Document:

Form of Indenture

 Exhibit
4.1                   
  

CHESAPEAKE ENERGY CORPORATION, 
 as Issuer,

 THE SUBSIDIARY GUARANTORS, 
 as
Guarantors, 
 THE BANK OF NEW YORK TRUST COMPANY, N.A., 
 as Trustee, 
 [·], 
 as IRISH PAYING AGENT and TRANSFER AGENT 
 AND 
 [·], 
 as REGISTRAR, TRANSFER AGENT AND PAYING AGENT 
  

 INDENTURE 
 DATED AS OF NOVEMBER [·], 2006 
  

 [·]% SENIOR NOTES DUE 2017 
  

  

 CROSS-REFERENCE TABLE 
  

					
	 TIA SECTION
	  	INDENTURE SECTION                    
			
	 310
	  	(a)(1)	  	 7.10

		  	(a)(2)	  	 7.10

		  	(a)(3)	  	 N.A.

		  	(a)(4)	  	 N.A.

		  	(a)(5)	  	 7.08

		  	(b)	  	 7.08; 7.10

		  	(c)	  	 N.A.

	 311
	  	(a)	  	 7.11

		  	(b)	  	 7.11

		  	(c)	  	 N.A.

	 312
	  	(a)	  	 2.05

		  	(b)	  	 11.03

		  	(c)	  	 11.03

	 313
	  	(a)	  	 7.06

		  	(b)(1)	  	 N.A.

		  	(b)(2)	  	 7.06

		  	(c)	  	 7.06; 11.02

		  	(d)	  	 7.06

	 314
	  	(a)	  	 4.02; 4.03; 11.02

		  	(b)	  	 N.A.

		  	(c)(1)	  	 11.04

		  	(c)(2)	  	 11.04

		  	(c)(3)	  	 N.A.

		  	(d)	  	 N.A.

		  	(e)	  	 11.05

		  	(f)	  	 N.A.

	 315
	  	(a)	  	 7.01(b)

		  	(b)	  	 7.05; 11.02

		  	(c)	  	 7.01(a)

		  	(d)	  	 7.01(c)

		  	(e)	  	 6.11

	 316
	  	(a)(1)(A)	  	 6.05

		  	(a)(1)(B)	  	 6.02; 6.04; 9.02

		  	(a)(2)	  	 N.A.

		  	(b)	  	 6.07

		  	(c)	  	 N.A.

	 317
	  	(a)(1)	  	 6.08

		  	(a)(2)	  	 6.09

		  	(b)	  	 2.04

	 318
	  	(a)	  	 11.01

	 318
	  	(c)	  	 11.01

  

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

  

 ii 

					
		 	TABLE OF CONTENTS	  	
			
	 	 	 	  	Pages
			
		 	ARTICLE One	  	
			
		 	DEFINITIONS AND INCORPORATION BY REFERENCE	  	
			
	 SECTION    1.01.
	 	Definitions.	  	1
	 SECTION    1.02.
	 	Other Definitions.	  	14
	 SECTION    1.03.
	 	Incorporation by Reference of Trust Indenture Act	  	15
	 SECTION    1.04.
	 	Rules of Construction.	  	15
			
		 	ARTICLE Two	  	
			
		 	THE SECURITIES	  	
			
	 SECTION    2.01.
	 	Form and Dating	  	16
	 SECTION    2.02.
	 	Execution and Authentication	  	16
	 SECTION    2.03.
	 	Registrar and Paying Agent	  	17
	 SECTION    2.04.
	 	Paying Agent To Hold Money in Trust	  	17
	 SECTION    2.05.
	 	Holder Lists	  	18
	 SECTION    2.06.
	 	Transfer and Exchange	  	18
	 SECTION    2.07.
	 	Replacement Securities	  	18
	 SECTION    2.08.
	 	Outstanding Securities	  	18
	 SECTION    2.09.
	 	Temporary Securities	  	19
	 SECTION    2.10.
	 	Cancelation	  	19
	 SECTION    2.11.
	 	Defaulted Interest	  	19
	 SECTION    2.12.
	 	Common Codes and ISIN Numbers	  	19
	 SECTION    2.13.
	 	Issuance of Additional Securities	  	19
	 SECTION    2.14.
	 	Currency	  	20
			
		 	ARTICLE Three	  	
			
		 	REDEMPTION	  	
			
	 SECTION    3.01.
	 	Notice to Trustee	  	21
	 SECTION    3.02.
	 	Selection of Securities to Be Redeemed	  	21
	 SECTION    3.03.
	 	Notice of Redemption	  	22
	 SECTION    3.04.
	 	Effect of Notice of Redemption	  	23
	 SECTION    3.05.
	 	Deposit of Redemption Price	  	23
	 SECTION    3.06.
	 	Securities Redeemed in Part	  	23
	 SECTION    3.07.
	 	Optional Redemption at Make-Whole Price	  	23
			
		 	ARTICLE Four	  	
			
		 	COVENANTS	  	
			
	 SECTION    4.01.
	 	Payment of Securities	  	23
	 SECTION    4.02.
	 	SEC Reports	  	24
	 SECTION    4.03.
	 	Compliance Certificates	  	24
	 SECTION    4.04.
	 	Maintenance of Office or Agency	  	25

  

 iii 

					
	 SECTION    4.05.
	 	Corporate Existence	  	26
	 SECTION    4.06.
	 	Waiver of Stay, Extension or Usury Laws	  	26
	 SECTION    4.07.
	 	Payment of Taxes and Other Claims	  	26
	 SECTION    4.08.
	 	Maintenance of Properties and Insurance	  	26
	 SECTION    4.09.
	 	Limitation on Liens Securing Indebtedness	  	27
	 SECTION    4.10.
	 	Limitation on Sale/Leaseback Transactions	  	27
	 SECTION    4.11.
	 	Change of Control	  	29
	 SECTION    4.12.
	 	Listing	  	30
	 SECTION    4.13.
	 	Payment of Additional Amounts	  	31
			
		 	ARTICLE Five	  	
			
		 	SUCCESSOR CORPORATION	  	
			
	 SECTION    5.01.
	 	When Company May Merge, etc	  	33
	 SECTION    5.02.
	 	Successor Corporation Substituted	  	34
			
		 	ARTICLE Six	  	
			
		 	DEFAULTS AND REMEDIES	  	
			
	 SECTION    6.01.
	 	Events of Default	  	34
	 SECTION    6.02.
	 	Acceleration	  	36
	 SECTION    6.03.
	 	Other Remedies	  	37
	 SECTION    6.04.
	 	Waiver of Past Defaults	  	37
	 SECTION    6.05.
	 	Control by Majority	  	37
	 SECTION    6.06.
	 	Limitation on Remedies	  	38
	 SECTION    6.07.
	 	Rights of Holders to Receive Payment	  	38
	 SECTION    6.08.
	 	Collection Suit by Trustee	  	38
	 SECTION    6.09.
	 	Trustee May File Proofs of Claim	  	38
	 SECTION    6.10.
	 	Priorities	  	39
	 SECTION    6.11.
	 	Undertaking for Costs	  	39
			
		 	ARTICLE Seven	  	
			
		 	TRUSTEE	  	
			
	 SECTION    7.01.
	 	Duties of Trustee	  	39
	 SECTION    7.02.
	 	Rights of Trustee	  	41
	 SECTION    7.03.
	 	Individual Rights of Trustee	  	42
	 SECTION    7.04.
	 	Trustee's Disclaimer	  	42
	 SECTION    7.05.
	 	Notice of Defaults	  	42
	 SECTION    7.06.
	 	Reports by Trustee to Holders	  	42
	 SECTION    7.07.
	 	Compensation and Indemnity	  	42
	 SECTION    7.08.
	 	Replacement of Trustee	  	43
	 SECTION    7.09.
	 	Successor Trustee by Merger, etc	  	44
	 SECTION    7.10.
	 	Eligibility; Disqualification	  	44
	 SECTION    7.11.
	 	Preferential Collection of Claims Against Company	  	44

  

 iv 

					
		 	ARTICLE Eight	  	
			
		 	DISCHARGE OF INDENTURE	  	
			
	 SECTION    8.01.
	 	Option to Effect Legal Defeasance or Covenant Defeasance.	  	45
	 SECTION    8.02.
	 	Legal Defeasance and Discharge	  	45
	 SECTION    8.03.
	 	Covenant Defeasance	  	45
	 SECTION    8.04.
	 	Conditions to Legal or Covenant Defeasance	  	46
	 SECTION    8.05.
	 	Deposited Money and European Government Obligations to be Held in Trust; Other Miscellaneous Provisions	  	47
	 SECTION    8.06.
	 	Repayment to Company	  	48
	 SECTION    8.07.
	 	Reinstatement	  	48
			
		 	ARTICLE Nine	  	
			
		 	AMENDMENTS, SUPPLEMENTS AND WAIVERS	  	
			
	 SECTION    9.01.
	 	Without Consent of Holders.	  	49
	 SECTION    9.02.
	 	With Consent of Holders	  	49
	 SECTION    9.03.
	 	Compliance with Trust Indenture Act	  	51
	 SECTION    9.04.
	 	Revocation and Effect of Consents	  	51
	 SECTION    9.05.
	 	Notation on or Exchange of Senior Notes	  	52
	 SECTION    9.06.
	 	Trustee Protected	  	52
			
		 	ARTICLE Ten	  	
			
		 	GUARANTEES	  	
			
	 SECTION    10.01.
	 	Unconditional Guarantee	  	52
	 SECTION    10.02.
	 	Subsidiary Guarantors May Consolidate, etc., on Certain Terms	  	53
	 SECTION    10.03.
	 	Addition of Subsidiary Guarantors	  	53
	 SECTION    10.04.
	 	Release of a Subsidiary Guarantor	  	54
	 SECTION    10.05.
	 	Limitation of Subsidiary Guarantor's Liability	  	54
	 SECTION    10.06.
	 	Contribution	  	55
	 SECTION    10.07.
	 	[Intentionally Omitted.]	  	55
	 SECTION    10.08.
	 	Severability	  	55
			
		 	ARTICLE Eleven	  	
			
		 	MISCELLANEOUS	  	
			
	 SECTION    11.01.
	 	Trust Indenture Act Controls	  	55
	 SECTION    11.02.
	 	Notices	  	55
	 SECTION    11.03.
	 	Communication by Holders with Other Holders	  	56
	 SECTION    11.04.
	 	Certificate and Opinion as to Conditions Precedent	  	57
	 SECTION    11.05.
	 	Statements Required in Certificate or Opinion	  	57
	 SECTION    11.06.
	 	Rules by Trustee and Agents	  	57
	 SECTION    11.07.
	 	Legal Holidays	  	57
	 SECTION    11.08.
	 	Governing Law	  	57
	 SECTION    11.09.
	 	No Adverse Interpretation of Other Agreements	  	58
	 SECTION    11.10.
	 	No Recourse Against Others	  	58
	 SECTION    11.11.
	 	Successors	  	58
	 SECTION    11.12.
	 	Duplicate Originals	  	58

  

 v 

			
	 SECTION 11.13.        Severability
	  	58
		
	 SIGNATURES
	  	
		
	 APPENDIX
	  	A-1
		
	 EXHIBIT 1 TO THE APPENDIX -
             FORM OF SECURITY
	  	B-1

  

 NOTE: This Table of Contents shall not, for any purpose, be deemed to be a part of this Indenture. 
  

 vi 

 INDENTURE, dated as of November [·], 2006, among CHESAPEAKE ENERGY CORPORATION, an Oklahoma corporation (the “Company”), the SUBSIDIARY GUARANTORS listed as signatories hereto, THE BANK OF NEW YORK TRUST COMPANY, N.A., a national banking
association, as Trustee, [·], as Irish paying agent and transfer agent, and [·], as registrar, transfer agent and paying agent. 
 Each party agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the holders of the Company [·]% Senior Notes due 2017: 
 ARTICLE ONE 
 DEFINITIONS AND INCORPORATION BY
REFERENCE 
 SECTION 1.01. Definitions. 
 “Additional Securities” means [·]% Senior Notes due 2017 issued from time to time after the Issue Date
under the terms of this Indenture (other than pursuant to Section 2.06, 2.07, 2.09 or 3.06 of this Indenture). 
 “Adjusted
Consolidated Net Tangible Assets” or “ACNTA” means (without duplication), as of the date of determination, (a) the sum of (i) discounted future net revenue from proved oil and gas reserves of the Company and its Subsidiaries
calculated in accordance with SEC guidelines before any U.S. state or federal income taxes, as estimated by petroleum engineers (which may include the Company’s internal engineers) in a reserve report prepared as of the end of the
Company’s most recently completed fiscal year, as increased by, as of the date of determination, the discounted future net revenue of (A) estimated proved oil and gas reserves of the Company and its Subsidiaries attributable to any
acquisition consummated since the date of such year-end reserve report, and (B) estimated proved oil and gas reserves of the Company and its Subsidiaries attributable to extensions, discoveries and other additions and upward revisions of
estimates of proved oil and gas reserves due to exploration, development or exploitation, production or other activities conducted or otherwise occurring since the date of such year-end reserve report, which, in the case of sub-clauses (A) and
(B), would, in accordance with standard industry practice, result in such increases as calculated in accordance with SEC guidelines (utilizing the prices utilized in such year-end reserve report), and decreased by, as of the date of determination,
the discounted future net revenue of (C) estimated proved oil and gas reserves of the Company and its Subsidiaries produced or disposed of since the date of such year-end reserve report and (D) reductions in the estimated oil and gas
reserves of the Company and its Subsidiaries since the date of such year-end reserve report attributable to downward revisions of estimates of proved oil and gas reserves due to exploration, development or exploitation, production or other
activities conducted or otherwise occurring since the date of such year-end reserve report which, in the case of sub-clauses (C) and (D), would, in accordance with standard industry practice, result in such decreases as calculated in accordance
with SEC guidelines (utilizing the prices utilized in such year-end reserve report); provided that, in the case of each of the determinations made pursuant 

 2 
  

 
to clauses (A) through (D), such increases and decreases shall be as estimated by the Company’s engineers, (ii) the capitalized costs that are
attributable to oil and gas properties of the Company and its Subsidiaries to which no proved oil and gas reserves are attributable, based on the Company’s books and records as of a date no earlier than the date of the Company’s latest
annual or quarterly financial statements, (iii) the Net Working Capital on a date no earlier than the date of the Company’s latest annual or quarterly financial statements and (iv) the greater of (I) the net book value on a date
no earlier than the date of the Company’s latest annual or quarterly financial statements and (II) the appraised value, as estimated by independent appraisers, of other tangible assets (including Investments in unconsolidated Subsidiaries)
of the Company and its Subsidiaries, as of a date no earlier than the date of the Company’s latest audited financial statements, minus (b) the sum of (i) minority interests, (ii) any gas balancing liabilities of the Company and
its Subsidiaries reflected as a long-term liability in the Company’s latest annual or quarterly financial statements, (iii) the discounted future net revenue, calculated in accordance with SEC guidelines (utilizing the prices utilized in
the Company’s year-end reserve report), attributable to reserves which are required to be delivered to third parties to fully satisfy the obligations of the Company and its Subsidiaries with respect to Volumetric Production Payments on the
schedules specified with respect thereto, (iv) the discounted future net revenue, calculated in accordance with SEC guidelines, attributable to reserves subject to Dollar-Denominated Production Payments which, based on the estimates of
production included in determining the discounted future net revenue specified in (a) (i) above (utilizing the same prices utilized in the Company’s year-end reserve report), would be necessary to fully satisfy the payment obligations
of the Company and its Subsidiaries with respect to Dollar-Denominated Production Payments on the schedules specified with respect thereto and (v) the discounted future net revenue, calculated in accordance with SEC guidelines (utilizing the
same prices utilized in the Company’s year-end reserve report), attributable to reserves subject to participation interests, overriding royalty interests or other interests of third parties, pursuant to participation, partnership, vendor
financing or other agreements then in effect, or which otherwise are required to be delivered to third parties. If the Company changes its method of accounting from the full cost method to the successful efforts method or a similar method of
accounting, Adjusted Consolidated Net Tangible Assets will continue to be calculated as if the Company were still using the full cost method of accounting. 
 “Adjusted Net Assets of a Subsidiary Guarantor” at any date shall mean the lesser of (i) the amount by which the fair value of the property of such Subsidiary Guarantor exceeds the total amount of
liabilities, including, without limitation, contingent liabilities (after giving effect to all other fixed and contingent liabilities incurred or assumed on such date), but excluding liabilities under the Guarantee of such Subsidiary Guarantor at
such date and (ii) the amount by which the present fair saleable value of the assets of such Subsidiary Guarantor at such date exceeds the amount that will be required to pay the probable liability of such Subsidiary Guarantor on its debts
(after giving effect to all other fixed and contingent liabilities incurred or assumed on such date and after giving effect to any collection from any Subsidiary of such Subsidiary Guarantor in 

 3 
  

 
respect of the obligations of such Subsidiary under the Guarantee), excluding debt in respect of the Guarantee, as they become absolute and matured.

 “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 Stock, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent” means any Registrar, Paying Agent or co-registrar. 
 “Attributable Indebtedness” means, with respect to any particular lease under which any Person is at the time liable and at any date as of which the amount thereof is to be determined, the present value of
the total net amount of rent required to be paid by such Person under the lease during the primary term thereof, without giving effect to any renewals at the option of the lessee, discounted from the respective due dates thereof to such date at the
rate of interest per annum implicit in the terms of the lease. As used in the preceding sentence, the “net amount of rent” under any lease for any such period shall mean the sum of rental and other payments required to be paid with respect
to such period by the lessee thereunder excluding any amounts required to be paid by such lessee on account of maintenance and repairs, insurance, taxes, assessments, water rates or similar charges. In the case of any lease which is terminable by
the lessee upon payment of a penalty, such net amount of rent shall also include the amount of such penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated.

 “Average Life” means, as of the date of determination, with respect to any Indebtedness, the quotient obtained by dividing
(i) the product of (x) the number of years from such date to the date of each successive scheduled principal payment of such Indebtedness multiplied by (y) the amount of such principal payment by (ii) the sum of all such
principal payments. 
 “Board of Directors” means, with respect to any Person, the Board of Directors of such Person or any
committee of the Board of Directors of such Person duly authorized to act on behalf of the Board of Directors of such Person. 
 “Board
Resolution” means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of Directors or the managing partner(s) of such Person and to
be in full force and effect on the date of such certification, and delivered to the Trustee. 
 “Business Day” means any day
(i) on which the New York Stock Exchange, Inc. is open for trading, (ii) on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment 

 4 
  

 
system is open for settlement of payment in euro and (iii) which is not a Legal Holiday. 
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of
corporate stock or partnership or limited liability company interests and any and all warrants, options and rights with respect thereto (whether or not currently exercisable), including each class of common stock and preferred stock of such Person.

 “Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under a lease of
property, real or personal, that is required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
 “Change of Control” means the occurrence of any of the following: 
 (1) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the Company’s assets to any Person or
group (as such term is used in Section 13(d)(3) of the Exchange Act), other than to Permitted Holders; 
 (2) the adoption of a plan
relating to the liquidation or dissolution of the Company; 
 (3) the acquisition, directly or indirectly, by any Person or group (as such
term is used in Section 13(d)(3) of the Exchange Act), other than Permitted Holders, of beneficial ownership (as defined in Rule 13d-3 under the Exchange Act, except that such Person shall be deemed to have beneficial ownership of all shares
that any such Person has the right to acquire, whether such right is exercisable immediately or only after passage of time) of more than 50% of the aggregate voting power of the Voting Stock of the Company; provided, however, that the Permitted
Holders beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Company than such other Person and do not have
the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of the Company (for the purposes of this definition, such other Person shall be deemed to beneficially own any Voting
Stock of a specified corporation held by a parent corporation, if such other Person is the beneficial owner (as defined above), directly or indirectly, of more than 35% of the voting power of the Voting Stock of such parent corporation and the
Permitted Holders beneficially own (as defined in this proviso), directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent corporation and do not have the right or ability by voting power,
contract or otherwise to elect or designate for election a majority of the Board of Directors of such parent corporation); or 
 (4) during
any period of two consecutive years, individuals who at the beginning of such period constituted the Board 

 5 
  

 
of Directors of the Company (together with any new directors whose election by such Board of Directors or whose nomination for election by the shareholders
of the Company was approved by a vote of 66 2/3% 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 of Directors of the Company then in office. 
 “Clearstream” means Clearstream
Banking, société anonyme or any successor securities clearing agency. 
 “Company” means the party named as such
above, until a successor replaces such Person in accordance with the terms of this Indenture, and thereafter means such successor. 
 “Credit Facilities” means, one or more debt facilities (including, without limitation, the Company’s existing credit facility) or commercial paper facilities, in each case with banks, investment banks, insurance companies,
mutual funds and/or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from (or sell
receivables to) such lenders against such receivables) or letters of credit, in each case, as amended, extended, restated, renewed, refunded, replaced or refinanced (in each case with Credit Facilities), supplemented or otherwise modified (in whole
or in part and without limitation as to amount, terms, conditions, covenants and other provisions) from time to time. 
 “Currency Hedge
Obligations” means, at any time as to the Company and its Subsidiaries, the obligations of any such Person at such time that were incurred in the ordinary course of business pursuant to any non-dollar currency exchange agreement, option or
futures contract or other similar agreement or arrangement designed to protect against or manage such Person’s or any of its Subsidiaries’ exposure to fluctuations in non-dollar currency exchange rates. 
 “Default” means any event which is, or after notice or passage of time would be, an Event of Default. 
 “Depositary” means any of Euroclear, Clearstream and their respective nominees and successors, acting through itself or the Common Depositary.

 “De Minimis Guaranteed Amount” means a principal amount of Indebtedness that does not exceed $5,000,000. 
 “Disqualified Stock” means any Capital Stock of the Company or any Subsidiary of the Company which, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon the happening of any event or with the passage of time, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the holder thereof, in whole or in part, on or prior to the Maturity Date or which is exchangeable or convertible into debt securities of the 

 6 
  

 
Company or any Subsidiary of the Company, except to the extent that such exchange or conversion rights cannot be exercised prior to the Maturity Date.

 “Dollar-Denominated Production Payments” mean production payment obligations recorded as liabilities in accordance with GAAP,
together with all undertakings and obligations in connection therewith. 
 “Euroclear” means Euroclear Bank
S.A./N.V., as operator of the Euroclear Clearance System or any successor securities clearing agency. 
 “European Government
Obligations” means (1) securities that are direct obligations of the Federal Republic of Germany for the payment of which its full faith and credit is pledged or (2) obligations of a person controlled or supervised by and acting as an
agency or instrumentality of the Federal Republic of Germany, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany, which, in either case under clauses (1) or (2) are
not callable or redeemable at the option of the issuer thereof. 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC thereunder. 
 “Existing Notes” means the Company’s outstanding
(a) 7.50% Senior Notes due 2013, (b) 7.625% Senior Notes due 2013, (c) 7.50% Senior Notes due 2014, (d) 7.00% Senior Notes due 2014, (e) 7.75% Senior Notes due 2015, (f) 6.375% Senior Notes due 2015, (g) 6.875%
Senior Notes due 2016, (h) 6.625% Senior Notes due 2016, (i) 6.5% Senior Notes due 2017, (j) 6.25% Senior Notes due 2018, (k) 6.875% Senior Notes due 2020 and (l) 2.75% Contingence Convertible Senior Notes due 2035.

 “GAAP” means generally accepted accounting principles as in effect in the United States of America as of the Issue Date.

