 2.11           Temporary Securities.

 

Pending the preparation of
definitive Securities in certificated form, the Company may execute and the
Trustee or an authenticating agent appointed by the Trustee shall, upon a
Company Order, authenticate and deliver temporary Securities (printed,
lithographed, typewritten, photocopied or otherwise produced). Temporary
Securities shall be issuable in any authorized denomination, and substantially
in the form of the definitive Securities in certificated form, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. If temporary Securities of
any Series are issued without unreasonable delay, the Company shall
execute and deliver to the Trustee or such authenticating agent Securities of
such Series in certificated form and thereupon any or all temporary
Securities of such Series may be surrendered in exchange therefor, at each
office or agency maintained by the Company pursuant to Section 4.6 and,
upon such surrender, the Trustee or such authenticating agent shall
authenticate and make available for delivery in exchange for such temporary Securities
an equal aggregate principal amount of Securities of the same Series in
certificated form. Such exchange shall be made by the Company at its own
expense and without any charge therefor. Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits and subject
to the same limitations under this Indenture as Securities of the same Series in
certificated form authenticated and delivered hereunder.

 

22

 

Section 2.12           Cancellation.

 

The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange, payment or redemption. The Trustee and
no one else shall cancel all Securities surrendered for registration of
transfer, exchange, payment, replacement or cancellation and dispose of such
canceled Securities in accordance with its customary procedure. The Company may
not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation. The Trustee shall not authenticate Securities in
place of canceled Securities other than pursuant to the terms of this
Indenture.

 

Section 2.13           Payment of Interest; Interest
Rights Preserved.

 

2.13.1              Except as otherwise provided as
contemplated by Section 2.2 with respect to any Series of Securities,
interest on any Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date will be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest.

 

2.13.2              Any interest on any Security of
any Series which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date (herein called “Defaulted Interest”) will
forthwith cease to be payable to the Holder on the relevant regular Record Date
by virtue of having been such Holder, and such Defaulted Interest may be paid
by the company together with interest thereon (to the extent permitted by law)
at the rate of interest applicable to such Security, at its election in each
case, as provided in clause (i) or (ii) below:

 

(i)            The
Company may elect to make payment of any Defaulted Interest (and interest
thereon, if any) to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which will be fixed in the following manner. 
The Company will notify the Trustee in writing of the amount of
Defaulted Interest (and interest thereon, if any) proposed to be paid on each Security
of such Series and the date of the proposed payment, and at the same time
the Company will deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest (and
interest thereon, if any) or will 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 (and interest thereon, if any) as in this clause (i) provided.  Thereupon the Trustee will fix a Special
Record Date for the payment of such Defaulted Interest (and interest thereon,
if any) which will be not more than 15 calendar days and not less than 10
calendar days prior to the date of the proposed payment and not less than 10
calendar days after the receipt by the Trustee of the notice of the proposed
payment.  The Trustee will promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, will cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such Series at
his address as it appears in the Security Register, not less than 10 calendar
days prior to such Special 

 

23

 

Record Date.  Notice of the
proposed payment of such Defaulted Interest (and interest thereon, if any) and
the Special Record Date therefor having been so mailed, such Defaulted Interest
will be paid to the Persons in whose names the Securities of such series (or
their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and will no longer be payable pursuant to
the following clause (ii).

 

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

 

2.13.3              Subject to the foregoing
provisions of this Section 2.09, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any
other Security will carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

 

Section 2.14           Registered Global Securities.

 

2.14.1              Terms of Securities. A
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate
shall establish whether the Securities of a Series shall be issued in whole
or in part in the form of one or more Registered Global Securities and the
Depositary or Depositaries for such Registered Global Security or Securities.

 

2.14.2              Transfer and Exchange.
Notwithstanding any provisions to the contrary contained in Section 2.7
and in addition thereto, any Registered Global Security shall be exchangeable
pursuant to Section 2.7 for Securities registered in the names of Holders
other than the Depositary for such Security or its nominee only if (i) such
Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for such Registered Global Security or if at any time such
Depositary ceases to be a clearing agency registered under the Exchange Act,
and, in either case, the Company fails to appoint a successor Depositary within
90 days of such event or (ii) the Company executes and delivers to the
Trustee an Officers’ Certificate to the effect that such Registered Global
Security shall be so exchangeable. Any Registered Global Security that is
exchangeable pursuant to the preceding sentence shall be exchangeable for
Securities registered in such names as the Depositary shall direct in writing
in an aggregate principal amount equal to the principal amount of the
Registered Global Security with like tenor and terms.

 

Except as provided in this Section 2.14.2,
a Registered Global Security may not be transferred except as a whole by the
Depositary with respect to such Registered Global Security to a nominee of such
Depositary, by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such a successor Depositary.

 

24

 

2.14.3              Legend. Unless otherwise
specified as contemplated by Section 2.2 for the Securities evidenced
thereby, each Registered Global Security authenticated and delivered hereunder
shall bear a legend in substantially the following form:

 

“This Security is a Registered
Global Security within the meaning of the Indenture hereinafter referred to and
is registered in the name of a Depositary or a nominee of the Depositary. This
Security is exchangeable for Securities registered in the name of a Person
other than the Depositary or its nominee only in the limited circumstances
described in the Indenture, and may not be transferred except as a whole by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such a successor
Depositary.”

 

2.14.4              Acts of Holders. The
Depositary, as a Holder, may appoint agents and otherwise authorize
participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or
take under the Indenture.

 

2.14.5              Payments. Notwithstanding
the other provisions of this Indenture, except as otherwise specified as
contemplated by Section 2.2 for the Securities of any Series, payment of
the principal of and interest, if any, on any Registered Global Security shall
be made to the Holder thereof.

 

2.14.6              Consents, Declaration and
Directions. The Company, the Trustee and any Agent shall treat a Person as
the Holder of such principal amount of outstanding Securities of such Series represented
by a Registered Global Security as shall be specified in a written statement of
the Depositary with respect to such Registered Global Security, for purposes of
obtaining any consents, declarations, waivers or directions required to be
given by the Holders pursuant to this Indenture.

 

Section 2.15           Computation of Interest.

 

Except as otherwise specified
pursuant to Section 2.2 for Securities of any Series, interest on the
Securities of each Series shall be computed on the basis of a 360-day year
of twelve 30-day months.

 

Section 2.16           CUSIP and ISIN Numbers.

 

The Company in issuing the
Securities may use “CUSIP” and “ISIN” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” and “ISIN” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other elements of identification
printed on the Securities, and any such redemption shall not be affected by any
defect in or omission of such numbers. The Company shall promptly notify the
Trustee in writing of any changes to the CUSIP and ISIN numbers.

 

25

 

ARTICLE
3

REDEMPTION

 

Section 3.1                                      Notice to
Trustee.

 

The Company may, with respect to any Series of
Securities, reserve the right to redeem and pay the Series of Securities
or may covenant to redeem and pay the Series of Securities or any part
thereof prior to the Stated Maturity thereof at such time and on such terms as
provided for in such Securities. Such redemption may be conditional upon the
occurrence of events occurring after the delivery of a notice of
redemption.  If Securities of a Series are
redeemable and the Company wants or is obligated to redeem prior to the Stated
Maturity thereof all or part of the Series of Securities pursuant to the
terms of such Securities, it shall notify the Trustee in writing of the
redemption date and the principal amount of Series of Securities to be
redeemed. The Company shall give the notice at least 45 calendar days before
the redemption date (or such shorter notice as may be acceptable to the
Trustee).

 

Section 3.2                                      Selection of
Securities to be Redeemed.

 

Unless otherwise indicated
for a particular Series by a Board Resolution, a supplemental indenture or
an Officers’ Certificate, if less than all the Securities of a Series are
to be redeemed, the Trustee shall select the Securities of the Series to
be redeemed not more than 60 days before the redemption date therefor in any
manner that the Trustee in its sole discretion deems fair and appropriate. The
Trustee shall make the selection from Securities of the Series outstanding
not previously called for redemption. Securities of the Series and
portions of them it selects shall be in amounts of $2,000 or whole multiples of
$1,000 or, with respect to Securities of any Series issuable in other
denominations pursuant to Section 2.2.10, the minimum principal
denomination for each Series and integral multiples thereof. Provisions of
this Indenture that apply to Securities of a Series called for redemption
also apply to portions of Securities of that Series called for redemption.

 

Section 3.3                                      Notice of Redemption.

 

Unless otherwise indicated for a particular Series by
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate,
at least 30 days but not more than 60 days before a redemption date, the
Company shall provide a notice of redemption by electronic transmission or
first-class mail to each Holder whose Securities are to be redeemed and if any
Bearer Securities are outstanding, publish on one occasion a notice in an
Authorized Newspaper.

 

At the Company’s written request, the Trustee
shall give the 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 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.

 

The notice of redemption shall identify the
Securities of the Series to be redeemed and shall state:

 

26

 

(a)                                  the redemption
date;

 

(b)                                 the redemption
price;

 

(c)                                  the name and
address of the Paying Agent;

 

(d)                                 if less than
all outstanding Securities of the Series are to be redeemed, the
identification of the particular Securities to be redeemed and the portion of
the principal amount of any Security to be redeemed in part;

 

(e)                                  that the
Securities of the Series called for redemption must be surrendered to the
Paying Agent for payment of the redemption price;

 

(f)                                    that interest
on Securities of the Series called for redemption will cease to accrue on
and after the redemption date;

 

(g)                                 any other
information as may be required by the terms of the particular Series or the
Securities of a Series being redeemed;

 

(h)                                 if the
redemption is to be conditional upon the satisfaction of certain events, a
description of such events; and

 

(i)                                     the CUSIP, ISIN
or other identification number, if any.

 

Section 3.4                                      Effect of
Notice of Redemption.

 

Once notice of redemption is mailed or
published as provided in Section 3.3, the Securities of a Series called
for redemption become due and payable on the redemption date and at the
redemption price therein specified, unless the conditions specified in such
notice have not been satisfied. A notice of redemption may not be conditional.
Upon surrender to the Paying Agent, such Securities shall be paid at the
redemption price therefor plus accrued interest to but excluding the redemption
date.

 

Section 3.5                                      Deposit of
Redemption Price.

 

On or before the redemption date for the
Securities of a Series, the Company shall deposit with the Paying Agent (or if
the Company of a Subsidiary of the Company is acting as the Paying Agent,
segregate and hold in trust as provided in Section 2.5) an amount of money
sufficient to pay the redemption price of, and accrued interest, if any, on,
all Securities to be redeemed on that date other than Securities or portions of
Securities called for redemption that are beneficially owned by the Company and
have been delivered by the Company to the Trustee for cancellation.

 

Section 3.6                                      Securities
Redeemed in Part.

 

Any Security 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 4.6
(with, if the Company or the Trustee so requires, due endorsement by, or

 

27

 

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 Security at the expense of the
Company, a new Security or Securities, of any authorized denomination as
requested by such Holder, in an aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered, provided, that each such new Security will be issued in
denominations of $2,000 or an integral multiple of $1,000 in excess thereof.

 

ARTICLE
4

COVENANTS

 

Section 4.1                                      Payment of
Principal, Premium and Interest.

 

The Company shall duly and punctually pay the
principal of and premium, if any, and interest, if any, on the Securities of
each Series in accordance with the terms of such Securities and this
Indenture.

 

Section 4.2                                      SEC Reports.

 

The Company shall deliver (which delivery may
be via electronic mail) to the Trustee within 15 days after the filing by the
Company with the SEC copies of the annual reports and of 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) which the Company is
required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. The Company also shall comply with the other provisions of TIA §
314(a).

 

Section 4.3                                      Compliance
Certificate.

 

The Company shall deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company, a executed by
the Company’s  principal executive
officer, principal financial officer or principal accounting officer as to his
or her knowledge of the Company’s compliance with all conditions and covenants
under this Indenture (which compliance shall be determined without regard to
any period of grace or requirement of notice provided under this Indenture)
and, in the event of any Default, specifying each such Default and the nature
and status thereof of which such Person may have knowledge. Such certificates
need not comply with Section 11.5 of this Indenture.  The Company 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 December 31.

 

Section 4.4                                      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
noncompliance as would not in the aggregate have a

 

28

 

material adverse effect on
the financial condition or results of operations of the Company and its
Restricted Subsidiaries, taken as a whole.

 

Section 4.5                                      Corporate
Existence.

 

Subject to Article 5, the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect its corporate existence and that of each Restricted Subsidiary and
the 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 shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Restricted Subsidiaries
taken as a whole and that the loss thereof is not adverse in any material
respect to the Holders.

 

Section 4.6                                      Maintenance of
Office or Agency.

 

The Company will maintain an office or agency
in the Borough of Manhattan, The City of New York (or, if different, in each
Place of Payment for any Series of Securities), where the Securities of a Series may
be surrendered for registration of transfer or exchange or for presentation for
payment and where notices and demands to or upon the Company in respect of the
Securities of a Series and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and any change in
the location, of such office or agency not designated or appointed by the
Trustee. 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.

 

The Company may also from time to time
designate co-registrars and one or more offices or agencies where the
Securities of a Series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations. The Company will
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

 

Section 4.7                                      Money For
Securities Payments to be Held in Trust.

 

If the Company shall at any time act as its
own Paying Agent with respect to the Securities of any Series, it shall, on or
before each due date of the principal of and premium, if any, and interest, if
any, on any of such Securities, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal and premium
or interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided. The Company shall promptly notify the
Trustee of any failure by the Company (or any other obligor of such Securities)
to make any payment of principal of or premium, if any, or interest, if any, on
such Securities.

 

Whenever the Company shall have one or more
Paying Agents for the Securities of any Series, it shall, on or before each due
date of the principal of and premium, if any, and interest, if any, on such
Securities, deposit with such Paying Agents sums sufficient (without
duplication) to pay the principal and premium or interest so becoming due, such
sums to be held in trust for the

 

29

 

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 of any failure by
it so to act.

 

The Company shall cause each Paying Agent for
the Securities of any Series, other than the Company or the Trustee, to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent shall:

 

(a)                                  hold all sums
held by it for the payment of the principal of and premium, if any, or
interest, if any, on such Securities 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 notice of any failure by the Company (or any other obligor upon such
Securities) to make any payment of principal of or premium, if any, or
interest, if any, on such Securities; and

 

(c)                                  at any time
during the continuance of any such failure, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
Agent and furnish to the Trustee such information as it possesses regarding the
names and addresses of the Persons entitled to such sums.

 

The Company may at any time 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, if so stated in a Company Order delivered to the
Trustee, in accordance with the provisions of Article 8; and, upon such
payment by any Paying Agent to the Trustee, such Paying Agent shall be released
from all further liability with respect to such money.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal of and premium, if any, or interest, if any, on any Security and
remaining unclaimed for two years after such principal and premium, if any, or
interest, if any, has become due and payable shall be paid to the Company on
request of the Company, or, if then held by the Company, shall be discharged
from such trust; and, upon such payment or discharge, the Holder of such
Security shall, as an unsecured general creditor and not as the Holder of an
outstanding Security, look only to the Company for payment of the amount so due
and payable and remaining unpaid, 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 payment to the Company, may at the expense of the
Company cause to be published once a week for two successive weeks, in each
case on any day of the week, in an Authorized Newspaper in each Place of
Payment, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be paid to
the Company.

 

30

 

Section 4.8                                      Waiver of
Certain Covenants.