 “Guarantee” means, individually and collectively, the guarantees given by the Subsidiary Guarantors pursuant to Article Ten
hereof. 
 “Holder” means a Person in whose name a Security is registered on the Registrar’s books, which shall initially be
the nominee for the Common Depositary of Euroclear or Clearstream, as applicable. 
 “Indebtedness” means, without duplication,
with respect to any Person, (a) all obligations of such Person (i) in respect of borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), (ii) evidenced by
bonds, notes, debentures or similar instruments, (iii) representing the balance deferred and unpaid of the purchase price of any property or services (other than accounts payable or other obligations arising in the ordinary course of business),
(iv) evidenced by bankers’ acceptances or similar instruments issued or accepted by banks, (v) for the payment of money relating to a Capitalized Lease 

 7 
  

 
Obligation, or (vi) evidenced by a letter of credit or a reimbursement obligation of such Person with respect to any letter of credit; (b) all net
obligations of such Person under Interest Rate Hedging Agreements, Oil and Gas Hedging Contracts and Currency Hedge Obligations, except to the extent such net obligations are taken into account in the determination of future net revenues from proved
oil and gas reserves for purposes of the calculation of Adjusted Consolidated Net Tangible Assets; (c) all liabilities of others of the kind described in the preceding clauses (a) or (b) that such Person has guaranteed or that are
otherwise its legal liability (including, with respect to any Production Payment, any warranties or guaranties of production or payment by such Person with respect to such Production Payment but excluding other contractual obligations of such Person
with respect to such Production Payment); (d) Indebtedness (as otherwise defined in this definition) of another Person secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person, the amount of such
obligations being deemed to be the lesser of (1) the full amount of such obligations so secured, and (2) the fair market value of such asset, as determined in good faith by the Board of Directors of such Person, which determination shall
be evidenced by a Board Resolution, (e) with respect to such Person, the liquidation preference or any mandatory redemption payment obligations in respect of Disqualified Stock; (f) the aggregate preference in respect of amounts payable on
the issued and outstanding shares of Preferred Stock of any of such Person’s Subsidiaries in the event of any voluntary or involuntary liquidation, dissolution or winding up (excluding any such preference attributable to such shares of
Preferred Stock that are owned by such Person or any of its Subsidiaries; provided, that if such Person is the Company, such exclusion shall be for such preference attributable to such shares of Preferred Stock that are owned by the Company
or any of its Subsidiaries); and (g) any and all deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments, modifications or supplements to, any liability of the kind described in any of the
preceding clauses (a), (b), (c), (d), (e), (f) or this clause (g), whether or not between or among the same parties. Subject to clause (c) of the preceding sentence, neither Dollar-Denominated Production Payments nor Volumetric Production
Payments shall be deemed to be Indebtedness. 
 “Indenture” means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof. 
 “Interest Rate Hedging Agreements” means, with respect to the Company and its Subsidiaries,
the obligations of such Persons under (i) interest rate swap agreements, interest rate cap agreements and interest rate collar agreements and (ii) other agreements or arrangements designed to protect any such Person or any of its
Subsidiaries against fluctuations in interest rates. 
 “Investment” of any Person means (i) all investments by such Person in
any other Person in the form of loans, advances or capital contributions, (ii) all guarantees of Indebtedness or other obligations of any other Person by such Person, (iii) all purchases (or other acquisitions for consideration) by such
Person of assets, Indebtedness, Capital Stock or other securities of any other Person and (iv) all other items that would be classified as investments (including, without limitation, purchases of assets outside the 

 8 
  

 
ordinary course of business) or advances on a balance sheet of such Person prepared in accordance with GAAP. 
 “Issue Date” means November [•], 2006. 
 “Lien” means, with respect to any Person, any mortgage, pledge, lien, encumbrance, easement, restriction, covenant, right-of-way, charge or adverse claim affecting title or resulting in an encumbrance
against real or personal property of such Person, or a security interest of any kind (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option, right of first refusal or other similar agreement
to sell, in each case securing obligations of such Person and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statute or statutes) of any jurisdiction). 
 “Make-Whole Amount” with respect to a Security means an amount equal to the excess, if any, of (i) the present value of the remaining
interest, premium and principal payments due on such Security (excluding any portion of such payments of interest accrued as of the redemption date) as if such Security were redeemed on the Maturity Date, computed using a discount rate equal to the
Bund Rate plus 50 basis points, over (ii) the outstanding principal amount of such Security. As used herein, “Bund Rate” is defined as the yield to maturity (calculated on a semi-annual bond equivalent basis) at the time of the
computation of direct obligations of the Federal Republic of Germany (Bunds or Bundesanleihe) with a constant maturity (as compiled by and published in the most recent financial statistics that have become publicly available at least two Business
Days prior to the date of the redemption notice or, if such financial statistics are no longer published, any publicly available source of similar market data) most nearly equal to the then remaining maturity of the Securities assuming redemption of
the Securities on the Maturity Date; provided, however, that if the Make-Whole Average Life of such Security is not equal to the constant maturity of a direct obligation of the Federal Republic of Germany for which a weekly average
yield is given, the Bund Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of direct obligations of the Federal Republic of Germany for which such yields are given, except
that if the Make-Whole Average Life of such Securities is less than one year, the weekly average yield on actually traded direct obligations of the Federal Republic of Germany adjusted to a constant maturity of one year shall be used. As used
herein, “Make-Whole Average Life” means the number of years (calculated to the nearest one-twelfth) between the date of redemption and the Maturity Date. 
 “Make-Whole Price” means the sum of the outstanding principal amount of the Securities to be redeemed plus the Make-Whole Amount of such Securities. 
 “Maturity Date” means January 15, 2017. 
 “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency business thereof. 
  

 9 
  

 “Net Available Proceeds” means, with respect to any Sale/Leaseback Transaction of any Person,
cash proceeds received (including any cash proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, and excluding any other consideration until such time as
such consideration is converted into cash) therefrom, in each case net of all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all U.S. federal, state or local taxes required to be accrued as a liability
as a consequence of such Sale/Leaseback Transaction, and in each case net of all Indebtedness which is secured by such assets, in accordance with the terms of any Lien upon or with respect to such assets, or which must, by its terms or in order to
obtain a necessary consent to such Sale/Leaseback Transaction or by applicable law, be repaid out of the proceeds from such Sale/Leaseback Transaction and which is actually so repaid. 
 “Net Working Capital” means (i) all current assets of the Company and its Subsidiaries, minus (ii) all current liabilities of the
Company and its Subsidiaries, except current liabilities included in Indebtedness. 
 “Officer” means, with respect to any Person,
the Chairman of the Board, the President, any Vice President, the Chief Financial Officer or the Treasurer of such Person. 
 “Officers’ Certificate” means, with respect to any Person, a certificate signed by two Officers or by an Officer and either the Secretary, or an Assistant Secretary or Assistant Treasurer of such Person. One of the Officers
signing an Officers’ Certificate given pursuant to Section 4.03(a) shall be the principal executive, financial or accounting officer of the Person delivering such certificate. 
 “Oil and Gas Business” means the business of the exploration for, and exploitation, development, production, processing (but not refining),
marketing, storage and transportation of, hydrocarbons, and other related energy and natural resource businesses (including oil and gas services businesses related to the foregoing). 
 “Oil and Gas Hedging Contracts” means any oil and gas purchase or hedging agreement, and other agreement or arrangement, in each case, that is
designed to provide protection against price fluctuations of oil, gas or other commodities. 
 “Opinion of Counsel” means a written
opinion from legal counsel. The counsel may be an employee of or counsel to the Company (or any Subsidiary Guarantor, if applicable). 
 “Permitted Company Refinancing Indebtedness” means Indebtedness of the Company, the net proceeds of which are used to renew, extend, refinance, refund or repurchase outstanding Indebtedness of the Company, provided that
(i) if the Indebtedness (including the Securities) being renewed, extended, refinanced, refunded or repurchased is pari passu with or subordinated in right of payment to the Securities, then such Indebtedness is pari passu or subordinated in
right of payment to, as the case may be, the Securities at least to the 

 10 
  

 
same extent as the Indebtedness being renewed, extended, refinanced, refunded or repurchased, (ii) such Indebtedness is scheduled to mature no earlier
than the Indebtedness being renewed, extended, refinanced, refunded or repurchased, and (iii) such Indebtedness has an Average Life at the time such Indebtedness is incurred that is equal to or greater than the Average Life of the Indebtedness
being renewed, extended, refinanced, refunded or repurchased; provided, further, that such Indebtedness (to the extent that such Indebtedness constitutes Permitted Company Refinancing Indebtedness) is in an aggregate principal amount
(or, if such Indebtedness is issued at a price less than the principal amount thereof, the aggregate amount of gross proceeds therefrom is) not in excess of the aggregate principal amount then outstanding of the Indebtedness being renewed, extended,
refinanced, refunded or repurchased (or if the Indebtedness being renewed, extended, refinanced, refunded or repurchased was issued at a price less than the principal amount thereof, then not in excess of the amount of liability in respect thereof
determined in accordance with GAAP). 
 “Permitted Financial Investments” means the following kinds of instruments if, in the case
of instruments referred to in clauses (i)-(iv) below, on the date of purchase or other acquisition of any such instrument by the Company or any Subsidiary, the remaining term to maturity is not more than one year; (i) readily marketable
obligations issued or unconditionally guaranteed as to principal of and interest thereon by the United States of America or by any agency or authority controlled or supervised by and acting as an instrumentality of the United States of America;
(ii) repurchase obligations for instruments of the type described in clause (i) for which delivery of the instrument is made against payment; (iii) obligations (including, but not limited to, demand or time deposits, bankers’
acceptances and certificates of deposit) issued by a depositary institution or trust company incorporated or doing business under the laws of the United States of America, any state thereof or the District of Columbia or a branch or subsidiary of
any such depositary institution or trust company operating outside the United States, provided, that such depositary institution or trust company has, at the time of the Company’s or such Subsidiary’s investment therein or
contractual commitment providing for such investment, capital surplus or undivided profits (as of the date of such institution’s most recently published financial statements) in excess of $500,000,000; (iv) commercial paper issued by any
corporation, if such commercial paper has, at the time of the Company’s or any Subsidiary’s investment therein or contractual commitment providing for such investment, credit ratings of A-1 (or higher) by S&P and P-1 (or higher) by
Moody’s; and (v) money market mutual or similar funds having assets in excess of $500,000,000. 
 “Permitted Holders”
means Aubrey K. McClendon and his Affiliates. 
 “Permitted Liens” means (i) Liens existing on the Issue Date; (ii) Liens
securing Indebtedness under Credit Facilities; (iii) Liens now or hereafter securing any Interest Rate Hedging Agreements so long as the related Indebtedness (a) constitutes the Existing Notes or the Securities (or any Permitted Company
Refinancing Indebtedness in respect thereof) or (b) is, or is permitted to be under this Indenture, secured by a Lien on the same property securing such 

 11 
  

 
interest rate hedging obligations; (iv) Liens securing Permitted Company Refinancing Indebtedness or Permitted Subsidiary Refinancing Indebtedness;
provided, that such Liens extend to or cover only the property or assets currently securing the Indebtedness being refinanced and that the Indebtedness being refinanced was not incurred under the Credit Facilities; (v) Liens for taxes,
assessments and governmental charges not yet delinquent or being contested in good faith and for which adequate reserves have been established to the extent required by GAAP; (vi) mechanics’, worker’s, materialmen’s,
operators’ or similar Liens arising in the ordinary course of business; (vii) Liens in connection with worker’s compensation, unemployment insurance or other social security, old age pension or public liability obligations;
(viii) Liens, deposits or pledges to secure the performance of bids, tenders, contracts (other than contracts for the payment of money), leases, public or statutory obligations, surety, stay, appeal, indemnity, performance or other similar
bonds, or other similar obligations arising in the ordinary course of business; (ix) survey exceptions, encumbrances, easements or reservations of, or rights of others for, rights of way, zoning or other restrictions as to the use of real
properties, and minor defects in title which, in the case of any of the foregoing, were not incurred or created to secure the payment of borrowed money or the deferred purchase price of property or services, and in the aggregate do not materially
adversely affect the value of such properties or materially impair use for the purposes of which such properties are held by the Company or any Subsidiaries; (x) Liens on, or related to, properties to secure all or part of the costs incurred in
the ordinary course of business of exploration, drilling, development or operation thereof; (xi) Liens on pipeline or pipeline facilities which arise out of operation of law; (xii) judgment and attachment Liens not giving rise to an Event
of Default or Liens created by or existing from any litigation or legal proceeding that are currently being contested in good faith by appropriate proceedings and for which adequate reserves have been made; (xiii) (a) Liens upon any
property of any Person existing at the time of acquisition thereof by the Company or a Subsidiary, (b) Liens upon any property of a Person existing at the time such Person is merged or consolidated with the Company or any Subsidiary or existing
at the time of the sale or transfer of any such property of such Person to the Company or any Subsidiary, or (c) Liens upon any property of a Person existing at the time such Person becomes a Subsidiary; provided, that in each case such
Lien has not been created in contemplation of such sale, merger, consolidation, transfer or acquisition, and provided, further, that in each such case no such Lien shall extend to or cover any property of the Company or any Subsidiary
other than the property being acquired and improvements thereon; (xiv) Liens on deposits to secure public or statutory obligations or in lieu of surety or appeal bonds entered into in the ordinary course of business; (xv) Liens in favor of
collecting or payor banks having a right of setoff, revocation, refund or chargeback with respect to money or instruments of the Company or any Subsidiary on deposit with or in possession of such bank; (xvi) purchase money security interests
granted in connection with the acquisition of assets in the ordinary course of business and consistent with past practices, provided, that (A) such Liens attach only to the property so acquired with the purchase money indebtedness
secured thereby and (B) such Liens secure only Indebtedness that is not in excess of 100% of the purchase price of such assets; (xvii) Liens reserved in oil and gas mineral leases for bonus or rental payments and 

 12 
  

 
for compliance with the terms of such leases; (xviii) Liens arising under partnership agreements, oil and gas leases, farm-out agreements, division
orders, contracts for the sale, purchase, exchange, transportation or processing (but not refining) of oil, gas or other hydrocarbons, unitization and pooling declarations and agreements, development agreements, operating agreements, area of mutual
interest agreements, and other similar agreements which are customary in the Oil and Gas Business; (xix) Liens securing obligations of the Company or any of its Subsidiaries under Currency Hedge Obligations or Oil and Gas Hedging Contracts;
(xx) Liens to secure Dollar-Denominated Production Payments and Volumetric Production Payments; and (xxi) Liens securing other Indebtedness in an aggregate principal amount which, together with all other Indebtedness outstanding on the
date of such incurrence and secured by Liens pursuant to this clause (xxi), does not exceed 15% of Adjusted Consolidated Tangible Net Assets. 
 “Permitted Subsidiary Refinancing Indebtedness” means Indebtedness of any Subsidiary, the net proceeds of which are used to renew, extend, refinance, refund or repurchase outstanding Indebtedness of such Subsidiary,
provided that (i) if the Indebtedness (including the Guarantees) being renewed, extended, refinanced, refunded or repurchased is pari passu with or subordinated in right of payment to the Guarantees, then such Indebtedness is pari passu
with or subordinated in right of payment to, as the case may be, the Guarantees at least to the same extent as the Indebtedness being renewed, extended, refinanced, refunded or repurchased, (ii) such Indebtedness is scheduled to mature no
earlier than the Indebtedness being renewed, extended, refinanced, refunded or repurchased, and (iii) such Indebtedness has an Average Life at the time such Indebtedness is incurred that is equal to or greater than the Average Life of the
Indebtedness being renewed, extended, refinanced, refunded or repurchased; provided, further, that such Indebtedness (to the extent that such Indebtedness constitutes Permitted Subsidiary Refinancing Indebtedness) is in an aggregate
principal amount (or, if such Indebtedness is issued at a price less than the principal amount thereof, the aggregate amount of gross proceeds therefrom is) not in excess of the aggregate principal amount then outstanding of the Indebtedness being
renewed, extended, refinanced, refunded or repurchased (or if the Indebtedness being renewed, extended, refinanced, refunded or repurchased was issued at a price less than the principal amount thereof, then not in excess of the amount of liability
in respect thereof determined in accordance with GAAP). 
 “Person” means any individual, corporation, partnership, joint venture,
trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 
 “Preferred Stock,” as
applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however designated), which is preferred as to the payment of dividends, or upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation. 
 “Production Payments” means, collectively,
Dollar-Denominated Production Payments and Volumetric Production Payments. 
  

 13 
  

 “pro forma” means, with respect to any calculation made or required to be made pursuant to the
terms of this Indenture, a calculation in accordance with Article Eleven of Regulation S-X under the Securities Act. 
 “Prospectus” means the prospectus, dated November [            ], 2006 prepared by the Company in connection with the offering and sale of the Securities issued on the
Issue Date. 
 “S&P” refers to Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
or any successor to the rating agency business thereof. 
 “Sale/Leaseback Transaction” means with respect to the Company or any of
its Subsidiaries, any arrangement with any Person providing for the leasing by the Company or any of its Subsidiaries of any principal property, acquired or placed into service more than 180 days prior to such arrangement, whereby such property has
been or is to be sold or transferred by the Company or any of its Subsidiaries to such Person. 
 “SEC” means the Securities and
Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 “Senior Indebtedness” means any Indebtedness of the Company or a Subsidiary Guarantor (whether outstanding on the
Issue Date or thereafter incurred), unless such Indebtedness is contractually subordinate or junior in right of payment of principal, premium and interest to the Securities or the Guarantees, respectively. 
 “Subordinated Indebtedness of a Subsidiary Guarantor” means any Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue
Date or thereafter incurred) which is contractually subordinate or junior in right of payment of principal, premium and interest to the Guarantees. 
 “Subordinated Indebtedness of the Company” means any Indebtedness of the Company (whether outstanding on the Issue Date or thereafter incurred) which is contractually subordinate or junior in right of payment of principal, premium
and interest to the Securities. 
 “Subsidiary” means any subsidiary of the Company. A “subsidiary” of any Person means
(i) a corporation a majority of whose Voting Stock is at the time, directly or indirectly, owned by such Person, by one or more subsidiaries of such Person or by such Person and one or more subsidiaries of such Person, (ii) a partnership
in which such Person or a subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if such Person or its subsidiary is entitled to receive more than 50 percent of the assets of such
partnership upon its dissolution, or (iii) any other Person (other than a corporation or partnership) in which such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or
(y) the 

 14 
  

 
power to elect or direct the election of a majority of the directors or other governing body of such Person. 
 “Subsidiary Guarantor” means (i) each of the United States Subsidiaries on the Issue Date, other than Subsidiaries that are not guarantors
of other Indebtedness of the Company in excess of a De Minimis Guaranteed Amount, (ii) Chesapeake Eagle Canada Corp., a Canadian Subsidiary, and (iii) each of the other Subsidiaries that becomes a guarantor of the Securities in compliance
with the provisions of Article Ten of this Indenture. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of this Indenture, except as provided in Section 9.03. 
 “Trust Officer” means
any officer or assistant officer within the corporate trust department of the Trustee assigned by the Trustee to administer its corporate trust matters and who shall have direct responsibility for the administration of this Indenture. 
 “Trustee” means the party named as such above until a successor replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor. 
 “Volumetric Production Payments” mean production payment obligations recorded as deferred
revenue in accordance with GAAP, together with all undertakings and obligations in connection therewith. 
 “Voting Stock” means,
with respect to any Person, securities of any class or classes of Capital Stock in such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock has voting power by reason of contingency) to vote in the
election of members of the Board of Directors or other governing body of such Person. 
 SECTION 1.02. Other Definitions. 

Other terms used in this Indenture are defined in the Appendix or in the Section indicated below: 
  

			
	 Term
	  	Defined in Section
	 “Additional Amounts”
	  	            4.13(a)
	 “Agent Members”
	  	            Appendix
	 “Appendix”
	  	            2.01
	 “Bankruptcy Law”
	  	            6.01
	 “Common Depositary”
	  	            Appendix
	 “Covenant Defeasance”
	  	            8.03
	 “Custodian”
	  	            6.01
	 “Change of Control Notice”
	  	            4.11(b)
	 “Change of Control Offer”
	  	            4.11(a)
	 “Change of Control Payment Date”
	  	            4.11(a)
	 “Directive”
	  	            2.03
	 “Event of Default”
	  	            6.01
	 “Excess Proceeds”
	  	            4.10
	 “Funding Guarantor”
	  	          10.06

  

 15 
  

			
	 “Global Security”
	  	            Appendix
	 “incur”
	  	            4.09
	 “Legal Defeasance”
	  	            8.02
	 “Legal Holiday”
	  	          11.07
	 “Net Proceeds Offer”
	  	            4.10
	 “Net Proceeds Offer Triggering Event”
	  	            4.10
	 “Net Proceeds Payment Date”
	  	            4.10
	 “Offer Notice”
	  	            4.10
	 “Paying Agent”
	  	            2.03
	 “Payment Default”
	  	            6.01
	 “Registrar”
	  	            2.03
	 “Relevant Taxing Jurisdiction”
	  	            4.13(a)
	 “Securities”
	  	            Appendix
	 “Securities Custodian”
	  	            Appendix
	 “Successor”
	  	            5.01(a)
	 “Taxes”
	  	            4.13(a)
	 “Transfer Agent”
	  	            2.03

 SECTION 1.03. 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, if used in this Indenture, have the following meanings: 
 “Commission” means the SEC. 
 “indenture securities” means the Securities and the Guarantees. 
 “indenture security holder” means a Holder.

 “indenture to be qualified” means this Indenture. 
 “indenture trustee” or “institutional trustee” means the Trustee. 
 “obligor”
on the indenture securities means the Company, the Subsidiary Guarantors and any other obligor on the Securities or the Guarantees. 
 All
other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them therein. 
 SECTION 1.04. Rules of Construction. 
 Unless the context otherwise requires: 
 (1) a term has the meaning assigned to it; 
 (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 
 (3) “or” is not exclusive; 

 16 
  

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

(5) any gender used in this Indenture shall be deemed to include the neuter, masculine or feminine genders; 
 (6) provisions apply to successive events and transactions; and 
 (7) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other Subdivision. 
 ARTICLE TWO 
 THE SECURITIES 
 SECTION 2.01. Form and Dating. Provisions relating to the Securities are set forth in the Appendix attached hereto (the “Appendix”)
which is hereby incorporated in and expressly made part of this Indenture. The Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in and
expressly made a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or
endorsement is in a form acceptable to the Company and to the Trustee). Each Security shall be dated the date of its authentication. The terms of the Securities set forth in the Appendix and Exhibit 1 are part of the terms of this
Indenture. 
 SECTION 2.02. Execution and Authentication. Two Officers shall sign the Securities for the Company by manual or
facsimile signature. 
 If an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the
Security, the Security shall be valid nevertheless. 
 A Security shall not be valid until an authorized signatory of the Trustee manually
signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 On the Issue Date, the Trustee shall authenticate and deliver €400 million of Securities and, at any time and from time to time thereafter, the Trustee shall authenticate and deliver Securities for original
issue in an aggregate principal amount specified in such order, in each case upon a written order of the Company signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Company. Such order shall
specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated. 
 The Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Unless limited by the terms of such appointment, an authenticating agent may 

 17 
  

 
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights with respect to the Company as any Registrar, Paying Agent or agent for service of notices and demands. 
 SECTION 2.03. Registrar and Paying Agent. The Company shall maintain an office or agency in London, England, where Securities may be presented for registration (the “Registrar”) and an office or
agency in (i) London, England and (ii) for so long as the Securities are listed on the Official List of the Irish Stock Exchange and admitted to trading on the Alternative Securities Market thereof and its rules so require, Dublin,
Ireland, where Securities may be presented for transfer or exchange (the “Transfer Agent”) or payment (the “Paying Agent”). In addition, the Company undertakes that it will ensure, to the extent practicable, that it maintains a
Paying Agent in a member state of the European Union that is not obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC (the “Directive”) regarding the taxation of savings income or any law implementing or
complying with, or introduced in order to conform to, the Directive. The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents.
The terms “Paying Agent” and “Transfer Agent” include any additional paying agent or transfer agent, as applicable, and the term “Registrar” includes any co-registrars. 
 The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall
incorporate the terms of the TIA. The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent and shall furnish the Trustee with an executed
counterpart of any such agency agreement. If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. The Company or any wholly
owned Subsidiary may act as Paying Agent, Registrar, co-registrar or Transfer Agent. 
 The Company initially appoints the Trustee as
Registrar, Transfer Agent and Paying Agent in connection with the Securities. The Company initially appoints [•] as Irish Paying Agent and Transfer Agent. 
 SECTION 2.04. Paying Agent To Hold Money in Trust. Prior to 11:00 a.m., London time, each due date of the principal and interest on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal and interest when so becoming due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all
money held by the Paying Agent for the payment of principal of or interest on the Securities and shall notify the Trustee of any default by the Company in making any such payment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any 

 18 
  

 
funds disbursed by the Paying Agent. Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered to the
Trustee. 
 SECTION 2.05. Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least five Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders. 
 SECTION 2.06. Transfer and Exchange. The Securities shall be issued in registered form and shall be transferable only upon the surrender of a Security for registration of transfer. When a Security is presented
to the Registrar or a co-registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of this Indenture and Section 8-401(a) of the Uniform Commercial Code are met. When Securities
are presented to the Registrar or a co-registrar with a request to exchange them for an equal principal amount of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met. 
 SECTION 2.07. Replacement Securities. If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any
other reasonable requirements of the Trustee. If required by the Trustee or the Company, such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the
Registrar and any co-registrar from any loss which any of them may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for their expenses in replacing a Security. 
 Every replacement Security is an additional obligation of the Company. 
 SECTION 2.08. Outstanding Securities. Securities outstanding at any time are all Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancelation and those
described in this Section as not outstanding. A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security. 
 If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a bona fide purchaser.