 

Except as otherwise specified as contemplated
by Section 2.2 for Securities of such Series, the Company may, with
respect to the Securities of any Series, omit in any particular instance to
comply with any term, provision or condition set forth in any covenant provided
herein or pursuant to Section 2.2.20 or Section 9.1(c) for the
benefit of the Holders of such Series if before the time for such
compliance the Holders of at least 50 percent in principal amount of the
outstanding Securities of such Series shall, by an Act of such Holders,
either waive such compliance in such instance or generally waive compliance
with such term, provision or condition, but no such wavier shall extend to or
affect such term, provision or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the
Company and the duties of the Trustee in respect of such term, provision or
condition shall remain in full force and effect.

 

ARTICLE
5

SUCCESSORS

 

Section 5.1                                      Merger and
Consolidation.  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, 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; and

 

(3)   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.

 

Section 5.2                                      Successor
Corporation Substituted.

 

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

 

31

 

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 Securities of any Series.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

Section 6.1                                      Events of
Default.

 

“Event of Default,” wherever
used herein with respect to Securities of any Series, means any one of the
following events, unless in the establishing Board Resolution, supplemental
indenture or Officers’ Certificate, it is provided that such Series shall
not have the benefit of said Event of Default:

 

(a)                                  a default in
the payment of any interest on any Security of that Series when it becomes
due and payable, and continuance of such default for a period of 30 days
(unless the entire amount of such payment is deposited by the Company with the
Trustee or with a Paying Agent prior to the expiration of such period of 30
days); provided that, a valid extension of an interest payment period by the
Company in accordance with the terms of such Securities shall not constitute a
failure to pay interest; or

 

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

 

(c)                                  a default in
the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or

 

(d)                                 a default, subject
to the provisions in Section 4.8, in the performance or breach of any
covenant or warranty of the Company in this Indenture (other than a covenant or
warranty a default in whose performance or whose breach is elsewhere
specifically dealt with as an Event of Default or that has been included in
this Indenture solely for the benefit of Series of Securities other than
that Series), which default continues uncured for a period of 90 days after
there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25 percent
in principal amount of the outstanding Securities of that Series a written
notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder;

 

(e)                                  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 including a default with respect to Securities of any Series other
than that Series (or the payment of which is guaranteed by the Company),
whether such Indebtedness or Guarantee now exists, or is created after the
Issue Date, which default:

 

(i)                                     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

 

32

 

(ii)                                  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; or

 

(f)                                    the Company or
a Significant Subsidiary:

 

(i)                                     commences a
voluntary case or voluntary proceeding,

 

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

 

(iii)                               consents to the
appointment of a Custodian of it or for all or substantially all of its
property,

 

(iv)                              makes a general
assignment of substantially all of its property for the benefit of its
creditors,

 

(v)                                 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;

 

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

 

(vii)                           takes any
comparable action under any foreign laws relating to insolvency together, the “bankruptcy
provisions”); or

 

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

 

(i)                                     is for relief
in an involuntary case against the Company or any Significant Subsidiary,
pursuant to or within the meaning of the Bankruptcy Law;

 

(ii)                                  appoints a
Custodian for all or substantially all of the property of the Company or any
Significant Subsidiary, pursuant to or within the meaning of the Bankruptcy
Law;

 

(iii)                               orders the
winding up or liquidation of the Company or any Significant Subsidiary,
pursuant to or within the meaning of the Bankruptcy Law; and

 

(iv)                              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; or

 

33

 

(h)                                 any other Event
of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.2.19.

 

The term “Bankruptcy Law” means title 11,
U.S. Code or any similar Federal or State law for the relief of debtors. The
term “Custodian” means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

 

Section 6.2                                      Acceleration of
Maturity; Rescission and Annulment.

 

If an Event of Default described in Section 6.1(a),
(b) or (c) occurs and is continuing, then, and in each and every such
case, except for any series of Securities the principal of which shall have
already become due and payable, either the Trustee or the Holders of not less
than 25 percent in aggregate principal amount of the Securities of each such
affected series then outstanding hereunder (each such series voting as a
separate class) by notice in writing to the Company (and to the Trustee if
given by Securityholders), may declare the entire principal (or, if the
Securities of such series are Discount Securities, such portion of the
principal amount as may be specified in the terms of such series) of all
Securities of such series, and the interest accrued and unpaid thereon, if any,
to be due and payable immediately, and upon any such declaration, the same
shall become immediately due and payable.

 

Except as otherwise provided in the terms of
any series of Senior Securities pursuant to Section 2.2, if an Event of
Default described in Section 6.1(d) or (h) above with respect to
all series of the Senior Securities then outstanding, occurs and is continuing,
then, and in each and every such case, unless the principal of all of the
Senior Securities shall have already become due and payable, either the Trustee
or the Holders of not less than 25 percent in aggregate principal amount of all
of the Senior Securities then outstanding hereunder (treated as one class) by
notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Senior
Securities of any series are Discount Securities, such portion of the principal
amount as may be specified in the terms of such series) of all of the Senior
Securities then outstanding, and the interest accrued thereon, if any, to be
due and payable immediately, and upon such declaration, the same shall become
immediately due and payable. If an Event of Default described in clause (f) or
(g) above occurs and is continuing, then the principal amount of all the
Senior Securities then outstanding, and the interest accrued and unpaid
thereon, if any, shall become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.

 

Except as otherwise provided in the terms of
any series of Subordinated Securities pursuant to Section 2.2, if an Event
of Default described in Section 6.1 (d) or (h) above with
respect to all series of Subordinated Securities then outstanding, occurs and
is continuing, then, and in each and every such case, unless the principal of
all of the Subordinated Securities shall have already become due and payable,
either the Trustee or the Holders of not less than 25 percent in aggregate
principal amount of all of the Subordinated Securities then outstanding hereunder
(treated as one class) by notice in writing to the Company (and to the Trustee
if given by Securityholders), may declare the entire principal (or, if the
Subordinated Securities of any series are Discount Securities, such portion of
the principal amount as may be specified in the terms of such series) of all of
the Subordinated Securities then outstanding, and the interest

 

34

 

accrued and unpaid thereon,
if any, to be due and payable immediately, and upon such declaration, the same
shall become immediately due and payable.

 

If an Event of Default described in Section 6.1
(d) or (h) occurs and is continuing, which Event of Default is with
respect to less than all series of Senior Securities then outstanding, then,
and in each and every such case, except for any series of Senior Securities the
principal of which shall have already become due and payable, either the
Trustee or the Holders of not less than 25 percent in aggregate principal
amount of the Senior Securities of each such affected series then outstanding
hereunder (each such series voting as a separate class) by notice in writing to
the Company (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the Securities of such series are Discount Securities,
such portion of the principal amount as may be specified in the terms of such
series) of all Securities of such series, and the interest accrued and unpaid
thereon, if any, to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable.

 

If an Event of Default described in Section 6.1(d) or
(h) occurs and is continuing, which Event of Default is with respect to
less than all series of Subordinated Securities then outstanding, then, and in
each and every such case, except for any series of Subordinated Securities the
principal of which shall have already become due and payable, either the
Trustee or the Holders of not less than 25 percent in aggregate principal
amount of the Subordinated Securities of each such affected series then
outstanding hereunder (each such series voting as a separate class) by notice
in writing to the Company (and to the Trustee if given by Securityholders), may
declare the entire principal (or, if the Securities of such series are Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) of Subordinated Securities of such series, and the
interest accrued and unpaid thereon, if any, to be due and payable immediately,
and upon any such declaration, the same shall become immediately due and
payable.

 

If an Event of Default specified in Section 6.1(f) or
(g) shall occur, the principal amount (or specified amount) of and accrued
and unpaid interest, if any, on all outstanding Securities shall become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

 

At any time after such a declaration of
acceleration with respect to any Series has been made and before a
judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority
in principal amount of the outstanding Securities of that Series, by written
notice to the Company and the Trustee (including without limitation, waivers
and consents obtained in connection with a purchase of, or tender offer or
exchange offer for, Securities), may rescind and annul such declaration and its
consequences if:

 

(a)                                  the Company has
paid or deposited with the Trustee a sum sufficient to pay

 

(i)                                     all overdue
interest, if any, on all Securities of that Series,

 

35

 

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

 

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

 

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

 

(b)                                 all existing
Events of Default with respect to Securities of that Series, other than the
non-payment of the principal of Securities of that Series which have
become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 6.13; and

 

(c)                                  rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction.

 

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

 

Section 6.3                                      Collection of
Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

 

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

 

(b)                                 default is made
in the payment of principal of any Security when due at the Maturity thereof,
or

 

(c)                                  default is made
in the deposit of any sinking fund payment when and as due by the terms of a
Security, then, the Company will,
upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal and interest and, to the extent that payment of such interest shall
be legally enforceable, interest on any overdue principal or any overdue
interest, at the rate or rates prescribed therefor in such Securities, and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

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

 

36

 

Section 6.4             Trustee May File Proofs of
Claim.

 

In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding
or otherwise,

 

(a)           to file and prove a claim for the whole amount of
principal and interest owing and unpaid in respect of the Securities and to
file such 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 of the Holders allowed in such judicial proceeding, and

 

(b)           to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same,

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

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 Securities 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.

 

Section 6.5             Trustee May Enforce Claims
Without Possession of Securities.

 

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

 

Section 6.6             Application of Money Collected.

 

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

 

37

 

First: To the payment of all amounts due the
Trustee under Section 7.7; and

 

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

 

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 Sector.  At least 15
days before such record date, the Company shall mail to each Holder a notice
that states the record date, the payment date and amount to be paid.

 

Third: To the Company.

 

Section 6.7             Limitation on Suits.

 

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

 

(a)           such Holder has previously given written notice to the
Trustee of an Event of Default and the continuance thereof with respect to the
Securities of that Series;

 

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

 

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

 

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

 

(e)           no direction inconsistent, in the opinion of the Trustee,
with such written request has been given to the Trustee during such 60-day
period by the Holders of a majority in principal amount of the outstanding
Securities of that Series;

 

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

 

Section 6.8             Unconditional Right of Holders
to Receive Principal and Interest.

 

Notwithstanding any other provision in this
Indenture, the Holder of any Security shall have the right, which is absolute
and unconditional, to receive payment of the principal of and

 

38

 

interest, if any, on such
Security on the Stated Maturity or Stated Maturities expressed in such Security
(or, in the case of redemption, on the redemption date) and to institute suit
for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

 

Section 6.9             Restoration of Rights and
Remedies.

 

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

 

Section 6.10           Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities
in Section 2.8, no right or remedy herein conferred upon or reserved to
the Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

 

Section 6.11           Delay or Omission Not Waiver.

 

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

 

Section 6.12           Control by Majority.

 

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

 

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

 

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

 

39

 

(c)           subject to the provisions of Section 7.1, the Trustee
shall have the right to decline to follow any such direction if the Trustee in
good faith shall, by a Trust Officer of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal liability, and

 

(d)           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 6.13           Waiver of Past Defaults.

 

The Holders of not less than a majority in
principal amount of the outstanding Securities of any Series may on behalf
of the Holders of all the Securities of such Series waive any past Default
hereunder with respect to such Series and its consequences, except a
Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a
majority in principal amount of the outstanding Securities of any Series may
rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration). Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

Section 6.14           Undertaking for Costs.

 

All parties to this Indenture agree, and each
Holder of any Security by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Company, to any suit instituted by the Trustee,
to any suit instituted by any Holder, or group of Holders, holding in the
aggregate more than 10 percent in principal amount of the outstanding
Securities of any Series, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of or interest on any Security on
or after the Stated Maturity or Stated Maturities expressed in such Security
(or, in the case of redemption, on the redemption date).

 

ARTICLE
7

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

 

40

 

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:

 

(i)            the Trustee need
perform only those duties that are specifically set forth in this Indenture and
no other implied covenants or obligations shall be read into this Indenture
against the Trustee; and

 

(ii)           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 of the Indenture 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.

 

(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:

 

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

 

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

 

(iii)          the Trustee shall
not be liable with respect to any action it takes or omits to take with respect
to Securities of any Series in good faith in accordance with the direction
of the Holders of a majority in principal amount of the outstanding Securities
of such Series.

 

(d)           Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraph (a), (b) and (c) of this
Section.

 

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

 

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

 

(g)           No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur 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 for believing that
repayment of such funds or adequate indemnity against such risk is not
reasonably assured to it.

 

(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,

 

41

 

expenses (including reasonable attorneys’
fees and expenses) and liabilities that might be incurred by it in compliance
with such request or direction.

 

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

 

Section 7.2             Rights of Trustee.

 

(a)           The Trustee may conclusively rely on any document believed
by it to be genuine and to have been signed or presented by the proper person.
The Trustee need not investigate any fact or matter stated in the document.

 

(b)           Before the Trustee acts or refrains from acting, it may
require an Officers’ Certificate or an Opinion of Counsel 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 agents and attorneys and shall
not be responsible for the misconduct or negligence of any agent appointed with
due care.

 

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

 

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

 

(f)            The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit; and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Company 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) (a), (b), or (c), or (ii) any
Default or Event of Default of which a Trust 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)           The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its rights to be
indemnified, are extended to, and shall be

 

42

 

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

 

(i)            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.

 

(j)            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).

 

(k)           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.

 

(l)            The permissive rights of the Trustee enumerated herein
shall not be construed as duties.

 

Section 7.3             Individual Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal
with the Company or an Affiliate with the same rights it would have if it were
not Trustee. Any Agent may do the same with like rights. The Trustee is also
subject to 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 and
makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds
from the Securities, and it shall not be responsible for any statement in the
Securities or in any document issued in connection with the sale of the
Securities or in the Securities other than its 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 with respect to the Securities of any Series and if it is
known to a Trust Officer of the Trustee, the Trustee shall mail to each
Securityholder of the Securities of that Series and, if any Bearer
Securities are outstanding, publish on one occasion in an Authorized Newspaper,
notice of a Default or Event of Default 

 

43

 

within 90 days after a Trust
Officer obtains actual knowledge of it or written notice of it is received by
the Trustee. Except in the case of a Default or Event of Default in payment of
principal, premium, if any, of or interest on any Security of any Series or
in payment of any redemption obligation, the Trustee may withhold the notice if
and so long as its corporate trust committee or a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Securityholders of that Series.

 

Section 7.6             Reports by Trustee to Holders.

 

As promptly as practicable after each [                       ]
beginning with [                       ],
20[    ], and
in any event prior to [                       ]
in each year, the Trustee shall transmit by mail to all Securityholders, as
their names and addresses appear on the register kept by the Registrar and, if
any Bearer Securities are outstanding, to the holder(s) of Bearer Securities
who have provided written request therefor and their mailing address to the
Trustee, a brief report dated as of May 15, each year as and if required
by TIA § 313(a) if and to the extent required by such subsection. The
Trustee shall also comply with TIA § 313(b). 
The Trustee shall also transmit by mail all reports required by TIA §
313(c).

 

A copy of each report at the time of its
mailing to Securityholders of any Series shall be filed with the SEC and
each stock exchange (if any) on which the Securities of that Series are
listed. The Company shall promptly notify the Trustee when Securities of any Series are
listed on any stock exchange and of any delisting thereof.

 

Section 7.7             Compensation and Indemnity.