 If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all principal and interest payable on that date 

 19 
  

 
with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, then on and after that date such Securities (or portions
thereof) cease to be outstanding and interest on them ceases to accrue. 
 SECTION 2.09. Temporary Securities. Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities and deliver them in exchange for temporary Securities. 
 SECTION 2.10. Cancelation. The Company at any time may deliver Securities to the Trustee for cancelation. The Registrar and the Paying Agent shall
forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel and dispose of (subject to the record retention requirements of the Exchange Act) all Securities
surrendered for registration of transfer, exchange, payment or cancelation in its customary manner and upon request shall deliver a certificate of such disposal to the Company unless the Company directs the Trustee to deliver canceled Securities to
the Company. The Company may not issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee for cancelation. 
 SECTION 2.11. Defaulted Interest. If the Company defaults in a payment of interest on the Securities, the Company shall pay defaulted interest (plus interest on such defaulted interest to the extent lawful) in any lawful manner. The
Company may pay the defaulted interest to the persons who are Holders on a subsequent special record date. The Company shall fix or cause to be fixed any such special record date and payment date to the reasonable satisfaction of the Trustee and
shall promptly mail to each Holder a notice that states the special record date, the payment date and the amount of defaulted interest to be paid. 
 SECTION 2.12. Common Codes and ISIN Numbers. The Company in issuing the Securities may use Common Codes and ISIN numbers (if then generally in use) and, if so, the Trustee shall use Common Codes and ISIN numbers in notices of
redemption as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall notify the Trustee of any
change in the Common Codes or ISIN numbers. 
 SECTION 2.13. Issuance of Additional Securities. The Company shall be entitled to issue
Additional Securities under this Indenture which shall have identical terms as the Securities issued on the Issue Date, other than with respect to the date of issuance and issue price. The Securities issued on the Issue Date and any Additional
Securities 

 20 
  

 
shall be treated as a single class for all purposes under this Indenture. 
 With respect to any Additional Securities, the Company shall set forth in a resolution of the Board of Directors and an Officers’ Certificate, a copy of each which shall be delivered to the Trustee, the following
information: 
 (1) the aggregate principal amount of such Additional Securities to be authenticated and delivered pursuant
to this Indenture; and 
 (2) the issue price, the issue date and the Common Code and ISIN number of such Additional
Securities; provided, however, that no Additional Securities may be issued at a price that would cause such Additional Securities to have “original issue discount” within the meaning of Section 1273 of the Code.

 Additional Securities may be issued with the same Common Code and ISIN number as the Securities issued on the Issue Date if, and only if,
the Company shall have provided the Trustee with an opinion of nationally recognized counsel, reasonably satisfactory to the Trustee, to the effect that such Additional Securities will be fungible with the Securities issued on the Issue Date for all
United States federal income tax purposes. 
 SECTION 2.14. Currency. The euro is the sole currency of account and payment for all
sums payable by the Company or any Subsidiary Guarantor under or in connection with the Securities, including damages. Any amount received or recovered in a currency other than euro, whether as a result of, or the enforcement of, a judgment or order
of a court of any jurisdiction, in the winding-up or dissolution of the Company or any Subsidiary Guarantor or otherwise by any Holder of Security, or by the Trustee, in respect of any sum expressed to be due to it from the Company or any Subsidiary
Guarantor will only constitute a discharge to the Company or any Subsidiary Guarantor to the extent of the euro amount which the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that
receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so). 
 If that euro amount is less than the euro amount expressed to be due to the recipient or the Trustee under any Security, the Company and any Subsidiary Guarantor will indemnify them against any loss sustained by such recipient as a result.
In any event, the Company and any Subsidiary Guarantor will indemnify the recipient against the cost of making any such purchase. For the purposes of this currency indemnity provision, it will be prima facie evidence of the matter stated
therein for the Holder of a Security or the Trustee to certify in a manner satisfactory to the Company (indicating the sources of information used) the loss it incurred in making any such purchase. These indemnities constitute a separate and
independent obligation from the Company and any Subsidiary Guarantor’s other obligations, will give rise to a separate and independent cause of action, will apply irrespective of any waiver granted by any Holder of a Security or the 

 21 
  

 
Trustee (other than a waiver of the indemnities set out herein) and will continue in full force and effect despite any other judgment, order, claim or proof
for a liquidated amount in respect of any sum due under any Security or to the Trustee. 
 ARTICLE THREE 
 REDEMPTION 
 SECTION 3.01. Notice to
Trustee. If the Company elects to redeem Securities pursuant to Paragraph 5 or Paragraph 6 of the Securities, it shall furnish to the Trustee and the Registrar, at least 45 days but not more than 60 days before the redemption date (unless
the Trustee consents to a shorter period in writing), an Officers’ Certificate setting forth the redemption date, the principal amount of Securities to be redeemed and the redemption price, including, in the case of a redemption pursuant to
Paragraph 5 of the Securities, the detail of the calculation of the Make-Whole Price, and the paragraph of the Securities pursuant to which the redemption will occur. 
 In the case of a redemption provided for by Paragraph 6 of the Securities, prior to the publication or mailing of any notice of redemption of Securities pursuant to the foregoing, the Company will deliver to the
Trustee (with a copy to the relevant Paying Agent) (a) an Officer’s Certificate stating that they are entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to their right so to
redeem have been satisfied and (b) a written opinion of independent legal counsel of recognized standing to the effect that the circumstances referred to above exist. The Trustee will accept such Officer’s Certificate and opinion as
sufficient evidence of the satisfaction of the conditions precedent described above without further inquiry, in which event it will be conclusive and binding on the Holders. Any such notice may be canceled at any time prior to notice of such
redemption being mailed to any Holder and shall thereby be void and of no effect. 
 SECTION 3.02. Selection of Securities to Be
Redeemed. If less than all of the Securities are to be redeemed or are required to be repurchased at any time, the Trustee will select Securities for redemption or repurchase in compliance with the requirements of the Irish Stock Exchange or any
other principal national securities exchange, if any, on which the Securities are then listed, and in compliance with the requirements of Euroclear or Clearstream, as applicable, or, if the Securities are not so listed or such exchange prescribes no
method of selection and the Securities are not held through Euroclear or Clearstream, as applicable, or Euroclear or Clearstream, as applicable, prescribes no method of selection, on a pro rata basis, by lot or by such other method as the Trustee in
its sole discretion deems fair and appropriate (and in such manner as complies with applicable legal and exchange requirements); provided, however, that no Securities with a principal amount of €50,000 or less will be redeemed in
part. The Trustee shall make the selection from outstanding Securities not previously called for redemption not less than 30 nor more than 60 days prior to the redemption date. Securities and portions of them it selects shall be in amounts of
€50,000 or whole multiples of €1,000 in excess thereof. Provisions of this Indenture 

 22 
  

 
that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of
the Securities or portions of Securities selected for redemption. 
 SECTION 3.03. Notice of Redemption. (a) At least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder of Securities to be redeemed at such Holder’s registered address. In addition, for so long as the Securities are
listed on the Official List of the Irish Stock Exchange and admitted to trading on the Alternative Securities Market thereof and the rules of the Irish Stock Market so require, the Issuer shall deliver notice of redemption to the Companies
Announcement Office in Dublin. 
 The notice shall identify the Securities to be redeemed and shall state: 
 (1) the redemption date; 
 (2) the redemption price; 
 (3) the aggregate principal amount of Securities being redeemed;

 (4) the name and address of the Paying Agent; 
 (5) that Securities called for redemption must be surrendered to the Paying Agent at the address specified in such notice to collect the
redemption price; 
 (6) that, unless the Company defaults in the payment of the redemption price or accrued interest,
interest on Securities called for redemption ceases to accrue on and after the redemption date and the only remaining right of the Holders is to receive payment of the redemption prices in respect of the Securities upon surrender to the Paying Agent
of the Securities; 
 (7) if any Security is being redeemed in part, the portion of the principal amount of such Security to
be redeemed and that, after the redemption date, upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion will be issued in the name of the Holder thereof upon cancelation of the Security or
Securities being redeemed; and 
 (8) the Common Code or ISIN number of the Securities. 
 (b) At the Company’s request, the Trustee shall give the notice of redemption required in Section 3.03(a) 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 prior to the redemption date (unless the Trustee consents to a shorter notice period in writing), an Officers’ Certificate
requesting that the Trustee give such notice and 

 23 
  

 
setting forth the information to be stated in such notice as provided in Section 3.03(a). 
 SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed in accordance with Section 3.03, Securities called for
redemption become due and payable on the redemption date at the redemption price. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price, plus accrued and unpaid interest to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due on the related interest payment date). Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder.

 SECTION 3.05. Deposit of Redemption Price. Prior to 11:00 a.m., London time, on the redemption date, the Company shall deposit
with the Paying Agent (or if the Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust) funds available on the redemption date sufficient to pay the redemption price of, and accrued and unpaid interest on, the Securities to
be redeemed on that date. The Paying Agent shall promptly return to the Company any money so deposited which is not required for that purpose upon the written request of the Company, except with respect to monies owed as obligations to the Trustee
pursuant to Article Seven. 
 If any Security called for redemption shall not be so paid upon redemption because of the failure of the
Company to comply with the preceding paragraph, interest will continue to be payable on the unpaid principal and premium, if any, including from the redemption date until such principal and premium, if any, is paid, and, to the extent lawful, on any
interest not paid on such unpaid principal, in each case at the rate provided in the Securities and in Section 4.01 hereof. 
 SECTION
3.06. Securities Redeemed in Part. Upon surrender of a Security that is to be redeemed in part, the Company shall issue and the Trustee shall authenticate for the Holder, at the expense of the Company, a new Security equal in aggregate amount
to the unredeemed portion of the Security surrendered. 
 SECTION 3.07. Optional Redemption at Make-Whole Price. At any time prior to
the Maturity Date, the Company may, at its option, redeem all or any portion of the Securities at the Make-Whole Price plus accrued and unpaid interest on the Securities so redeemed to the date of redemption. 
 Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof. 
 ARTICLE FOUR 
 COVENANTS 
 SECTION 4.01. Payment of Securities. The Company shall pay the principal of, premium, if any, and interest on, the Securities on the dates and in
the manner provided in the Securities and this Indenture. 

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Principal, premium and interest shall be considered paid on the date due if the Trustee or Paying Agent holds on that date money deposited by the Company
designated for and sufficient to pay all principal, premium and interest then due. 
 The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal, and premium, if any, at the rate borne by the Securities to the extent lawful; and it shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful. 
 SECTION 4.02. SEC Reports. (a) The Company, within 15 days after it files the same with the SEC, shall deliver to Holders, copies of the annual reports and the information, documents and other reports (or copies of any such
portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. Notwithstanding that the Company may not be required to
remain subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the SEC and provide Holders with such annual reports and such information, documents and other reports specified in Sections 13
and 15(d) of the Exchange Act. The Company and each Subsidiary Guarantor shall also comply with the provisions of TIA Section 314(a). 
 (b) For so long as the Securities are listed on the Official List of the Irish Stock Exchange and admitted to trading on the Alternative Securities Market thereof and to the extent that the rules of the Irish Stock Exchange require, the
information listed in Section 4.02(a) will also be made available in Dublin through the offices of the Paying Agent in Dublin. 
 (c)
The Company may request the Trustee on behalf of the Company at the Company’s expense to mail the information listed in Section 4.02(a) to Holders. In such case, the Company shall provide the Trustee with a sufficient number of copies of
all reports and other documents and information that the Trustee may be required to deliver to Holders under this Section. 
 SECTION 4.03.
Compliance Certificates. (a) The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of the Company, an Officers’ Certificate in a form reasonably acceptable to the Trustee, stating that a review
of the activities of the Company and the Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that, to the best of such Officer’s knowledge, the Company and each Subsidiary Guarantor has kept, observed, performed and fulfilled each
and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or
Events of Default of which such Officer may have 

 25 
  

 
knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of such Officer’s knowledge, after
reasonable inquiry, no event has occurred and remains in existence by reason of which payments on account of the principal of, premium, if any, or interest, if any, on the Securities are prohibited or, if such event has occurred, a description of
the event and what action the Company and the Subsidiary Guarantors are taking or propose to take with respect thereto. Such Officers’ Certificate shall comply with TIA Section 314(a)(4). The Company hereby represents that, as of the Issue
Date, its fiscal year ends December 31, and hereby covenants that it shall notify the Trustee at least 30 days in advance of any change in its fiscal year. 
 (b) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end financial statements delivered pursuant to Section 4.02 shall be accompanied
by a written statement of the Company’s independent public accountants (which shall be a firm of established national reputation) that in making the examination necessary for certification of such financial statements nothing has come to their
attention that would lead them to believe that the Company has violated any provisions of Section 4.07 of this Indenture (to the extent such provision relates to accounting matters) or, if any such violation has occurred, specifying the nature
and period of existence thereof. Where such financial statements are not accompanied by such a written statement, the Company shall furnish the Trustee with an Officers’ Certificate stating that any such written statement would be contrary to
the then current recommendations of the American Institute of Certified Public Accountants. 
 (c) The Company and the Subsidiary Guarantors
will, so long as any of the Securities are outstanding, deliver to the Trustee forthwith upon any Officer becoming aware of any Default or Event of Default or default in the performance of any covenant, agreement or condition contained in this
Indenture, an Officers’ Certificate specifying such Default or Event of Default and what action the Company or any Subsidiary Guarantor proposes to take with respect thereto. 
 SECTION 4.04. Maintenance of Office or Agency. The Company will maintain an office or agency where Securities 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 and this Indenture may be served, in each case, in accordance with Section 2.03. The Company will give
prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 11.02. If at any time the Company shall fail to maintain any required office or agency or shall fail
to furnish the Trustee with the address thereof, such surrenders, presentations, notices and demands may be made or served at the corporate trust office of the Trustee. 
  

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 Subject to Section 2.03, the Company may also from time to time designate one or more other offices
or agencies where the Securities 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 4.05. Corporate Existence. 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 the corporate, partnership or other existence of each Subsidiary and all rights (charter and statutory) and franchises of the Company and the
Subsidiaries; provided, that the Company shall not be required to preserve the corporate existence of any Subsidiary, or any such right or franchise, if the Company shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders. 
 SECTION
4.06. Waiver of Stay, Extension or Usury Laws. The Company and each Subsidiary Guarantor covenants (to the extent that each may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension, or usury law or other law, which would prohibit or forgive the Company or any Subsidiary Guarantor from paying all or any portion of the principal of, premium, if any, or interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to the extent that it may lawfully do so) each of the Company and the Subsidiary Guarantors
hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted. 
 SECTION 4.07. Payment of Taxes and Other Claims. The Company shall pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (a) all taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary and
(b) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall not be required to pay or discharge
or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 
 SECTION 4.08. Maintenance of Properties and Insurance. (a) The Company shall cause all properties used or held for use in the conduct of its
business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order (ordinary wear and tear excepted) and supplied with all necessary equipment and shall cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of the 

 27 
  

 
Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section shall prevent the Company from discontinuing the operation or maintenance of any such property, or disposing of it, if such discontinuance or disposal is, in the judgment of the Company, desirable in the
conduct of its business and not disadvantageous in any material respect to the Holders. 
 (b) The Company shall provide or cause to be
provided, for itself and each of its Subsidiaries, insurance (including appropriate self-insurance) against loss or damage of the kinds that, in the reasonable, good faith opinion of the Company, are adequate and appropriate for the conduct of the
business of the Company and such Subsidiaries in a prudent manner, with reputable insurers or with the government of the United States or an agency or instrumentality thereof, in such amounts, with such deductibles, and by such methods as shall be
customary, in the reasonable, good faith opinion of the Company, for corporations similarly situated in the industry. 
 SECTION 4.09.
Limitation on Liens Securing Indebtedness. The Company will not, and will not permit any Subsidiary to, create, incur or assume any Indebtedness secured by any Liens (other than Permitted Liens) upon any of the properties of the Company or
any Subsidiary, unless the Securities or a Guarantee are equally and ratably secured; provided, that if such Indebtedness is expressly subordinated to the Securities or a Guarantee, the Lien securing such Indebtedness will be subordinated and
junior to the Lien securing the Securities or such Guarantee. 
 SECTION 4.10. Limitation on Sale/Leaseback Transactions. (a) The
Company will not, and will not permit any of its Subsidiaries to, enter into any Sale/Leaseback Transaction with any Person (other than the Company or any other Subsidiary) unless (i) the Company or such Subsidiary, as the case may be, would be
entitled to incur secured Indebtedness in a principal amount equal to the Attributable Indebtedness with respect to such Sale/Leaseback Transaction in accordance with Section 4.09 or (ii) the Company or such Subsidiary receives proceeds
from such Sale/Leaseback Transaction at least equal to the fair market value thereof (as determined in good faith by the Company’s Board of Directors, whose determination in good faith, evidenced by a resolution of such Board shall be
conclusive) and such proceeds are applied in accordance with paragraphs (b) to (g) hereof. 
 (b) The Company may apply Net
Available Proceeds from such Sale/Leaseback Transaction, within 365 days after receipt of Net Available Proceeds from the Sale/Leaseback Transaction, to: (i) the repayment of Indebtedness of the Company or a Subsidiary under Credit Facilities
or other Senior Indebtedness, including any mandatory redemption or repurchase or make-whole redemption of the Existing Notes or the Securities; (ii) make an Investment in assets used in the Oil and Gas Business; or (iii) develop by
drilling the Company’s oil and gas reserves. 
 (c) If, upon completion of the 365-day period referred to above, any portion of the Net
Available Proceeds shall not have been applied by the Company as described in clauses (i), (ii) or (iii) of 

 28 
  

 
the immediately preceding paragraph and such remaining Net Available Proceeds, together with any remaining net cash proceeds from any prior Sale/Leaseback
Transaction (such aggregate constituting “Excess Proceeds”), exceed $40,000,000, then the Company will be obligated to make an offer (the “Net Proceeds Offer”) to purchase the Securities and any other Senior Indebtedness in
respect of which such an offer to purchase is required to be made concurrently with the Net Proceeds Offer having an aggregate principal amount (or, with respect to the Securities, an equivalent amount in dollars based on the Federal Reserve Bank of
New York noon buying rate of euro on the second Business Day preceding such offer) equal to the Excess Proceeds (such purchase to be made on a pro rata basis if the amount available for such repurchase is less than the principal amount of the
Securities and other Senior Indebtedness tendered in such Net Proceeds Offer) at a purchase price of 100% of the principal amount thereof plus accrued and unpaid interest on the Securities and other Senior Indebtedness so repurchased to the date of
repurchase. Upon the completion of the Net Proceeds Offer, the amount of Excess Proceeds will be reset to zero. 
 (d) Within 15 days after
the Company becomes obligated to make a Net Proceeds Offer (a “Net Proceeds Offer Triggering Event”), the Company (with notice to the Trustee and the Paying Agent), or the Trustee at the Company’s request and expense, will mail or
cause to be mailed to all Holders on the date of the Net Proceeds Offer Triggering Event a notice prepared by the Company (the “Offer Notice”) of the occurrence of such Net Proceeds Offer Triggering Event and of the Holders’ rights
arising as a result thereof. The Offer Notice will contain all instructions and materials necessary to enable Holders to tender their Securities to the Company. The Offer Notice, which shall govern the terms of the Net Proceeds Offer, shall state:
(1) that the Net Proceeds Offer is being made pursuant to this Section 4.10; (2) the purchase price and the Net Proceeds Payment Date; (3) that any Security not tendered will continue to accrue interest at the stated rate;
(4) that any Security accepted for payment pursuant to the Net Proceeds Offer shall cease to accrue interest on the Net Proceeds Payment Date; (5) that Holders electing to have a Security purchased pursuant to any Net Proceeds Offer will
be required to surrender the Security, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Security completed, to the Company, a depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice prior to termination of the Net Proceeds Offer; (6) that Holders will be entitled to withdraw their election if the Company, depositary or Paying Agent, as the case may be, receives, not later than the expiration of the
Net Proceeds Offer, or such longer period as may be required by law, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security the Holder delivered for purchase and a statement
that such Holder is withdrawing its election to have the Security purchased; and (7) that Holders whose Securities are purchased only in part will be issued Securities equal in principal amount to the unpurchased portion of the Securities
surrendered. The Net Proceeds Offer shall be deemed to have commenced upon the mailing of the Offer Notice and shall terminate 20 Business Days after its commencement, unless a longer offering period is required by law. 
 (e) Promptly after the termination of the Net Proceeds Offer (“the Net Proceeds Payment Date”), the Company shall, to the 

 29 
  

 
extent permitted by applicable law, (i) accept for payment Securities or portions thereof tendered pursuant to the Offer Notice, (ii) if the
Company appoints a depositary or Paying Agent, deposit with such depositary or Paying Agent money sufficient to pay the purchase price of all Securities or portions thereof so tendered and (iii) deliver to the Trustee Securities so accepted
together with an Officers’ Certificate stating the Securities or portions thereof tendered to the Company. The depositary, the Company or the Paying Agent, as the case may be, shall promptly mail to the Holders of Securities so accepted payment
in an amount equal to the purchase price (representing those funds received pursuant to clause (ii) of this Section 4.10(c)), and the Trustee shall promptly authenticate and mail to each such Holder a new Security equal in principal amount
to any unpurchased portion of the Security surrendered; provided that each such new Security will be in a principal amount of €50,000 or an integral multiple of €1,000 in excess thereof. The Company will publicly announce the
results of the Net Proceeds Offer on or as soon as practicable after the Net Proceeds Payment Date. For purposes of this Section 4.10, the Trustee shall act as the Paying Agent. 
 (f) The Company will comply with Section 14 of the Exchange Act and the provisions of Regulation 14E and any other tender offer rules under the
Exchange Act and any other U.S. federal and state securities laws, rules and regulations which may then be applicable to any Net Proceeds Offer. 
 (g) During the period between any Sale/Leaseback Transaction and the application of the Net Available Proceeds therefrom in accordance with this covenant, all Net Available Proceeds shall be maintained in a segregated account and shall be
invested in Permitted Financial Investments. 
 SECTION 4.11. Change of Control. (a) If a Change of Control occurs, unless the
Company has exercised its right to redeem all of the Securities as described under Section 3.07 or all conditions to such redemption have been satisfied or waived, the Company must offer (a “Change of Control Offer”) to repurchase all
or any part of each Holder’s outstanding Securities at a purchase price equal to 101% of the aggregate principal amount of the Securities plus accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Payment
Date”). 
 (b) Within 15 days after any Change of Control, the Company will mail or cause to be mailed to all Holders on the date of the
Change of Control a Notice (the “Change of Control Notice”) of the occurrence of such Change of Control and of the Holders’ rights arising as a result thereof. The Change of Control Notice shall state, among other things: 

(i) that the change of control offer is being made pursuant to this Section 4.11; 
 (ii) the purchase price and the Change Of Control Payment Date; 
  

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 (iii) that any Security not tendered will continue to accrue interest; 
 (iv) that any Security accepted for payment pursuant to the change of control offer shall cease to accrue interest on the Change Of
Control Payment Date; and 
 (v) the instructions, consistent with this Section 4.11, that a Holder must follow in order
to have such Holder’s Security purchased. 
 (c) The Change of Control Offer will be deemed to have commenced upon mailing of the Change
of Control Notice and will terminate 20 Business Days after its commencement, unless a longer offering period is required by law. Promptly after the termination of the Change of Control Offer, the Company will purchase and mail or deliver payment
for all Securities tendered in response to the Change of Control Offer. 
 (d) On the Change of Control Payment Date, the Company will, to
the extent lawful, (a) accept for payment Securities or portions thereof tendered pursuant to the Change of Control Offer, (b) deposit with the Paying Agent an amount equal to the change of control payment in respect of all Securities or
portions thereof so tendered and (c) deliver to the Trustee the Securities so accepted together with an Officers’ Certificate stating the Securities or portions thereof tendered to the Company. The Paying Agent will promptly mail or
deliver to each Holder of Securities so accepted payment in an amount equal to the purchase price for such Securities, and the Trustee will promptly authenticate and mail or deliver to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any, provided that each such new Security will be in a principal amount of €50,000 or in integral multiples of €1,000 in euros, thereof. 
 (e) The Company will comply with Section 14 of the Exchange Act and the provisions of Regulation 14E and any other tender offer rules under the
Exchange Act and any other U.S. federal and state securities laws, rules and regulations and other jurisdictions’ laws which may then be applicable to any Change of Control Offer. 
 (f) For so long as the Securities are listed on the Official List of the Irish Stock Exchange and admitted for trading on the Alternative Securities
Market thereof and the rules of such exchange so require, the Company will give notice with respect to the results of the Change of Control Offer to the Companies Announcement Office in Dublin. 
 SECTION 4.12. Listing. The Company will use all commercially reasonable efforts to list and maintain the listing of the Securities on the Irish
Stock Exchange and to be admitted to trading on the Alternative Securities Market thereof; provided, however, that if the Company is unable to list the Securities on the Irish Stock Exchange or if maintenance of such listing becomes unduly
onerous, it will use all commercially reasonable efforts to maintain a listing of such Securities on another recognized stock exchange. 
  