 

The Company (and the Subsidiary Guarantors,
if any, jointly and severally) shall pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in
writing. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses and advances
incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts. The Company (and the Subsidiary Guarantors,
if any, jointly and severally) shall indemnify the Trustee, and hold it
harmless, against any and all loss, liability or expense (including reasonable
attorneys’ fees) incurred by or in connection with the offer and sale of the
Securities or the administration of this trust and the performance of its
duties hereunder including the costs and expenses of enforcing this Indenture
(including this Section 7.7) and the Notes and of defending itself against
any claims (whether asserted by any Holder, the Company or otherwise).  The Trustee shall notify the Company of any
claim for which it may seek indemnity promptly upon obtaining actual knowledge
thereof. The Company shall defend the claim and the indemnified party shall
provide reasonable cooperation at the Company’s expense in the defense. Such
indemnified parties may have separate counsel and the Company shall pay the
fees and expenses of such counsel. The Company (and a Subsidiary Guarantor, if
any) need not reimburse any expense or indemnify against any loss, liability or
expense incurred by an indemnified party through such party’s own willful
misconduct, negligence and bad faith, subject to exceptions contained in Section 7.1(c) hereof.

 

44

 

To secure the Company’s (and any Subsidiary
Guarantor’s) payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series 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 and any liquidated damages on particular Securities
of that Series.

 

The Company’s payment obligations pursuant to
this Section shall survive the satisfaction or discharge of this
Indenture, any rejection or termination of this Indenture under any bankruptcy
law or the resignation or removal of the Trustee.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.1(e) or (f) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

Section 7.8             Replacement of Trustee.

 

The Trustee may resign with respect to the
Securities of one or more Series at any time by giving the Company written
notice thereof. The Holders of a majority in principal amount of the Securities
of any Series may remove the Trustee with respect to that Series by
so notifying the Trustee and may appoint a successor Trustee. The Company shall
remove the Trustee with respect to Securities of one or more Series if:

 

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

 

(b)           the Trustee is adjudged bankrupt or insolvent;

 

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

 

(d)           the Trustee otherwise becomes incapable of acting.

 

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

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.
Thereupon, and only 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 with respect to each Series of
Securities for which it is acting as Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to each Securityholder
of each such Series and, if any Bearer Securities are outstanding, publish
such notice on one occasion in an Authorized Newspaper. The retiring Trustee
shall promptly transfer all property held by it as Trustee to the successor
Trustee, subject to the lien provided for in Section 7.7.

 

If a successor Trustee with respect to the
Securities of any one or more Series does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee or

 

45

 

the Holders of 10 percent in
principal amount of the Securities of the applicable Series may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee with respect to the Securities
of any one or more Series fails to comply with Section 7.10, unless
the Trustee’s duty to resign is stayed as provided in TIA § 310(b), any
Securityholder of the applicable Series 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, the Company’s obligations under Section 7.7
shall continue for the benefit of the retiring Trustee.

 

Section
7.9             Successor Trustee by
Merger, etc.

 

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

 

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

 

Section 7.10           Eligibility; Disqualification.

 

The Trustee shall at all times satisfy the
requirements of TIA § 310(a). The Trustee shall have a combined capital
and surplus of at least $100,000,000 as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA § 310(b); provided, however, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the
requirements for such exclusion set forth in TIA § 310(b)(1) are met.

 

Section 7.11           Preferential Collection of Claims
Against Company.

 

The Trustee shall comply with TIA
§ 311(a), excluding any creditor relationship listed in TIA § 311(b).
A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to
the extent indicated.

 

46

 

ARTICLE
8

SATISFACTION
AND DISCHARGE; DEFEASANCE

 

Section 8.1             Satisfaction and Discharge of
Indenture.

 

This Indenture, with respect to Securities of
any Series (if all Series issued under this Indenture are not to be
affected) shall, upon Company Order, cease to be of further effect (except as
hereinafter provided in this Section 8.1), and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(a)           either

 

(i)            all Securities of
such Series theretofore authenticated and delivered (other than (A) Securities
that have been destroyed, lost or stolen and that have been replaced or paid or
(B) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to
the Company or discharged from such trust, as provided in Sections 2.5 and 4.7)
have been delivered to the Trustee for cancellation; or

 

(ii)           all such Securities
of such Series not theretofore delivered to the Trustee for cancellation:

 

(1)           have become due and
payable, or

 

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

 

(3)           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, or

 

(4)           are deemed paid and
discharged pursuant to Section 8.3, as applicable;

 

and the Company, in the case of (1), (2) or (3) above,
has deposited or caused to be deposited with the Trustee as trust funds in
trust an amount sufficient for the purpose of paying and discharging the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on, and any
mandatory sinking fund payments to the date of such deposit (in the case of
Securities of such Series which have become due and payable on or prior to
the date of such deposit) or to the Stated Maturity or redemption date, as the
case may be;

 

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

 

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

 

47

 

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee
under Section 7.7, and, if money shall have been deposited with the
Trustee pursuant to clause (a) of this Section, the provisions of Sections
2.4, 2.7, 2.8, 4.7 (last paragraph only), 8.1, 8.2 and 8.5 shall survive.

 

Section 8.2             Application of Trust Funds;
Indemnification.

 

(a)           Subject to the provisions of Section 8.5, all money
deposited with the Trustee pursuant to Section 8.1, all money and U.S.
Government Obligations or Foreign Government Obligations deposited with the
Trustee pursuant to Section 8.3 or 8.4 and all money received by the
Trustee in respect of U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4,
shall be held in trust and applied by it, in accordance with the provisions of
the Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal and
interest for whose payment such money has been deposited with or received by
the Trustee or to make mandatory sinking fund payments or analogous payments as
contemplated by Sections 8.3 or 8.4.

 

(b)           The Company shall pay and shall indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against U.S.
Government Obligations or Foreign Government Obligations deposited pursuant to
Sections 8.3 or 8.4 or the interest and principal received in respect of such
obligations other than any payable by or on behalf of Holders.

 

(c)           The Trustee shall deliver or pay to the Company from time
to time upon Company Request any U.S. Government Obligations or Foreign
Government Obligations or money held by it as provided in Sections 8.3 or 8.4
which, in the opinion of a nationally recognized firm of independent certified
public accountants expressed in a written certification thereof delivered to
the Trustee, are then in excess of the amount thereof which then would have
been required to be deposited for the purpose for which such U.S. Government
Obligations or Foreign Government Obligations or money were deposited or
received. This provision shall not authorize the sale by the Trustee of any
U.S. Government Obligations or Foreign Government Obligations held under this
Indenture.

 

Section 8.3             Legal Defeasance of Securities
of any Series.

 

Unless this Section 8.3 is otherwise
specified, pursuant to Section 2.2.25, to be inapplicable to Securities of
any Series, the Company shall be deemed to have paid and discharged the entire
indebtedness on all the outstanding Securities of such Series on the 91st
day after the date of the deposit referred to in subparagraph (d) hereof,
and the provisions of this Indenture and all of the Company’s obligations (and
the obligations of a Subsidiary Guarantor, if any), as it relates to such
outstanding Securities of such Series, shall terminate and no longer be in
effect (and the Trustee, at the expense of the Company, shall, at Company
Request, execute proper instruments acknowledging the same), except as to:

 

(a)           the rights of Holders of Securities of such Series to
receive, from the trust funds described in subparagraph (d) hereof, (i) payment
of the principal of and each installment of principal of and interest on the outstanding
Securities of such Series on the Stated Maturity of

 

48

 

such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments
applicable to the Securities of such Series on the day on which such
payments are due and payable in accordance with the terms of this Indenture and
the Securities of such Series;

 

(b)           the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and
8.5; and

 

(c)           the rights, powers, trust and immunities of the Trustee
hereunder;

 

provided
that, the following conditions shall have been satisfied:

 

(d)           the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for and dedicated
solely to the benefit of the Holders of such Securities (i) in the case of
Securities of such Series denominated in Dollars, cash in Dollars (or such
other money or currencies as shall then be legal tender in the United States)
and/or U.S. Government Obligations, or (ii) in the case of Securities of
such Series denominated in a Foreign Currency (other than a composite
currency), money and/or Foreign Government Obligations, which through the
payment of interest and principal in respect thereof, in accordance with their
terms, will provide (and without reinvestment and assuming no tax liability
will be imposed on such Trustee), not later than one day before the due date of
any payment of money, an amount in cash, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof (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),
delivered to the Trustee, to pay and discharge each installment of principal
(including mandatory sinking fund or analogous payments) of and interest, if any,
on all the Securities of such Series on the dates such installments of
interest or principal are due;

 

(e)           such deposit will not result in a breach or violation of,
or constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;

 

(f)            no Default or Event of Default with respect to the
Securities of such Series shall have occurred and be continuing on the
date of such deposit or during the period ending on the 91st day after such date;

 

(g)           the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel from a nationally recognized
law firm to the effect 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 execution 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 (subject to customary assumption and exclusions)
shall confirm that, the Holders of the Securities of such Series will not
recognize income, gain or loss for Federal income tax purposes as a result of
such deposit, defeasance and discharge and will be subject to Federal income
tax on the same amount and in the same manner and at the same times as would
have been the case if such deposit, defeasance and discharge had not occurred;

 

49

 

(h)           the Company shall have delivered to the Trustee an
Officers’ Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders of the Securities of such Series over
any other creditors of the company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company;

 

(i)            the Company delivers to the Trustee an Opinion of Counsel
(subject to customary assumption and exclusions) to the effect that such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as
amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and

 

(j)            the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance contemplated by
this Section 8.3 have been complied with.

 

Upon satisfaction of the conditions set forth
herein and upon request and expense of the Company, the Trustee shall
acknowledge in writing the discharge of those obligations that the Company
terminates.  The Company may exercise its
legal defeasance option under this Section 8.3 notwithstanding its prior
exercise of its covenant defeasance option pursuant to Section 8.4.

 

Section 8.4             Covenant Defeasance.

 

Unless this Section 8.4 is otherwise
specified pursuant to Section 2.2.25 to be inapplicable to Securities of
any Series, on and after the date of the deposit referred to in subparagraph (a) hereof,
the Company may omit to comply with any term, provision or condition set forth
under Sections 4.2, 4.3, 4.5 and 5.1 as well as any additional covenants
contained in a supplemental indenture hereto for a particular Series of
Securities or a Board Resolution or an Officers’ Certificate delivered pursuant
to Section 2.2.20 (and the failure to comply with any such covenants shall
not constitute a Default or Event of Default under Section 6.1) and the
occurrence of any event described in clause (f) of Section 6.1 shall
not constitute a Default or Event of Default hereunder, with respect to the
Securities of such Series, provided that the following conditions shall have
been satisfied:

 

(a)           with reference to this Section 8.4, the Company has
deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c))
with the Trustee as trust funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities (i) in
the case of Securities of such Series denominated in Dollars, cash in
Dollars (or such other money or currencies as shall then be legal tender in the
United States) and/or U.S. Government Obligations, or (ii) in the case of
Securities of such Series denominated in a Foreign Currency (other than a
composite currency), money and/or Foreign Government Obligations, which through
the payment of interest and principal in respect thereof, in accordance with
their terms, will provide (and without reinvestment and assuming no tax
liability will be imposed on such Trustee), not later than one day before the
due date of any payment of money, an amount in cash, sufficient, in the opinion
of a nationally recognized firm of independent certified public accountants
expressed in a written certification thereof (or if nationally recognized
independent accounting firms no longer routinely express such opinions, a
certificate from the chief financial

 

50

 

officer of the Company expressing his or her
opinion), delivered to the Trustee, to pay principal and interest, if any, on
and any mandatory sinking fund in respect of the Securities of such Series on
the dates such installments of interest or principal are due;

 

(b)           such deposit will not result in a breach or violation of,
or constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;

 

(c)           no Default or Event of Default with respect to the
Securities of such Series shall have occurred and be continuing on the
date of such deposit;

 

(d)           the Company shall have delivered to the Trustee an Opinion
of Counsel (subject to customary assumptions and exclusions) from a nationally
recognized law firm confirming that Holders of the Securities of such Series will
not recognize income, gain or loss for federal income tax purposes as a result
of such deposit and defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred;

 

(e)           the Company shall have delivered to the Trustee an
Officers’ Certificate stating the deposit was not made by the Company with the
intent of preferring the Holders of the Securities of such Series over any
other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company; and

 

(f)            the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the defeasance
contemplated by this Section 8.4 have been complied with.

 

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

 

Section 8.5             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 8 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 8.5. The provisions of the last paragraph
of Section 4.7 shall apply to any money held by the Trustee or any Paying
Agent that remains unclaimed for two years after the Maturity of any Series or
Securities for which money or U.S. Government Obligations have been deposited
pursuant to Sections 8.3 and 8.4.

 

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.

 

51

 

Section 8.6             Effect of Subordination
Provisions.

 

Unless otherwise expressly established
pursuant to Section 2.2 with respect to the Subordinated Securities of any
Series, the provisions of Article 10 hereof, insofar as they pertain to
the Subordinated Securities of such series, and the Subordination Provisions
established pursuant to Section 2.2.9 with respect to such Series, are
hereby expressly made subject to the provisions for satisfaction and discharge
and defeasance and covenant defeasance set for this Article 8 and,
anything herein to the contrary notwithstanding, upon the effectiveness of such
satisfaction and discharge and defeasance and covenant defeasance pursuant to
this Article 8 with respect to the Securities of such Series, such
Securities shall thereupon cease to be so subordinated and shall no longer be
subject to the provisions of Article 10 or the Subordination Provisions
established pursuant to Section 2.2.9 with respect to such series and,
without limitation to the foregoing, all moneys, U.S. Government Obligations
and other securities or property deposited with the Trustee (or other
qualifying trustee) in trust in connection with such satisfaction and
discharge, defeasance or covenant defeasance, as the case may be, and all
proceeds therefrom may be applied to pay the principal of, premium, if any, on,
and mandatory sinking fund payments, if any with respect to the Securities of
such Series as and when the same shall become due and payable
notwithstanding the provisions of Article 10 or such Subordination
Provisions.

 

ARTICLE
9

AMENDMENTS
AND WAIVERS

 

Section 9.1             Without Consent of Holders.

 

The Company and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series without
the consent of any Securityholder:

 

(a)           to convey, transfer, assign, mortgage or pledge to the
Trustee as security for the Securities of one or more Series any property
or assets;

 

(b)           to comply with Article 5;

 

(c)           to add to the covenants of the Company such further
covenants, restrictions, conditions or provisions as the Company shall consider
to be for the protection of the Holders of Securities, and to make the
occurrence, or the occurrence and continuance, of a default in any such additional
covenants, restrictions, conditions or provisions an Event of Default
permitting the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth; provided, that in respect of any such
additional covenant, restriction, condition or provision such supplemental
indenture may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such an Event of
Default or may limit the remedies available to the Trustee upon such an Event
of Default or may limit the right of the Holders of a majority in aggregate
principal amount of the Securities of such series to waive such an Event of
Default;

 

(d)           add a guarantor or permit any Person to guarantee the
obligations under any Series of Securities;

 

52

 

(e)           to cure any ambiguity, defect or inconsistency;

 

(f)            to provide for the issuance of and establish the form and
terms and conditions of Securities of any Series as permitted by this
Indenture;

 

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

 

(h)           to provide for uncertificated Securities in addition to or
in place of certificated Securities;

 

(i)            to make any change that does not materially adversely
affect the rights of any Securityholder;

 

(j)            to comply with requirements of the SEC in order to effect
or maintain the qualification of this Indenture under the TIA; and

 

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

 

(l)            to comply with the rules of any applicable
Securities depositary.

 

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 and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a
majority in principal amount of the outstanding Securities of each Series affected
by such supplemental indenture (including consents obtained in connection with
a tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such Series.
Except as provided in Section 6.13, the Holders of at least a majority in
principal amount of the outstanding Securities of each Series affected by
such waiver by notice to the Trustee (including consents obtained in connection
with a tender offer or exchange offer for the Securities of such Series) may
waive compliance by the Company with any provision of this Indenture or the
Securities with respect to such Series.