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 SECTION 4.13. Payment of Additional Amounts. (a) All payments that the Company, any Subsidiary
Guarantor or any Successor makes under or with respect to the Securities, or that any Subsidiary Guarantor makes with respect to any Guarantee, will be made free and clear of, and without withholding or deduction for or on account of, any present or
future tax, duty, levy, impost, assessment or other governmental charges (including, without limitation, penalties, interest and other similar liabilities related thereto) of whatever nature (collectively, “Taxes”) imposed or levied by or
on behalf of any jurisdiction in which the Company, or, if applicable, any Subsidiary Guarantor or any Successor, as the case may be, is incorporated, organized or otherwise resident for tax purposes or from or through which any of the foregoing
makes any payment on the Securities or by any taxing authority therein or political subdivision thereof (each, as applicable, a “Relevant Taxing Jurisdiction”), unless the Company, such Subsidiary Guarantor or such Successor, as the case
may be, is required to withhold or deduct Taxes by law or by the interpretation or administration of law. If the Company, a Subsidiary Guarantor or such Successor is required to withhold or deduct any amount for, or on account of, Taxes of a
Relevant Taxing Jurisdiction from any payment made under or with respect to the Securities or any Guarantee, the Company, such Subsidiary Guarantor or such Successor, as the case may be, will pay such additional amounts (“Additional
Amounts”) as may be necessary to ensure that the net amount received by each Holder of the Securities after such withholding or deduction will be not less than the amount the Holder would have received if such Taxes had not been required to be
withheld or deducted. 
 Notwithstanding the foregoing, neither the Company, any Subsidiary Guarantor nor any Successor will, however, be
required to pay Additional Amounts to a Holder or beneficial owner of Securities in respect of or on account of: 
 (i) any
Taxes that are imposed or levied by a Relevant Taxing Jurisdiction by reason of the Holder’s or beneficial owner’s present or former connection with such Relevant Taxing Jurisdiction, including, without limitation, the Holder or beneficial
owner being or having been a citizen, national, or resident, being or having been engaged in a trade or business, being, or having been, physically present in or having or having had a permanent establishment in a Relevant Taxing Jurisdiction (but
not including, in each case, any connection arising from the mere receipt or holding of Securities or the receipt of payments thereunder or under a Guarantee or the exercise or enforcement of rights under any Securities or this Indenture or a
Guarantee); 
 (ii) any Taxes that are imposed or levied by reason of the failure of the Holder or beneficial owner of
Securities, following the written request of the Company, any Subsidiary Guarantor or any Successor (as the case may be) addressed to the Holder (and made at a time that would enable the Holder or beneficial owner acting reasonably to comply with
that request) made in accordance with the notice procedures set forth in this Indenture, to comply with any certification, identification, information or other reporting requirements, whether required by statute, treaty, regulation or administrative
practice of a Relevant Taxing Jurisdiction, as a precondition to exemption 

 32 
  

 
from, or reduction in the rate of withholding or deduction of, Taxes imposed by the Relevant Taxing Jurisdiction (including, without limitation, a
certification that the Holder or beneficial owner is not resident in the Relevant Taxing Jurisdiction); 
 (iii) any estate,
inheritance, gift, sales, transfer, personal property or similar Taxes; 
 (iv) any Tax that is payable otherwise than by
withholding or deduction from payments made under or with respect to the Securities; 
 (v) any Tax that is imposed or levied
by reason of the presentation (where presentation is required in order to receive payment) of such Securities for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is
duly provided for, whichever is later, except to the extent that the beneficial owner or Holder thereof would have been entitled to Additional Amounts had the Securities been presented for payment on any date during such 30-day period; 

(vi) any withholding or deduction in respect of any Taxes where such withholding or deduction is imposed or levied on a payment to an
individual and is required to be made pursuant to European Council Directive 2003/48/EC or any other Directive implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the taxation of savings income or any law
implementing or complying with, or introduced in order to conform to, such Directive; 
 (vii) any Tax that is imposed or
levied on or with respect to a payment made to a Holder or beneficial owner who would have been able to avoid such withholding or deduction by presenting the Securities another paying agent in a Member State of the European Union; or 
 (viii) any combination of items (i) through (vii) above. 
 Such Additional Amounts will also not be paid with respect to the Securities to a Holder who is a fiduciary, a partnership, a limited liability company
or other than the sole beneficial owner of the payment under or with respect to the Securities, to the extent that payment would be required by the laws of a Relevant Taxing Jurisdiction to be included in the income, for tax purposes, of a
beneficiary or settlor with respect to the fiduciary, a member of that partnership, an interest holder in that limited liability company or a beneficial owner who would not have been entitled to the Additional Amounts had it been the Holder of the
Securities. 
 (b) The Company, the relevant Subsidiary Guarantor or the relevant Successor, as the case may be, will (i) make such
withholding or deduction as is required by applicable law and (ii) remit the full amount withheld or deducted to the relevant taxing authority in accordance with applicable law. 

 33 
  

 (c) At least 30 calendar days prior to each date on which any payment under or with respect to the
Securities is due and payable, if the Company, any Subsidiary Guarantor or a Successor will be obligated to pay Additional Amounts with respect to such payment, the Company, the relevant Subsidiary Guarantor or the relevant Successor (as the case
may be) will deliver to the Trustee an Officers’ Certificate stating that such Additional Amounts will be payable and the amounts so payable and will set forth such other information necessary to enable the Trustee to pay such Additional
Amounts to Holders on the payment date (unless such obligation to pay Additional Amounts arises after the 30th day prior to the date on which payment under or with respect to the Securities is due and payable, in which case such Officers’
Certificate shall be delivered promptly thereafter). The Company, the relevant Subsidiary Guarantor or the relevant Successor, as the case may be, will promptly publish a notice in accordance with the notice provisions set forth in this Indenture
stating that such Additional Amounts will be payable and describing the obligation to pay such amounts. 
 (d) Upon written request, the
Company, the relevant Subsidiary Guarantor or the relevant Successor, as the case may be, will furnish to the Trustee or to a Holder of the Securities copies of tax receipts evidencing the payment of any Taxes by the Company, such Guarantor or such
Successor in such form as provided in the normal course by the taxing authority imposing such Taxes and as is reasonably available to the Company, such Subsidiary Guarantor or such Successor. If, notwithstanding the efforts of the Company, such
Subsidiary Guarantor or such Successor to obtain such receipts, the same are not obtainable, the Company, such Subsidiary Guarantor or such Successor will provide the Trustee or such Holder with other evidence reasonably satisfactory to the Trustee
or the Holder. 
 (e) The Company, any Subsidiary Guarantor and any Successor, as the case may be, will pay any present or future stamp,
issue, registration, court, documentation, excise or property taxes or other similar taxes, charges and duties, including interest and penalties with respect thereto, imposed by or in any Relevant Taxing Jurisdiction in respect of the execution,
issue, enforcement or delivery of the Securities or any other document or instrument referred to thereunder (other than on or in connection with a transfer of the Securities other than the initial resale by the underwriters named in the Prospectus).

 (f) Whenever this Indenture or the Securities refers to, in any context, the payment of principal, premium, if any, interest or any other
amount payable under or with respect to any Security or with respect to any Guarantee, such reference includes the payment of Additional Amounts, if applicable. 
 ARTICLE FIVE 
 SUCCESSOR CORPORATION 
 SECTION 5.01. When Company May Merge, etc. The Company shall not consolidate with or merge with or into any Person or sell, convey, 

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lease, transfer or otherwise dispose of all or substantially all of its assets to any Person, unless: 
 (1) the Company survives such merger or the Person formed by such consolidation or into which the Company is merged or that acquires by
sale, conveyance, transfer or other disposition, or which leases, all or substantially all of the assets of the Company is a corporation, limited liability company or limited partnership organized and existing under the laws of the United States of
America, any state thereof or the District of Columbia, or Canada or any province thereof (a “Successor”), and expressly assumes, by supplemental indenture, the due and punctual payment of the principal of, premium, if any, and interest
on, all the Securities and the performance of every other covenant and obligation of the Company under this Indenture provided, that unless the Successor is a corporation, a corporate co-issuer of the Securities shall be added hereto by the
execution and delivery of a supplemental indenture by such co-issuer; and 
 (2) immediately before and after giving effect
to such transaction no Default or Event of Default exists. 
 In connection with any consolidation, merger, sale, conveyance, lease, transfer
or other disposition contemplated by this Section 5.01, the Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that
the proposed transaction and such supplemental indenture comply with this Indenture. 
 SECTION 5.02. Successor Corporation
Substituted. Upon any consolidation, merger, lease, conveyance or transfer in accordance with Section 5.01, the Trustee shall be notified by the Company and the Successor, and the Successor formed by such consolidation or into which the
Company is merged or to which such lease, conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such Successor had been named
as the Company herein and thereafter (except in the case of a lease) the predecessor corporation will be relieved of all further obligations and covenants under this Indenture and the Securities. 
 ARTICLE SIX 
 DEFAULTS AND REMEDIES

 SECTION 6.01. Events of Default. An “Event of Default” occurs upon: 
 (1) default by the Company or any Subsidiary Guarantor in the payment of principal of, or premium, if any, on the Securities when due and
payable at maturity, upon repurchase pursuant to Section 4.10 or Section 4.11, upon acceleration or otherwise; 
  

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 (2) default by the Company or any Subsidiary Guarantor in the payment of any installment
of interest on the Securities when due and payable and continuance of such default for 30 days; 
 (3) default by the Company
or any Subsidiary Guarantor in the deposit of any make-whole redemption payment, when and as due and payable pursuant to Article Three; 
 (4) default on any other Indebtedness of the Company, any Subsidiary Guarantor or any other Subsidiary if either (A) such default results in the acceleration of the maturity of any such Indebtedness having a
principal amount of $50,000,000 or more individually or, taken together with the principal amount of any other such Indebtedness the maturity of which has been so accelerated, in the aggregate, or (B) such default results from the failure to
pay when due principal of, premium, if any, or interest on, any such Indebtedness, after giving effect to any applicable grace period (a “Payment Default”), having a principal amount of $50,000,000 or more individually or, taken together
with the principal amount of any other Indebtedness under which there has been a Payment Default, in the aggregate; provided that if any such default is cured or waived or any such acceleration is rescinded, or such Indebtedness is repaid,
within a period of 30 days from the continuation of such default beyond any applicable grace period or the occurrence of such acceleration, as the case may be, such Event of Default and any consequent acceleration of the Securities shall be
rescinded, so long as any such rescission does not conflict with any judgment or decree or applicable provision of law; 
 (5) default in the performance, or breach of, the covenant set forth in Article Five, or in the performance, or breach of, any other covenant or agreement of the Company or any Subsidiary Guarantor in this Indenture and failure to remedy
such default within a period of 45 days after written notice thereof from the Trustee or Holders of 25% of the principal amount of the outstanding Securities; 
 (6) the entry by a court of one or more judgments or orders for the payment of money against the Company, any Subsidiary Guarantor or any
other Subsidiary in an aggregate amount in excess of $50,000,000 (net of applicable insurance coverage by a third party insurer which is acknowledged in writing by such insurer) that has not been vacated, discharged, satisfied or stayed pending
appeal within 60 days from the entry thereof; 
 (7) a Guarantee by a Subsidiary Guarantor shall cease to be in full force
and effect (other than a release of a Guarantee in accordance with Section 10.04) or any Subsidiary Guarantor shall deny or disaffirm its obligations with respect thereto; 
  

 36 
  

 (8) the Company or any Subsidiary pursuant to or within the meaning of any Bankruptcy
Law: 
 (A) commences a voluntary case or proceeding, 
 (B) consents to the entry of an order for relief against it in an involuntary case or proceeding, 
 (C) consents to the appointment of a Custodian of it or for all or substantially all of its property, 
 (D) makes a general assignment for the benefit of its creditors, or 
 (E) admits in writing that it generally is unable to pay its debts as the same become due; or 
 (9) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (A) is for relief (with respect to the petition commencing such case) against the Company or any Subsidiary in an involuntary case or
proceeding, 
 (B) appoints a Custodian of the Company or any Subsidiary or for all or substantially all of its property, or

 (C) orders the liquidation of the Company or any Subsidiary, and the order or decree remains unstayed and in effect for
60 days. 
 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 6.02.
Acceleration. If an Event of Default (other than an Event of Default specified in clauses (8) or (9)) under Section 6.01 occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% of
the principal amount of the outstanding Securities may declare the unpaid principal of and premium, if any, or the Net Proceeds Offer purchase price if the Event of Default includes failure to pay the Net Proceeds Offer purchase price, and accrued
and unpaid interest on, all the Securities then outstanding to be due and payable, by a notice in writing to the Company (and to the Trustee, if given by Holders), and upon any such declaration such principal, premium, if any, and accrued and unpaid
interest shall become immediately due and payable, notwithstanding anything contained in this Indenture or the Securities to the contrary. If an Event of Default specified in clauses 8 or 9 above occurs, all unpaid principal of, and premium, if any,
and accrued and unpaid interest on, the Securities then outstanding will become due and payable, without any declaration or other act on the part of the Trustee or any Holder. 
  

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 The Holders of a majority of the principal amount of the outstanding Securities, by written notice to the
Company, the Subsidiary Guarantors and the Trustee, may rescind and annul a declaration of acceleration and its consequences if (1) the Company or any Subsidiary Guarantor has paid or deposited with such Trustee a sum sufficient to pay
(A) all overdue installments of interest on all the Securities, (B) the principal of, and premium, if any, on any Securities that have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates
prescribed therefor in the Securities, (C) to the extent that payment of such interest is lawful, interest on the defaulted interest at the rate or rates prescribed therefor in the Securities, and (D) all money paid or advanced by the
Trustee thereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; (2) all Events of Default, other than the non-payment of the principal of any Securities that have become due
solely by such declaration of acceleration, have been cured or waived as provided in this Indenture; and (3) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. No such rescission will affect any
subsequent Event of Default or impair any right consequent thereon. 
 SECTION 6.03. Other Remedies. If an Event of Default occurs and
is continuing, the Trustee may, but is not obligated to, pursue, in its own name and as trustee of an express trust, any available remedy by proceeding at law or in equity to collect the payment of principal or interest on the Securities or to
enforce the performance of any provision of the Securities or this Indenture. If an Event of Default specified under clauses (8) or (9) of Section 6.01 occurs with respect to the Company at a time when the Company is the Paying Agent,
the Trustee shall automatically assume the duties of Paying Agent. 
 The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of
or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 
 SECTION 6.04.
Waiver of Past Defaults. Subject to Sections 6.07 and 9.02, the Holders of at least a majority of the principal amount of the outstanding Securities by notice to the Trustee may waive an existing Default or Event of Default and its
consequences, except a Default or Event of Default in payment of principal or interest on the Securities, including any make-whole redemption payments or Net Proceeds Offer payments. 
 SECTION 6.05. Control by Majority. The Holders of a majority in principal amount of the Securities will 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 such Trustee, provided that (1) such direction is not in conflict with any rule of law or with this Indenture
and (2) the Trustee may take any other action deemed proper by such Trustee that is not inconsistent with such direction. 
  

 38 
  

 SECTION 6.06. Limitation on Remedies. No Holder of any of the Securities will have any right to
institute any proceeding, judicial or otherwise, or for the appointment of a receiver or trustee or pursue any remedy under this Indenture, unless: 
 (1) such Holder has previously given notice to the Trustee of a continuing Event of Default, 
 (2) the Holders of not less than 25% of the principal amount of the outstanding Securities have made written request to such Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee under this
Indenture, 
 (3) such Holder or Holders have offered to such Trustee indemnity reasonably satisfactory to it against the
costs, expenses and liabilities to be incurred in compliance with such request, 
 (4) such Trustee for 60 days after its
receipt of such notice, request and offer of indemnity has failed to institute any proceeding, and 
 (5) no direction
inconsistent with such written request has been given to such Trustee during such 60-day period by the Holders of a majority of the principal amount of the outstanding Securities. 
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over other Holders. 
 SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the Holder of any Securities will have
the right, which is absolute and unconditional, to receive payment of the principal of and interest on such Securities on the stated maturity therefor and to institute suit for the enforcement of any such payment, and such right may not be impaired
without the consent of such Holder. 
 SECTION 6.08. Collection Suit by Trustee. If an Event of Default in payment of principal,
premium, if any, or interest specified in Section 6.01(1), (2) or (3) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or any Subsidiary Guarantor for
the whole amount of principal, premium, if any, and interest remaining unpaid with respect to the Securities, and interest on overdue principal and premium, if any, and, to the extent lawful, interest on overdue interest, and such further amounts as
shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation and expenses of the Trustee, its agents and counsel. 
 SECTION 6.09. Trustee May File Proofs of Claim. (a) The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and
the Holders allowed in any judicial proceedings relative to 

 39 
  

 
the Company, the Subsidiary Guarantors, their creditors or their property and may collect and receive any money or securities or other property payable or
deliverable on any such claims and to distribute the same. 
 (b) 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 6.10. Priorities. If the Trustee collects any money pursuant to this Article
Six, it shall pay out the money in the following order: 
 First: to the Trustee for amounts due under Section 7.07;

 Second: to Holders for amounts due and unpaid on the Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities for principal and interest, respectively; and 
 Third: to the Company. 
 The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10. 
 SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by Holders of more than 10% in principal amount of the then outstanding Securities. 
 ARTICLE SEVEN 
 TRUSTEE 
 SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such rights and powers
vested in it by this Indenture and use the same degree of care and skill in such exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
 (b) Except during the continuance of an Event of Default: 
  

 40 
  

 (1) The Trustee need perform only those duties that are specifically set forth (or
incorporated by reference) in this Indenture and no others. 
 (2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of
certificates or opinions specifically required by any provision hereof to be furnished to it, 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: 
 (1) This paragraph (c) does not limit the effect of paragraph (b) of this Section. 
 (2) The Trustee shall not be liable for any error of judgment made in good faith by an officer of the Trustee, unless it is proved that
the Trustee was negligent in ascertaining the pertinent facts. 
 (3) The Trustee shall not be liable with respect to action
it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05, and the Trustee shall be entitled from time to time to request such a direction. 
 (d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

 (e) The Trustee shall be under no obligation and may refuse to perform any duty or exercise any right, duty or power hereunder unless it
receives indemnity reasonably satisfactory to it against any loss, liability or expense. No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
 (f) 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. Money held in
trust by the Trustee need not be segregated from other funds except to the extent required by law. 

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 SECTION 7.02. Rights of Trustee. Subject to Section 7.01: 
 (a) The Trustee may conclusively rely on and shall be fully protected in acting or refraining from acting upon any document believed by it to be genuine
and to have been signed or presented by the proper person. The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney, to the extent reasonably required by such inquiry or investigation at the expense of the Company and shall
incur no liability of any kind by reason of such inquiry or investigation. 
 (b) Before the Trustee acts or refrains from acting, it may
require an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such certificate or opinion. 
 (c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
 (d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or
powers. 
 (e) The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and reliance thereon. 
 (f) 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. 
 (g) The Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Trust Officer has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references
the Securities and this Indenture. 
 (h) The rights, privileges, protections, immunities and benefits given to the Trustee, including,
without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder. 