 

53

 

It shall not be necessary for the consent of
the Holders of Securities under this Section 9.2 to approve the particular
form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a supplemental
indenture or waiver under this section becomes effective, the Company shall
mail to the Holders of Securities affected thereby and, if any Bearer
Securities affected thereby are outstanding, publish on one occasion in an
Authorized Newspaper, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture or waiver.

 

Section 9.3             Limitations.

 

Without the consent of each Securityholder
affected, an amendment or waiver may not:

 

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

 

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

 

(c)           reduce the principal of or extend the Stated Maturity of
any Security;

 

(d)           reduce the premium payable upon the redemption or
repurchase of any Security or change the time at which any Security may be
redeemed or repurchased under the Indenture or supplemental indenture;

 

(e)           make the principal thereof (including any amount in
respect of original issue discount), or premium thereon, if any, or interest
thereon payable in any coin or currency other than that provided in the
Securities or in accordance with the terms thereof;

 

(f)            reduce the amount of the principal of a Discount Security
that would be due and payable upon an acceleration of the maturity thereof
pursuant to Section 6.2 or the amount thereof provable in bankruptcy
pursuant to Section 6.4;

 

(g)           in the case of Subordinated Securities of any series,
modify any of the Subordination Provisions or the definition of “Senior
Indebtedness” relating to such series in a manner adverse to the holders of
such Subordinated Securities;

 

(h)           alter the provisions of Section 11.15 or 11.16;

 

(i)            impair or affect the right of any Securityholder to
institute suit for the payment thereof when due or, if the Securities provide
therefor, any right of repayment at the option of the Securityholder;

 

(j)            reduce the aforesaid percentage of Securities of any
Series, the consent of the Holders of which is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture; or

 

54

 

(k)           modify any provision of this Section 9.3.

 

Section 9.4             Compliance with Trust Indenture
Act.

 

Every amendment to this Indenture or the
Securities of one or more Series shall be set forth in a supplemental
indenture hereto that complies with the TIA as then in effect.

 

Section 9.5             Revocation and Effect of
Consents.

 

Until an amendment or waiver becomes
effective, a consent to it by a Holder of a Security is a continuing consent by
the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. However, any such Holder or
subsequent Holder may revoke the consent as to his Security or portion of a
Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective.

 

Any amendment or waiver once effective shall
bind every Securityholder of each Series affected by such amendment or
waiver unless it is of the type described in any of clauses of Section 9.3.
In that case, the amendment or waiver shall bind each Holder of a Security who
has consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security.

 

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

 

Section 9.6             Notation on or Exchange of
Securities.

 

The Trustee may place an appropriate notation
about an amendment or waiver on any Security of any Series thereafter
authenticated. The Company in exchange for Securities of that Series may
issue and the Trustee shall authenticate upon written request new Securities of
that Series that reflect the amendment or waiver.

 

Section 9.7             Trustee Protected.

 

The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article 9 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

 

55

 

any Subsidiary Guarantors,
enforceable against them in accordance with its terms, subject to customary
exceptions, and complies with the provisions hereof (including Section 9.4).

 

ARTICLE
10

SUBORDINATION
OF SECURITIES

 

Section 10.1           Agreement to Subordinate.

 

The Company, for itself, its
successors and assigns, covenants and agrees, and each Holder of Subordinated
Securities of any Series by his acceptance thereof, likewise covenants and
agrees, that the payment of the principal of (and premium, if any) and
interest, if any, on, and mandatory sinking fund payments, if any, in respect
of each and all of the Subordinated Securities of such series shall be
expressly subordinated, to the extent and in the manner provided in the
Subordination Provisions established with respect to the Subordinated
Securities of such Series pursuant to Section 2.2.9 hereof, in right
of payment to the prior payment in full of all Senior Indebtedness with respect
to such Series.

 

ARTICLE
11

MISCELLANEOUS

 

Section 11.1           Trust Indenture Act Controls.

 

If any provision of this
Indenture limits, qualifies, or conflicts with another provision which is
required or deemed to be included in this Indenture by the TIA, such required
or deemed provision shall control.

 

Section 11.2           Notices.

 

Any notice or communication by the Company or
the Trustee to the other is duly given if in writing and delivered in person or
mailed by first-class mail:

 

if to the Company:

 

Cimarex Energy Co.

1700 Lincoln Street, Suite 1800

Denver, Colorado 
80203

Attention: Chief Financial Officer

 

and

 

Cimarex Energy Co.

1700 Lincoln Street, Suite 1800

Denver, Colorado 
80203

Attention: General Counsel

 

56

 

if to the Trustee:

 

U.S. Bank National
Association

950 17th Street, 12th Floor

Denver, Colorado  80202

Attention: Corporate Trust
Services

 

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 to a Securityholder
shall be provided by electronic transmission or by first-class mail to his
address shown on the register kept by the Registrar and, if any Bearer
Securities are outstanding, published in an Authorized Newspaper. Failure to
provide a notice or communication to a Securityholder of any Series or any
defect in it shall not affect its sufficiency with respect to other
Securityholders of that or any other Series.

 

If a notice or communication is provided or
published in the manner provided above, within the time prescribed, it is duly
given, whether or not the Securityholder receives it.

 

If the Company provides a notice or
communication to Securityholders, it shall provide a copy to the Trustee and
each Agent at the same time.

 

In case, by reason of the suspension of or
irregularities in regular mail service, it shall be impracticable to mail
notice by the Company when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
reasonably satisfactory to the Trustee shall be deemed to be a sufficient
giving of such notice.

 

Section 11.3           Communication by Holders with
Other Holders.

 

Securityholders of any Series may
communicate pursuant to TIA § 312(b) with other Securityholders of that Series or
any other Series with respect to their rights under this Indenture or the
Securities of that Series or all Series. 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, the Company shall furnish to the Trustee:

 

(a)           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

 

(b)           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.

 

57

 

Section 11.5           Statements Required in Certificate
or Opinion.

 

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

 

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

 

(b)           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;

 

(c)           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

 

(d)           a statement as to whether or not, in the opinion of such
person, such condition or covenant 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           Rules by Trustee and Agents.

 

The Trustee may make
reasonable rules for action by or a meeting of Securityholders of one or
more Series. Any Agent may make reasonable rules and set reasonable
requirements for its functions.

 

Section 11.7           Legal Holidays.

 

Unless otherwise provided by Board
Resolution, Officers’ Certificate or supplemental indenture for a particular
Series, a “Legal Holiday” is a Saturday, Sunday or a day on which banking
institutions in the city (or in any of the cities, if more than one) in which
amounts are payable, as specified in the form of such Security, are not
required by any applicable law or regulation to be open, 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 11.8           No Recourse Against Others.

 

No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such, or against any past, present or future stockholder,
officer or director, as such, of the Company or of any successor, either
directly or through the Company or any successor, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment or
by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Securities and the
coupons, if any, appertaining thereto by the Holders thereof and as part of the
consideration for the issue of the Securities and the coupons, if any,
appertaining thereto.

 

58

 

Section 11.9           Counterparts.

 

This Indenture may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

Section 11.10         Governing Laws; Waiver of Jury Trial.

 

THIS
INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF
THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF SUCH STATE, INCLUDING, WITHOUT LIMITATION,
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK
CIVIL PRACTICE LAWS AND RULES 327(b).

 

EACH OF THE
COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.11         No Adverse Interpretation of Other
Agreements.

 

This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 11.12         Successors.

 

All agreements of the Company in this
Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its successor.

 

Section 11.13         Severability.

 

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

 

Section 11.14         Table of Contents, Headings, Etc.

 

The Table of Contents, Cross Reference Table,
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 11.15         Securities in a Foreign Currency or
in ECU.