 42 
  

 (i) The Trustee may request that the Company deliver a certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture. 
 SECTION 7.03. Individual Rights
of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Subsidiaries or Affiliates with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
 SECTION 7.04. Trustee’s
Disclaimer. The Trustee 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 or any prospectus, offering or
solicitation documents, and it shall not be responsible for any statement in the Securities other than its certificate of authentication. 
 SECTION 7.05. Notice of Defaults. If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each Holder pursuant to Section 11.02 a notice of the Default within 90 days after it occurs.
Except in the case of a Default in any payment on any Security, the Trustee may withhold the notice if and so long as the board of directors, executive committee or a trust committee of officers in good faith determines that withholding the notice
is in the interests of Holders. 
 SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each April 1, beginning with
the April 1 following the date of this Indenture, the Trustee shall mail to each Holder a brief report dated as of such April 1 that complies with TIA Section 313(a), but only if such report is required in any year under TIA
Section 313(a). The Trustee also shall comply with TIA Sections 313(b) and 313(c). A copy of each report at the time of its mailing to Holders shall be filed with the SEC and each stock exchange on which the Securities are listed. The Company
shall notify the Trustee in writing when the Securities become listed on any national securities exchange or of any delisting thereof. 
 SECTION 7.07. Compensation and Indemnity. The Company and the Subsidiary Guarantors jointly and severally agree to pay the Trustee from time to time reasonable compensation for its services (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express trust). The Company and the Subsidiary Guarantors jointly and severally agree to reimburse the Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred by it. Such expenses shall include when applicable the reasonable compensation and expenses of the Trustee’s agents and counsel. 
 The Trustee shall not be under any obligation to institute any suit, or take any remedial action under this Indenture, or to enter any appearance or in any way defend any suit in which it may be a defendant, or to
take any steps in the execution of the trusts created 

 43 
  

 
hereby or thereby or in the enforcement of any rights and powers under this Indenture, until it shall be indemnified to its satisfaction against any and all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provisions of this Indenture, including compensation for services, costs, expenses, outlays, counsel fees and other disbursements, and against all
liability (including fees and expenses incurred by the Trustee pursuant to the penultimate paragraph of Section 7.08) not due to its negligence or willful misconduct. The Company and the Subsidiary Guarantors jointly and severally agree to
indemnify the Trustee against any loss, liability, claim, damage or expenses incurred by it arising out of or in connection with the acceptance and administration of the trust and its duties hereunder as Trustee, Registrar and/or Paying Agent,
including the costs and expenses of enforcing this Indenture against the Company (including with respect to this Section 7.07) and of defending itself against any claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The Trustee shall notify the Company and the Subsidiary Guarantors of any claim of which a Trust Officer has received written notice for which it may seek indemnity; however, unless the position of the Company is
prejudiced by such failure, the failure of the Trustee to promptly notify the Company shall not limit its right to indemnification. The Company shall defend each such claim and the Trustee shall cooperate in the defense. The Trustee may retain
separate counsel and the Company shall reimburse the Trustee for the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent. 
 Neither the Company nor the Subsidiary Guarantors shall be obligated to reimburse any expense or indemnify against any loss or liability incurred by the
Trustee through the Trustee’s own negligence or willful misconduct. To secure the payment obligations of the Company and the Subsidiary Guarantors in this Section, the Trustee shall have a claim prior to that of the Holders of the Securities on
all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities. The Trustee’s right to receive payment of any amounts due under this Section 7.07 shall not be
subordinate to any other liability or Indebtedness of the Company. 
 When the Trustee incurs expenses or renders services after the
occurrence of any Event of Default specified in Sections 6.01(8) or (9), the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. 
 The benefits of this Section shall survive termination of this Indenture and resignation or removal of the Trustee. 
 SECTION 7.08. Replacement of Trustee. The Trustee may resign by so notifying the Company and the Subsidiary Guarantors. The Holders of a majority
in principal amount of the Securities may remove the Trustee by so notifying the Trustee, in writing. The Company may remove the Trustee if: 
 (1) the Trustee fails to comply with Section 7.10; 

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 (2) the Trustee is adjudged a bankrupt or an insolvent; 
 (3) a receiver or other public officer takes charge of the Trustee or its property; or 
 (4) the Trustee becomes incapable of acting as Trustee hereunder. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company and the Subsidiary Guarantors.
Immediately after that and upon payment of its charges hereunder, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07, the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each Holder. 
 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of a majority in principal amount of the Securities may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee. 
 If the Trustee fails to comply with Section 7.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee. Any successor Trustee shall comply with TIA Section 310(a)(5). 
 SECTION 7.09. Successor Trustee
by Merger, etc. If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust assets to, another corporation, the successor corporation without any further act shall be the successor Trustee;
provided such corporation or association shall be otherwise eligible and qualified under this Article and shall notify the Company of its successor hereunder. 
 SECTION 7.10. Eligibility; Disqualification. This Indenture shall always have a Trustee which satisfies the requirements of TIA Section 310(a)(1). The Trustee shall always have a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. The Trustee shall also comply with TIA Section 310(b). 
 SECTION 7.11. Preferential Collection of Claims Against Company. The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has

 45 
  

 
resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 
 ARTICLE EIGHT 
 DISCHARGE OF INDENTURE

 SECTION 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. 
 The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, with respect
to the Securities, elect to exercise its rights pursuant to either Section 8.02 or 8.03 with respect to all outstanding Securities upon compliance with the conditions set forth below in this Article Eight. 
 SECTION 8.02. Legal Defeasance and Discharge. Upon the Company’s exercise under Section 8.01 of the option applicable to this
Section 8.02, the Company shall be deemed to have been discharged from its obligations with respect to all outstanding Securities on the date all conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this
purpose, such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Securities, which shall thereafter be deemed to be “outstanding” only for the purposes
of Section 8.05 and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Securities and this Indenture (and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Securities to receive solely from
the trust fund described in Section 8.04, and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, and interest on such Securities when such payments are due, (b) the Company’s obligations
with respect to such Securities under Sections 2.03, 2.04, 2.06, 2.07, 2.09 and 4.04, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s obligations in connection therewith (including, but not
limited to, Section 7.07) and (d) this Article Eight. Subject to compliance with this Article Eight, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under Section 8.03
with respect to the Securities. 
 SECTION 8.03. Covenant Defeasance. Upon the Company’s exercise under Section 8.01 of the
option applicable to this Section 8.03, the Company shall be released from its obligations under the covenants contained in the second sentence of Section 4.02, Sections 4.03, 4.07, 4.08, 4.09 and 4.10 and Article Five with respect to the
outstanding Securities on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Securities shall thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes 

 46 
  

 
hereunder (it being understood that such Securities shall not be deemed outstanding for accounting purposes). For this purpose, such Covenant Defeasance
means that, with respect to the outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under
Section 6.01(5), but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.01 of the option applicable to this
Section 8.03, Sections 6.01(4) through 6.01(9) shall not constitute Events of Default. 
 SECTION 8.04. Conditions to Legal or
Covenant Defeasance. The following shall be the conditions to application of either Section 8.02 or Section 8.03 to the outstanding Securities: 
 (a) The Company shall irrevocably have deposited or cause to be deposited with the Trustee (or another trustee satisfying the requirements of Section 7.10 who shall agree to comply with the provisions of this
Article Eight applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, (a) euro in an amount, or
(b) European Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, euro in an amount, or
(c) a combination thereof, in such amounts, as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge and
which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge the principal of, premium, if any, and interest on the outstanding Securities on the Maturity Date or on the applicable redemption date, as the case may be, of
such principal or installment of principal, premium, if any, or interest and in accordance with the terms of this Indenture and of such Securities; provided that the Trustee shall have been irrevocably instructed to apply such money or the
proceeds of such European Government Obligations to said payments with respect to the Securities. 
 (b) In the case of an election under
Section 8.02, the Company shall have delivered to the Trustee an Opinion of Counsel confirming that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date
hereof, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of the outstanding Securities will not recognize income, gain or loss for
federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

  

 47 
  

 (c) In the case of an election under Section 8.03, the Company shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders of the outstanding Securities will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
 (d) No Default
or Event of Default with respect to the Securities shall have occurred and be continuing on the date of such deposit or, insofar as Subsection 6.01(8) or 6.01(9) is concerned, at any time in the period ending on the 91st day after the date of
such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period); 
 (e) Such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which the Company is bound; 

(f) In the case of any election under Section 8.02 or 8.03, the Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit made by the Company pursuant to its election under Section 8.02 or 8.03 was not made by the Company with the intent of preferring the Holders over other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding creditors of the Company or others; and 
 (g) 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 either the Legal Defeasance under Section 8.02 or the Covenant Defeasance under Section 8.03 (as the case may be) have been complied
with as contemplated by this Section 8.04. 
 SECTION 8.05. Deposited Money and European Government Obligations to be Held in Trust;
Other Miscellaneous Provisions. Subject to Section 8.06, all money and European Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this
Section 8.05, the “Trustee”) pursuant to Section 8.04 in respect of the outstanding Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company or a Subsidiary Guarantor, if any, acting as Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law. 
 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the euro or European Government Obligations deposited pursuant to Section 8.04 or the principal and interest received
in respect thereof other than any 

 48 
  

 
such tax, fee or other charge which by law is for the account of the Holders of the outstanding Securities. 
 Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the Company’s
request any money or U.S. Government Securities held by it as provided in Section 8.04 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee
(which may be the opinion delivered under Section 8.04(a)), are in excess of the amount thereof which would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
 SECTION 8.06. Repayment to Company. 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, premium, if any, or interest on any Security which is not subject to the last paragraph of Section 8.05 and has remained unclaimed for two years after such principal, and premium, if any, or interest has become due
and payable shall be paid to the Company on its request (unless an abandoned property law designates another Person) or (if then held by the Company) shall be discharged from such trust; and the Holder of such Securities shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in the
[            ] and The Wall Street Journal (European edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
 SECTION 8.07.
Reinstatement. If the Trustee or Paying Agent is unable to apply any euro or European Government Obligations in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining, or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02
or 8.03 until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03, as the case may be; provided, however, that, if the Company makes any payment of principal of,
premium, if any, or interest on any Security following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent.
In the event the Company’s obligations under this Indenture and the Securities are revived and reinstated pursuant to this Section 8.07, then the obligations of each Subsidiary Guarantor under its Guarantee and this Indenture that were
released pursuant to Section 10.04 as a result of the Company’s exercise of its rights under this Article Eight shall be revived and reinstated as though such release had not occurred. 
  

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 ARTICLE NINE 
 AMENDMENTS, SUPPLEMENTS AND WAIVERS 
 SECTION 9.01. Without Consent of Holders.  
 The Company, the Subsidiary Guarantors and the Trustee may amend or supplement this Indenture or the Securities without notice to or consent of any
Holder: 
 (1) to cure any ambiguity, omission, defect or inconsistency; 
 (2) to comply with Section 5.01 or 10.02; 
 (3) to reflect the addition or release of any Subsidiary Guarantor, as provided for by this Indenture; 
 (4) to comply with any requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; or

 (5) to make any change that would provide any additional benefit or rights to the Holders or that does not adversely
affect the rights of any Holder in any material respect. 
 Upon the request of the Company and the Subsidiary Guarantors, accompanied by a
Board Resolution of the Company and of each Subsidiary Guarantor authorizing the execution of any such supplemental indenture, and upon receipt by the Trustee of the documents described in Section 9.06, the Trustee shall join with the Company
and the Subsidiary Guarantors in the execution of any supplemental indenture authorized or permitted by the terms of this Indenture and make any further appropriate agreements and stipulations that may be therein contained. After an amendment or
waiver under this Section becomes effective, the Company shall mail to the Holders of each Security affected thereby a notice briefly describing the amendment or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture. 
 SECTION 9.02. With Consent of Holders.
Except as provided below in this Section 9.02, the Company, the Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities with the written consent (including consents obtained in connection with a tender offer or exchange
offer for Securities or a solicitation of consents in respect of Securities, provided that in each case such offer or solicitation is made to all Holders of then outstanding Securities on equal terms) of the Holders of at least a majority of
the principal amount of the outstanding Securities. 
 Upon the request of the Company and the Subsidiary Guarantors, accompanied by a Board
Resolution of the Company and each Subsidiary Guarantor authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the 

 50 
  

 
consent of the Holders as aforesaid, and upon receipt by the Trustee of the Opinion of Counsel described in Section 9.06, the Trustee shall join with
the Company and the Subsidiary Guarantors in the execution of such supplemental indenture. 
 It shall not be necessary for the consent of
the Holders under this Section to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof. 
 The Holders of a majority of the principal amount of the outstanding Securities may waive compliance in a particular instance by the Company or the
Subsidiary Guarantors with any provision of this Indenture or the Securities (including waivers obtained in connection with a tender offer or exchange offer for Securities or a solicitation of consents in respect of Securities, provided that
in each case such offer or solicitation is made to all Holders of the then outstanding Securities on equal terms). However, without the consent of each Holder affected, an amendment or waiver under this Section may not: 
 (1) reduce the percentage of principal amount of Securities whose Holders must consent to an amendment, supplement or waiver of any
provision of this Indenture or the Securities; 
 (2) reduce the rate or change the time for payment of interest, including
default interest, on the Securities; 
 (3) reduce the principal amount of any Security or change the Maturity Date of the
Securities; 
 (4) reduce the redemption price, including premium, if any, payable upon the redemption of any Security or
change the time at which any Security may be redeemed; 
 (5) reduce the repurchase price payable upon the repurchase of any
Security in connection with a Net Proceeds Offer, or change the time at which any Security may or shall be repurchased thereunder; 
 (6) waive a Default or Event of Default in the payment of the principal of, premium, if any, or interest on the Securities; 
 (7) make any Security payable in money other than that stated in the Security; 
 (8) impair
the right to institute suit for the enforcement of principal of, premium, if any, or principal on any Security pursuant to Sections 6.07 or 6.08, except as limited by Section 6.06; or 
 (9) make any change in Section 6.04 or Section 6.07 or in this sentence of this Section 9.02. 
  

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 The Company will, for so long as the Securities are listed on the Official List of the Irish Stock
Exchange and admitted to trading on the Alternative Securities Market thereof, to the extent required by the rules of the Irish Stock Exchange, inform the Irish Stock Exchange of any of the foregoing amendments, supplements and waivers and provide,
if necessary, a supplement to this prospectus setting forth reasonable details in connection with any such amendments, supplements or waivers. 
 The right of any Holder to participate in any consent required or sought pursuant to any provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise required from such Holder) may be subject to the
requirement that such Holder shall have been the Holder of record of any Securities with respect to which such consent is required or sought as of a date identified by the Trustee in a notice furnished to Holders in accordance with the terms of this
Indenture. 
 SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to or supplement of this Indenture or the Securities
shall comply with the TIA as then in effect. 
 SECTION 9.04. Revocation and Effect of Consents. A consent to an amendment, supplement
or waiver by a Holder of a Security shall bind 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, until an amendment, supplement or waiver becomes effective, any such Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security. For such revocation to be effective, the Trustee must receive the
notice of revocation before the date the amendment, supplement or waiver becomes effective. 
 The Company may, but shall not be obligated
to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment or waiver. If the Company elects to fix a record date for such purpose, the record date shall be fixed at (i) the later of 30 days prior to
the first solicitation of such consent or the date of the most recent list of Holders furnished to the Trustee prior to such solicitation pursuant to Section 2.05, or (ii) such other date as the Company shall designate. If a record date is
fixed, then notwithstanding the provisions of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to consent to such amendment or
waiver or to revoke any consent previously given, whether or not such Persons continue to be Holders after such record date. No consent shall be valid or effective for more than 90 days after such record date unless consent from the Holders of the
principal amount of Securities required hereunder for such amendment or waiver to be effective also shall have been given and not revoked within such 90-day period. 
 After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless it makes a change described in any of clauses (1) through (9) of Section 9.02. In that case the amendment,
supplement or waiver shall bind each Holder of a Security who has 

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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.

 SECTION 9.05. Notation on or Exchange of Senior Notes. If an amendment, supplement or waiver changes the terms of a Security, the
Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. 
 SECTION 9.06. Trustee Protected. The Trustee shall sign any amendment or supplement or waiver authorized pursuant to this Article if the amendment or supplement or waiver does not adversely affect the rights of the Trustee. If it
does adversely affect the rights of the Trustee, the Trustee may but need not sign it. In signing such amendment or supplement or waiver the Trustee shall be provided with, and (subject to Article Seven) shall be fully protected in relying upon, an
Opinion of Counsel stating that such amendment or supplement or waiver is authorized or permitted by and complies with this Indenture. The Company may not sign an amendment or supplement until the Boards of Directors of the Company and the
Subsidiary Guarantors approve it. 
 ARTICLE TEN 
 GUARANTEES 
 SECTION 10.01. Unconditional Guarantee. Each Subsidiary Guarantor hereby, jointly and
severally, fully and unconditionally guarantees, as principal obligor and not only as surety (such guarantee to be referred to herein as the “Guarantee”), to each Holder and to the Trustee the due and punctual payment of the principal of,
premium, if any, and interest on the Securities and all other amounts due and payable under this Indenture and the Securities by the Company whether at maturity, by acceleration, redemption, repurchase or otherwise, including, without limitation,
interest on the overdue principal of, premium, if any, and interest on the Securities, to the extent lawful, all in accordance with the terms hereof and thereof; subject, however, to the limitations set forth in Section 10.05. 
 Failing payment when due of any amount so guaranteed for whatever reason, the Subsidiary Guarantors will be jointly and severally obligated to pay the
same immediately. Each Subsidiary Guarantor hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Securities or this Indenture, the absence of any action to enforce the
same, any waiver or consent by any Holder of the Securities with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor. Each Subsidiary Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy 

 53 
  

 
of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations contained in the Securities, this Indenture and in this Guarantee. If any Holder or the Trustee is required by any court or otherwise to return to the Company, any Subsidiary
Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the Company or any Subsidiary Guarantor, any amount paid by the Company or any Subsidiary Guarantor to the Trustee or such Holder, this Guarantee, to
the extent theretofore discharged, shall be reinstated in full force and effect. Each Subsidiary Guarantor agrees it shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby. Each Subsidiary Guarantor further agrees that, as between each Subsidiary Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article Six for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any acceleration of such obligations as provided in Article Six, such obligations (whether or not due and payable) shall forthwith become due and payable by each Subsidiary Guarantor for the purpose of this Guarantee.

 SECTION 10.02. Subsidiary Guarantors May Consolidate, etc., on Certain Terms. (a) Subject to paragraph (b) of this
Section 10.02, no Subsidiary Guarantor may consolidate or merge with or into (whether or not such Subsidiary Guarantor is the surviving Person) another Person unless (i) the Person formed by or surviving any such consolidation or merger
(if other than such Subsidiary Guarantor) assumes all the obligations of such Subsidiary Guarantor under this Indenture and the Securities pursuant to a supplemental indenture, in a form reasonably satisfactory to the Trustee and
(ii) immediately after such transaction, no Default or Event of Default exists. In connection with any consolidation or merger contemplated by this Section 10.02, the Company shall deliver to the Trustee prior to the consummation of the
proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture. This Section 10.02(a) will not prohibit a
merger between Subsidiary Guarantors or a merger between the Company and a Subsidiary Guarantor. 
 (b) In the event of a sale or other
disposition of all or substantially all of the assets of any Subsidiary Guarantor or a sale or other disposition of all of the Capital Stock of such Subsidiary Guarantor, in any case by way of merger, consolidation or otherwise, then such Subsidiary
Guarantor (in the event of a sale or other disposition, by way of such a merger, consolidation or otherwise, of all of the Capital Stock of such Subsidiary Guarantor) or the Person acquiring the assets (in the event of a sale or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor) will be released and relieved of any obligations under its Guarantees. 
 SECTION 10.03. Addition of Subsidiary Guarantors. (a) The Company agrees to cause each United States Subsidiary that shall become a Subsidiary after the Issue Date and that guarantees any other 

 54 
  

 
Indebtedness of the Company or a Subsidiary Guarantor in excess of a De Minimis Guaranteed Amount to execute and deliver a supplemental indenture pursuant to
which such Subsidiary shall guarantee the payment of the Securities pursuant to the terms hereof within 180 days after the later of (i) the date that Subsidiary becomes a United States Subsidiary and (ii) the date that Subsidiary
guarantees such other Indebtedness; provided that no guarantee shall be required if the Subsidiary merges into the Company or an existing Subsidiary Guarantor and the surviving entity remains a Subsidiary Guarantor. 
 (b) Any Person that was not a Subsidiary Guarantor on the Issue Date may become a Subsidiary Guarantor by executing and delivering to the Trustee
(i) a supplemental indenture in form and substance satisfactory to the Trustee, which subjects such Person to the provisions (including the representations and warranties) of this Indenture as a Subsidiary Guarantor and (ii) an Opinion of
Counsel and Officers’ Certificate to the effect that such supplemental indenture has been duly authorized and executed by such Person and constitutes the legal, valid and binding obligation of such Person (subject to such customary exceptions
concerning creditors’ rights and equitable principles as may be acceptable to the Trustee in its discretion and provided that no opinion need be rendered concerning the enforceability of the Guarantee). 
 SECTION 10.04. Release of a Subsidiary Guarantor. Upon (i) the sale or disposition of a Subsidiary Guarantor (or all or substantially all of
its assets) or (ii) the cessation by a Subsidiary Guarantor to guarantee any other Indebtedness of the Company or any other Subsidiary Guarantor other than a De Minimis Guaranteed Amount, in each case which is otherwise in compliance with the
terms of this Indenture, including but not limited to the provisions of Section 10.02, such Subsidiary Guarantor shall be deemed released from all of its Guarantee and related obligations in this Indenture without any further action by the
Trustee, the Company or such Subsidiary Guarantor. Subject to Section 8.07, upon the Company’s election, in compliance with the conditions set forth in Article Eight hereof, to exercise its rights pursuant to either Section 8.02 or
8.03 with respect to all outstanding Securities, each Subsidiary Guarantor shall be deemed released from all of its Guarantee and related obligations in this Indenture without any further action by the Trustee, the Company or any Subsidiary
Guarantor. The Trustee shall deliver an appropriate instrument evidencing such release upon receipt of a request by the Company accompanied by an Officers’ Certificate and, in the case of the release of a Subsidiary Guarantor pursuant to clause
(i) of the first sentence of this Section 10.04, an Opinion of Counsel certifying that such sale or other disposition was made by the Company in accordance with the provisions of this Indenture. Any Subsidiary Guarantor not so released
remains liable for the full amount of principal of and interest on the Securities as provided in this Article Ten. 
 SECTION 10.05.
Limitation of Subsidiary Guarantor’s Liability. Each Subsidiary Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the guarantee by such Subsidiary Guarantor pursuant to
its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any federal, state or non-United States law. To effectuate the foregoing intention, the Holders and each Subsidiary Guarantor hereby irrevocably 

 55 
  

 
agree that the obligations of each Subsidiary Guarantor under the Guarantee shall be limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Subsidiary Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under
its Guarantee or pursuant to Section 10.06, result in the obligations of such Subsidiary Guarantor under the Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal, state or non-United States law. This
Section 10.05 is for the benefit of the creditors of each Subsidiary Guarantor, and, for purposes of applicable fraudulent transfer and fraudulent conveyance law, any Indebtedness of a Subsidiary Guarantor pursuant to Credit Facilities shall be
deemed to have been incurred prior to the incurrence by such Subsidiary Guarantor of its liability under the Guarantee. 
 SECTION 10.06.
Contribution. In order to provide for just and equitable contribution among the Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the event any payment or distribution is made by any Subsidiary Guarantor (a
“Funding Guarantor”) under the Guarantee, such Funding Guarantor shall be entitled to a contribution from each other Subsidiary Guarantor in a pro rata amount based on the Adjusted Net Assets of each Subsidiary Guarantor (including the
Funding Guarantor) for all payments, damages and expenses incurred by the Funding Guarantor in discharging the Company’s obligations with respect to the Securities or any other Subsidiary Guarantor’s obligations with respect to the
Guarantee. 
 SECTION 10.07. [Intentionally Omitted.] 
 SECTION 10.08. Severability. In case any provision of this Guarantee shall be invalid, illegal or unenforceable, that portion of such provision that is not invalid, illegal or unenforceable shall remain in
effect, and the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 ARTICLE ELEVEN 
 MISCELLANEOUS 
 SECTION 11.01. Trust Indenture Act Controls. Whether prior to or following the qualification of this Indenture under the TIA, if any provision of this Indenture limits, qualifies, or conflicts with the duties imposed by operation of
TIA Section 318(c) upon an indenture qualified under the TIA, the imposed duties shall control under this Indenture. 
 SECTION 11.02.
Notices. Any notice or communication shall be sufficiently given if in writing and delivered in person or mailed by certified or registered mail (return receipt requested), facsimile, telecopier or overnight air courier guaranteeing next day
delivery, addressed as follows: 
 If to the Company or any Subsidiary Guarantor: 

 56 
  

 Chesapeake Energy Corporation 
 6100 North Western Avenue 
 Oklahoma City, Oklahoma 73118 
 Attention:        Treasurer

 Fax:                 (405) 879-9572

 If to the Trustee: 
 The Bank of New York Trust Company, N.A. 
 [            ] 
 Attention:
         [                ] 
 Fax:                  [                ] 
 The Company or any Subsidiary Guarantor or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or
communications. 
 All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if faxed or telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery. 
 Any notice or communication mailed to a Holder shall be mailed by first-class mail to the address for such
Holder appearing on the registration books of the Registrar and shall be sufficiently given to such Holder if so mailed within the time prescribed. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. 
 If a notice or communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it. If the Company or any Subsidiary Guarantor mails notice or communications to Holders, it shall mail a copy to the Trustee and each Agent at the same time. 
 In addition, for so long as any Securities are listed on the Official List of the Irish Stock Exchange and are admitted to trading on the Alternative
Securities Market thereof, and its rules so require, all notices to Holders will also be published by the Company by delivery to the Companies Announcement Office in Dublin. If publication as provided above is not practicable, notice will be given
in such other manner, and shall be deemed to have been given on such date, as the Trustee may approve. 
 SECTION 11.03. Communication by
Holders with Other Holders. Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Subsidiary Guarantors, the Trustee, the Registrar
and anyone else shall have the protection of TIA Section 312(c). 
  