 

Unless otherwise specified in a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate
delivered pursuant to Section 2.2 of this Indenture with respect to a 

 

59

 

particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding
Securities of any Series which are denominated in a coin or currency other
than Dollars (including ECUs), then the principal amount of Securities of such Series which
shall be deemed to be outstanding for the purpose of taking such action shall
be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time. For purposes of this Section 11.15, “Market
Exchange Rate” shall mean the noon Dollar buying rate in New York City for
cable transfers of that currency as published by the Federal Reserve Bank of
New York; provided, however, in
the case of ECUs, Market Exchange Rate shall mean the rate of exchange
determined by the Commission of the European Union (or any successor thereto)
as published in the Official Journal of the European Union (such publication or
any successor publication, the “Journal”). If such Market Exchange Rate is not
available for any reason with respect to such currency, the Trustee shall use,
in its sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange
as published in the Journal, as of the most recent available date, or
quotations or, in the case of ECUs, rates of exchange from one or more major
banks in The City of New York or in the country of issue of the currency in question
or, in the case of ECUs, in Luxembourg or such other quotations or, in the case
of ECUs, rates of exchange as the Trustee, upon consultation with the Company,
shall deem appropriate. The provisions of this paragraph shall apply in
determining the equivalent principal amount in respect of Securities of a Series denominated
in currency other than Dollars in connection with any action taken by Holders
of Securities pursuant to the terms of this Indenture.

 

All decisions and determinations of the
Trustee regarding the Market Exchange Rate or any alternative determination
provided for in the preceding paragraph shall be in its sole discretion and
shall, in the absence of manifest error, be conclusive to the extent permitted
by law for all purposes and irrevocably binding upon the Company and all
Holders.

 

Section 11.16         Judgment Currency.

 

The Company agrees, to the fullest extent
that it may effectively do so under applicable law, that (a) if for the
purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of or interest or other amount on the
Securities of any Series (the “Required Currency”) into a currency in
which a judgment will be rendered (the “Judgment Currency”), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then, the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day preceding
the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender, any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable 

 

60

 

as an alternative or
additional cause of action for the purpose of recovering in the Required
Currency the amount, if any, by which such actual receipt shall fall short of
the full amount of the Required Currency so expressed to be payable, and (iii) shall
not be affected by judgment being obtained for any other sum due under this
Indenture. For purposes of the foregoing, “New York Banking Day” means any day
except a Saturday, Sunday or a legal holiday in The City of New York on which
banking institutions are authorized or required by law, regulation or executive
order to close.

 

Section 11.17         Acts of Holders.

 

(a)           Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by a specified percentage in principal amount of the Securityholders of any or
all Series may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such specified percentage of
Securityholders in person or by agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments and
any such record (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “ACT” of the Holders signing such
instrument or instruments and so voting at any such meeting. Proof of execution
of any instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Sections 7.1 and 7.2)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section 11.17.

 

(b)           Subject to Sections 7.1 and 7.2, the execution of any
instrument by a Securityholder or his agent or proxy may be proved in
accordance with such reasonable rules and regulations as may be prescribed
by the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Registered Securities shall be proved by the Security register or by
a certificate of the registrar thereof.

 

(c)           The Company, the Trustee and any agent of the Company or
the Trustee may deem and treat the person in whose name any Security shall be
registered upon the Security register for such series as the absolute owner of
such Security (whether or not such Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and, subject
to the provisions of this Indenture, interest on such Security and for all
other purposes; and neither the Company nor the Trustee nor any agent of the
Company or the Trustee shall be affected by any notice to the contrary. The
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder of any Bearer Security as the absolute owner of such Bearer Security
(whether or not such Bearer Security shall be overdue) for the purpose of
receiving payment thereof or on account thereof and for all other purposes, and
neither the Company, the Trustee, nor any agent of the Company or the Trustee
shall be affected by any notice to the contrary. All such payments so made to
any such person, or upon his order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for
moneys payable upon any such Bearer Security.

 

61

 

(d)           At any time prior to (but not after) the evidencing to the
Trustee, as provided in this Section 11.17, of the taking of any action by
the Holders of the percentage in aggregate principal amount of the Securities
of any or all series, as the case may be, specified in this Indenture in
connection with such action, any Holder of a Security the serial number of
which is shown by the evidence to be included among the serial numbers of the
Securities the Holders of which have consented to such action may, by filing
written notice at the Corporate Trust Office and upon proof of holding as
provided in this Article, revoke such action so far as concerns such Security.
Except as aforesaid, any such action taken by the Holder of any Security shall
be conclusive and binding upon such Holder and upon all future Holders and
owners of such Security and of any Securities issued in exchange or
substitution therefor or on registration of transfer thereof, irrespective of
whether or not any notation in regard thereto is made upon any such Security.
Any action taken by the Holders of the percentage in aggregate principal amount
of the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all the Securities affected by such
action.

 

ARTICLE
12

SINKING
FUNDS

 

Section 12.1           Applicability of Article.

 

The provisions of this Article shall
be applicable to any sinking fund for the retirement of the Securities of a
Series, except as otherwise permitted or required by any form of Security of
such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund
payment provided for by the terms of the Securities of any Series is
herein referred to as a “mandatory sinking fund payment” and any other amount
provided for by the terms of Securities of such Series is herein referred
to as an “optional sinking fund payment.” If provided for by the terms of
Securities of any Series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 12.2. Each sinking fund
payment shall be applied to the redemption of Securities of any Series as
provided for by the terms of the Securities of such Series.

 

Section 12.2           Satisfaction of Sinking Fund
Payments with Securities.

 

The Company may, in satisfaction of all or
any part of any sinking fund payment with respect to the Securities of any Series to
be made pursuant to the terms of such Securities (1) deliver outstanding
Securities of such Series to which such sinking fund payment is applicable
(other than any of such Securities previously called for mandatory sinking fund
redemption) and (2) apply as credit Securities of such Series to
which such sinking fund payment is applicable and which have been redeemed
either at the election of the Company pursuant to the terms of such Series of
Securities (except pursuant to any mandatory sinking fund) or through the
application of permitted optional sinking fund payments or other optional
redemptions pursuant to the terms of such Securities, provided that such
Securities have not been previously so credited. Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such 

 

62

 

purpose by the Trustee at
the price specified in such Securities for redemption through operation of the
sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If as a result of the delivery or credit of Securities in lieu of
cash payments pursuant to this Section 12.2, the principal amount of
Securities of such Series to be redeemed in order to exhaust the aforesaid
cash payment shall be less than $100,000, the Trustee need not call Securities
of such Series for redemption, except upon receipt of a Company Order that
such action be taken, and such cash payment shall be held by the Trustee or a
Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or
such Paying Agent shall from time to time upon receipt of a Company Order pay
over and deliver to the Company any cash payment so being held by the Trustee
or such Paying Agent upon delivery by the Company to the Trustee of Securities
of that Series purchased by the Company having an unpaid principal amount
equal to the cash payment required to be released to the Company.

 

Section 12.3           Redemption of Securities for
Sinking Fund.

 

Not less than 45 days (unless otherwise
indicated in the Board Resolution, supplemental indenture hereto or Officers’
Certificate in respect of a particular Series of Securities) prior to each
sinking fund payment date for any Series of Securities, the Company will
deliver to the Trustee an Officers’ Certificate specifying the amount of the
next ensuing mandatory sinking fund payment for that Series pursuant to
the terms of that Series, the portion thereof, if any, which is to be satisfied
by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting of Securities of that Series pursuant to Section 12.2,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and the Company shall thereupon be obligated to
pay the amount therein specified. Not less than 30 days (unless otherwise
indicated in the Board Resolution, Officers’ Certificate or supplemental
indenture in respect of a particular Series of Securities) before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 3.2
and cause notice of the redemption thereof to be given in the name of and at
the expense of the Company in the manner provided in Section 3.3. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

63

 

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

 

	
   

  	
  CIMAREX
  ENERGY CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

64

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