 57 
  

 SECTION 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or application
by the Company or any Subsidiary Guarantor to the Trustee to take any action under this Indenture, the Company or such Subsidiary Guarantor, as the case may be, shall furnish to the Trustee: 
 (1) an Officers’ Certificate (which shall include the statements set forth in Section 11.05) stating that, in the opinion of
the signers, the conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 
 (2) an Opinion of Counsel stating that, in the opinion of such counsel, such conditions precedent have been complied with. 
 SECTION 11.05. 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: 
 (1) a statement that each person making such certificate or opinion has read such covenant or condition; 
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
 (3) a statement that, in the opinion of each such person, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (4) a statement as to whether or not, in the opinion of each such person, such covenant or condition has been complied with. 

SECTION 11.06. Rules by Trustee and Agents. The Trustee may make reasonable rules for actions taken by, or meetings or consents of, Holders.
The Registrar or Paying Agent may make reasonable rules for its functions. 
 SECTION 11.07. Legal Holidays. A “Legal
Holiday” is a Saturday, a Sunday, or a day on which banks and trust companies in any of Dublin, Ireland, London, United Kingdom, Frankfurt, Germany, or New York, New York are required by law or executive order to be closed. If a payment date is
a Legal Holiday at a place of payment, payment may be made at the place on the next succeeding day that is not a Legal Holiday, without additional interest. 
 SECTION 11.08. Governing Law. THIS INDENTURE AND THE SECURITIES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED 

 58 
  

 
THEREBY, EXCEPT TO THE EXTENT THAT THE LAWS OF THE STATE OF NEW YORK WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION REGARDING THE VALIDITY
OF THE SECURITIES. 
 SECTION 11.09. No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company, any Subsidiary Guarantor or any other Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
 SECTION 11.10. No Recourse Against Others. All liability described in Paragraph 22 of the Securities of any director, officer, employee or
stockholder, as such, of the Company, the Subsidiary Guarantors or the Trustee is waived and released. 
 SECTION 11.11. Successors.
All agreements of the Company and the Subsidiary Guarantors in this Indenture, the Securities and the Guarantees shall bind their respective successors. All agreements of the Trustee in this Indenture shall bind its successor. 
 SECTION 11.12. Duplicate Originals. The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same instrument. 
 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, and a Holder shall have no claim therefor against any party hereto.

  

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

							
	CHESAPEAKE ENERGY CORPORATION,
			
		 	By:	 	  

		 		 	Name:	 	Jennifer M. Grigsby
		 		 	Title:	 	Vice President, Assistant Treasurer and Corporate Secretary
	
	SUBSIDIARY GUARANTORS:
	
	 Chesapeake Eagle Canada Corp.
 Chesapeake
Energy Louisiana Corporation
 Chesapeake Energy Marketing, Inc.
 Chesapeake Operating, Inc.
 Chesapeake South Texas Corp.
 Nomac Drilling Corporation
 Carmen Acquisition, L.L.C.
 Chesapeake Acquisition, L.L.C.
 Chesapeake Appalachia, L.L.C.
 Chesapeake Land Company, L.L.C.
 Chesapeake ORC, L.L.C.
 Chesapeake Royalty, L.L.C.
 Gothic Production, L.L.C.
 Hawg Hauling & Disposal, LLC
 Hodges Trucking Company, L.L.C.
 Mayfield Processing, L.L.C.
 MC Mineral Company, L.L.C.
 W.W. Realty, L.L.C.

			
		 	By:	 	  

		 		 	Name:	 	Jennifer M. Grigsby
		 		 	Title:	 	Vice President, Assistant Treasurer and Corporate Secretary

  

							
	 Chesapeake Exploration Limited
 Partnership
 Chesapeake Louisiana, L.P.
 Chesapeake
Sigma, L.P.

			
		 	By	 	Chesapeake Operating, Inc., as general partner of each respective entity
			
		 	By:	 	  

		 		 	Name:	 	Jennifer M. Grigsby
		 		 	Title:	 	Vice President, Assistant Treasurer and Corporate Secretary
	
	Midcon Compression, L.P.,
			
		 	By	 	Chesapeake Energy Marketing, Inc., as general partner
			
		 	By:	 	  

		 		 	Name:	 	Jennifer M. Grigsby
		 		 	Title:	 	Vice President, Assistant Treasurer and Corporate Secretary

							
	 THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

			
		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	Authorized Signatory
	
	[·], as Irish Transfer and Paying Agent
			
		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	Authorized Signatory
	
	[·], as Registrar, Transfer Agent and Paying Agent
			
		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	Authorized Signatory

  

 A-1 
  

 APPENDIX 
 PROVISIONS RELATING TO SECURITIES 
 1.         Definitions 

1.1 Definitions 
 For the purposes
of this Appendix the following terms shall have the meanings indicated below: 
 “Common Depositary” means
[            ], its nominees and their respective successors. 
 “Securities” means (1) €400 million aggregate principal amount of 7.625% Senior Notes due 2013 issued on the Issue Date and (2) Additional Securities, if any, issued in one or more transactions.

 “Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Common Depositary), or any
successor Person thereto and shall initially be the Trustee. 
 1.2 Other Definitions 
  

			
	Term	  	Defined in
Section:
	 “Agent Members”
	  	2.1(b)
	 “Global Security”
	  	2.1(a)

 2.        The Securities. 
 2.1 (a) Form and Dating. Securities shall be issued initially in the form of one or more permanent global Securities in definitive, fully
registered form without interest coupons with the global securities legend set forth in Exhibit 1 hereto (each, a “Global Security”), which shall be deposited on behalf of the purchasers of the Securities represented thereby with a
Common Depositary, and registered in the name of the Common Depositary or a nominee of the Common Depositary, for the accounts of Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Common Depositary or its nominee as hereinafter provided. 
 (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Security deposited with or on behalf of the Common Depositary.

 The Company shall execute and the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or
more Global Securities that (a) shall be registered in the name of the Common Depositary for such Global Security or Global Securities or the nominee of such Common Depositary and (b) shall be delivered by the Trustee to such Common
Depositary or pursuant to such Common 

 A-2 
  

 
Depositary’s instructions or held by the Trustee as Securities Custodian. 
 Members of, or participants in, Euroclear or Clearstream (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Common Depositary or by
the Trustee as Securities Custodian or under such Global Security, and the Company, the Trustee and any agent of the Company or the Trustee shall be entitled to treat the Common Depositary as the absolute owner of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the
Euroclear or Clearstream or impair, as between Euroclear and Clearstream and its Agent Members, the operation of customary practices of such Common Depositary governing the exercise of the rights of a holder of a beneficial interest in any Global
Security. 
 (c) Certificated Securities. Except as provided in this Section 2.1 or Section 2.3 or 2.4, owners of beneficial
interests in Global Securities shall not be entitled to receive physical delivery of certificated Securities. 
 2.2
Authentication. The Trustee shall authenticate and deliver: (1) on the Issue Date, an aggregate principal amount of €400 million [·]% Senior Notes due 2017 and (2) from time to time after the Issue Date, any Additional Securities for an original issue in an aggregate principal amount specified in the written order of the Company pursuant to
Section 2.02 of the Indenture. Such order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated. 
 2.3 Transfer and Exchange. 
 (a) Transfer
and Exchange of Global Securities. (i) The transfer and exchange of Global Securities or beneficial interests therein shall be effected through the Common Depositary, in accordance with the Indenture and the procedures of Euroclear or
Clearstream, as applicable, therefor. A transferor of a beneficial interest in a Global Security shall deliver to the Registrar a written order given in accordance with Euroclear’s or Clearstream’s procedures containing information
regarding the participant account of Euroclear or Clearstream, as applicable, to be credited with a beneficial interest in the Global Security. The Registrar shall, in accordance with such instructions instruct the Common Depositary to credit to the
account of the Person specified in such instructions a beneficial interest in the Global Security and to debit the account of the Person making the transfer the beneficial interest in the Global Security being transferred. 
 (ii) Notwithstanding any other provisions of this Appendix (other than the provisions set forth in Section 2.4), a Global Security may not be
transferred as a whole except by the Common Depositary to a nominee of the Common Depositary or by a nominee of the Common Depositary to the Common Depositary or another nominee of the Common Depositary or by the Common Depositary or any such
nominee to a 

 A-3 
  

 
successor Common Depositary or a nominee of such successor Common Depositary. 
 (b) Cancelation or Adjustment of Global Security. At such time as all beneficial interests in a Global Security have either been exchanged for certificated Securities, redeemed, purchased or canceled, such
Global Security shall be returned to the Common Depositary for cancelation or retained and canceled by the Trustee. At any time prior to such cancelation, if any beneficial interest in a Global Security is exchanged for certificated Securities,
redeemed, purchased or canceled, the principal amount of Securities represented by such Global Security shall be reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the Securities Custodian for such Global
Security) with respect to such Global Security, by the Trustee or the Securities Custodian, to reflect such reduction. 
 (c) Obligations
with Respect to Transfers and Exchanges of Securities. 
 (i) To permit registrations of transfers and exchanges, the
Company shall execute and the Trustee shall authenticate certificated Securities and Global Securities at the Registrar’s or co-registrar’s request. 
 (ii) No service charge shall be made for any registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any transfer tax, assessments, or similar governmental charge payable in connection therewith (other than any such transfer taxes, assessments or similar governmental charge payable upon exchange or transfer pursuant to
Section 3.06 of the Indenture). 
 (iii) The Registrar or co-registrar shall not be required to register the transfer of
or exchange of any Security for a period beginning 15 Business Days before the mailing of a notice of an offer to repurchase or redeem Securities or 15 Business Days before an interest payment date. 
 (iv) Prior to the due presentation for registration of transfer of any Security, the Company, the Trustee, the Paying Agent, the
Registrar or any co-registrar may deem and treat the person in whose name a Security is registered as the absolute owner of such Security for the purpose of receiving payment of principal of and interest on such Security and for all other purposes
whatsoever, whether or not such Security is overdue, and none of the Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected by notice to the contrary. 
 (v) All Securities issued upon any transfer or exchange pursuant to the terms of this Indenture shall evidence the same debt and shall be
entitled to the same benefits under the Indenture as the Securities surrendered upon such transfer or exchange. 
  

 71 
  

 (d) No Obligation of the Trustee. 
 (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a Global Security, Agent Member or other Person
with respect to the accuracy of the records of Euroclear or Clearstream, as applicable, or any nominee or of any Agent Member, with respect to any ownership interest in the Securities or with respect to the delivery to any Agent Member, beneficial
owner or other Person (other than the Common Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Securities. All notices and communications to be given to the Holders and all
payments to be made to Holders under the Securities shall be given or made only to or upon the order of the registered Holders (which shall be the Common Depositary or its nominee in the case of a Global Security). The rights of beneficial owners in
any Global Security shall be exercised only through the Common Depositary subject to the applicable rules and procedures of Euroclear or Clearstream, as applicable. The Trustee may rely and shall be fully protected in relying upon information
furnished by the Common Depositary with respect to its Agent Member and any beneficial owners. 
 (ii) The Trustee shall have
no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers
between or among Agent Members or beneficial owners in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the
terms of the Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 
 2.4
Certificated Securities. 
 (a) A Global Security deposited with the Common Depositary or with the Trustee as Securities Custodian
pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form of certificated Securities in an aggregate principal amount equal to the principal amount of such Global Security, in exchange for such Global Security,
only if such transfer complies with Section 2.3 and (i) Euroclear or Clearstream, as applicable, acting through itself or the Common Depositary, notifies the Company that it is unwilling or unable to continue as a clearing system for such
Global Security and a successor depositary is not appointed by the Company within 90 days of such notice or (ii) an event of default has occurred and is continuing or (iii) the Company, in its sole discretion, notifies the Trustee in
writing that it elects to cause the issuance of certificated Securities under the Indenture. 
 (b) Any Global Security that is transferable
to the beneficial owners thereof pursuant to this Section shall be surrendered by the Common Depositary to the Trustee located at its principal corporate trust office, to be so transferred, in whole or from time to time in part, without charge, and
the Trustee shall authenticate and 

 A-5 
  

 
deliver, upon such transfer of each portion of such Global Security, an equal aggregate principal amount of certificated Securities of authorized
denominations. Any portion of a Global Security transferred pursuant to this Section shall be executed, authenticated and delivered only in denominations of €50,000 principal amount and any integral multiple of €1,000 in excess thereof and
registered in such names as the Common Depositary shall direct. 
 (c) Subject to the provisions of Section 2.4(b), the registered
Holder of a Global Security shall be entitled to grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under the
Indenture or the Securities. 
 (d) In the event of the occurrence of any of the events specified in Section 2.4(a), the Company shall
promptly make available to the Trustee a reasonable supply of certificated Securities in definitive, fully registered form without interest coupons. 
  

 EXHIBIT 1 
 to 
 APPENDIX 
 [FACE OF SECURITY] 
 [Global Securities Legend] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM
(“EUROCLEAR”), OR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ITS
AUTHORIZED NOMINEE OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR OR CLEARSTREAM (AND ANY PAYMENT IS MADE TO ITS AUTHORIZED NOMINEE, OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
EUROCLEAR OR CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, ITS AUTHORIZED NOMINEE, HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF EUROCLEAR OR CLEARSTREAM OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  

 B–1 

			
	No.	  	COMMON CODE NO.
	€	  	ISIN NO.

 [·]% Senior Notes due 2017 
 Chesapeake Energy Corporation, an Oklahoma corporation, promises to pay to CEDE & CO., or
registered assigns, the principal sum of €
                                        
                                        
                     [insert in Global Securities - or such other amounts as shall be set forth in the Schedule of Increases or Decreases in
Global Security attached hereto] on January 15, 2017. 
 Interest Payment Dates: January 15 and July 15 (commencing
January 15, 20071) 
 Record Dates: January 1 and July 1 
 Additional provisions of this Security are set forth on the
other side of this Security. 
 Dated:
                             
  

							
	CHESAPEAKE ENERGY CORPORATION,
			
		 	by	 	  

		 		 	Name:	 	
		 		 	Title:	 	
			
		 	by	 	  

		 		 	Name:	 	
		 		 	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  

					
	 THE BANK OF NEW YORK TRUST COMPANY,
 N.A., AS TRUSTEE, CERTIFIES THAT THIS IS ONE OF THE SECURITIES REFERRED TO IN THE INDENTURE.

			
		 	 by
	 	  

		 		 	Authorized Signatory

  

 1 Or such later date as is appropriate in the case of Additional Securities.

  

 B–2 

 [REVERSE SIDE OF SECURITY] 
 [·]% Senior Note due 2017 
  

	1.	Interest 

 Chesapeake Energy Corporation, an
Oklahoma corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum
shown above. The Company will pay interest semiannually on January 15 and July 15 of each year, commencing January 15, 20071. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from January 15, 20072. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  

	2.	Method of Payment 

 The Company will pay interest
on the Securities (except defaulted interest) to the Persons who are registered holders of Securities at the close of business on the January 1 or July 1 next preceding the interest payment date even if Securities are canceled after the
record date and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Company will pay principal and interest in euro or such other lawful currency of the participating member
states in the Third Stage of European Economic and Monetary Union of the Treaty Establishing the European Community that at the time of payment is legal tender for payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by Clearstream or Euroclear. The Company will make all payments in respect of a
certificated Security (including principal, premium and interest), at the office of the relevant Paying Agent, except therein, at the option of the Company, payment of interest may be made by mailing a check to the registered address of each Holder
thereof. 
  

	3.	Paying Agent and Registrar 

 Initially, The Bank of
New York Trust Company, N.A., a national banking association (the “Trustee”), will act as Registrar, Transfer Agent and Paying Agent. The Company may appoint and change any Paying Agent, Registrar, Transfer Agent or co-registrar
without notice. The Company or any of its Wholly Owned Subsidiaries may act as Transfer Agent, Paying Agent, Registrar or co-registrar. 
  

 1 Or such later date as is appropriate in the case of Additional Securities. 
 2 Or such later date as is appropriate in the case of Additional Securities. 
  

 B–3 

 So long as the Securities are listed on the Official List of the Irish Stock Exchange and admitted to
trading on the Alternative Securities Market thereof and its rules so require, the Issuers shall maintain, at all times that payments are required to be made in respect of the Securities, a paying agent and transfer agent in Dublin, Ireland.
Initially, [·] will act as Irish paying agent and transfer agent. 
  

	4.	Indenture 

 The Company issued the Securities under
an Indenture dated as of November [·], 2006 (“Indenture”), among the Company, the Subsidiary Guarantors, the Trustee, [·], as Registrar , Transfer Agent and Paying Agent, and [·], as Irish Paying Agent and Transfer Agent. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such
terms, and Holders are referred to the Indenture and the Act for a statement of those terms. 
 The Company shall be entitled to issue
Additional Securities pursuant to Section 2.13 of the Indenture. The Securities issued on the Issue Date and any Additional Securities will be treated as a single class for all purposes under the Indenture. 
  

	5.	Make-Whole Price Redemption 

 At any time prior to
the Maturity Date, the Company may, at its option, redeem all or any portion of the Securities at the “Make-Whole Price” (as defined in the Indenture) plus accrued and unpaid interest on the Securities so redeemed to the date of
redemption. Any redemption pursuant to this paragraph 5 shall be made, to the extent applicable, pursuant to the provisions of Sections 3.01 through 3.06 of the Indenture. 
  

	6.	Redemption Upon Changes in Withholding Taxes 

 If,
as a result of: 
 (a) any amendment to, or change in, the laws (or regulations or rulings promulgated thereunder) of any Relevant Taxing
Jurisdiction (as defined in paragraph 7 below), or (b) any change in the official application or the official interpretation or administration of such laws, regulations or rulings (including a holding, judgment or order by a court of competent
jurisdiction or a change in published practice), (each of the foregoing in clauses (a) and (b) a “Change in Tax Law”), the Company, any Subsidiary Guarantor or any Successor would be obligated to pay on the next date for any
payment, Additional Amounts (as defined in paragraph 7 below) which the company, such Subsidiary Guarantor or such Successor cannot avoid by the use of reasonable measures available to it (including making payment through a paying agent located in
another jurisdiction), then the Company or such Successor, as the case may be, may redeem all, but not less than all, of the Securities at any time after such amendment 

  

 B–4 

 
or change, upon not less than 30 nor more than 60 days’ notice, at a redemption price of 100% of their principal amount, plus accrued and unpaid
interest, if any, to the redemption date. In the case of the United States or any other jurisdiction that is a Relevant Taxing Jurisdiction on the Issue Date, the applicable Change in Tax Law must become effective on or after the date of the
Prospectus. In the case of a jurisdiction that becomes a Relevant Taxing Jurisdiction after the Issue Date, the applicable Change in Tax Law must become effective after the date that such jurisdiction becomes a Relevant Taxing Jurisdiction.

 Prior to the giving of any notice of redemption described in this paragraph 6, the Company, or the Successor, as the case may be, will
deliver to the Trustee: 
 (i) an Officers’ Certificate of the Company, or the Successor, as the case may be, stating that the
obligation to pay such Additional Amounts cannot be avoided by the Company, such Subsidiary Guarantor or such Successor taking reasonable measures available to it; and 
 (ii) a written opinion of independent legal counsel of recognized standing addressed to the Company or the Successor, as the case may be, to the effect that the Company, such Subsidiary Guarantor or such Successor has
or will become obligated to pay such Additional Amounts as a result of a Change in Tax Law described above. 
 Absent manifest error, the
Trustee will accept such Officers’ Certificate and opinion as sufficient evidence of the satisfaction of the conditions to a redemption upon a Change in Tax Law, including any changes in withholding taxes, in which event it will be conclusive
and binding Holders of the Securities. 
 Notwithstanding the foregoing, no such notice will be given (a) earlier than 90 days prior to
the earliest date on which the Company or the relevant Successor or Subsidiary Guarantor, as the case may be, would be obliged to pay such Additional Amounts if a payment were then due and (b) unless at the time such notice is given, such
obligation to pay such Additional Amounts remains in effect. 
  

	7.	Payment of Additional Amounts 

 All payments that
the Company, any Subsidiary Guarantor or any Successor makes under or with respect to the Securities, or that any Subsidiary Guarantor makes with respect to any Guarantee, will be made free and clear of, and without withholding or deduction for or
on account of, any present or future tax, duty, levy, impost, assessment or other governmental charges (including, without limitation, penalties, interest and other similar liabilities related thereto) of whatever nature (collectively,
“Taxes”) imposed or levied by or on behalf of any jurisdiction in which the Company, or, if applicable, any Subsidiary Guarantor or any Successor, as the case may be, is incorporated, organized or otherwise resident for tax purposes or
from or through which any of the foregoing makes any payment on the Securities or by any taxing authority therein or political subdivision thereof (each, as applicable, a “Relevant Taxing Jurisdiction”), unless 

  

 B–5 

 
the Company, such Subsidiary Guarantor or such Successor, as the case may be, is required to withhold or deduct Taxes by law or by the interpretation or
administration of law. If the Company, a Subsidiary Guarantor or such Successor is required to withhold or deduct any amount for, or on account of, Taxes of a Relevant Taxing Jurisdiction from any payment made under or with respect to the Securities
or any Guarantee, the Company, such Subsidiary Guarantor or such Successor, as the case may be, will pay such additional amounts (“Additional Amounts”) as may be necessary to ensure that the net amount received by each Holder of the
Securities after such withholding deduction will be not less than the amount the Holder would have received if such Taxes had not been required to be withheld or deducted. 
 Notwithstanding the foregoing, neither the Company, any Subsidiary Guarantor nor any Successor will, however, be required to pay Additional Amounts to a
Holder or beneficial owner of Securities in respect of or on account of: 
 (a) any Taxes that are imposed or levied by a Relevant Taxing
Jurisdiction by reason of the Holder’s or beneficial owner’s present or former connection with such Relevant Taxing Jurisdiction, including without limitation, the Holder or beneficial owner being or having been a citizen, national or
resident, being or having been engaged in a trade or business, being or having been, physically present in or having or having had a permanent establishment in a Relevant Taxing Jurisdiction (but not including in each case, any connection arising
from the mere receipt or holding of Securities or the receipt of payments thereunder or under a Guarantee or the exercise of enforcement of rights under any Securities or the Indenture or a Guarantee); 
 (b) any Taxes that are imposed or levied by reason of the failure of the Holder or beneficial owner of Securities, following the written request of the
Company, any Subsidiary Guarantor or any Successor (as the case may be) addressed to the Holder (and made at a time that could enable the Holder or beneficial owner acting reasonably to comply with that request) made in accordance with the notice
procedures set forth in the Indenture, to comply with any certification, identification, information or other reporting requirements, whether required by statute, treaty, regulation or administrative practice of a Relevant Taxing Jurisdiction, as a
precondition to exemption from or reduction in the rate of withholding or deduction of, Taxes imposed by the Relevant Taxing Jurisdiction (including without limitation, a certification that the Holder or beneficial owner is not resident in the
Relevant Taxing Jurisdiction); 
 (c) any estate, inheritance, gift, sales, transfer, personal property or similar Taxes; 
 (d) any Tax that is payable otherwise than by withholding or deduction from payments made under or with respect to the Securities; 
 (e) any Tax that is imposed or levied by reason of the presentation (where presentation is required in order to receive payment) of such Securities for
payment on a date more than 30 days 

  

 B–6 

 
after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever is later, except to the
extent that the beneficial owner or Holder thereof would have been entitled to Additional Amounts had the Securities been presented for payment on any date during such 30-day period; 
 (f) any withholding or deduction in respect of any Taxes where such withholding or deduction is imposed or levied on a payment to an individual and is
required to be made pursuant to European Council Directive 2003/48/EC or any other Directive implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the taxation of savings income or any law implementing or
complying with, or introduced in order to conform to, such Directive; 
 (g) any Tax that is imposed or levied on or with respect to a
payment made to a Holder or beneficial owner who would have been able to avoid such withholding or deduction by presenting the Securities to another paying agent in a Member State of the European Union; or 
 (h) any combination of Items (a) through (g) above. 
 Furthermore, Additional Amounts will not be paid with respect to the Securities to a Holder who is a fiduciary, a partnership, a limited liability company or other than the sole beneficial owner of the payment under
or with respect to the Securities, to the extent that payment would be required by the laws of a Relevant Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to the fiduciary, a member of that
partnership, an interest holder in that limited liability company or a beneficial owner who would not have been entitled to the Additional Amounts had it been the Holder of the Securities. 
 The Company, the relevant Subsidiary Guarantor or the relevant Successor, as the case may be, will (i) make such withholding or deduction as is
required by applicable law and (ii) remit the full amount withheld or deducted to the relevant taxing authority in accordance with applicable law. 
 At least 30 calendar days prior to each date on which any payment under or with respect to the Securities is due and payable, if the Company, any Subsidiary Guarantor or a Successor will be obligated to pay Additional
Amounts with respect to such payment, the Company, the relevant Subsidiary Guarantor or the relevant Successor (as the case may be) will deliver to the Trustee an Officers’ Certificate stating that such Additional Amounts will be payable and
the amounts so payable and will set forth such other information necessary to enable the Trustee to pay such Additional Amounts to Holders on the payment date (unless such obligation to pay Additional Amounts arises after the 30th day prior to the
date on which payment under or with respect to the Securities is due and payable, in which case such Officers’ Certificate shall be delivered promptly thereafter). The Company, the relevant Subsidiary Guarantor or the relevant Successor, as the
case may be, will promptly publish a notice in accordance with the notice provisions set forth in the Indenture stating that such Additional 

  

 B–7 

 
Amounts will be payable and describing the obligation to pay such amounts. 
 Upon written request, the Company, the relevant Subsidiary Guarantor or the relevant Successor, as the case may be, will furnish to the Trustee or to a Holder of the Securities copies of tax receipts evidencing the
payment of any Taxes by the Company, such Subsidiary Guarantor or such Successor in such form as provided in the normal course by the taxing authority imposing such Taxes and as is reasonably available to the Company, such Subsidiary Guarantor or
such Successor. If, notwithstanding the efforts of the Company, such Subsidiary Guarantor or such Successor to obtain such receipts, the same are not obtainable, the Company, such Subsidiary Guarantor or such Successor will provide the Trustee or
such Holder with other evidence reasonably satisfactory to the Trustee or the Holder. 
 In addition, the Company, any Subsidiary Guarantor
and any Successor, as the case may be, will pay any present or future stamp, issue, registration, court, documentation, excise or property taxes or other similar taxes, charges and duties, including interest and penalties with respect thereto,
imposed by or in any Relevant Taxing Jurisdiction in respect of the execution, issue, enforcement or delivery of the Securities or any other document or instrument referred to thereunder (other than on or in connection with a transfer of the
Securities other than the initial resale by the underwriters named in the Prospectus). 
 Whenever the Indenture or the Securities refers to,
in any context, the payment of principal, premium, if any, interest or any other amount payable under or with respect to any Security or with respect to any Guarantee, such reference includes the payment of Additional Amounts, if applicable.

  

	8.	Put Provisions 

 Upon the occurrence of a Change of
Control, each Holder of Securities will have the right to require the Company to repurchase all or any part of the Securities of such Holder at a purchase price equal to 101% of the aggregate principal amount of the Securities to be repurchased plus
accrued and unpaid interest, if any, to the date of purchase as provided in, and subject to the terms of, the Indenture. 
 In the event of
certain Sale/Leaseback Transactions, the Company may be required to make a Net Proceeds Offer to purchase all or any portion of each Holder’s Securities, at 100% of the principal amount thereof, plus accrued and unpaid interest to the Net
Proceeds Payment Date. 
  

	9.	Notice of Redemption 

 Notice of redemption will be
mailed to the Holder’s registered address at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed. If less than all Securities are to be redeemed, the Trustee shall select pro rata, by
lot or, if the Securities are listed on any securities exchange, by any other method that the Trustee considers fair and 

  

 B–8 

 
appropriate and that complies with the requirements of such exchange, the Securities to be redeemed in denominations of €50,000 principal amount and any
integral multiple of €1,000 in excess thereof; provided, however, that no Securities with a principal amount of €1,000 or less will be redeemed in part. Securities in denominations larger than €1,000 may be redeemed in
part. On and after the redemption date, interest ceases to accrue on Securities or portions of them called for redemption (unless the Company shall default in the payment of the redemption price or accrued interest). 
 For so long as the Securities are listed on the Official List of the Irish Stock Exchange and are admitted to trading on the Alternative Securities
Market thereof, notice of redemption and confirmation of the aggregate principal amount of the Securities that will remain outstanding immediately after such redemption will also be given to the Irish Stock Exchange. 
  

	10.	Restrictive Covenants 

 The Indenture imposes
certain limitations on, among other things, the ability of the Company to merge or consolidate with any other Person or sell and lease back certain of its properties or assets and the ability of the Company or the Subsidiaries to incur encumbrances
against certain property, all subject to certain limitations described in the Indenture. 
  

	11.	Ranking and Guarantees 

 The Securities are general
senior unsecured obligations of the Company. The Company’s obligation to pay principal, premium, if any, and interest with respect to the Securities is unconditionally guaranteed on a senior basis, jointly and severally, by the Subsidiary
Guarantors pursuant to Article Ten of the Indenture. Certain limitations to the obligations of the Subsidiary Guarantors are set forth in further detail in the Indenture. 
  

	12.	Denominations; Transfer; Exchange 

 The Securities
are in registered form without coupons in denominations of €50,000 principal amount and any integral multiple of €1,000 in excess thereof. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements or transfer documents, furnish information regarding the account of the transferee at Euroclear or Clearstream, where appropriate, and to pay any taxes and fees required by
law or permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or
any Securities for a period of 15 Business Days before the mailing of a notice of an offer to repurchase or redeem Securities or 15 Business Days before an interest payment date. 
  

 B–9 

	13.	Persons Deemed Owners 

 The registered Holder of
this Security may be treated as the owner of it for all purposes. 
  

	14.	Unclaimed Money 

 If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment. 
  

	15.	Discharge and Defeasance 

 Subject to certain
conditions, the Company at any time shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee euro, European Government Obligations, or any combination thereof, for
the payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
  

	16.	Amendment, Supplement, Waiver 

 Subject to certain
exceptions, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a majority of the outstanding principal amount of the Securities, and any past default or noncompliance with any provision may be
waived with the consent of the Holders of a majority in principal amount of the Securities. Without the consent of any Holder, the Company may amend or supplement the Indenture or the Securities to, among other things, cure any ambiguity, defect or
inconsistency or to make any change that does not adversely affect the rights of any Holder in any material respect. 
  

	17.	Successor Corporation 

 When a successor
corporation assumes all the obligations of its predecessor under the Securities and the Indenture, the predecessor corporation will be released from those obligations. 
  

	18.	Defaults and Remedies 

 An Event of Default
generally is: default by the Company or any Subsidiary Guarantor for 30 days in payment of interest on the Securities; default by the Company or any Subsidiary Guarantor in payment of principal of, or premium, if any, on the Securities; default by
the Company or any Subsidiary Guarantor in the deposit of any optional redemption or repurchase payment when due and payable; defaults resulting in acceleration prior to maturity of certain other Indebtedness or resulting from payment defaults under
certain other Indebtedness; failure by the Company or any Subsidiary Guarantor for 45 days after notice to comply with any of its other agreements in the Indenture; certain final judgments against the Company or Subsidiaries; a failure of any
Guarantee of a Subsidiary Guarantor to be in full 

  

 B–10 

 
force and effect or denial by any Subsidiary Guarantor of its obligations with respect thereto; and certain events of bankruptcy or insolvency. Subject to
certain limitations in the Indenture, if an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Securities may declare all the Securities to be due and payable
immediately, except that in the case of an Event of Default arising from certain events of bankruptcy, insolvency or reorganization, all outstanding Securities shall become due and payable immediately without further action or notice. Holders may
not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power. The Company must furnish an annual compliance certificate to the Trustee. 
  

	19.	Trustee Dealings with Company and Subsidiary Guarantors 

 The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Company, the Subsidiary Guarantors or their respective Subsidiaries or Affiliates with
the same rights it would have if it were not Trustee. 
  

	20.	No Recourse Against Others 

 A director, officer,
employee or stockholder, as such, of the Company, any Subsidiary Guarantor or the Trustee shall not have any liability for any obligations of the Company, any Subsidiary Guarantor or the Trustee under the Securities or the Indenture or for any claim
based on, in respect of or by reason of, such obligations or their creation. Each Holder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Security. 

 

	21.	Authentication 

 This Security shall not be valid
until the Trustee or an authenticating agent signs the certificate of authentication on the other side of this Security. 
  

	22.	Abbreviations 

 Customary abbreviations may be used
in the name of a Holder or an assignee, such as: TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=Custodian), and U/G/M/A (=Uniform Gifts to
Minors Act). 
  

	23.	Common Codes and ISIN Numbers 

 The Company will
cause Common Codes or ISIN numbers to be printed on the Securities as a convenience to Holders of the Securities. No representation is made as to the accuracy of such codes 

  

 B–11 

 
or numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon. 
  

	24.	Governing Law 

 THIS SECURITY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY, EXCEPT
TO THE EXTENT THAT THE LAWS OF THE STATE OF NEW YORK WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION REGARDING THE VALIDITY OF THE SECURITIES. 
  

 B–12 

 The Company will furnish to any Holder upon written request and without charge to the Security holder a
copy of the Indenture. Requests may be made to: 
 Chesapeake Energy Corporation 
 6100 North Western Avenue 
 Oklahoma City, OK
73118 
 Attention:         Treasurer 
  
  

 B–13 

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

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

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

  

					
	Dated:
                                	 	Your Signature:	 	  

  

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

	
	    Signature Guarantee:
	  

	    Signature must be guaranteed

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

 B–14 

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

									
	 Date of
 Exchange
	 	Amount of decrease in
Principal amount of this
Global Security	 	Amount of increase in
Principal amount of this
Global Security	 	Principal amount of this
Global Security following
such decrease or increase	 	Signature of authorized
officer of Trustee or
Securities Custodian
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

 B–15 

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

			
	 ̈    Section 4.10	  	 ̈    Section 4.11

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

  

							
	Dated:                                     
                    	 		 	Your Signature:	 	  

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

  

	
	    Signature Guarantee:
	  

	    (Signature must be guaranteed)

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.EX-10.1

    
       

       

      

      

    

     

    EMPLOYMENT
      AGREEMENT

     

    AGREEMENT,
      dated as of November 22nd,
      2006
      (the "Effective
      Date"),
      by and
      between Integrated Alarm Services Group, Inc., a Delaware corporation (the
      "Company"),
      and
      Bruce Quay, an individual residing at 6 Shaker Bay Road, Latham, NY 12110 (the
      "Executive").

     

    WHEREAS,
      the Company has determined that it is in the best interests of the Company
      and
      its shareholders to enter into an employment agreement with the Executive,
      and
      the Executive is willing to serve as an employee of the Company, subject to
      the
      terms and conditions of this Agreement; and

     

    WHEREAS,
      the Company and the Executive entered into an employment agreement, dated as
      of
      March 2, 2005 (the "Existing
      Employment Agreement");
      and

     

    WHEREAS,
      the Company and the Executive desire to provide for the continued employment
      of
      the Executive and to supersede the Existing Employment Agreement with this
      Agreement;

     

    NOW,
      THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     

    1. Employment
      and Duties.

     

    (a) General.
      The
      Executive shall serve as Chief Operating Officer of the Company, reporting
      to
      the Chief Executive Officer (the "CEO")
      of the
      Company. The Executive shall have such duties and responsibilities, commensurate
      with the Executive's position, as may be assigned to the Executive from time
      to
      time by the Board of Directors (the "Board")
      or the
      CEO of the Company. The Executive shall perform any and all duties related
      to
      his position with the Company and shall be available to confer and consult
      with
      and advise the officers and directors of the Company at such times as the
      Company may require. The Executive's principal place of employment shall be
      the
      principal offices of the Company currently located in Albany, New York,
provided,
      however,
      that
      the Executive understands and agrees that he will be required to travel from
      time to time for business reasons. 

     

    (b) Exclusive
      Services.
      For so
      long as the Executive is employed by the Company, the Executive shall devote
      his
      full-time working time to his duties hereunder, shall faithfully serve the
      Company, shall in all respects conform to and comply with the lawful and good
      faith directions and instructions given to him by the CEO and shall use his
      best
      efforts to promote and serve the interests of the Company. Further, the
      Executive shall not, directly or indirectly, render services to any other person
      or organization without the consent of the Company or otherwise engage in
      activities that would interfere with the faithful performance of his duties
      hereunder. 

     

    2. Term
      of Employment. The
      Executive's employment under this Agreement shall commence as of the Effective
      Date and shall terminate on the earlier of (i) the date that is eighteen
      months after the Effective Date and (ii) the termination of the Executive's
      employment under this Agreement; provided, however, that the term of the
      Executive's employment shall be automatically extended without further action
      of
      either party for additional eighteen-month periods unless written notice of
      either party's intention not to extend has been given to the other party at
      least 90 days prior to the expiration of the then effective Term. The period
      from the Effective Date until the termination of the Executive's employment
      under this Agreement is referred to as the "Term".

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Compensation
      and Other Benefits. Subject to the provisions of this Agreement, the Company
      shall pay and provide the following compensation and other benefits to the
      Executive during the Term as compensation for services rendered
      hereunder:

     

    (a) Base
      Salary.
      The
      Company shall pay to the Executive a salary (the "Base
      Salary")
      at the
      rate of $360,000 per annum, payable in substantially equal installments at
      such
      intervals as may be determined by the Company in accordance with its ordinary
      payroll practices as established from time to time. 

     

    (b) Bonus.
      In
      addition to the Base Salary, the Executive shall be eligible to earn for each
      calendar year ending during the Term an annual incentive bonus (the
“Bonus”)
      based
      on the achievement of one or more performance goals, targets, measurements
      and
      other factors (collectively, the “Performance
      Goals”)
      established for such year by the Compensation Committee of the Board (the
“Committee”).
      The
      Executive’s target annual bonus (the “Target
      Bonus”)
      and
      the applicable Performance Goals will be established by the Committee within
      90
      days of the first day of the year to which such Bonus relates. Payment of the
      Executive’s Bonus for any year will be based upon the achievement of the
      Performance Goals established by the Committee for that year (including, without
      limitation, the exercise of the Committee’s negative discretion under Section
      162(m) of the Internal Revenue Code of 1986, as amended (the “Code”)).
      The
      actual bonus paid may be higher or lower than the Target Bonus for over- or
      under-achievement of the Performance Goals (including, without limitation,
      the
      exercise of the Committee’s negative discretion under Section 162(m) of the
      Code), as determined by the Committee. Subject to Section 4 hereof, a
      Bonus, if any, shall be payable by March 15th
      of the
      succeeding calendar year or as soon thereafter as may be administratively
      practicable.

     

    (d) Savings
      and Retirement Plans.
      The
      Executive shall be entitled to participate in all savings and retirement plans
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time.

     

    (e) Welfare
      Benefit Plans.
      The
      Executive and/or his family shall be eligible to participate in and shall
      receive all benefits under the Company's welfare benefit plans and programs
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time. The Company
      shall include the Executive in its health insurance program available to the
      Company's executive officers and shall pay 100% of the premiums for such
      program.

     

    (f) Expenses.
      The
      Company shall reimburse the Executive for reasonable travel and other
      business-related expenses incurred by the Executive in the fulfillment of his
      duties hereunder upon presentation of written documentation thereof, in
      accordance with the applicable expense reimbursement policies and procedures
      of
      the Company as in effect from time to time.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g) Paid
      Time Off.
      The
      Executive shall be entitled to 22 vacation days and 4 sick/personal days
      each year during the Term, which shall be referred to together as "paid time
      off." The extent to which unused paid time off from one year shall be carried
      forward to any later year shall be governed by the Company's paid time off
      policy in effect from time to time. Upon separation of employment, for any
      reason, paid time off accrued and not used shall be paid in accordance with
      the
      Company's paid time off policy then in effect, and the determination of the
      amount of paid time off accrued and not used shall be made by the Company in
      its
      sole discretion pursuant to such policy.

     

    4. Termination
      of Employment.

     

    (a) Termination
      for Cause; Resignation.
      (i) If,
      prior to the expiration of the Term, the Company terminates the Executive's
      employment for Cause, as defined in Section 4(a)(ii) hereof, or if the
      Executive resigns from his employment hereunder, the Executive shall only be
      entitled to payment of unpaid Base Salary through and including the date of
      termination or resignation and any other amounts or benefits required to be
      paid
      or provided by law or under any plan, program, policy or practice of the Company
      ("Other
      Accrued Compensation and Benefits").
      The
      Company shall have no further obligation to compensate the Executive under
      any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company.

     

    (ii)Termination
      for "Cause"
      shall
      mean termination of the Executive's employment because of:

     

    (A) any
      act
      or omission that constitutes a material breach by the Executive of any of his
      obligations under this Agreement;

     

    (B) the
      willful and continued failure or refusal of the Executive to satisfactorily
      perform the duties reasonably required of him as an employee of the
      Company;

     

    (C) the
      Executive's conviction of, or plea of nolo
      contendere
      to,
      (1) any felony or (2) another crime involving dishonesty or moral
      turpitude or which could reflect negatively upon the Company or any of its
      subsidiaries or affiliates (the "Company
      Group")
      or otherwise impair or impede its operations;

     

    (D) the
      Executive's willful engaging in any misconduct, negligence, act of dishonesty,
      violence or threat of violence (including any violation of federal securities
      laws) that is injurious to the Company Group;

     

    (E) the
      Executive's material breach of a written policy of the Company, the Company's
      Code of Ethics, or the rules of any governmental or regulatory body applicable
      to the Company; 

     

    (F) the
      Executive's willful refusal to follow the lawful and good faith directions
      of
      the Board; 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (G) the
      Executive's engaging in conduct that constitutes activity in competition with
      the Company Group; or

     

    (I) any
      other
      willful misconduct by the Executive which is materially injurious to the
      financial condition, business, or reputation of the Company Group.

     

    (b) Termination
      without Cause.
      (i) If,
      prior to the expiration of the Term, the Executive's employment is terminated
      by
      the Company without Cause, the Company (A) shall pay (x) the Other Accrued
      Compensation and Benefits and (y) declared and unpaid Bonus, if any, and (B)
      shall continue to pay the Executive the Base Salary at the rate in effect on
      the
      date the Executive's employment is terminated, for the period remaining in
      the
      Term on the day prior to the date the Executive's employment is terminated,
      in
      accordance with the Company's ordinary payroll practices. The Company shall
      have
      no further obligation to compensate the Executive under Section 4(c) or any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company.

     

    (ii)The
      Company shall not be required to make the payments and provide the benefits
      provided for under Section 4(b)(i) unless the Executive executes and
      delivers to the Company a release substantially in the form attached as
      Exhibit A and the release has become effective and irrevocable in its
      entirety.

     

    (iii) The
      obligation of the Company to make the payments and provide the benefits provided
      for under Section 4(b)(i) shall not be affected by any compensation or other
      payments made to the Executive by any subsequent employer or other
      person.

     

    (iv)If,
      following a termination of employment without Cause, the Executive breaches
      the
      provisions of Sections 5 through 8 hereof, the Executive shall not be
      eligible, as of the date of such breach, for the payments described in
      Section 4(b)(i), and any and all obligations and agreements of the Company
      with respect to such payments shall thereupon cease.

     

    (c) Termination
      upon Change in Control.

     

    (i) Upon
      a
      Change in Control during the Term, the Term shall automatically be extended
      for
      18 months following the Change in Control. 

     

    (ii) In
      the
      event of the Executive's Involuntary Termination within 18 months after a Change
      in Control, provided such Change in Control occurs during the Term, (A) the
      Company shall pay the Executive a one-time cash bonus in the amount of $540,000,
      such bonus to be paid within 30 days of such Involuntary Termination, and (B)
      all stock options and warrants granted by the Company to the Executive under
      any
      plan prior to such termination shall vest, accelerate, and become immediately
      exercisable. The Company shall have no further obligation to compensate the
      Executive under Section 4(b)(i) or any other provision of this Agreement or
      any
      other severance or salary continuation arrangement of the Company. The Company
      shall not be required to make the payments and provide the benefits provided
      for
      under this Section 4(c)(ii) unless the Executive executes and delivers to
      the Company a release substantially in the form attached as Exhibit A and
      the release has become effective and irrevocable in its entirety.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iii) "Involuntary
      Termination"
      shall
      mean termination of the Executive's employment by the Company and its
      subsidiaries other than for Cause. The Executive shall be deemed to have
      incurred an Involuntary Termination if: (A) there is a Change in Control during
      the Term; and (B) within 18 months after such Change in Control, (1) the
      location of his principal place of employment is moved to a location that is
      more than 50 miles from the location of his principal place of employment
      immediately prior to such Change in Control, or (2) the Executive's Base Salary
      as in effect immediately prior to such Change in Control is reduced by more
      than
      10%, or (3) the Executive is not retained in a management position at the
      Company; and (C) he thereafter resigns from employment within 30 days of such
      change of location of principal place of employment, reduction in Base Salary
      or
      non-retention in a management position. Except as provided in this Section
      4(c),
      resignation from employment for any reason shall not be considered an
      Involuntary Termination. 

     

    (iv) A
      "Change
      in Control"
      shall
      occur if:

     

    (A) any
      "person" within the meaning of Section 14(d) of the Securities Exchange Act
      of
      1934, as amended, and any successor provisions thereto is or becomes the
      "beneficial owner" (as defined in Rule 13d-3 of the General Rules and
      Regulations under the Exchange Act), directly or indirectly, of securities
      of
      the Company representing 30% or more of the combined voting power of the
      Company's then outstanding securities entitled to vote in the election of
      directors of the Company;

     

    (B) during
      any twelve-month period (not including any period prior to the consummation
      of a
      Change in Control), individuals who at the beginning of such period constituted
      the Board and any new directors, whose election by the Board or nomination
      for
      election by the Company's stockholders was approved by a vote of at least
      one-half of the directors then still in office who either were directors at
      the
      beginning of the period or whose election or nomination for election was
      previously so approved, cease for any reason to constitute a majority thereof;
      

     

    (C) there
      occurs a reorganization, merger, consolidation or other corporate transaction
      involving the Company (a "Transaction"),
      in
      each case with respect to which the stockholders of the Company immediately
      prior to such Transaction do not, immediately after the Transaction, own more
      than 50% of the combined voting power of the Company or another corporation
      resulting from such Transaction, in substantially the same proportion of
      ownership as prior to such Transaction; or

     

    (D) all
      or
      substantially all of the assets of the Company are sold, liquidated or
      distributed.

     

    (d) Termination
      Due to Death or Disability.
      The
      Executive's employment with the Company shall terminate automatically on the
      Executive's death. In the event of the Executive's disability, the Company
      shall
      be entitled to terminate his employment. In the event of termination of the
      Executive's employment by reason of Executive's death or disability, the Company
      shall pay to the Executive (or his estate, as applicable) the Executive's Base
      Salary through and including the date of termination. For purposes of this
      Agreement, "disability"
      shall
      have the meaning set forth in the Company's long-term disability
      plan.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e) Notice
      of Termination.
      Any
      termination of employment by the Company or the Executive shall be communicated
      by a written "Notice
      of Termination"
      to the
      other party hereto given in accordance with Section 22 of this Agreement.
      In the event of a termination by the Company for Cause, the Notice of
      Termination shall (i) indicate the specific termination provision in this
      Agreement relied upon, (ii) set forth in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of the Executive's
      employment under the provision so indicated and (iii) specify the date of
      termination, which date shall not be more than 30 days after the giving of
      such notice. The failure by the Company to set forth in the Notice of
      Termination any fact or circumstance which contributes to a showing of Cause
      shall not waive any right of the Company hereunder or preclude the Company
      from
      asserting such fact or circumstance in enforcing the Company's rights
      hereunder.

     

    (f) Resignation
      from Directorships and Officerships.
      The
      termination of the Executive's employment for any reason will constitute the
      Executive's resignation from (i) any director, officer or employee position
      the Executive has with the Company and (ii) all fiduciary positions
      (including as a trustee) the Executive holds with respect to any employee
      benefit plans or trusts established by the Company. The Executive agrees that
      this Agreement shall serve as written notice of resignation in this
      circumstance; provided,
      however,
      that
      the Executive shall execute such other documents as may be required by the
      Company in connection with such resignation.

     

    5. Confidentiality.

     

    (a) Confidential
      Information.
      (i) The
      Executive agrees that he will not at any time, except with the prior written
      consent of the Company Group or, to the extent permitted pursuant to subsection
      5(a)(ii), as required by law, directly or indirectly, reveal to any person,
      entity or other organization (other than any member of the Company Group or
      its
      respective employees, officers, directors, shareholders or agents) or use for
      the Executive's own benefit any information deemed to be confidential by any
      member of the Company Group ("Confidential
      Information")
      relating to the assets, liabilities, employees, goodwill, business or affairs
      of
      any member of the Company Group, including, without limitation, any information
      concerning past, present or prospective customers, manufacturing processes,
      marketing data, or other confidential information used by, or useful to, any
      member of the Company Group and known to the Executive by reason of the
      Executive's employment by, shareholdings in or other association with any member
      of the Company Group; provided
      that
      such Confidential Information does not include any information which is
      available to the general public or is generally available within the relevant
      business or industry other than as a result of the Executive's action.
      Confidential Information may be in any medium or form, including, without
      limitation, physical documents, computer files or disks, videotapes, audiotapes,
      and oral communications. 

     

    (ii)In
      the
      event that the Executive becomes legally compelled to disclose any Confidential
      Information, the Executive shall provide the Company with prompt written notice
      so that the Company may seek a protective order or other appropriate remedy.
      In
      the event that such protective order or other remedy is not obtained, the
      Executive shall furnish only that portion of such Confidential Information
      or
      take only such action as is legally required by binding order and shall exercise
      his reasonable efforts to obtain reliable assurance that confidential treatment
      shall be accorded any such Confidential Information. The Company shall promptly
      pay (upon receipt of invoices and any other documentation as may be requested
      by
      the Company) all reasonable expenses and fees incurred by the Executive,
      including attorneys' fees, in connection with his compliance with the
      immediately preceding sentence.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)Confidentiality
      of Agreement.
      The
      Executive agrees that, except as may be required by applicable law or legal
      process, during the Term and thereafter, he shall not disclose the terms of
      this
      Agreement to any person or entity other than the Executive's accountants,
      financial advisors, attorneys or spouse, provided
      that
      such accountants, financial advisors, attorneys and spouse agree not to disclose
      the terms of this Agreement to any other person or entity.

     

    (c)Exclusive
      Property.
      The
      Executive confirms that all Confidential Information is and shall remain the
      exclusive property of the Company Group. All business records, papers and
      documents kept or made by the Executive relating to the business of the Company
      Group shall be and remain the property of the Company Group. Upon the request
      and at the expense of the Company Group, the Executive shall promptly make
      all
      disclosures, execute all instruments and papers and perform all acts reasonably
      necessary to vest and confirm in the Company Group, fully and completely, all
      rights created or contemplated by this Section 5.

     

    6. Noncompetition.
      The Executive agrees that, for a period commencing on the Effective Date and
      ending 18 months after termination of employment for any reason (the "Restricted
      Period"), the Executive shall not, without the prior written consent of the
      Company, directly or indirectly, and whether as principal, investor, employee,
      officer, director, manager, partner, consultant, agent or otherwise, alone
      or in
      association with any other person, firm, corporation or other business
      organization, carry on a Competing Business (as hereinafter defined) in any
      geographic area in which the Company Group has engaged in a Competing Business
      (including, without limitation, any area in which any customer of the Company
      Group may be located). For purposes of this Section 6, carrying on a
      "Competing Business" means to engage in the business of wholesale monitoring
      and
      related support services, financing solutions and products within the security
      alarm industry, and any other business engaged in by the Company within 12
      months after termination of employment; provided, however, that nothing herein
      shall limit the Executive's right to own not more than 1% of any of the debt
      or
      equity securities of any business organization that is then filing reports
      with
      the Securities and Exchange Commission pursuant to Section 13 or 15(d) of
      the Securities Exchange Act of 1934, as amended. In the event the Executive
      is
      employed at will by the Company Group for any period after the end of the Term,
      this Section 6 shall remain effective until the first anniversary of the date
      of
      the Executive's termination of employment. 

     

    7. Non-Solicitation.
      The Executive agrees that, during the Restricted Period, the Executive shall
      not, directly or indirectly, (a) interfere with or attempt to interfere
      with the relationship between any person who is, or was during the then most
      recent three-month period, an employee, officer, representative or agent of
      the
      Company Group and any member of the Company Group, or solicit, induce or attempt
      to solicit or induce any of them to leave the employ of any member of the
      Company Group or violate the terms of their respective contracts, or any
      employment arrangements, with such entities or (b) induce or attempt to
      induce any customer, client, supplier, licensee or other business relation
      of
      any member of the Company Group to cease doing business with any member of
      the
      Company Group, or in any way interfere with the relationship between any member
      of the Company Group and any customer, client, supplier, licensee or other
      business relation of any member of the Company Group. As used herein, the term
      "indirectly" shall include, without limitation, the Executive's permitting
      the
      use of the Executive's name by any competitor of any member of the Company
      Group
      to induce or interfere with any employee or business relationship of any member
      of the Company Group.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

            

            8. Assignment
      of Developments.

     

    (a) During
      the Executive’s employment, all Developments that are at any time made, reduced
      to practice, conceived or suggested by him, whether acting alone or in
      conjunction with others, shall be the sole and absolute property of the Company,
      free of any reserved or other rights of any kind on his part, and the Executive
      hereby irrevocably assigns, conveys and transfers any and all right, title
      and
      interest that he may have in such Developments to the Company Group. If such
      Developments were made, conceived or suggested by the Executive during or as
      a
      result of his employment relationship with the Company Group, the Executive
      shall promptly make full disclosure of any such Developments to the Company
      and,
      at the Company’s cost and expense, do all acts and things (including, among
      others, the execution and delivery under oath of patent and copyright
      applications and instruments of assignment) deemed by the Company to be
      necessary or desirable at any time in order to effect the full assignment to
      the
      Company of his right, title and interest, if any, to such Developments. The
      Executive acknowledges and agrees that any invention, concept, design or
      discovery that concretely relates to or is associated with the Executive’s work
      for the Company Group that is described in a patent application or is disclosed
      to a third party directly or indirectly by the Executive during the Restricted
      Period shall be the property of and owned by the Company, and such disclosure
      by
      patent application (except by way of a patent application filed by any member
      of
      the Company Group) or otherwise shall constitute a breach of Section 6
      above. 

     

    “Developments”
shall
      mean all data, discoveries, findings, reports, designs, inventions,
      improvements, methods, practices, techniques, developments, programs, concepts
      and ideas, whether or not patentable, relating to the present or planned
      activities, or the products and services of the Company Group.

     

    (b) If
      a
      patent application or copyright registration is filed by the Executive or on
      the
      Executive's behalf during the Executive's employment with the Company or within
      1 year after the Executive's leaving the Company's employ describing a
      Development within the scope of the Executive's work for the Company or which
      otherwise relates to a portion of the business of the Company of which the
      Executive had knowledge during the Executive's employment with the Company,
      it
      is to be conclusively presumed that the Development was conceived by the
      Executive during the period of such employment.

     

    9. Certain
      Remedies.

     

    (a) Forfeiture/Payment
      Obligations.
      In the
      event the Executive fails to comply with Sections 5 through 8, other than any
      isolated, insubstantial and inadvertent failure that is not in bad faith, the
      Executive agrees that he will: 

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (i) forfeit
      any amounts not already paid and repay to the Company any amounts already paid
      pursuant to Section 4(b) or 4(c) of the Agreement;

     

    (ii) forfeit
      all options, restricted stock and other equity based compensation awarded by
      the
      Company Group that have not vested or been exercised (in the case of options
      or
      awards with features similar to exercise) at the date of a determination by
      the
      Company that the Executive failed to comply with Sections 5 through 8 of the
      Agreement; and 

     

    (iii) pay
      to
      the Company Group the amount of all gain that the Executive realized within
      the
      12 months before the date of a determination by the Company that the
      Executive failed to comply with Sections 5 through 8 from the exercise or
      vesting of any stock options, restricted stock or other equity based
      compensation awarded by the Company Group. 

     

    (b) Time
      for Payment.
      The
      Executive will pay to the Company amounts due under Section 9(a) within 10
      days
      of a determination by the Company that the Executive failed to comply with
      Sections 5 through 8 of the Agreement. The obligations under Section 9(a) are
      full recourse obligations. 

     

    (c) Injunctive
      Relief.
      Without
      intending to limit the remedies available to the Company Group, including,
      but
      not limited to, those set forth in this Section 9, the Executive agrees
      that a breach of any of the covenants contained in Sections 5 through 8 of
      this
      Agreement may result in material and irreparable injury to the Company Group
      for
      which there is no adequate remedy at law, that it will not be possible to
      measure damages for such injuries precisely and that, in the event of such
      a
      breach or threat thereof, any member of the Company Group shall be entitled
      to
      seek a temporary restraining order or a preliminary or permanent injunction,
      or
      both, without bond or other security, restraining the Executive from engaging
      in
      activities prohibited by the covenants contained in Sections 5 through 8 of
      this
      Agreement or such other relief as may be required specifically to enforce any
      of
      the covenants contained in this Agreement. Such injunctive relief in any court
      shall be available to the Company Group in lieu of, or prior to or pending
      determination in, any arbitration proceeding.

     

    (d) Extension
      of Restricted Period.
      In
      addition to the remedies the Company may seek and obtain pursuant to this
      Section 9, the Restricted Period shall be extended by any and all periods
      during which the Executive shall be found by a court possessing personal
      jurisdiction over him to have been in violation of the covenants contained
      in
      Sections 5 through 8 of this Agreement.

     

    10. Defense
      of Claims. The Executive agrees that, during the Term and for a period of
      two years after termination of the Executive's employment, upon request from
      the
      Company, the Executive will cooperate with the Company in the defense of any
      claims or actions that may be made by or against the Company that affect the
      Executive's prior areas of responsibility, except if the Executive's reasonable
      interests are adverse to the Company in such claim or action. The Company agrees
      to promptly reimburse the Executive for all of the Executive's reasonable travel
      and other direct expenses incurred, or to be reasonably incurred, to comply
      with
      the Executive's obligations under this Section 10.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    11. Nondisparagement. The
      Executive agrees that at no time during his employment by the Company or
      thereafter shall he make, or cause or assist any other person to make, any
      statement or other communication to any third party which impugns or attacks,
      or
      is otherwise critical of, the reputation, business or character of any member
      of
      the Company Group or any of its respective directors, officers or employees.
      

     

    12. Periods
      Following the Term.
      For the
      avoidance of doubt, the provisions of Sections 5 through 11 shall continue
      in
      effect following the expiration of the Term, including, without limitation,
      during any period that the Executive remains an employee-at-will of the
      Company.

     

    13. Source
      of Payments. All
      payments provided under this Agreement, other than payments made pursuant to
      a
      plan which provides otherwise, shall be paid in cash from the general funds
      of
      the Company, and no special or separate fund shall be established, and no other
      segregation of assets shall be made, to assure payment. The Executive shall
      have
      no right, title or interest whatsoever in or to any investments which the
      Company may make to aid the Company in meeting its obligations hereunder. To
      the
      extent that any person acquires a right to receive payments from the Company
      hereunder, such right shall be no greater than the right of an unsecured
      creditor of the Company.

     

    14. Nonassignability;
      Binding Agreement.

     

    (a) By
      the
      Executive.
      This
      Agreement and any and all rights, duties, obligations or interests hereunder
      shall not be assignable or delegable by the Executive.

     

    (b) By
      the
      Company.
      This
      Agreement and all of the Company's rights and obligations hereunder shall not
      be
      assignable by the Company except as incident to a reorganization, merger,
      consolidation, or transfer of all or substantially all of the Company's
      assets.

     

    (c) Binding
      Effect.
      This
      Agreement shall be binding upon, and inure to the benefit of, the parties
      hereto, any successors to or assigns of the Company and the Executive's heirs
      and the personal representatives of the Executive's estate. 

     

    15. Withholding.
      Any payments made or benefits provided to the Executive under this Agreement
      shall be reduced by any applicable withholding taxes or other amounts required
      to be withheld by law or contract.

     

    16. Amendment;
      Waiver. This Agreement may not be modified, amended or waived in any manner,
      except by an instrument in writing signed by both parties hereto. The waiver
      by
      either party of compliance with any provision of this Agreement by the other
      party shall not operate or be construed as a waiver of any other provision
      of
      this Agreement, or of any subsequent breach by such party of a provision of
      this
      Agreement.

     

    17. Governing
      Law. All matters affecting this Agreement, including the validity thereof,
      are to be governed by, and interpreted and construed in accordance with, the
      laws of the State of New York applicable to contracts executed in and to be
      performed in that State.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    18. Entire
      Agreement; Supersedes Previous Agreements. This Agreement contains the
      entire agreement and understanding of the parties hereto with respect to the
      matters covered herein including, without limitation, the Existing Employment
      Agreement, and supersedes all prior or contemporaneous negotiations,
      commitments, agreements and writings with respect to the subject matter hereof,
      all such other negotiations, commitments, agreements and writings shall have
      no
      further force or effect, and the parties to any such other negotiations,
      commitments, agreements or writings shall have no further rights or obligations
      thereunder.

     

    19. Counterparts.
      This Agreement may be executed by either of the parties hereto in counterparts,
      each of which shall be deemed to be an original, but all such counterparts
      shall
      together constitute one and the same instrument.

     

    20. Headings.
      The headings of sections herein are included solely for convenience of reference
      and shall not control the meaning or interpretation of any of the provisions
      of
      this Agreement.

     

    21. Section
      409A Compliance.
      

     

    (a) If,
      at
      the time of the Executive’s Separation from Service (as defined in applicable
      Treasury regulations for purposes of Code Section 409A) with the Company, the
      Executive is a Specified Employee (as defined in Code Section 409A(a)(2)(B)(i)),
      then, solely to the extent necessary for compliance with Code Section 409A,
      any amounts payable to the Executive pursuant to this Agreement during the
      period beginning on the date of the Executive’s Separation from Service and
      ending on the 6-month anniversary of such date (the “Short-Term
      Deferral Date”)
      shall
      be delayed and not paid to the Executive until the first business day following
      the Short-Term Deferral Date, at which time such delayed amounts will be paid
      to
      the Executive in a cash lump sum. 

     

    (b) If
      any
      provision of this Agreement would, in the reasonable, good faith judgment of
      the
      Company, result or likely result in the imposition on the Executive or any
      other
      person of a penalty tax under Code Section 409A, the Company may reform
      this Agreement or any provision hereof, without the Executive’s consent, in the
      manner that the Company reasonably and in good faith determines to be necessary
      or advisable to avoid the imposition of such penalty tax; provided,
      however,
      that
      any such reformation shall, to the maximum extent the Company reasonably and
      in
      good faith determines to be possible, retain the economic and tax benefits
      to
      the Executive hereunder while not materially increasing the cost to the Company
      of providing such benefits to the Executive. Except as provided for in the
      preceding sentence, the provisions of this Agreement may not be amended,
      supplemented, waived or changed orally, but only by a writing signed by the
      party as to whom enforcement of any such amendment, supplement, waiver or
      modification is sought and making specific reference to this
      Agreement.

     

    22. Notices.
      All notices or communications hereunder shall be in writing (including
      electronic transmission) and shall be (as elected by the person giving the
      notice) hand delivered by messenger or courier service, electronically
      transmitted, or mailed by registered or certified mail (postage prepaid), return
      receipt requested, addressed as follows:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    
      	
              To
                the Company:

              Integrated
                Alarm Services Group, Inc.

              99
                Pine Street, 3rd
                Floor

              Albany,
                NY 12207 

              Attention:
                Charles May CEO

              Phone:
                518-426-1515

              Fax:
                518-426-0953

               

              With
                a copy to:

              Shearman
                & Sterling LLP

              599
                Lexington Avenue

              New
                York, NY 10022

              Attention:
                Kenneth J. Laverriere

              Phone:
                212-848-8172 

              Fax:
                646-848-8172

               

            	
              To
                the Executive:

              Bruce
                Quay

              6
                Shaker Bay Road

              Latham,
                New York 12110

              Phone:
                518-785-3386

              Fax:
                518-785-3296

            

    

     

     

    All
      such
      notices shall be conclusively deemed to be received and shall be effective
      (a) on the date delivered if by personal delivery; or (b) on the date
      of transmission with confirmed answer back if by electronic transmission; or
      (c)
      on the date the return receipt is signed or delivery is refused or the date
      the
      notice is designated by the postal authorities as not deliverable, as the case
      may be, if mailed.

     

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
      officer pursuant to the authority of its Board, and the Executive has executed
      this Agreement, as of the day and year first written above.

     

        By:
      /s/
      Charles T. May   

    Name:
      Charles T. May

    Title: Chief
      Executive Officer

    

    

     

    THE
      EXECUTIVE

    /s/
      Bruce E. Quay   

    Bruce
      E.
      Quay

     

    

    
      
        
        

      

      
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    EXHIBIT
      A

    

    RELEASE
      OF CLAIMS

    

    

    I,
      Bruce
      Quay, the undersigned, and Integrated Alarm Services Group, Inc. (the
      "Company")
      entered into an Employment Agreement, dated November 17, 2006, ("Agreement")
      and
      this Release of Claims is being delivered to the Company in consideration of
      amounts payable to me under the Agreement to which I am not otherwise entitled.
      

     

    

    I
      agree
      that this Release of Claims becomes effective seven (7) days after I sign it,
      unless, prior to the end of that 7-day period, I have revoked this Release
      of
      Claims in the manner described below. 

     

    1.General
      Release. In consideration of the promises of the Company set forth in the
      Agreement, which includes compensation to which I would not otherwise be
      entitled, I, on behalf of myself, and my heirs, executors, administrators,
      successors, assigns, dependents, descendants and attorneys hereby knowingly,
      voluntarily, and willingly fully and forever release, discharge, and covenant
      not to sue the Company and its direct and indirect parents, subsidiaries,
      affiliates, and related companies, past and present, as well as each of its
      and
      their directors, officers, employees, agents of the foregoing, representatives,
      advisers, trustees, insurers, assigns, successors, and agents, past and present
      (collectively, hereinafter referred to as the "Released Parties"), of, from,
      and
      with respect to any claim, duty, obligation, or cause of action relating to
      any
      matters of any kind, whether presently known or unknown, suspected or
      unsuspected, that any of them may possess arising from any omissions, acts,
      or
      facts that have occurred up until and including the date of this Release of
      Claims including:

     

    
      	·  	
              any
                and all claims relating to or arising from my employment relationship
                with
                the Company and the termination of either such relationship;
                

            

    

     

    
      	·  	
              any
                and all claims for wrongful discharge of employment; breach of contract,
                both express and implied; breach of a covenant of good faith and
                fair
                dealing, both express and implied; negligent or intentional infliction
                of
                emotional distress; negligent or intentional misrepresentation; negligent
                or intentional interference with contract or prospective economic
                advantage; and defamation;

            

    

     

    
      	·  	
              any
                and all claims arising under the Employee Retirement Income Security
                Act
                of 1974, the Civil Rights Acts of 1866 and 1867, Title VII of the
                Civil
                Rights Act of 1964, as amended, the Civil Rights and Women's Equity
                Act of
                1991, Sections 1981 through 1988 of Title 42 of the United States
                Code, as
                amended, the Occupational Safety and Health Act of 1970, the Consolidated
                Omnibus Budget Reconciliation Act of 1985, the Family and Medical
                Leave
                Act of 1993, the Worker Adjustment and Retraining Notification Act
                of
                1988, the Vocational Rehabilitation Act of 1973, the Equal Pay Act
                of
                1963, the Americans with Disabilities Act, the Fair Labor Standards
                Act,
                and the National Labor Relations Act, as amended, any other federal
                or
                state anti-discrimination law, or any local or municipal ordinance
                relating to discrimination in employment or human rights and the
                common
                law;

            

    

     

    

    
      
        
        

      

      
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      	·  	
              any
                and all claims for salary, bonus, severance pay, pension, paid time
                off
                pay, life insurance, health or medical insurance, or any other fringe
                benefits, other than the payments and benefits provided for in the
                Agreement; 

            

    

     

    
      	·  	
              any
                and all claims arising out of any other laws and regulations relating
                to
                employment or employment discrimination; and

            

    

     

    
      	·  	
              any
                and all claims for attorneys' fees and
                costs.

            

    

     

    2.  ADEA
      Release.
      In
      consideration of the promises of the Company set forth in the Agreement, I
      hereby release and discharge the Released Parties from any and all claims that
      I
      may have against the Released Parties arising under the U.S. Age Discrimination
      in Employment Act of 1967, as amended, and the applicable rules and regulations
      promulgated thereunder ("ADEA").
      I
      understand that the ADEA is a federal statute that prohibits discrimination
      on
      the basis of age in employment, benefits, and benefit plans. I also understand
      that, by signing this Release of Claims, I am waiving all claims against any
      and
      all of the Released Parties. 

     

    3. Representations
      by Me.
      By
      signing this Release of Claims, I confirm the following:

     

    
      	·  	
              I
                am providing the release and discharge set forth in this Release
                of Claims
                in exchange for consideration in addition to anything of value to
                which I
                am already entitled.

            

    

     

    
      	·  	
              I
                was advised by the Company in writing to consult with an attorney
                of my
                choice prior to signing this Release of Claims and to have such attorney
                explain to me the terms of the Agreement and the Release of Claims
                including the terms relating to my release of claims arising under
                the
                ADEA.

            

    

     

    
      	·  	
              I
                have read the Agreement and this Release of Claims carefully and
                completely and understand each of
                them.

            

    

     

    
      	·  	
              I
                understand that I am not waiving any rights or claims provided under
                ADEA
                that may arise after I sign this Release of
                Claims.

            

    

     

    4.
      Period
      to Consider and Revocation. I understand that I have twenty-one days in
      which to consider the terms of the Agreement and this Release of Claims. To
      the
      extent I sign the Agreement and this Release of Claims within less than
      twenty-one (21) days after its delivery to me, I acknowledge that my decision
      to
      execute the Agreement and this Release of Claims prior to the expiration of
      such
      twenty-one (21)-day period was entirely voluntary. For a period of seven days
      following the date I execute this Release of Claims, I have 

     

    
      
        
        

      

      
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    the
      right
      to revoke the release contained in Section 2 (the "Revocation Period"). The
      Revocation Period shall expire at 5:00 p.m. New York City time on the last
      day
      of the Revocation Period; provided, however, that, if such seventh day is not
      a
      business day, the Revocation Period shall extend to 5:00 p.m. on the next
      succeeding business day. No such revocation by me shall be effective unless
      it
      is in writing and signed by me and received by the Company prior to the
      expiration of the Revocation Period.

     

    5.
        Rights
      Not Released.
      I
      understand that, notwithstanding any of the foregoing, by signing this Release
      of Claims, I shall not release the Company from any of the indemnity rights
      I
      may have against the Company under its By-Laws or under the laws of the State
      of
      Delaware, or from any of the rights I may have against the Company pursuant
      to
      the Agreement. 

     

    

     

    

     

    ________________________

    Bruce
      E.
      Quay

    

    DATE:
      ______________ 

     

    STATE
      OF:   )

    )
      ss:

    COUNTY
      OF   )

    

    On
      this
      ____ day of ________, 2006, before me personally came ___________________ to
      me
      known, and known to me to be the individual described in, and who executed
      the
      foregoing letter and duly acknowledged to me that he/she executed the
      same.

     

    __________________

    NOTARY
      PUBLIC

     

    
 

    
      
        
        

      

      
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